- Automated Trading
- Dedicated Customer Support
- Unlimited demo account
- Fast withdrawals
- Automated Trading
- Dedicated Customer Support
- Unlimited demo account
- Fast withdrawals
Is Pepperstone reliable?
Yes, Pepperstone is a reliable trading platform regulated by reputable authorities such as the FCA (UK) and ASIC (Australia). It guarantees the security of funds through segregated accounts and advanced security protocols. Users appreciate the transparency and strict regulation that frame operations on this platform.
Why choose Pepperstone?
Pepperstone stands out for its accessibility and tools adapted to all profiles. With an intuitive platform and powerful tools like cTrader, beginners and experienced traders can exploit a wide range of assets, from currencies to indices. The emphasis is on competitive spreads and fast order execution.
What are the fees at Pepperstone?
Pepperstone offers attractive fees with spreads from 0 pips on Raw accounts, but with a small commission of $3.5 per lot. For Standard accounts, there are no commissions, but slightly wider spreads. No fees on deposits, and withdrawal fees are transparent and reasonable.
Who is Pepperstone for?
Pepperstone is perfect for traders of all levels. Beginners will benefit from guides and demo accounts to practice, while more advanced users will appreciate the speed of the platform and access to high-end trading tools. Its diversity of assets allows everyone to find their area of expertise.
Is it easy to withdraw money from Pepperstone?
Withdrawing funds from Pepperstone is a simple and quick process. You can make your withdrawals via bank transfer, credit card or e-wallets. Requests are usually processed within 1 to 2 business days, with transparent withdrawal fees and a clear procedure, appreciated by many users.
Is Pepperstone reliable?
Yes, Pepperstone is a reliable trading platform regulated by reputable authorities such as the FCA (UK) and ASIC (Australia). It guarantees the security of funds through segregated accounts and advanced security protocols. Users appreciate the transparency and strict regulation that frame operations on this platform.
Why choose Pepperstone?
Pepperstone stands out for its accessibility and tools adapted to all profiles. With an intuitive platform and powerful tools like cTrader, beginners and experienced traders can exploit a wide range of assets, from currencies to indices. The emphasis is on competitive spreads and fast order execution.
What are the fees at Pepperstone?
Pepperstone offers attractive fees with spreads from 0 pips on Raw accounts, but with a small commission of $3.5 per lot. For Standard accounts, there are no commissions, but slightly wider spreads. No fees on deposits, and withdrawal fees are transparent and reasonable.
Who is Pepperstone for?
Pepperstone is perfect for traders of all levels. Beginners will benefit from guides and demo accounts to practice, while more advanced users will appreciate the speed of the platform and access to high-end trading tools. Its diversity of assets allows everyone to find their area of expertise.
Is it easy to withdraw money from Pepperstone?
Withdrawing funds from Pepperstone is a simple and quick process. You can make your withdrawals via bank transfer, credit card or e-wallets. Requests are usually processed within 1 to 2 business days, with transparent withdrawal fees and a clear procedure, appreciated by many users.
- Copy trading available
- Integrated Crypto Wallet
- Ideal for beginners
- 4.6% interest rate on uninvested balance
- Copy trading available
- Integrated Crypto Wallet
- Ideal for beginners
- 4.6% interest rate on uninvested balance
Is eToro reliable?
Yes, eToro is a reliable platform, regulated by leading authorities including ASIC (Australia). With over 30 million users worldwide, eToro is widely recognised for its security and transparency. According to our analysis, this broker is among the most reliable in the market, and we have not identified any complaints regarding the security of funds.
Why choose eToro?
With eToro, you don't need to be an expert to get started. Its intuitive interface and unique tool, CopyTrader, allow you to copy the best traders to learn while investing.
You can access thousands of assets, such as stocks, cryptos, Forex and commodities, all with an active community to exchange ideas: eToro makes investing simple, interactive and educational. It's a bit like the Spotify of investing.
