Best Commodity Brokers in 2025

Which raw materials can be traded online?

Commodities are raw materials or primary agricultural products that can be traded on financial markets. In the world of online trading, commodities are grouped by category—such as energy, metals, or agricultural products—and play a fundamental role in the global economy. They’re the backbone of manufacturing, energy, food supply, and various industries worldwide.

Commodity prices move based not only on supply and demand, but also on weather patterns, geopolitics, and global economic growth. For example, oil prices react to OPEC decisions and global tensions, while crops like wheat or soybeans are sensitive to harvest reports and climate events.

On markets, you can invest in commodities without owning the physical products. The three main instruments are:

• CFD (Contracts for Difference): These allow you to speculate on price movements, including rising or falling prices, with leverage.
• Futures: Standardized contracts to buy or sell a commodity at a set price at a future date, often used for hedging or speculation.
• ETFs (Exchange-Traded Funds): Funds that track commodity prices or indices, offering an accessible way to diversify without managing futures contracts.

Investing in Gold

Gold is a traditional safe-haven asset, especially popular in uncertain economic periods. Its value tends to rise during crises and inflationary times, making it suitable for investors looking to reduce portfolio volatility or hedge currency risks. Gold trading can be done via ETFs for easy entry or CFDs for short-term speculation.

Investing in Brent Oil

Brent oil is a global oil price benchmark and one of the most liquid commodities. Its market is highly sensitive to geopolitical events and OPEC decisions, causing sharp price swings. Investing in oil suits informed investors who are comfortable with high volatility and can quickly react to news.

Investing in Natural Gas

Natural gas is extremely volatile due to weather, storage levels, and energy policy shifts. Prices can move rapidly, making this commodity attractive for active traders but less suited for long-term investors or those with low risk tolerance.

Investing in Aluminium

Aluminium is widely used in transport, construction, and packaging. Its price reflects industrial demand cycles and global economic conditions, as well as supply chain shocks. It offers a way to capture global growth trends but requires monitoring of demand and supply signals.

Investing in Grains (Wheat, Corn, Soybeans)

Grains like wheat, corn, and soybeans are staples of the global food supply. Their prices are driven by harvest forecasts, weather events, trade policies, and global demand shifts. Investing in grains can diversify a portfolio and hedge against inflation or food price shocks, but these markets can be volatile and are often impacted by unpredictable events.

How to invest in commodities?

Several methods are available to invest in commodities, each suited to different investor profiles and objectives. Whether you are an active trader seeking short-term opportunities or looking for stable, long-term diversification, commodities are tangible assets accessible through a range of financial instruments. Understanding these vehicles—how they work, their advantages, and their risks—is key to making informed investment decisions in New Zealand’s market environment.

Invest via CFDs (Contracts for Difference)

CFDs enable you to speculate on the price movement of commodities without owning the underlying asset. You enter into a contract with a broker to exchange the difference in price of an asset from opening to closing the position. CFDs offer access to leverage, meaning you can gain greater exposure with less capital. This makes them attractive for short-term trading, but it also multiplies potential losses as well as gains. Pricing is usually closely aligned with the underlying commodity, but you do not own the commodity itself—meaning you cannot take physical delivery. CFD trading in New Zealand is regulated but carries significant risk, particularly due to leverage and potential for margin calls.

Example: CFD on Oil

Imagine oil is trading at USD 80 per barrel. You believe the price will rise, so you open a CFD position (long) equivalent to 100 barrels. If the oil price increases to USD 82, you close your position, realising a profit of USD 2 x 100 = USD 200 (excluding fees). If it falls to USD 78, you face a loss of USD 2 x 100 = USD 200.

Invest via Futures Contracts

Futures are standardized contracts to buy or sell a specific quantity of a commodity at a predetermined price on a future date. They were created to allow producers and consumers to lock in prices, providing a tool for both hedging and speculation. Futures trading usually takes place on major international exchanges. While they allow both large institutions and individuals to take positions, they can be complex and require careful margin management. Futures are generally more suitable for experienced investors, with the potential for significant gains and losses.

Example: Wheat Futures Contract

Suppose a wheat futures contract represents 5,000 bushels, and the price is NZD 7 per bushel. You agree to buy one contract, expecting prices to rise. If the price increases to NZD 7.20 at expiry, your gain is 0.20 x 5,000 = NZD 1,000 (minus fees). If it drops, you incur an equivalent loss.

