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Best Oil Trading Brokers 2020

Kate Leaman
Last Update:
At FX Empire, we stick to strict standards of a review process. Learn about our review process. FX Empire may receive compensation. Here’s how we make money.

Oil is one of many assets you can trade as a CFD online. This means you will speculate on the price of oil, rather than actually buying the underlying asset, so you won’t need to take delivery of a hundred barrels of oil to your front room! Oil price is subject to change from a number of outside factors. These can be geopolitical in nature and can arise from tensions in the Middle East for instance, or from an oversupply of oil.

The following brokers in our recommended oil brokers list is comprised of the leading brokers in the field. We have compiled this list based on a number of factors, which include the performance of the broker, the transparency, the level of service, the product and the conditions offered by the company, such as the spread on the oil price. We also take into consideration the user feedback we get from real users like you.

The brokers below represent the best Oil trading features

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BrokerRatingOfficial SiteRegulationsMin DepositMax LeverageTrading PlatformsFoundation YearPublicly TradedTrading Desk TypeCurrenciesCommoditiesIndicesStocksCryptoCommission on tradesFixed spreadsoffers promotionsOfficial Site
XTB
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79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money

CNMV in Spain, CySEC, FCA, IFSC, KNF

$0

1:500

MT4, xStation 5

2002

Market Maker, STP

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79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money

First Prudential Markets Pty Ltd
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Your capital is at risk

ASIC, CySEC

$100

1:500

IRESS, MT4, MT5, webtrader

2005

No dealing desk

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Your capital is at risk

FXCM
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74.74% of retail investor accounts lose money

ASIC, FCA, FSP

$50

1:30

MT4

1999

Dealing Desk, Market Maker

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74.74% of retail investor accounts lose money

IC Markets
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Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

ASIC, CySEC, fsa-sc

$200

1:500

cTrader, MT4, MT5

2007

ECN, No dealing desk

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Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

Forex TB Ltd
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Your Capital is at Risk

CySEC

$250

1:400

MT4

2012

STP

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Your Capital is at Risk

Plus500
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76.4% of retail CFD accounts lose money

ASIC, CySEC, FCA, FSB, ISA, MAS

$100

1:30

Plus500

2008

No dealing desk

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76.4% of retail CFD accounts lose money

FXTM
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90% of retail CFD accounts lose money

CySEC, FCA, FSC

$10

1:30

MT4, MT5

2011

No dealing desk

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90% of retail CFD accounts lose money

eToro
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62% of retail CFD investors lose money

ASIC, CySEC, FCA, MiFID

$200

N/A

eToro Platform, MT4, MT5, Tradologic, Zulutrade

2007

Market Maker, No dealing desk, STP

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62% of retail CFD investors lose money

Pro Tip: Most of these brokers offer free demo accounts so you can test the brokers and their platforms with virtual money. Give it a try with some play money before using your own cash.

Note: Not all Forex brokers accept US clients. For your convenience we specified those that accept US Forex traders as clients.

XTB

Regulated By:CNMV in Spain, CySEC, FCA, IFSC, KNF

Foundation Year:2002

Headquarters:Warsaw, Poland

Min Deposit:$0

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79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money

XTB is an award-winning CFD platform that supports Forex, indices, commodities, stock CFDs, ETF CFDs, and cryptocurrencies. For Forex, XTB supports 48 currency pairs with low-cost spreads. Customers of XTB can choose between trading on the xStation 5 or MT4 platforms. For leverage accounts, this brokerage offers leverage of up to 200:1.

Stock and ETF CFDs all attract a fixed commission of 0.08% per lot across the two types of accounts.

XTB was founded in 2002 with headquarters in Warsaw. It is regulated in markets across Europe by the IFSC, FCA, KNF, and CySec. XTB has a free demo account and a Trading Academy set of courses for beginner and intermediate traders.