What are the fees at eToro?
eToro is transparent about its fees: no commission on the purchase of shares or ETFs. Spreads vary depending on the asset but remain very affordable.
Deposits are free, and withdrawals are fixed at $5. If you remain inactive for 12 months or more, a fee of $10 per month applies.
Finally, the fees charged are clearly mentioned on its site (which cannot be said of all competitors).
Who is eToro for?
eToro is mainly aimed at beginners and intermediaries, thanks to its simplicity and educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find what they are looking for with a key argument for them: a real variety of assets (stocks, cryptocurrencies, ETFs).
Is it easy to withdraw money from eToro?
Yes, withdrawing your earnings from eToro is as simple as investing. With options like PayPal, bank transfer or credit card, eToro processes your requests in 1 to 3 business days.
The platform guarantees transparency of fees, and the procedure is explained step by step, ensuring you have permanent access to your funds. After analyzing thousands of customer cases, no such problems have been identified.
Is eToro reliable?
Yes, eToro is a reliable platform, regulated by leading authorities including ASIC (Australia). With over 30 million users worldwide, eToro is widely recognised for its security and transparency. According to our analysis, this broker is among the most reliable in the market, and we have not identified any complaints regarding the security of funds.
Why choose eToro?
With eToro, you don't need to be an expert to get started. Its intuitive interface and unique tool, CopyTrader, allow you to copy the best traders to learn while investing.
You can access thousands of assets, such as stocks, cryptos, Forex and commodities, all with an active community to exchange ideas: eToro makes investing simple, interactive and educational. It's a bit like the Spotify of investing.
What are the fees at eToro?
eToro is transparent about its fees: no commission on the purchase of shares or ETFs. Spreads vary depending on the asset but remain very affordable.
Deposits are free, and withdrawals are fixed at $5. If you remain inactive for 12 months or more, a fee of $10 per month applies.
Finally, the fees charged are clearly mentioned on its site (which cannot be said of all competitors).
Who is eToro for?
eToro is mainly aimed at beginners and intermediaries, thanks to its simplicity and educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find what they are looking for with a key argument for them: a real variety of assets (stocks, cryptocurrencies, ETFs).
Is it easy to withdraw money from eToro?
Yes, withdrawing your earnings from eToro is as simple as investing. With options like PayPal, bank transfer or credit card, eToro processes your requests in 1 to 3 business days.
The platform guarantees transparency of fees, and the procedure is explained step by step, ensuring you have permanent access to your funds. After analyzing thousands of customer cases, no such problems have been identified.
- Free Demo Account
- Automated Trading Option
- Raw ECN Access
- Advantageous fee amount
- Free Demo Account
- Automated Trading Option
- Raw ECN Access
- Advantageous fee amount
Is EightCap reliable?
Yes, EightCap is a trusted platform regulated by ASIC (Australia) and FCA (United Kingdom). Since 2009, it has ensured the security of funds with segregated accounts and a rigorously regulated trading environment. If you are looking for a reliable broker to start with, EightCap is a safe bet, recognised in the industry.
Why choose EightCap?
EightCap combines performance and flexibility. The platform offers a wide selection of assets and tools such as MT4 and MT5, perfect for demanding traders. Are you a novice? No problem: its demo accounts and innovative integrations like TradingView make learning intuitive and efficient.
What are the fees at EightCap?
At EightCap, fees depend on the account you choose: Raw accounts display spreads from 0 pip, with a commission of $3.5 per lot. Standard accounts have slightly higher spreads but no commissions. There are no fees on deposits or withdrawals, for clear and controlled costs.
Who is EightCap for?
Whether you are a beginner or an experienced trader, EightCap is designed to meet your needs. Are you a beginner? Take advantage of guides and demo accounts to understand the basics. Are you more advanced? Tools like MT5 and competitive spreads will allow you to go further in your strategies.
Is it easy to withdraw your money from EightCap?
