Top 10 Forex Brokers in The World 2025* Rated and Reviewed

The two benchmarks for crude oil are West Texas Intermediate for North America and North Sea Brent for the global market. Opening and funding a trading account is the final step, which allows traders to execute their previously developed crude oil trading strategies. Oil trading refers to the buying and selling of crude oil and refined petroleum products on the financial markets. The global demand for oil makes it one of the most heavily traded commodities in the world.

Having been a retail trader since 2013, Plamen has gained an in-depth understanding of the challenges that novice traders face today. His expertise is swing trading and day trading with a heavy emphasis on psychological and fundamental analysis. He earned a Bachelor’s degree in Economics and International Relations.

However, a whirlwind of diplomacy – especially regarding trade – may trigger bigger action. View the latest financial news articles from the top voices in the industry. The projections or other information generated by the Interest Calculator tool are hypothetical in nature, do not reflect actual results and are not guarantees of future results. Information regarding past performance is not a reliable indicator of future performance. Nevertheless, before placing your first oil trade, there are some mandatory steps you need to take.

Opt for platforms that have responsive and knowledgeable customer support teams. Having access Kraken Review to a reliable support agent can be invaluable, especially when facing technical issues or needing assistance with trading-related inquiries. Look for platforms with intuitive interfaces and helpful resources that offer a seamless trading experience. Commodities are bought and sold for instant payment and delivery on the spot market. Prices are driven by the forces of supply and demand on the spot market.

Trading oil forex can be a highly lucrative venture, but it’s important to understand the fundamentals of the oil market, develop a solid trading strategy, and manage your risk appropriately. By following these steps, traders can increase their chances of success and profit from the volatile movements of one of the world’s most valuable commodities. When demand for oil is high, prices tend to rise, while oversupply can lead to lower prices. The Organization of the Petroleum Exporting Countries (OPEC) is a key player in the oil market, as the organization controls a significant portion of the world’s oil supply. OPEC members can influence the market by reducing or increasing production levels. In 2022, the introduction of Micro WTI Crude Oil options, at one-tenth the size of standard WTI options, provided a transformative opportunity for traders seeking reduced notional risk.

• While such figures are volatile, they provide a dose of hard data on how the US economy is performing.
• A derivative is a financial contract between two parties that ‘derives’ its value from the price of an underlying asset, like oil.
• Trading crude oil in the forex market can be a lucrative way to diversify your portfolio and take advantage of the fluctuations in oil prices.
• Oil prices are sensitive to global economics and geopolitics, acting as barometers for both.

The pursuit of oil has historically led to conflicts, and much of the world’s oil is still produced in politically sensitive areas. The level of oil demand is often viewed as a yardstick for measuring the health of the global economy. It depends on various factors – some out of their control – making an estimate rather challenging. The majority average somewhere between $30,000 to $70,000 in commissions, while top brokers can easily crack seven figures.

How to Trade Oil: 10 Easy Steps to Get Started

Being the main energy source for billions of people around the world, demand for oil has been constantly rising in the last decade. Emerging economies have also played a key role in the rising demand for the commodity. Pepperstone doesn’t represent that the material provided here is accurate, current or complete, and therefore shouldn’t be relied upon as such. It does not take into account readers’ financial situation or investment objectives. Without the approval of Pepperstone, reproduction or redistribution of this information isn’t permitted. This combination of fluctuating yet persistent demand, economics, and geopolitics means that oil prices are almost always in motion, making oil highly attractive to speculators and traders.

How to Choose the Right Account for Oil Trading

Conversely, economic recessions and slowdowns lead to lower demand for oil and lower prices. OPEC countries meet regularly throughout the year to discuss global conditions of the oil market and regulate supply, which in turn has a significant impact on the price of oil. However, with the arrival of fracking technology in the US, OPEC’s power to control global oil prices has somewhat diminished.

Top-Rated Crude Oil Brokers and Trading Platforms

With changes in the amount produced, OPEC is capable of balancing or unbalancing the world markets. Sharp movements after big decisions of cutting or increasing the production. Headquartered in Vienna, Austria, the Organization of the Petroleum Exporting Countries, also known as OPEC, is an international organization of oil-producing countries. The 13 members of OPEC accounted for almost a half of the global oil production in 2018 and hold around 82% of the world’s oil reserves, making OPEC a major player in the oil market. Trading crude oil can be quite lucrative given its price volatility and its unique position in the world’s economic system.

• Breakout trading is where a trader tries to enter a position as soon as prices break out of its current range.
• Before making any investment or trade, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
• As mentioned, there are many factors that influence the price of oil on global markets, and understanding how to analyze the market can make or break a trader.
• Events that threaten or hinder the production or transportation of crude oil and its refined products can send oil prices higher very quickly.
• Treaders can choose between three account types and a number of deposit and withdrawal options.
• The opposite is true when leading indicators are missing market expectations and the economy faces a recession – this is when oil prices tend to fall.

The broker also offers its clients a choice by incorporating the renowned MT4, MT5, and the advanced cTrader. It offers over 2100 tradable instruments across different kvb forex markets, including crude and Brent oil CFDs. FxPro stands out with superior execution standards and ultra-low execution speeds.

Price crossovers:

You need to set your trading goals and risk tolerance before developing a comprehensive oil trading strategy. Choose a trading style that aligns with your preferences, such as day trading, swing trading, or long-term investing. Exchange Traded Funds (ETFs) are investment funds that trade on stock exchanges, providing investors with exposure to specific markets or sectors. Since oil prices are primarily denominated in US dollars, changes in exchange rates directly impact oil prices.

Selecting the right Forex broker in 2025 is crucial for a successful trading experience. Our expert-rated list of the top 10 Forex brokers highlights the most reliable, well-regulated, and feature-rich options for traders of all levels. Whether you want to trade Forex with tight spreads, fast execution, low commissions, or strong regulatory protection, there is a broker that fits your needs. Short for foreign exchange, forex is the backbone of the global financial system. With an average daily trading volume of $7.5 trillion in 2022 (Bank for International Settlements Triennial Survey report), the forex market is the world’s largest and most liquid financial market.

Moving averages, trendlines, and support and resistance levels are commonly used by traders to analyze oil price charts. In fact, to trade oil, one has to be in the loop of constant analysis. You may also set price alerts and trading signals to stay informed about key changes within the markets. Futures and options are derivative contracts that cater to professional traders, while CFDs are much more accessible to retail traders.

Oil trading involves the exchange of crude oil, one of the world’s most essential and highly valued commodities. Crude oil and its refined products serve as the backbone of the global economy, acting as both a primary energy source and a critical raw material. Consumed continuously across the globe, oil has played a pivotal role in shaping easymarkets broker the modern world. While oil is a highly liquid asset that traders can easily buy and sell without facing issues, it can also experience extreme volatility.

I began trading the markets in the early 1990s, at the age of sixteen. I had a few hundred British pounds saved up (I grew up in England), with which I was able to open a small account with some help from my Dad. I started my trading journey by buying UK equities that I had read about in the business sections of newspapers.