this is the Selftrade logo

Oil, timber, wheat, metals and even 'lean hogs' are actively traded in the commodities market. But you don't have to store physical commodities in order to benefit from any increase in the price of these commodities.

There are a variety of ways you can trade in the commodities sector - Exchange Traded Commodities are the most obvious way, but there is also a range of Funds that focus on the commodities sector.

Equally, you can invest in individual companies engaged directly in the sector, or suppliers to those companies too. Investing in suppliers to the sector can be a lower-risk route and help avoid over-exposure: so, for instance if you hold BP shares where performance will be directly affected by the oil price, you might invest in suppliers of exploration equipment, oil rig servicing etc for an indirect route to the sector’s potential. In this section we'll help you explore these different routes to the commodities markets.

Exchange Traded Commodities (ETCs)

ETCs trade like a share, with live prices throughout the trading day, but are pooled investments like a fund.

More about ETCs >

Funds

Many Fund Managers now offer access to the commodities sector, with a particular focus on gold and precious metals and natural resources.

Use the Specialist Sector filter on our Fund Selector to find commodity-related Funds.

Fund Selector >

Turbos and Structured Products

Previously known as Listed CFDs, Turbos can often give you leveraged access to the price of metals and oil, or to movements of the share price in companies in these sectors, without the risk of losing more than your original investment.

Structured Products come in a variety of forms and can include some guarantees to limit losses or provide enhanced performance

These investments may use derivatives such as Futures, Options and Swaps and therefore expose you to counterparty risk: be sure you understand the nature of the investment and where the final risk exposure lies. Additionally, prices can quickly move against you so Turbos are better suited to more experienced investors, we’ll ask you to take an appropriateness assessment before trading them.

More about Turbos and Structured Products >

CFDs and Spreadbetting

For those investors looking for a faster-moving investment – and the enhanced risks that comes with it – CFDs and Spreadbetting can also provide access to the commodities sector. That potential for leveraged returns comes with the additional risk of quickly losing more than you invested. For this reason in particular they aren’t suitable for all investors and you should ensure you fully understand the risks involved and seek independent advice if necessary.

More about CFDs and Spreadbetting >