Withdrawing your winnings on EightCap is simple and fast. Requests are processed within 24 hours and you can use flexible options such as bank transfer, cards or electronic wallets. Security and speed are at the heart of the service.
Is EightCap reliable?
Yes, EightCap is a trusted platform regulated by ASIC (Australia) and FCA (United Kingdom). Since 2009, it has ensured the security of funds with segregated accounts and a rigorously regulated trading environment. If you are looking for a reliable broker to start with, EightCap is a safe bet, recognised in the industry.
Why choose EightCap?
EightCap combines performance and flexibility. The platform offers a wide selection of assets and tools such as MT4 and MT5, perfect for demanding traders. Are you a novice? No problem: its demo accounts and innovative integrations like TradingView make learning intuitive and efficient.
What are the fees at EightCap?
At EightCap, fees depend on the account you choose: Raw accounts display spreads from 0 pip, with a commission of $3.5 per lot. Standard accounts have slightly higher spreads but no commissions. There are no fees on deposits or withdrawals, for clear and controlled costs.
Who is EightCap for?
Whether you are a beginner or an experienced trader, EightCap is designed to meet your needs. Are you a beginner? Take advantage of guides and demo accounts to understand the basics. Are you more advanced? Tools like MT5 and competitive spreads will allow you to go further in your strategies.
Is it easy to withdraw your money from EightCap?
Withdrawing your winnings on EightCap is simple and fast. Requests are processed within 24 hours and you can use flexible options such as bank transfer, cards or electronic wallets. Security and speed are at the heart of the service.
- Free Demo Account
- Copy Trading Available
- AvaProtect Coverage
- 3% interest rate on uninvested balance
- Free Demo Account
- Copy Trading Available
- AvaProtect Coverage
- 3% interest rate on uninvested balance
Is Avatrade reliable?
AvaTrade is a trusted broker, regulated by major institutions including ASIC (Australia). In operation since 2006, it offers solid guarantees, including the segregation of client funds and strict compliance with international standards. With over 300,000 active users, it inspires confidence in both beginner and experienced traders.
Why choose Avatrade?
AvaTrade combines simplicity and expertise. Tutorials, demo accounts and free training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities as you progress. You don't need to be an expert: AvaTrade adapts to you.
What are the fees at Avatrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and inactivity costs that can be avoided with regular use. You can focus on learning and your investments, without surprises when it comes to paying.
Who is Avatrade for?
AvaTrade is for everyone: beginners can take advantage of detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you are looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is an excellent choice.
Is it easy to withdraw money from Avatrade?
Yes, AvaTrade offers a fast and secure withdrawal process. Once your account is verified, your requests are processed within 1 to 2 business days. You can use various options such as bank cards, wire transfer or e-wallets. Everything is designed to provide you with fast, clear and secure access.
Is Avatrade reliable?
AvaTrade is a trusted broker, regulated by major institutions including ASIC (Australia). In operation since 2006, it offers solid guarantees, including the segregation of client funds and strict compliance with international standards. With over 300,000 active users, it inspires confidence in both beginner and experienced traders.
Why choose Avatrade?
AvaTrade combines simplicity and expertise. Tutorials, demo accounts and free training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities as you progress. You don't need to be an expert: AvaTrade adapts to you.
What are the fees at Avatrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and inactivity costs that can be avoided with regular use. You can focus on learning and your investments, without surprises when it comes to paying.
Who is Avatrade for?
AvaTrade is for everyone: beginners can take advantage of detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you are looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is an excellent choice.
Is it easy to withdraw money from Avatrade?
Yes, AvaTrade offers a fast and secure withdrawal process. Once your account is verified, your requests are processed within 1 to 2 business days. You can use various options such as bank cards, wire transfer or e-wallets. Everything is designed to provide you with fast, clear and secure access.