Pros: Cons:
  • Choose between two excellent trading platforms (xStation 5 or MT4 platforms)
  • A collection of 3000+ trading instruments across six asset classes
  • Low spreads
  • Fewer Forex pairs than some top competitors
  • No 24/7 support

FP Markets

Regulated By:ASIC, CySEC

Foundation Year:2005

Headquarters:Level 5, Exchange House 10 Bridge St Sydney NSW 2000, Australia

Min Deposit:$100

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Your capital is at risk

FP Markets was founded in 2005 and is regulated by the Australian Securities and Investments Commission (ASIC), offering segregation of client funds and top tier liquidity. FP Markets is a group of companies that includes First Prudential Markets Ltd which is authorised and regulated by the Cyprus Securities and Exchange Commission.

The broker offers the ability to trade on more than 10,000+ financial instruments covering Forex, Equities, Metals, Commodities, Indices and Cryptocurrency CFDs. Users have access to a range of accounts including the Standard Account (commission-free) and Raw Account (commission-based) for MetaTrader users, both offering ECN pricing and maximum leverage of 500:1. Users can also access Iress Accounts which are commission-based.

Pros: Cons:
  • ASIC regulated.
  • ECN pricing and DMA trading available.
  • 10,000+ tradable financial instruments.
  • Wide range of trading platforms and trading tools available.
  • Excellent customer support and education tools.
  • The volume of choice of markets and accounts may be overwhelming for beginner traders.

FXCM

Regulated By:ASIC, FCA, FSP

Foundation Year:1999

Headquarters:20 Gresham Street, 4th Floor, London EC2V 7JE, United Kingdom

Min Deposit:$50

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74.74% of retail investor accounts lose money

Founded in 1999, FXCM Group is an international online forex and CFD brokerage brand. In the UK, the FXCM brand is managed by FXCM Ltd. The company is based in the UK and its head office is located at 20 Gresham Street, 4th Floor, London EC2V 7JE, United Kingdom.

The brokerage firm also maintains offices in several jurisdictions such as Australia and South Africa. The broker is well known in the online trading community for suffering massive losses when the Swiss franc was unpegged from the US dollar in 2015. Having recovered from the crisis, FXCM today is focused on catering to the trading needs of both beginner traders and experienced traders.

 Pros:  Cons:
  • Regulated Broker
  • Multiple choices of trading platforms
  • Numerous free trading tools provided
  • Low minimum deposit requirement
  • Comprehensive educational section
  • Limited product portfolio
  • No longer accepts US clients after losing US regulatory license

IC Markets

Regulated By:ASIC, CySEC, fsa-sc

Foundation Year:2007

Headquarters:International Capital Markets Pty Ltd Level 6 309 Kent Street Sydney NSW 2000, Australia

Min Deposit:$200

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Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

IC Markets was founded in Sydney, Australia in 2007 and is regulated by the Australian Securities and Investments Commission (ASIC), as well as the Seychelles Financial Services Authority (FSA). According to the broker’s website, they processed $646 billion worth of trading volume in April 2019 alone.

While the broker offers services and features designed for both beginner and professional traders, the company promote themselves as the ‘go to’ choice for high volume traders, scalpers and trading algos due to their New York Equinix NY4 data centre – processing over 500,000 trades per day.

Pros: Cons:
  • True ECN broker with institutional grade liquidity.
  • MetaTrader and cTrader available on desktop, web and mobile.
  • Wide range of tradable products with 24/7 customer support.
  • Impressive library of educational material and videos.
  • Beginner traders may be overwhelmed by the choice of markets and platforms.

ForexTB

Regulated By:CySEC

Foundation Year:2012

Headquarters:Kleanthis Tower, Lemesou Avenue 71, 2nd Floor, 2121, Aglantzia, Nicosia, Cyprus

Min Deposit:$250

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Your Capital is at Risk

ForexTB was founded in 2012 and is authorised and regulated by the Cyprus Securities and Exchange Commission (CySEC) under the name ForexTB Ltd. The broker, due to regulatory requirements offers negative balance protection for retail clients.