Invest via ETFs (Exchange Traded Funds)

ETFs provide exposure to commodities by tracking the price of a single commodity or a diversified basket, trading on stock exchanges like shares. Investing in a commodity ETF allows for indirect exposure without the complexities of futures contracts or physical holding. ETFs are generally designed for long-term investors looking for a liquid and accessible way to diversify. Their structure reduces the risk inherent to single-commodity price moves, especially with diversified funds. However, ETF performance may not always match the underlying commodity due to factors like management fees or tracking error.

Example: Gold ETF

You purchase 50 units of a gold ETF trading at NZD 30 per unit, for a total investment of NZD 1,500. If the gold price rises and the ETF unit price moves up to NZD 33, your investment is now worth NZD 1,650.

Invest in Shares of Commodity-Related Companies

Another way to gain exposure to commodities is by investing in companies engaged in extraction, production, or distribution. These stocks—mining firms, oil producers, agricultural businesses—often move in correlation with commodity prices, but also reflect company performance and sector dynamics. This method can offer growth potential through dividends and capital appreciation, but also introduces company-specific risks and factors unrelated to the underlying commodity.

Example: Buying Shares in a Mining Company

Suppose you invest NZD 2,000 in shares of a New Zealand-listed gold mining firm. If the company's share price rises by 10%—due to both higher gold prices and strong business performance—your stake increases to NZD 2,200 (excluding transaction costs).

Invest in Physical Commodities

Buying the physical commodity means owning tangible assets, such as gold bars, silver coins, or agricultural goods. This approach appeals to investors looking for security or a hedge against currency risk and inflation. Physical commodities, particularly precious metals, have long been recognized for their store-of-value properties. However, factors like storage, insurance, security, and resale logistics must all be considered, often making this approach less practical for some investors.

Example: Physical Gold Purchase

You buy a 1-ounce gold bar from a NZ dealer at NZD 3,000. The price of gold increases to NZD 3,200, so your bar’s market value rises accordingly. You must, however, consider possible selling fees and secure storage costs.

These different approaches provide a range of possibilities to add commodity exposure to a New Zealand-based investment portfolio. The choice depends on your investing style, risk tolerance, capital, and interest in active versus passive strategies. Familiarity with each method’s characteristics will help you use commodities to diversify and potentially enhance portfolio stability.

Which raw material suits your investor profile?

When investing in commodities, it’s important to recognise that not all assets behave the same way. Commodities differ in volatility, potential returns, and their sensitivity to economic events and geopolitical changes. Therefore, the choice of which commodity to invest in should always align with your investor profile: your experience level and appetite for risk.

🟢 Beginner: stable and predictable commodities

As a beginner, it’s best to focus on commodities that are less volatile and relatively stable over time. Gold and aluminium stand out for the following reasons:

• Gold:
• Known for its historical stability and role as a “safe haven” during periods of uncertainty.
• Low to moderate volatility, making it less likely to experience sudden, sharp price swings.
• Widely used in investment products, enabling easy access and liquidity.
• Aluminium:
• Demand is driven by the industrial and construction sectors, which supports price stability.
• Less prone to speculation and headline-driven swings than energy commodities.

Recommended strategies:

• Use products like ETFs or low-leverage CFDs to gain exposure.
• Focus on medium-to-long-term trends, rather than short-term speculation.
• Avoid day trading and high leverage, as these approaches increase risk for inexperienced investors.

🟡 Intermediate: more dynamic assets influenced by current events

At the intermediate level, commodities like oil and grains introduce higher risks and opportunities, requiring closer monitoring of global news and market trends:

• Oil:
• Prices are sensitive to global economic conditions, supply disruptions, and geopolitical tensions.
• More volatile than gold or aluminium, offering higher return potential but also larger losses.
• Grains (such as wheat, corn):
• Strongly affected by weather, global supply-demand, and government policies.
• Volatility can increase during periods of crop shortages or unexpected market developments.

Recommended strategies:

• Employ swing trading approaches using CFDs or ETFs to benefit from medium-term market moves.
• Regularly follow economic news, weather forecasts, and policy changes that impact prices.
• Utilise stop-loss orders to protect capital from sudden market shifts.