- Copy Trading Available
- Responsive Support
- Integrated training
- Free demo account
- Copy Trading Available
- Responsive Support
- Integrated training
- Free demo account
Vantage est-il fiable ?
Vantage est un broker fiable, réglementé par des autorités reconnues comme l’ASIC (Australie) et la FCA (Royaume-Uni). Il se distingue par la sécurité de ses comptes clients, protégés par des banques de premier ordre, et son engagement envers la transparence. Fort de plus de 15 ans d’expérience, Vantage est une plateforme digne de confiance.
Why choose Vantage?
Vantage stands out for its balance between accessibility and professional tools. Beginners benefit from support with demo accounts and educational resources, while experienced traders appreciate competitive spreads, fast execution, and advanced platforms like MT4/MT5. With a varied range of assets and transparent fees, Vantage caters to a wide audience in search of reliable and efficient trading conditions.
What are the fees at Vantage?
The fees at Vantage are adapted to everyone. On ECN accounts, spreads start at 0 pip with a commission of $3 per lot. Standard accounts offer slightly higher spreads, but without commission. No deposit or withdrawal fees are applied, and the cost of inactivity is limited. With Vantage, you keep control of your costs to invest effectively.
Who is Vantage for?
Vantage is perfect for traders looking for professional conditions, while remaining accessible to beginners. If you want a fast platform, competitive fees and advanced tools, Vantage is an excellent choice. Whether you are learning or perfecting your strategies, you will find the necessary resources.
Is it easy to withdraw your money from Vantage?
Withdrawing funds from Vantage is quick and secure. Requests are processed in less than 48 hours and you can choose between bank transfer, cards or electronic wallets. The platform guarantees smooth transactions and reduced fees, allowing you to access your earnings easily.
Vantage est-il fiable ?
Vantage est un broker fiable, réglementé par des autorités reconnues comme l’ASIC (Australie) et la FCA (Royaume-Uni). Il se distingue par la sécurité de ses comptes clients, protégés par des banques de premier ordre, et son engagement envers la transparence. Fort de plus de 15 ans d’expérience, Vantage est une plateforme digne de confiance.
Why choose Vantage?
Vantage stands out for its balance between accessibility and professional tools. Beginners benefit from support with demo accounts and educational resources, while experienced traders appreciate competitive spreads, fast execution, and advanced platforms like MT4/MT5. With a varied range of assets and transparent fees, Vantage caters to a wide audience in search of reliable and efficient trading conditions.
What are the fees at Vantage?
The fees at Vantage are adapted to everyone. On ECN accounts, spreads start at 0 pip with a commission of $3 per lot. Standard accounts offer slightly higher spreads, but without commission. No deposit or withdrawal fees are applied, and the cost of inactivity is limited. With Vantage, you keep control of your costs to invest effectively.
Who is Vantage for?
Vantage is perfect for traders looking for professional conditions, while remaining accessible to beginners. If you want a fast platform, competitive fees and advanced tools, Vantage is an excellent choice. Whether you are learning or perfecting your strategies, you will find the necessary resources.
Is it easy to withdraw your money from Vantage?
Withdrawing funds from Vantage is quick and secure. Requests are processed in less than 48 hours and you can choose between bank transfer, cards or electronic wallets. The platform guarantees smooth transactions and reduced fees, allowing you to access your earnings easily.
- Unlimited demo account
- Copy trading available
- Mobile-only trading
- 4.5% interest rate on uninvested balance
- Unlimited demo account
- Copy trading available
- Mobile-only trading
- 4.5% interest rate on uninvested balance
Is XTB reliable?
XTB is a trusted broker, regulated in France by the AMF and supervised by renowned authorities such as the FCA and CySEC. It protects its clients' funds in segregated accounts, ensuring a secure trading environment. With millions of users, XTB stands out as a reliable and transparent platform.
Why choose XTB?
