5 Best Oil Trading Brokers in 2021

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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.

Top Oil Trading Brokers

1
FXTM
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.
Best all around broker
High floating leverage + fast execution
2
Eightcap
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.
Most extensive crypto derivatives offering. Choice of 250+ Crypto CFDs
Multiple funding and swift withdrawal options
Ultra-low spreads across all Crypto derivatives
3
FP Markets
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.
ECN-style trading
Daily market research and Autochartist access
4
AvaTrade
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.
High level regulation in multiple jurisdictions
Impressive range of tradeable assets including vanilla options and gold options
5
Axiory
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.
Choice of MT4 or cTrader platforms
50% deposit bonus for new traders

FXTM, Best all-around: high floating leverage + fast execution.
Eightcap, Competitive pricing + excellent daily videos.
FP Markets, ECN trading with leverage up to 1:500.
AvaTrade, Highly regulated, choice of fixed or floating spreads.
Axiory, Negative balance protection + deep liquidity.

FXTM

5.0/5 in this category
In Summary
Best all-around: high floating leverage + fast execution

We have made FXTM our top-rated broker because in addition to its lengthy track record, it enjoys a very high level of regulation and reputation, and it offers a highly competitive fee structure which tends to keep down the cost of trading.

Unique Features

Headquarters

Cyprus

Regulation

CySEC, FCA, FSC, CMA

Year Founded

2011

Type of Broker

Instant/Market Execution

Minimum Deposit

$50

Maximum Leverage

Flexible

Type of Platform

MetaTrader 4, MetaTrader 5

FXTM, or “ForexTime”, has been around for a long time: they were founded in 2011. Recent years have seen them continue to steadily expand their business, and they are well- regulated by the U.K., Cyprus, Mauritius, and South Africa. The brand is owned by private companies incorporated in the U.K., Cyprus, and Mauritius. Customers of FXTM have access to more than 57 Forex currency pairs and crosses, precious metals, the major energies, equity indices, big cryptocurrencies, and a few individual American stocks. Talking of stocks, FXTM are quite unique in the area of trading stocks, as they enable direct trading through real legal ownership, not just wrapped as CFDs like almost every other similar brokerage offers.

FXTM offers traders a choice between two of the most popular execution models: customers may open either an ECN-type account, or one that trades by “straight-through processing”. Clients have a straight choice between two trading platforms, with both MetaTrader 4 and MetaTrader 5 on offer.

Through their Mauritius regulator, FXTM offer leverage as high as 1000 to 1. In the U.K. and Cyprus, they are limited by law from offering more than 30 to 1.

If you are looking for a broker with a good copy trading program, it is worth taking a serious look at FXTM’s “FXTM Invest” copy trading program.

FXTM Pros & Cons

Advantages

  • Excellent client deposit protection

  • Low minimum deposit

  • Free MT4 add-ons and VPS hosting

  • Good educational tools

Disadvantages

  • No cryptocurrencies or exotic currencies

  • Low leverage for retail traders

  • Internal withdrawal fees and an inactivity fee

Eightcap

5.0/5 in this category
In Summary
Competitive pricing + excellent daily videos

Unique Features

Headquarters

Australia

Regulation

ASIC, VFSC

Year Founded

2009

Type of Broker

None

Minimum Deposit

$100

Maximum Leverage

Maximum Leverage 1:30 (or 1:500 for non-Australia clients)

Type of Platform

MetaTrader 4, MetaTrader 5

Eightcap Pros & Cons

Advantages

  • Low minimum deposit and high leverage of up to 1:500

  • Competitive ECN cost structure

  • Excellent technology infrastructure and seasoned management team

  • Daily research and quality educational content

Disadvantages

  • Limited asset selection

FP Markets

5.0/5 in this category
In Summary
ECN trading with leverage up to 1:500

fpmarkets is an Australian brokerage which launched in 2005. Headquartered in Sydney, Australia’s financial capitol, they have carved out a solid niche for themselves as the best Forex / CFD broker enjoying ASIC regulation. Australian regulators are much more relaxed about leverage than their counterparts in the U.S.A., U.K., and the E.U. and so fpmarkets can offer a maximum leverage as high as 500 to 1.

For most traders, the standout unique selling point of this broker lies in the incredibly wide range of tradable assets offered, providing an opportunity to trade over ten thousand individual stocks and shares. These go beyond the typical U.S.A. and U.K. companies and include a good selection of publicly traded shares on the Hong Kong and Sydney exchanges, as you might expect from an Australasian-facing broker like fpmarkets. Also, over 60 Forex pairs and crosses, 11 equity indices, the major commodities, and 5 cryptocurrencies including Bitcoin are also on the menu here.

Unique Features

Headquarters

Australia

Regulation

CySEC, ASIC

Year Founded

2005

Type of Broker

No Dealing Desk

Minimum Deposit

$100

Maximum Leverage

1:500

Type of Platform

MetaTrader 4, MetaTrader 5, Web-based, IRESS

They offer an unusual hybrid ECN/STP execution model which means that their clients can choose between ECN style of execution giving a very high level of speed, and a “straight through processing” execution style which allows for more “natural” spreads.