🔴 Expert: highly volatile assets sensitive to external data

Expert investors can target commodities with much greater short-term volatility and sensitivity to news, requiring advanced technical skills:

• Natural gas:
• Notoriously volatile and strongly linked to seasonal demand, supply shocks, and macroeconomic data.
• Requires fast reactions to news and frequent monitoring.
• Oil (short-term trading):
• Day trading oil amplifies the impact of news, inventory releases, and geopolitical headlines.
• Price swings can be rapid and extreme within a single day.
• Grains (short-term trading):
• Markets can react quickly to reports on weather, harvests, or export restrictions.
• Suitable for skilled traders comfortable with rapid market movements.

Tools and strategies for experts:

• Use advanced tactics like scalping, technical indicators, and risk hedging.
• Actively manage leverage to avoid outsized losses.
• Pay strong attention to risk management, capital allocation, and diversification.

By identifying your profile and selecting suitable commodities accordingly, you can better match your investment approach to your skills, resources, and risk tolerance.

How to choose a broker to trade commodities?

Choosing the right broker is a crucial step for anyone looking to invest in commodities. A secure, well-regulated broker not only safeguards your funds but also ensures smooth, competitive trading conditions. Evaluating brokers carefully helps you access the right markets, control your costs, and use tools adapted to your trading style—setting the foundation for long-term success.

Why invest in commodities?

Is it worthwhile to include commodities in a diversified investment portfolio? Many investors in New Zealand, as elsewhere, focus on equities and bonds. Yet, commodities—ranging from agricultural products to metals and energy—deserve serious consideration. Their specific characteristics and market behaviour mean they can play a unique, strategic role in achieving a balanced approach to long-term investing, though it’s essential to appreciate both their strengths and limitations.

Unlike shares or bonds, commodities tend to follow their own cycles, influenced by factors such as weather, geopolitical events, supply-chain disruptions, and global demand changes. These drivers are often independent from those that move traditional financial assets. Because of this “low correlation,” adding commodities to a portfolio can help smooth out overall returns by reducing volatility. When equities or bonds face downturns, some commodity sectors may remain resilient or even rise, providing a valuable buffer for investors seeking steadier performance.

Inflation is an ever-present concern for New Zealand investors managing long-term capital. When the general price level rises, the value of money declines—and so can the real value of many traditional asset classes. Commodities, however, often move in step with inflation. Key sectors such as agriculture and energy—the prices of which are directly reflected in consumer costs—can experience significant appreciation during inflationary periods. Allocating a portion of a portfolio to these assets can help maintain purchasing power, acting as a potential hedge against the eroding effects of rising prices.

Precious metals, such as gold and silver, hold a special place in investment strategies for their reputation as “safe havens.” During times of market stress, economic uncertainty, or global crisis, investors around the world often seek out gold in particular for its perceived stability. This demand can cushion a portfolio’s value when more volatile assets experience sharp declines. While precious metals do not generate income like dividends or coupon payments, their defensive qualities have historically provided a source of resilience and diversification.

It is also important to consider opportunities for tactical positioning. Certain commodities—such as oil or industrial metals—can deliver significant returns over short or medium timeframes due to geopolitical events, supply-demand imbalances, or economic cycles. For investors who closely monitor global developments or wish to actively manage a part of their portfolio, these assets may offer unique, short-lived windows to capture gains. However, their prices can be volatile and may require a nuanced understanding of both global macroeconomics and specific market drivers.

Key takeaway

Commodities should not be seen as a guarantee of high returns or a simple solution to investment challenges. Instead, they represent a strategic component within a robust portfolio, offering diversification, potential inflation protection, and resilience in times of uncertainty. Used thoughtfully alongside other asset classes, commodities can help investors in New Zealand build a more balanced, adaptable investment strategy over the long term.

How much does trading commodities cost?

When trading commodities from New Zealand, it’s crucial to understand the various costs involved. Every commodity trade is subject to different types of fees, including spreads, transaction commissions, swap or overnight financing fees, inactivity fees, and withdrawal charges. Each of these fees can directly affect the profitability of your positions, so knowing how they work helps you better manage your costs and maximise your potential returns.