XTB is attractive with its intuitive platform and powerful tools like xStation, ideal for all levels. With a wide range of assets including stocks, cryptos and Forex, investment becomes accessible. In addition, its rich educational content allows traders to evolve quickly and gain autonomy.
What are the fees at XTB?
XTB offers competitive fees, including 0% commission on the purchase of stocks and ETFs. Spreads are attractive and deposits are free. Withdrawals over $100 are free of charge, and prolonged inactivity may incur fees after one year. Transparency is at the heart of its model.
Who is XTB for?
XTB is suitable for both beginners and experienced investors. Novices will appreciate its educational resources and easy handling, while experienced traders will benefit from advanced tools and a wide selection of assets to diversify their strategies.
Is it easy to withdraw money from XTB?
XTB facilitates withdrawals with various options such as bank transfer and e-wallets. Requests are generally processed within 24 hours, ensuring quick access to funds. No fees are applied beyond a certain amount, and the process is clear and secure.
Is XTB reliable?
XTB is a trusted broker, regulated in France by the AMF and supervised by renowned authorities such as the FCA and CySEC. It protects its clients' funds in segregated accounts, ensuring a secure trading environment. With millions of users, XTB stands out as a reliable and transparent platform.
Why choose XTB?
XTB is attractive with its intuitive platform and powerful tools like xStation, ideal for all levels. With a wide range of assets including stocks, cryptos and Forex, investment becomes accessible. In addition, its rich educational content allows traders to evolve quickly and gain autonomy.
What are the fees at XTB?
XTB offers competitive fees, including 0% commission on the purchase of stocks and ETFs. Spreads are attractive and deposits are free. Withdrawals over $100 are free of charge, and prolonged inactivity may incur fees after one year. Transparency is at the heart of its model.
Who is XTB for?
XTB is suitable for both beginners and experienced investors. Novices will appreciate its educational resources and easy handling, while experienced traders will benefit from advanced tools and a wide selection of assets to diversify their strategies.
Is it easy to withdraw money from XTB?
XTB facilitates withdrawals with various options such as bank transfer and e-wallets. Requests are generally processed within 24 hours, ensuring quick access to funds. No fees are applied beyond a certain amount, and the process is clear and secure.
- Automated trading
- Wide selection of ETFs
- Savings plans
- 2.25% interest rate on uninvested balance
- Automated trading
- Wide selection of ETFs
- Savings plans
- 2.25% interest rate on uninvested balance
Is Trade Republic reliable?
Yes, Trade Republic is overseen by reputable regulators, including the AMF in France, as well as BaFin and the German Central Bank. With strict security standards and millions of users, the platform has established itself as a leading online investment platform in Europe.
Why choose Trade Republic?
Trade Republic transforms investing into a simple and affordable experience. With an intuitive mobile app, fixed fees of just $1 per transaction, and features like scheduled investment plans, it's an ideal solution for investing at your own pace. Additionally, Trade Republic offers a PEA (Plan d'Épargne en Actions), a tax advantage particularly attractive for investors looking to optimize their long-term investments.
What are the fees at Trade Republic?
Trade Republic focuses on ultra-simple pricing: no commission fees on stocks, ETFs, or cryptos, except for a fixed cost of $1 per transaction. Deposits and withdrawals are free. This clear and economical model is particularly suitable for beginner or regular investors.
Who is Trade Republic for?
Trade Republic is for those who want to invest easily and at their own pace. Beginners or occasional investors will appreciate its mobile interface and scheduled plans for effortless savings. It is also suitable for those looking for a modern alternative to traditional banks.
Is it easy to withdraw money from Trade Republic?
Yes, Trade Republic simplifies the withdrawal of your funds. You can make your request in a few clicks from the app, and the transfer to your bank account is generally completed in 2 to 3 business days. The transparency and security of the process make Trade Republic a reliable solution for accessing your earnings quickly and without complications.
Is Trade Republic reliable?
