Table of Contents
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Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

Top- Rated Crude Oil Trading Brokers and Platforms

Oil trading is one of the favored diversification trades of Forex traders, with oil CFDs the best option. We have evaluated the best brokers for trading crude oil to ensure you have a competitive edge from a secure and trustworthy trading environment.

80% of retail CFD accounts lose money
1
5/5
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
One of the best platforms for CFD traders.
Trailing stop losses
2
4.9/5
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Three oil derivative contracts with spreads from 0.04 points + NDD order execution
Upgraded MT4/MT5 trading platforms & VPS hosting for algorithmic oil traders
3
4.8/5
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Two oil derivative contracts with spreads from 0.03 points + competitive swap rates
Capitalise AI for code-free algorithmic oil trading + MT4/MT5 trading platforms
4
4.7/5
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
MT4, MT5, and cTrader for algorithmic oil trading.
Deep liquidity pools & ultra-fast NDD order execution.
5
4.6/5
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Four oil derivative contracts with spreads from 0.03 points + oil ETF trading
Choice of trading platforms + Capitalise AI for code-free algorithmic oil trading

Top Oil Trading Platforms

  • Plus500, multi-asset and CFD broker.
  • FP Markets, ECN trading with leverage up to 1:500.
  • Eightcap, Competitive pricing + excellent daily videos.
  • Pepperstone, Great ECN execution on MT4 platform.
  • AvaTrade, Highly regulated, choice of fixed or floating spreads.

Plus500

In Summary multi-asset and CFD broker

Plus500 is a global Forex broker founded in 2008. It maintains an excellent regulatory environment provided by the FCA in the UK, the CySEC in Cyprus, the ASIC in Australia, the FMA in New Zealand, the FSCA in South Africa, the FSA in Seychelles, and the MAS in Singapore. Plus500 offers traders a choice of more than 2,800 assets to trade, including nearly 900 options contracts, in a commission-free trading environment. This extremely wide range of choice can make Plus500 an appropriate choice for traders looking to pursue wide diversification of assets. Plus500 is licensed to offer CFDs through ASIC (AFSL #417727), and through the FMA (FSP #486026), for licensed CFDs in New Zealand. Plus500 trading services are also available in South Africa (Authorised Financial Services Provider #47546).

Read more on Plus500 »
5.0/5 in this category
Get Started
80% of retail CFD accounts lose money

Pros & Cons

  • Broad asset selection in equities and options
  • Free and unlimited demo account
  • Advanced free-of-charge analytical trading tools
  • Global and regulated fintech platform
  • Sub-standard trading platform without support for automated or social trading

FP Markets

In Summary ECN trading with leverage up to 1:500

FP Markets is also among the best brokers for trading oil futures, with spreads starting from just 0.2 points and maximum leverage of 1:500. Oil traders have three CFDs plus natural gas. Traders get upgraded MT4/MT5 trading platforms, as FP Markets offers twelve add-ons to upgrade the sub-standard core versions to competitive trading terminals. MAM/PAMM provides retail account management services, Autochartist supports manual traders, and VPS serves automated trading solutions. The trader-friendly cost structure starting from raw spreads of 0.0 pips for a commission of $6.00 per round lot offers another advantage, while the minimum deposit is just $100. International clients will trade with the unregulated FSC-registered subsidiary. Unfortunately, the 10,000 CFDs are available on the Iress trading platform with restricted access.

Read more on FP Markets »
4.9/5 in this category

Pros & Cons

  • Choice of trading platforms and auxiliary trading tools
  • Very competitive cost structure and excellent asset selection
  • Low minimum deposit requirement and leverage of up to 1:500
  • Well-regulated and trustworthy
  • Availability of Iress geographically restricted

Eightcap

In Summary Competitive pricing + excellent daily videos

Eightcap was originally founded in 2009 in Australia. Eightcap offers multiple different trading options in terms of what traders can buy and sell through use of their site's functionality. Customers can use Eightcap to trade their choice of more than 200 assets made up of nearly 50 currencies as well as a selection of cryptocurrencies, stock indices, commodities, precious metals, oil and more. Eightcap is accessible in more than 10 different languages, including but not limited to English, German, and French. Their services are available in South Africa, the British Virgin Islands, Italy, Australia, Japan, and Ireland among others.

