How to Trade Commodity CFDs: Oil, Gas, and Soft Commodities Explained
Learn how to trade commodity CFDs, including crude oil, natural gas, and soft commodities, using MT5 to speculate on price movements.
Learn how to trade commodity CFDs, including crude oil, natural gas, and soft commodities, using MT5 to speculate on price movements.
A commodity CFD (Contract for Difference) lets you speculate on the price of a raw material without owning the physical asset. You open a position on whether the price goes up or down. If you are right, you profit. If you are wrong, you lose.
No barrels of oil. No grain storage. No delivery logistics. You trade price movement, and your broker settles the difference in cash.
This makes commodity CFD trading accessible to active retail traders who want exposure to oil, gas, or agricultural markets without the complexity of futures contracts or physical commodity markets.
Commodity CFDs span energy, agriculture, and metals. Metals like gold and silver often get their own category, so this guide focuses on energy and soft commodities — the markets most traders overlook when they first move beyond forex.
Crude oil is the most traded commodity CFD by volume. Two benchmarks dominate:
Both move fast. Oil reacts to OPEC production decisions, US inventory data released every Wednesday, geopolitical events, and shifts in global demand forecasts. For day traders and scalpers, that volatility creates frequent setups.
The spread on oil CFDs varies by broker and account type. On a Raw Zero account at Spec Markets, spreads start from 0.0 pips with a $3.50 commission per lot per side. On a Pure Spread account, you get spreads from 1.0 pips with no commission. Either way, your entry cost is transparent before you place the trade.
Natural gas CFDs track Henry Hub spot prices and are known for sharp, fast moves. Seasonal demand (winter heating, summer cooling), weather forecasts, and LNG export data all drive price swings that can be two to three times the size of oil moves in percentage terms.
That volatility works both ways. Natural gas can be highly profitable for traders who read the setup correctly, and painful for those who ignore position sizing. Treat it with respect.
Soft commodities include agricultural products like:
Soft commodities tend to trend more slowly than energy, which makes them useful for swing traders looking to hold positions over several days. They also tend to have lower correlation to equity markets, which makes them a genuine diversification tool in a multi-asset portfolio.
Two numbers matter most when you trade commodity CFDs: the spread and the leverage ratio.
Spread is the cost of entering a trade. It is the difference between the buy price and the sell price. Tighter spreads mean lower costs per trade. For active traders placing 10 to 50+ trades per week, this adds up fast.
Leverage lets you control a larger position with a smaller deposit. At Spec Markets, commodity CFDs are available with leverage up to 1000:1. That means a $100 margin deposit can control a $100,000 position.
Leverage amplifies both gains and losses. A 1% move against your position at 100:1 leverage wipes your margin. Manage position size carefully and always use stop-losses.
Spec Markets also runs a zero cut system — negative balance protection that prevents your account from going below zero. Your capital is held in segregated accounts at top-tier banks, so your funds stay separate from company operating capital.
Risk disclaimer: Trading CFDs with leverage carries significant risk and may not be suitable for all traders. You can lose more than your initial deposit. Only trade with capital you can afford to lose.
Understanding price drivers is more important than any indicator. Here are the key factors for each category:
Energy (Oil and Gas):
Soft Commodities:
Traders who track these fundamentals alongside technical setups tend to make better entry and exit decisions. You do not need to be an economist. You need to know which data release moves your market and when it drops.
MetaTrader 5 (MT5) is the platform of choice for serious commodity CFD traders. It supports one-click trading, advanced charting, custom indicators, and full EA (Expert Advisor) and algo trading functionality.
At Spec Markets, you can access commodity CFDs across energy and agriculture alongside forex, indices, metals, and crypto — all from a single MT5 account.
Getting started takes four steps:
Not ready to trade live? Open a demo account first. Test your commodity setups, get familiar with how oil moves during the EIA report, and build confidence before committing real capital.
A few practical points that matter more than most guides admit:
What commodities can I trade as CFDs?
Common commodity CFDs include crude oil (WTI and Brent), natural gas, coffee, cotton, sugar, and cocoa. Metals like gold and silver are also commodity CFDs but are often categorised separately. At Spec Markets, commodities are available alongside forex, indices, metals, and crypto on MT5.
How does leverage work on commodity CFDs?
Leverage lets you control a larger position with a smaller deposit. Spec Markets offers leverage up to 1000:1 on commodity CFDs. This amplifies both potential gains and potential losses, so position sizing and stop-losses are essential. CFD trading with leverage carries significant risk.
What is the minimum deposit to trade commodity CFDs at Spec Markets?
The minimum deposit is $50, which applies to both the Raw Zero and Pure Spread accounts.
Which account type is better for commodity CFD trading?
It depends on your trading frequency. If you trade high volume (many lots per week), the Raw Zero account with spreads from 0.0 pips and a $3.50 commission per lot per side typically costs less overall. If you prefer simplicity and trade lower volume, the Pure Spread account with spreads from 1.0 pips and no commission may suit you better.
Can I use Expert Advisors (EAs) to trade commodity CFDs?
Yes. Spec Markets fully supports EA and algorithmic trading on MT5. You can automate your commodity strategies using any MT5-compatible EA.
What drives crude oil prices?
The main drivers are OPEC production decisions, US EIA weekly inventory data, geopolitical events in major oil-producing regions, USD strength, and seasonal demand patterns. The Wednesday EIA report is the most watched weekly data release for oil traders.
Is commodity CFD trading suitable for beginners?
Commodity CFDs are accessible to beginners, but energy markets like natural gas can move sharply. Starting with a demo account, learning the key data releases, and practicing position sizing before going live is strongly recommended.
Ready to trade commodities? Open a live or demo account at specmarkets.com and access oil, gas, soft commodities, and more from a single MT5 account. Raw Zero or Pure Spread — the choice is yours.
Risk disclaimer: CFD trading involves significant risk of loss and is not suitable for all traders. Leverage can work against you as well as for you. You may lose more than your initial deposit. Ensure you fully understand the risks involved before trading. Spec Markets is a regulated broker — please review the full risk disclosure at specmarkets.com.