1. Spread

The spread is the difference between the buy (ask) and sell (bid) prices for a commodity. This cost is built into the market price, and you pay it every time you enter and exit a position. The tighter (smaller) the spread, the less you pay. Spreads can vary depending on the commodity and market volatility.

Example of spread

Suppose you want to trade gold. The current bid price is USD 2,320.00 and the ask price is USD 2,321.00. This means the spread is USD 1.00 per ounce. If you buy one ounce and the market does not move, you would need the price to increase by at least USD 1.00 to break even.

2. Transaction commission

Some brokers charge a commission on top of the spread for executing trades. This can be a fixed amount per contract or trade, or a percentage of the trade value. This is charged on both buying and selling.

Example of transaction commission

Let’s say you trade a crude oil contract and your broker charges $5 NZD per contract for both buying and selling. You will pay $5 NZD when opening the position and another $5 NZD when closing it, for a total of $10 NZD in commissions for the full trade.

3. Financing fee (swap)

When you hold commodity positions overnight, you may be charged (or sometimes earn) a daily financing fee known as “swap.” This fee reflects the cost of borrowing or lending, and can vary by commodity and broker.

Example of financing fee (swap)

You keep a wheat futures contract open overnight and your broker charges a swap fee of $2.50 NZD per contract per night. If you hold the position for 5 nights, you will pay a total of $12.50 NZD in overnight fees (5 x $2.50 NZD).

4. Inactivity fee

If your trading account is inactive—meaning you don’t place any trades for a certain amount of time—some brokers charge an inactivity fee. This is meant to encourage active trading and help cover account maintenance costs.

Example of inactivity fee

If you haven’t traded for 3 months (90 days), and your broker charges a $10 NZD monthly inactivity fee, you will be debited $10 NZD each month until you resume trading or close the account.

5. Withdrawal fee

When you withdraw funds from your trading account (for example, to your New Zealand bank account), you may incur a withdrawal fee. The cost varies depending on the withdrawal method and the broker’s policy.

Example of withdrawal fee

You decide to withdraw $1,000 NZD from your trading account to your NZ bank. Your broker charges a $15 NZD withdrawal fee. You will receive $985 NZD in your bank account after the fee is deducted.

Understanding these key fees and their practical impacts will help New Zealand investors better forecast costs and make informed decisions when trading commodities.

Live commodity prices

What is the taxation on income from commodities in New Zealand?

In New Zealand, the taxation of income derived from commodities depends on both the type of investment instrument used (such as derivatives, funds, equities, or physical metals) and the local tax rules that apply to each product. Generally, profits and gains from commodities are treated as capital income, but the exact tax treatment varies significantly depending on the structure of the investment, how it is held, and the investor’s personal tax situation. Below you’ll find a summary of the main regimes applicable to popular commodity investments, followed by short explanations for each instrument category.

CFDs & Futures

Contracts for Difference (CFDs) and commodity futures are generally considered revenue account assets in New Zealand. This means any profits are taxed as ordinary income at the marginal tax rate applicable to the investor (individual or company). Equally, losses can typically be offset against other income. There is no concept of a concessionary or reduced capital gains tax rate; intention when entering the contract is relevant, but in practice, most CFD and futures trading is taxable as regular income.

Commodity ETFs

The tax treatment of commodity-focused Exchange Traded Funds (ETFs) depends on their domicile. If an ETF is an eligible Portfolio Investment Entity (PIE) managed from NZ, investors are taxed at their Prescribed Investor Rate (PIR). For overseas-domiciled ETFs, the Foreign Investment Fund (FIF) rules usually apply, which may involve calculating imputed income under the Fair Dividend Rate (FDR) or Comparative Value method. The FDR method generally taxes 5% of the opening market value each year, regardless of actual income. There may be exemptions for certain direct investments below NZD 50,000.

Mining, Oil & Resource Company Shares

Shares in companies involved in mining or oil extraction are typically treated like other equity investments. Dividends received from such companies are taxable, often with imputation credits available if New Zealand tax has already been paid. For foreign shares, FIF rules may also apply. Capital gains made on the sale of shares are generally not taxed unless the investor’s purpose was resale (trading). If shares are held via a PIE fund, the fund itself pays tax at the investor’s PIR on income.