Read more on Eightcap »
4.8/5 in this category

Pros & Cons

  • Low minimum deposit and high leverage of up to 1:500
  • Competitive cost structure
  • Excellent technology infrastructure and seasoned management team
  • Daily research and quality educational content
  • Limited leverage in some areas

Pepperstone

In Summary Great ECN execution on MT4 platform

Pepperstone offers oil traders the WTI and the Brent Crude spot contracts. Both oil contracts feature ultra-low minimum spreads of 0.025. Gasoline and natural gas contracts are also available for oil traders seeking wider exposure to oil-related assets. Pepperstone also lists several oil companies available for trading via equity CFDs. It makes Pepperstone one of the best crude oil brokers on my listing.

Oil traders who prefer copy trading can use the Pepperstone mobile trading app for copy and mobile traders. They can diversify via embedded MT4/MT5/cTrader services, Myfxbook Autotrade, and DupliTrade. TradingView for social traders is also available.

Read more on Pepperstone »
4.7/5 in this category

Pros & Cons

  • Excellent choice of trading platforms consisting of MT4/MT5, and cTrader
  • Market-leading MT4/MT5 upgrade package, Autochartist, and API trading
  • Social trading support via Myfxbook, MetaTrader Signals, and DupliTrade
  • Leverage of up to 1:30 and superb trade execution
  • Demo accounts have 30-day time limits

AvaTrade

In Summary Highly regulated, choice of fixed or floating spreads

AvaTrade maintains competitive subsidiaries regulated by the ASIC, FSCA, BVIFSC, and FSRA, but traders should avoid the others. Besides its excellent training academy, SharpTrader, AvaTrade offers clients more than 1,250 CFDs from a minimum deposit of $100 with a maximum leverage of 1:500. It features an average commission-free trading environment with minimum spreads of 0.9 pips or 0.13%, but oil traders have a mark-up of 0.3 points with a maximum leverage of 1:200. Five CFDs on oil and energy products plus options contracts offer an excellent choice. Traders may choose between six trading platforms and three social trading providers.

Read more on AvaTrade »
4.6/5 in this category

Pros & Cons

  • High quality educational offering via AvaAcademy
  • Excellent choice of trading platforms catering to various trading needs
  • Broad asset selection and cross-asset diversification opportunities
  • Well-regulated and trusted broker with oversight from a central bank
  • Trading costs competitive but nothing special

Crude Oil Trading Platforms Comparison

Regulators
ASIC, CySEC, FCA, FMA, FSCA, MASASIC, CySEC, FSCAASIC, CySEC, FCA, SCBASIC, BaFin, CMA, CySEC, DFSA, FCA, SCBASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID
Year Established
20082005200920102006
Execution Type(s)
Market MakerECN/STPECN/STP, Market MakerNo Dealing Desk, NDDMarket Maker
Minimum Deposit
$100
$100
$100
$200
$100
Average Trading Cost EUR/USD
1.3 pips1.1 pips1.0 pips1.1 pips0.9 pips
Average Trading Cost GBP/USD
1.7 pips1.4 pips1.2 pips1.6 pips1.5 pips
Average Trading Cost Gold
$0.34 $0.21 $0.12 $0.20 $0.29
Trading Platform(s)
Proprietary platform, Web-basedMetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Web-basedMetaTrader 4, MetaTrader 5, Trading ViewMetaTrader 4, MetaTrader 5, cTrader, Trading ViewOther, MetaTrader 4, MetaTrader 5, Web-based+
Islamic Account
Negative Balance Protection
N/A

How Do I Start Trading Crude Oil?

Traders should start with in-depth education about the oil market, as it consists of many moving parts. Fundamentals play a significantly more dominant role in trading crude oil than technicals.

The primary drivers for crude oil are:

  • Supply and demand, making global GDP a core data point
  • OPEC adjustments to production, as it accounts for approximately 40% of global oil production
  • Oil production data from Saudi Arabia, the US, and Russia, the top three oil producers

Most crude oil contracts remain priced in US Dollars, but competitive brokers list alternate ones quoted in various currencies, offering advanced traders another variable. Traders should consider the quote currency of an oil contract, a secondary driver of price action but a potential short-term catalyst when no primary ones exist.

