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Guide to Trading Energy Commodities
Energy market allows investors, speculators and private investors to take long or short positions on energy resources such as Brent Crude, US Crude, Carbon Emission, Natural Gas and much more (please note that the number of commodities varies from broker to broker, but the most common energy commodities can be traded with any financial spread betting or CFD broker).
Why to trade energy resources
There are many reasons why investors trade energy commodities, including hedging, investing and speculating. Energy companies and big energy consumers participate in the market to hedge themselves against rising or falling prices.
Where to trade energy commodities
Every financial spread betting and contracts for difference (CFDs) broker allows clients to buy and sell energy futures. Even though they are very similar products financial spread betting is arguably the best option for private investors as it's cheaper and size of contract is smaller.
- Financial Spread Betting is a leveraged product, tax free and the cheapest way to deal in energy market. For more information refer to financial spread betting guide or compare spread betting accounts.
- Contract For Difference (CFD) is also a leveraged product, but unlike financial spread betting is not fax free. CFDs also require higher deposits and minimum contract size is considerably bigger than with spread betting. For more information about CFDs refer to contracts for difference guide or compare CFDs accounts.