Physical Precious Metals (Gold, Silver, etc.)

There is no specific capital gains tax in New Zealand on physical bullion or precious metal holdings. However, if metals are acquired with an intent to resell at a profit (such as active trading), any gain may be considered taxable income. When purchasing precious metals, GST (Goods and Services Tax) is generally due, except for certain investment grade gold, silver, and platinum, which may be zero-rated. It is important for investors to consider their intentions and the scale of their activity, as frequent trading can trigger income tax obligations.

Tax rules in New Zealand frequently depend on the investor’s intent and whether the activity constitutes investment or trading. Where assets are held for long-term investment by individuals, capital gains are often not taxed; nevertheless, frequent trading, use of derivatives, or investments via certain fund structures can change the tax outcome. It is essential to consider both the nature of each product and personal circumstances or to consult a specialist for tailored advice.

Raw materials: understanding the Contango and Backwardation effect

Understanding commodity markets often means paying close attention not just to current prices, but to how prices are expected to evolve in the future. When looking at a commodity, you might hear about its “price curve”—a comparison between the spot price (the price for immediate delivery) and forward prices (for future delivery, for example 3 or 6 months ahead). The shape of this curve—whether it’s pointing upwards or downwards—isn’t just a market curiosity. It sends key signals about supply, demand, and storage pressures, and can significantly impact anyone investing through funds or exchange-traded products. Knowing if a market is in contango or backwardation is essential for analysing risks, opportunities, and the costs tied to commodity investments.

Contango: a future more expensive than the present

Contango describes a situation where the price of a commodity for future delivery is higher than the current spot price. In other words, the price curve slopes upward. What drives this? The main causes include the costs involved in storing the commodity (like warehousing or insurance), the costs of financing inventory over time, and expectations about more abundant supply in the future. Contango is common for commodities that can be stored, such as oil or metals.

Informations importantes

Example: Contango in Oil

Imagine it’s a year when oil production exceeds demand and storage tanks are full. Refiners don’t need oil right now, but storage continues to cost money each month. Futures prices for 3 or 6 months ahead include not only the current price but also storage and financing costs. As a result, March oil futures become significantly more expensive than the spot price in January. In this scenario, the oil market is “in contango”.

Backwardation: when urgency dominates

Backwardation is the opposite: the price for future delivery is lower than the spot price, so the curve slopes downwards. This typically happens when there’s immediate strong demand or even a shortage, but the outlook for supply looks better over time. Causes range from poor harvests, supply chain issues, or geopolitical tensions. When a market is in backwardation, it’s a signal that buyers are willing to pay a premium right now due to urgent needs or scarcity.

Informations importantes

Example: Backwardation in Wheat

In 2022, as the war in Ukraine disrupted global wheat supplies, importers faced the risk of not securing enough grain in the short term. Wheat spot prices spiked, significantly exceeding prices for delivery three or six months out—when new harvests or resolution of logistical blockages were expected. The wheat market entered steep backwardation: immediate supply was at a premium.

Why does this matter for investors?

For investors holding products based on commodity futures (like ETFs, ETCs, or managed funds), the shape of the curve—contango or backwardation—will often affect returns more than movements in the underlying spot price. When a fund “rolls” its contracts (selling expiring contracts and buying new ones further out), it may repeatedly buy higher-priced futures in contango, which leads to negative “roll yield” (a drag on performance). In backwardation, rolling can be beneficial, as new contracts are bought at a discount compared to maturing ones, potentially providing a positive roll yield. Over time, these mechanisms can have a significant impact, sometimes even outweighing the performance of the commodity itself.

Informations importantes

Bon à savoir – En résumé

- Analysing the price curve (spot vs forward) isn’t just for market professionals: it’s a key tool for understanding what the market expects in terms of supply, demand, and risks.
- Contango signals that storage or financing costs are pushing future prices higher, often in periods of surplus.
- Backwardation points to urgent demand or temporary shortages, when buyers need supplies right now.
- For investors, knowing if the market is in contango or backwardation helps explain potential drags or boosts to product performance—especially for funds using rolling futures.
- In short: Before investing in commodities via financial products, take a close look at the shape of the market curve to align your strategy with underlying market dynamics.

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.