Traders should decide which asset suits their trading strategy. Crude oil instruments consist of crude oil futures or spot contracts, oil equities for upstream and downstream companies, or ETFs. The two benchmarks for crude oil are West Texas Intermediate for North America and North Sea Brent for the global market. Opening and funding a trading account is the final step, which allows traders to execute their previously developed crude oil trading strategies.

Oil Trading Explained

Crude oil is ideal for scalpers and high-frequency traders due to its liquidity and low spreads. OPEC lost control of the oil market over the past decade. Russia and the US yield significant influence over price action, sometimes countering Saudi Arabian policies, the primary oil producer within OPEC.

Facts to know before trading crude oil:

  • Crude oil is a volatile commodity.
  • West Texas Intermediate (WTI) and North Sea Brent are the two most traded oil assets.
  • Brent crude remains the global standard, while WTI is more US-specific.
  • Brent trades above WTI in terms of price, known as the WTI/Brent spread.
  • The oil price is volatile and influenced by geopolitical events, the economy, and the weather.
  • CFDs remain the best oil trading instrument, granting traders exposure to price action without purchasing the underlying asset.

Noteworthy:

  • US and Canadian regulators do not allow CFD trading and deploy an outdated regulatory framework.
  • Therefore, traders can transact in options, which have an expiry date after which they become worthless, or legally binding futures contracts to deliver crude oil.

Oil Trading Regulations

Traders should ensure that they trade with a regulated broker but must also consider the regulator. The ESMA in the EU, the SEC in the US, and the IIROC in Canada have strict and counter-productive rules. Despite the regulatory climate, the most significant frauds occurred in the US and Cyprus. Regulators including the ASIC (Australia), the FSCA (South Africa), the BVIFSA (British Virgin Islands), the FSC (Seychelles), the IFSC (Belize), the DFSA (Dubai), and the CIMA (Cayman Islands) remain among the most competitive and trustworthy ones, but none allow US-based traders.

Trading Crude Oil in the US

Since US traders cannot benefit from CFD trading due to SEC regulations, their best product is an oil exchange-traded fund (ETF). Futures contracts on US crude oil and UK Brent crude traded on the NYMEX, where one contract equals 1,000 barrels, is another option for more significant portfolios. The e-mini crude oil futures contract written by the CME Group offers smaller portfolios an improved asset and consists of 500 barrels of oil.

How to Choose a Forex Broker for Oil Trading?

Since crude oil is a highly liquid asset, most Forex brokers offer it. Traders have various preferences and requirements, but I chose to focus on the below aspects during my best oil trading brokers research, as they apply to all traders.

Traders should look for the following to ensure trading with the best oil trading brokers:

  • Regulation - 10+ years of operational experience with a clean regulatory track in a trader-friendly jurisdiction.
  • Low Forex trading fees - Low trading fees and low swap rates, including positive ones, and free rollovers on CFD contracts, which ensures traders keep a position after an oil contract expires
  • Trading platforms - Algorithmic trading is necessary, while Forex copy trading and mobile trading are optional.
  • Asset diversity - Ideally, oil contracts in various currencies quote currencies.
  • Deposits/Withdrawals - No internal fees, a choice of payment processors, and low minimum transactions.

Crude Oil Trading Platforms

The MT4 trading platform and cTrader remain two of the best choices. The former is the most versatile one, and the latter the best out-of-the-box solution. The best brokers for trading oil futures will offer one or both. Several brokers also provide proprietary trading platforms as an alternative, but most of them support manual trading only, which suffices for new traders but is not enough for advanced ones.

Oil Trading Account Types

Oil is one of the most volatile assets, and trading from the appropriate account type allows traders to achieve improved trading results. New traders should consider a micro account, ideal for learning how to trade with deposits under $1,000. It precedes the mini and standard ones, best suited for portfolios below and above $10,000, respectively. Some provide VIP accounts that grant special non-trading-related bonuses. Not all brokers maintain a multi-tier account structure. Therefore, traders should ensure that the minimum transaction size is 0.01 lots.

