Free Online Trading Lessons Archives

Advantages of trading commodity futures over commodity ETFs

crude oil commodity futuresComplimentary video discussing the best commodity trading products!

Stock traders looking to venture into commodities often opt for the most convenient form of price exposure, commodity ETFs. Others who have done their homework might choose to trade futures on a low leverage basis but do so in their stock trading account. In either case, these commodity speculators are overlooking some more efficient means of commodity speculation. Convenient trading vehicles are generally not optimal.

In this video, we discuss the advantages and disadvantages of popular commodity trading vehicles such as ETFs and futures. We’ll also point out some commodity market characteristics that make speculating in such markets different from stock speculation.



• Trading commodities via stocks, ETFS, and futures

• Trading commodities at “one-stop-shop” brokerages

• Differences in market characteristics (stocks vs. commodities)

• Tax implications



Follow us on Instagram


Newsletter Trial