Traders can scalp and hedge at this broker, whose fast ECN execution speed makes it a natural home for scalpers. Clients may choose between the MetaTrader 4 and MetaTrader 5 platforms, and shares can be traded through the IRESS trading platform which includes access to level 2 exchange data.

FP Markets Pros & Cons

Advantages

  • 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

Disadvantages

  • Availability of Iress geographically restricted

FP Markets is an Australian multi-asset broker with more than $1 billion in daily trading volume, serving clients from 80+ countries. Founded in 2005 in Australia, FP Markets grew into a trusted brand over the past 15+ years with more than 100 employees. The upgraded MT4/MT5 trading platforms, via the Trader Tools consisting of twelve plug-ins, present clients with a competitive edge. We have conducted an in-depth review of this CFD broker to provide traders with a complete overview of the trading environment at FP Markets.

AvaTrade

4.5/5 in this category
In Summary
Highly regulated, choice of fixed or floating spreads

AvaTrade was founded in 2006 in Dublin, Ireland. They are one of the largest and most famous Forex / CFD brokers in the world and became well-known for offering their clients a choice of fixed or floating spread cost of trading models. They enjoy an extremely high and strong level of regulation, making them a favorite for traders who are extremely nervous about the security of their deposit, which in Ireland can be protected by a strong investor deposit protection provision. AvaTrade is directly regulated in Ireland (and by extension, the European Union), Australia, Japan, South Africa, and the British Virgin Islands. Outside the European Union, Ava’s maximum leverage offered runs as high as 400 to 1.

Unique Features

Headquarters

Ireland

Year Founded

2006

Type of Broker

ECN/STP

Minimum Deposit

$100

Maximum Leverage

1:400

Type of Platform

MetaTrader 4, MetaTrader 5, Proprietary platform, Web-based

In addition to their longevity and safe reputation, clients know that through AvaTrade they have access to a broad range of asset classes through which diversification can be achieved successfully: AvaTrade offers trading in over 55 different Forex currency pairs, 17 commodities, 20 equity indices, 14 cryptocurrencies, plus 66 individual stocks and shares. Even better, and unusually, 2 bonds and 6 ETFs are also on the menu. The diversity offered here stands out.

Whether you are located within the European Union or not, all branches of AvaTrade will offer you negative balance protection, above and beyond what is mandated by the law. This means that under no circumstances will any client of AvaTrade ever be held liable by the firm for an amount larger than their deposit.

 

AvaTrade Pros & Cons

Advantages

  • Well-regulated globally, with the Bank of Ireland, the primary regulator

  • Low minimum deposit and in-depth educational tools

  • Wide asset choice across seven sectors

  • Superior mobile trading platform

Disadvantages

  • Low leverage for retail traders

  • High quarterly inactivity fee

  • Unacceptable cost for AvaProtect

Axiory

4.5/5 in this category
In Summary
Negative balance protection + deep liquidity

Belize-based Axiory offers a competitive trading environment with an upgraded MT4 trading platform via Autochartist and the Axiory Strike Indicator, or cTrader as an alternative. The best pricing environment is available from the Nano account, where traders get a minimum spread of 0.2 pips for a commission of $6 per round lot. It requires a low deposit of $10 for maximum leverage of 1:400. Additional quality services consist of competitive in-house research, the Axiory Trading Academy, and Axiory Intelligence. The transparency and external audits add to the safety and security of this Axiory, which should consider expanding its asset selection.

Unique Features

Headquarters

Belize

Regulation

IFSC

Year Founded

2011

Type of Broker

No Dealing Desk

Minimum Deposit

$10

Maximum Leverage

1:777

Type of Platform

MetaTrader 4, MetaTrader 5, cTrader

 

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Advantages

  • Corporate and Management Possibilities

  • Demo Account

Disadvantages

  • No Accounts Per se

  • No Product Descriptions

 

Oil Trading Explained

Oil is a volatile commodity, and the two most traded assets are West Texas Intermediate (WTI) and North Sea Brent, both considered light sweet crude as their sulfur content is below 0.50%. Brent crude remains the global standard while WTI is more US-specific. Brent usually trades above WTI in terms of price, known as the WTI/Brent spread.

The oil trading basics are the same as trading Forex, equities, or any other asset class. An online broker offers the most convenient option to trade oil. The price of oil is volatile and influenced by geopolitical events, the economy, and the weather. Therefore, oil traders must monitor events across the pipeline. CFDs remain the best oil trading instrument offered by the best brokers for trading crude oil. It grants traders exposure to price action without purchasing the underlying asset. Since the introduction of CFDs, they became the primary trading tool for hedge funds and retail traders alike.

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 futures, legally binding contracts to deliver oil. It remains one of the most popular trading assets, and its liquidity results in low spreads, ideal for scalpers and high-frequency traders. 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, and the top global oil exporter.

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 Crude Oil Trading Broker

Traders should look for brokers allowing oil trading from a secure and competitive trading environment. Tight spreads, low commissions, high leverage, and a volume-based rebate program ensure traders earn more per oil trade. The trading platform should support automated trading solutions and third-party upgrades to create a competitive edge.

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Oil prices are making great trade opportunities

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.

FAQs

What does an oil broker do?

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?

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?

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?

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.

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.