Commissions & Spreads

Commissions and spreads are the primary direct trading costs. They will have the most visible impact on your trading strategy. Active traders should seek an ECN account with no mark-ups on spreads and competitive commissions no higher than $6.00 per round lot. Oil spreads should range between 0.2 and 0.3 points. A volume-based rebate program will lower final trading costs, and I highly recommend a broker that offers one.

What Are Margins & Leverage?

Margin refers to a percentage amount a trader needs to pay to take a position. For example, if a broker has a 5% margin requirement, a $500 position requires $25 capital. Leverage represents a ratio that defines the margin requirement. Competitive brokers offer 1:500, meaning a $500 trade requires $1 in margin capital. Risk management remains critical to margin and leverage trading.

Bottom Line

Crude oil is one of the most-traded commodities, and together with gold, the primary diversification trade for Forex traders. It is a highly liquid asset, usually quoted in US Dollars, and West Texas Intermediate and North Sea Brent are the primary global benchmarks for trading crude oil. Some brokers offer 1:100 leverage with negative balance protection. Spreads, commissions, and swap rates on leveraged overnight crude oil trades are the three trading costs traders must carefully evaluate.

Futures and spot contracts are the two primary assets used to trade crude oil. The former refers to contracts for future delivery, while the latter is for on-the-spot delivery. Alternate methods are via equities in upstream and downstream oil companies and ETFs. ETFs continue to gain market share, which offers less risk if the ETF is well-diversified.

Fundamentals play a significantly more dominant role in trading crude oil than technicals. Therefore, trading crude oil involves more unpredictable short-term catalysts. Supply and demand are the ultimate drivers of price action, making global GDP data, geopolitical events, developments in the supply chain, and production changes from OPEC, the US, and Russia core areas for traders to focus on for long-term trends.

You might also be interested in reviewing the below top brokers:

FAQs

What does an oil broker do?

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An oil broker offers trading instruments for oil. Depending on what is available, an oil broker also facilitates the storage and delivery of physical goods, i.e., the barrels of oil purchased.

How much do oil brokers make?

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It depends on various factors – some out of their control – making an estimate rather challenging. The majority average somewhere between $30,000 to $70,000 in commissions, while top brokers can easily crack seven figures.

How do you buy oil trades?

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An online broker remains the most convenient way to buy oil trades. There are countless oil trading brokers and Forex oil trading brokers catering to the rise in demand.

Can you make money trading oil?

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Yes, you can make money trading oil. The same as with all other asset classes applies. Education, knowledge, patience, discipline, and capital remain the primary ingredients to succeed as a trader.

Which platform can I trade in crude oil?

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Crude oil is usually available on any trading platform a broker offers. The most popular ones for retail traders are MT4 and cTrader due to their excellent trading infrastructure, availability, and full support for algorithmic and copy trading.

How is oil traded in South Africa?

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Trading crude oil in South Africa is identical to any other country. Brokers and oil trading firms handle order flow and deliveries, and traders must open an account with a broker offering crude oil contracts.

How can I invest in oil trading?

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The most efficient method for investing in crude oil rather than trading it is via unleveraged equities and ETFs, which ignore short-term price fluctuations, focus on long-term fundamentals, and do not incur swap rates, applicable to leveraged overnight positions.

Huzefa Hamid
About Huzefa Hamid

I’m a trader and manage my own capital. I trade the major Forex pairs, some Futures contracts, and I rely entirely on Technical Analysis to place my trades. Today, I am also a Senior Analyst for DailyForex.com. I began trading the markets in the early 1990s, at the age of sixteen. I had a few hundred British pounds saved up (I grew up in England), with which I was able to open a small account with some help from my Dad. I started my trading journey by buying UK equities that I had read about in the business sections of newspapers. The 1990s were a bull market, so naturally, I made money. I was fortunate enough in my early twenties to have a friend that recommended a Technical Analysis course run by a British trader who emphasized raw chart analysis without indicators. Having this first-principles approach to charts influences how I trade to this day.