Yes, Trade Republic is overseen by reputable regulators, including the AMF in France, as well as BaFin and the German Central Bank. With strict security standards and millions of users, the platform has established itself as a leading online investment platform in Europe.
Why choose Trade Republic?
Trade Republic transforms investing into a simple and affordable experience. With an intuitive mobile app, fixed fees of just $1 per transaction, and features like scheduled investment plans, it's an ideal solution for investing at your own pace. Additionally, Trade Republic offers a PEA (Plan d'Épargne en Actions), a tax advantage particularly attractive for investors looking to optimize their long-term investments.
What are the fees at Trade Republic?
Trade Republic focuses on ultra-simple pricing: no commission fees on stocks, ETFs, or cryptos, except for a fixed cost of $1 per transaction. Deposits and withdrawals are free. This clear and economical model is particularly suitable for beginner or regular investors.
Who is Trade Republic for?
Trade Republic is for those who want to invest easily and at their own pace. Beginners or occasional investors will appreciate its mobile interface and scheduled plans for effortless savings. It is also suitable for those looking for a modern alternative to traditional banks.
Is it easy to withdraw money from Trade Republic?
Yes, Trade Republic simplifies the withdrawal of your funds. You can make your request in a few clicks from the app, and the transfer to your bank account is generally completed in 2 to 3 business days. The transparency and security of the process make Trade Republic a reliable solution for accessing your earnings quickly and without complications.
- Easy for beginners
- Staking offered
- BEST token to reduce your fees
- 2.25% interest rate on uninvested balance
- Easy for beginners
- Staking offered
- BEST token to reduce your fees
- 2.25% interest rate on uninvested balance
Is Bitpanda reliable?
Yes, Bitpanda is a trusted platform, in accordance with the strict regulations of the AMF, guaranteeing a secure trading environment. User funds are protected and transparency is at the heart of its operations, offering a reassuring and safe experience for all investors.
Why choose Bitpanda?
Choosing Bitpanda means opting for a welcoming platform, specially designed to be accessible to beginners thanks to its intuitive interface. With a wide range of assets and innovative tools, it encourages training and collaboration within an active community.
What are the fees at Bitpanda?
The fees at Bitpanda are clear and competitive. The purchase of stocks or ETFs is commission-free, and the spreads are relatively low. Although inactivity fees may apply, everything is clearly detailed to avoid surprises for the user.
Who is Bitpanda for?
Bitpanda is aimed at both novices and experienced investors. Beginners appreciate its simplicity, while experts find satisfaction in the diversity of assets available such as stocks, cryptocurrencies and ETFs, making the platform versatile.
Is it easy to withdraw your money from Bitpanda?
Withdrawing funds from Bitpanda is simple and intuitive. With various withdrawal options such as PayPal, bank transfer or credit card, the process is quick and transparent, ensuring that users access their money without hassle.
Is Bitpanda reliable?
Yes, Bitpanda is a trusted platform, in accordance with the strict regulations of the AMF, guaranteeing a secure trading environment. User funds are protected and transparency is at the heart of its operations, offering a reassuring and safe experience for all investors.
Why choose Bitpanda?
Choosing Bitpanda means opting for a welcoming platform, specially designed to be accessible to beginners thanks to its intuitive interface. With a wide range of assets and innovative tools, it encourages training and collaboration within an active community.
What are the fees at Bitpanda?
The fees at Bitpanda are clear and competitive. The purchase of stocks or ETFs is commission-free, and the spreads are relatively low. Although inactivity fees may apply, everything is clearly detailed to avoid surprises for the user.
Who is Bitpanda for?
Bitpanda is aimed at both novices and experienced investors. Beginners appreciate its simplicity, while experts find satisfaction in the diversity of assets available such as stocks, cryptocurrencies and ETFs, making the platform versatile.
Is it easy to withdraw your money from Bitpanda?
Withdrawing funds from Bitpanda is simple and intuitive. With various withdrawal options such as PayPal, bank transfer or credit card, the process is quick and transparent, ensuring that users access their money without hassle.