Users can choose from 4 different account types called Basic, Gold, Platinum and VIP. Each one has different minimum deposits and trading costs and comes with different additional services such as live webinars, access to Trading Central, better withdrawal fees and more.

Pros: Cons:
  • CySEC regulated.
  • 300+ markets to trade on.
  • Can trade on MetaTrader 4 platform.
  • No 24-hour customer support.

Plus500

Regulated By:ASIC, CySEC, FCA, FSB, ISA, MAS

Foundation Year:2008

Headquarters:Building 25, MATAM, Haifa, Israel

Min Deposit:$100

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76.4% of retail CFD accounts lose money

Plus500 is a leading online forex and CFD provider. The company was founded in Israel in 2008. Today, it has regional offices in UK, Cyprus, Australia and Singapore. Plus500 offers over 2,500 trading instruments that can be traded on its platforms.

Pros:

  • 2,000+  CFD products available for trading across global markets, including cryptocurrency CFDs
  • Offers guaranteed stop-loss orders
  • Multiple regulations from different countries. Regulation includes FCA, ASIC, CySEC and MAS.
  • Over 100 chart indicators are available in the web platform
Cons:

  • Lack of content and news headlines
  • Lack of Trader Education to clients
  • No phone support offered

FXTM

Regulated By:CySEC, FCA, FSC

Foundation Year:2011

Headquarters:FXTM Tower, 35 Lamprou Konstantara, Kato Polemidia, 4156, Limassol, Cyprus

Min Deposit:$10

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90% of retail CFD accounts lose money

FXTM is also known as ForexTime, and commenced operations in 2011 from its de facto headquarters in Limassol, Cyprus. Since then, FXTM has achieved rapid global expansion, driven primarily by its desire to serve specific local markets with strong FX demand.

Pros Cons
  • Highly regulated by leading regulators FCA and CySEC
  • Access to both MT4 and MT5
  • An amazing selection of analysis and news
  • A solid educational offering
  • Both ECN and standard accounts available
  • Not the lowest spreads on the standard account

eToro

Regulated By:ASIC, CySEC, FCA, MiFID

Foundation Year:2007

Headquarters:Kanika International Business Center 7th Floor, 4 Profiti Ilia Street Germasogeia, Limassol, Cyprus

Min Deposit:$200

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62% of retail CFD investors lose money

eToro is an online trading platform that was founded in 2007 by the Assia siblings and their friend David Ring in Tel Aviv, Israel. Formerly known as RetailFX, eToro is the pioneering online broker for social trading. Their Openbook social trading platform in fact changed the nature of the way beginner online traders can trade the financial markets. It made the markets accessible to everyone, no matter what their level of experience by creating a user-friendly environment and allowing traders to copy the trades of other traders’ strategies automatically.

Pros: Cons:
  • Highly regulated broker (FCA, CySEC and ASIC)
  • Innovative trading platform
  • Wide range of assets to trade with
  • Ability to earn 2% management fee as an Investor trader
  • Spreads are higher than average
  • Does not have the MetaTrader platform

Oil Trading Explained

Understanding what kind of contracts you will trade on your platform as well as other contract specifications for the crude oil asset will enhance your trading experience as you engage this asset in the financial markets. So what awaits you when you trade crude oil?

Oil is one of the hottest commodities traded on commodity exchanges as well as on forex platforms as a CFD asset. Oil is a soft commodity, which is extracted from the ground. The derivatives of crude oil are used in so many industries that it is hard to think of a world without it. The volatility in the price of crude oil makes it a tradable asset. Available contracts for trading oil include the following:

  • Spot contracts
  • Forwards
  • Futures
  • Options
  • NDFs

Oil is traded in the futures market, primarily located on the New York Mercantile Exchange (NYMEX). The oil futures market is traded round the clock, except for a one-hour break within each trading day when the open outcry markets shut down and the CBOT markets kick in.

