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Guide to Trading Soft Commodities
Softs market is a very big market and have many experienced traders but it's less favoured by private investors as it requires more knowledge and experience. Softs market represents such well known commodities as Wheat, Sugar, Soybeans, Cattle and much more (the number of soft commodities varies between brokers, but the most common soft commodities can be traded with any financial spread betting or contract for difference broker).
Why to trade soft commodities
Soft commodities are a good way for experienced and knowledgeable investors to hedge their positions and make quick money from commodities market. It's probably the least volatile and wide market.
Where to trade soft commodities
Every financial spread betting and contracts for difference (CFDs) broker allows clients to buy and sell soft 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 softs 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.