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Wikitoro author Mike Druttman Written by Mike Druttman
Wikitoro fact checker Wikitoro Team Fact checked by Wikitoro Team
Updated Feb, 2024

To trade commodities on eToro, open the eToro platform, go to "Discover," and select "Commodities." Pick the commodity you want to trade, such as gold or oil, and choose either "Buy" or "Sell." Configure your investment settings in line with your trading strategy, then click "Open Trade" to start your transaction.

Trade Commodities!

76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

 

Starting Point

If trading eToro commodities sounds complicated or hard to you, let me assure you that it's actually a very basic process. You just need to know the basics and the steps to take to invest on this very liquid market. In fact, you don't even need to physically own one to trade this financial instrument. Here's a concise guide, based on my personal experience, with some helpful information to enhance your commodity trading experience with this broker.

 

Understanding CFD Commodities

In commodity trading on eToro, you engage in Contracts for Difference (CFDs) rather than buying or selling physical commodities. This method allows you to speculate on commodity price movements without owning the actual commodities.

Traditional commodity trading involves buying or selling physical goods like gold, oil, or agricultural products. In contrast, a CFD is a financial derivative that lets you speculate on the price changes of a commodity, without the need for physical ownership. When you trade commodities on eToro, you're entering a CFD contract, where your profit or loss is determined by the price difference from when the contract is opened to when it's closed.

CFD trading offers the advantage of profiting from price movements without the complexities of owning or delivering the actual asset. However, it's crucial to be aware of the risks, including the possibility of losing your investment. Employing risk management strategies, such as stop-loss orders, is essential to mitigate potential losses.

 

Before You Begin Trading

Prior to diving into commodity trading with this broker, consider a few essential steps for a smooth experience:

  • Ensure your online trading account is fully verified.
  • Verify that your account has sufficient funds, keeping in mind that the minimum deposit for commodities is $1,000.
  • Be aware of the commodity market's volatility and understand that your capital is at risk, necessitating cautious and informed trading decisions.

 

How to Trade Commodities on eToro

Initiating commodity CFD trades on eToro is user-friendly. Follow these steps:

  1. Access the eToro platform and select "Discover".
    eToro Discover trading page
    eToro Discover trading page
  2. Choose "Commodities".
    Selecting Commodities assets category on eToro
    Selecting Commodities assets category on eToro
  3. Identify the commodity you're interested in and opt for either "Buy" or "Sell".
    eToro Commodities trading page
    eToro Commodities trading page
  4. Determine your investment amount.
    Buying Gold on eToro
    Buying Gold on eToro
  5. Adjust settings like eToro leverage, stop-loss, and take-profit orders to align with your trading strategy.
    Setting eToro Gold trade parameters
    Setting eToro Gold trade parameters
  6. Click "Open Trade" to commence your trading position.
    Executing Gold trade
    Executing eToro Gold trade

Wrap-Up

That's all there is to it! In just a few easy steps, you can begin trading a variety of commodities on this platform. Keep in mind the essential tips outlined in this guide to enhance your trading skills and knowledge. And always remember to apply risk management when investing on these financial instruments, especially when trading with leverage.

 

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.

Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.

Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply. Don't invest unless you're prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.

 

Wikitoro author Mike Druttman About Mike Druttman

Mike Druttman, Head of Content at Wikitoro.org, has decades of expertise in marketing communications and business matching. Educated at the CAM Foundation and the Chartered Institute of Marketing, Mike has collaborated with businesses from the UK to Japan. He founded KEYZUNA, bridging Japanese businesses with global innovations. With a diverse background spanning high-tech to hospitality, Mike's articles at Wikitoro reflect his vast knowledge and unique perspective.

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76% of retail investor accounts lose money