Crude oil trading can be done in two ways:

  1. As spot contracts with immediate settlement and delivery.
  2. As futures contracts with settlement and delivery provided for in 3 months. However, pricing of the contracts is usually settled immediately.

It is very expensive to trade crude oil on the futures and options exchanges. The margin requirements for trading crude oil on the exchanges as futures or options contracts are very high and many retail traders cannot afford it. Retail traders can however access trading on the asset, usually in the form of contract-for-difference (CFD), which does not involve physical exchange of the asset.

Oil prices are highly susceptible to economic and political factors (e.g. conflict in oil producing countries), as well as production levels, OPEC quotas and the state of global supplies. Crude stockpile statistics also play a major role in the pricing of crude oil.

Traditionally, the Brent crude (UK crude) price is higher than that of US crude (light sweet). This is because Brent crude is a heavier type of crude with a lot of impurities which need to be cleaned out during refining. This is a more expensive process, which makes the cost of UK crude higher than that of US crude.

How to Choose a Crude Oil Trading Broker

When choosing a broker to offer you with the best in crude oil trading, you need to consider the following factors:

  1. Regulation: Is the broker regulated? If yes, what are the conditions attached to the trading of crude oil by the broker?
  2. Trading platform type: What trading platforms are featured and what is the crude oil asset listed as?
  3. Software: What software is available to trade crude oil?

Regulation

Many regulated brokerages offer the trading of crude oil contracts. Usually, two contracts can be found: contracts for light sweet crude (also known as US crude on some platforms) as well as Brent crude (also known as UK crude).

Apart from broker regulation, other factors to consider include the stance of regulators on the leverage and margin requirements for the trading of crude oil contracts. The Commodities and Futures Trading Commission (CFTC) introduced a leverage cap for commodities traded as futures and options assets, pegging the maximum allowable leverage at 1:20. This placed a huge capital demand on the trading of crude oil on retail brokerages.

However, regulated brokers in Europe, Australia, and the United Kingdom do not place such restrictions, thus allowing more participation from the retail public in the trading of crude oil contracts.

Crude Oil Trading Platforms

Crude oil can be traded on the following retail platforms:

  1. MT4/MT5
  2. ActTrader
  3. JForex
  4. cTrader

The common form of crude oil contracts listed on these market maker platforms is the pairing of crude oil with the US Dollar (Oil/USD). Usually, contracts exist for both US crude and UK crude.

Crude oil is also available on professional trading platforms such as those of LMAX and Currenex.

Software

There is a range of automated trading software available to trade crude oil on the various platforms used in the forex and commodity markets. Traders should match the programming languages of their platforms with the software they want to in order to create a compatible trading environment.

Oil Trading Account Types

Oil can be traded in both directions: upwards using long orders or downwards using short orders. Crude oil is a very volatile asset and price movements can be unpredictable. Therefore it is essential that traders are offered account types that match their risk appetite. The brokers we showcase offer the following account types:

  1. The micro account: This is the beginner level account and provides for restricted contract sizes to enable the traders in this category to minimize risk. Usually, only micro-lot trading is available here.
  2. Intermediate level accounts are provided for traders with some level of experience, but who do not have access to large capital. This account type allows mini-lot trading, but trade sizes are usually capped at 1 Standard Lot.
  3. VIP/Platinum accounts: Only traders with lots of experience and large capital are allowed to operate VIP accounts. This account type also comes with some special bonuses.

Commissions & Spreads

On retail platforms such as the MT5, crude oil trading attracts both commissions and spreads. On ECN platforms, traders are expected to pay commissions on trade entry and exit.

Conclusion

Our list of crude oil trading brokers features brokers with the following characteristics:

  • Brokers that are regulated by CySEC, ASIC and FCA
  • Brokers that have structured account types for various categories of traders.
  • Brokers whose platforms permit the use of the automated trading software.

Read More:

Trade With A Regulated Broker

  • Your capital is at risk
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