Commodities



Commodities are a range of primary resources that can be traded in quantifiable amounts and have minimum quality standards. The establishment of such basic parameters means that the commodities can be traded in large volumes or numbers in international commodity exchanges, with traders being reasonably certain that the commodities being traded are not deficient.

Commodities may be divided into a number of classifications: agricultural commodities (corn, coffee, cocoa, pork bellies, frozen orange juice, etc), energy commodities (oil, gas, etc) and metal commodities (gold, silver, iron ore, copper, etc). There are also a number of commodities that fit no classification.

However, the costs of trading via traditional brokers are often high, and can be too high for some private traders. This has led to the rise of the discount commodity broker. Such brokers offer a cut price service, focused on trading rather than the advice surrounding it. To reduce costs, many discount commodity brokers operate via the World Wide Web: online commodity trading has become a growth area in recent years, with many commodity brokers competing to offer the best deal to new traders. Some can have welcome bonuses and benefits, so if you are an trader looking to start trading commodities it’s worth shopping around for the best deal.