- Training options
- Copy trading available
- Level 2 order book
- 4.5% interest rate on uninvested balance
- Training options
- Copy trading available
- Level 2 order book
- 4.5% interest rate on uninvested balance
Is IG reliable?
Yes, IG is a recognised trading platform regulated by leading authorities such as the FCA in the UK and ASIC in Australia. It protects client funds through segregated accounts and ensures enhanced security. Many users attest to its seriousness and transparency in transaction management.
Why choose IG?
IG is ideal for beginners as well as more experienced traders. Its simple interface and practical tools, such as the ProRealTime function, facilitate the learning of trading. The platform offers a wide choice of assets, from stocks to cryptocurrencies, while emphasizing an active community to exchange and progress together.
What are the fees at IG?
IG is distinguished by competitive fees, with no commission on the purchase of shares and ETFs. Spreads are affordable, and there are no fees on deposits. However, inactivity fees may apply if your account is inactive for 2 years. The platform focuses on transparency to avoid surprises.
Who is IG for?
IG is suitable for all types of investors. If you're a beginner, you'll benefit from a clear interface and demo accounts to learn at your own pace. For experienced traders, IG offers powerful tools and a wide variety of assets, from stocks to options, to refine your trading strategies.
Is it easy to withdraw money from IG?
Withdrawing your money from IG is quick and easy. You can use several methods such as bank transfer, PayPal, or credit card. Withdrawals are processed quickly and the fees are transparent. Thousands of customers testify to the smoothness of the process and direct access to their funds.
Is IG reliable?
Yes, IG is a recognised trading platform regulated by leading authorities such as the FCA in the UK and ASIC in Australia. It protects client funds through segregated accounts and ensures enhanced security. Many users attest to its seriousness and transparency in transaction management.
Why choose IG?
IG is ideal for beginners as well as more experienced traders. Its simple interface and practical tools, such as the ProRealTime function, facilitate the learning of trading. The platform offers a wide choice of assets, from stocks to cryptocurrencies, while emphasizing an active community to exchange and progress together.
What are the fees at IG?
IG is distinguished by competitive fees, with no commission on the purchase of shares and ETFs. Spreads are affordable, and there are no fees on deposits. However, inactivity fees may apply if your account is inactive for 2 years. The platform focuses on transparency to avoid surprises.
Who is IG for?
IG is suitable for all types of investors. If you're a beginner, you'll benefit from a clear interface and demo accounts to learn at your own pace. For experienced traders, IG offers powerful tools and a wide variety of assets, from stocks to options, to refine your trading strategies.
Is it easy to withdraw money from IG?
Withdrawing your money from IG is quick and easy. You can use several methods such as bank transfer, PayPal, or credit card. Withdrawals are processed quickly and the fees are transparent. Thousands of customers testify to the smoothness of the process and direct access to their funds.
- Which raw materials can be traded online?
- How to invest in commodities?
- Which raw material according to your investor profile?
- How to choose a broker to trade commodities?
- Why invest in commodities?
- How much does commodity trading cost?
- Live commodity prices
- What is the taxation on income from commodities in PH?
- Raw materials: understanding the Contango and Backwardation effect
Which raw materials can be traded online?
Commodities trading is a key pillar in financial markets, offering investors exposure to the raw materials that drive global economies. Commodities are basic goods used in commerce, such as metals, energy sources, and agricultural products. Their prices are shaped by the balance between global supply and demand, weather, geopolitics, technological advancements, and macroeconomic trends. For example, oil prices can swing widely following geopolitical tensions, while crop prices react to weather patterns and harvest data.
Commodities play a crucial role in diversifying a traditional investment portfolio because their price movements often differ from stocks and bonds. Online trading platforms provide access to commodities through different instruments. The most common are CFD (Contracts for Difference), which let you speculate on price changes without actually owning the physical commodity; futures contracts, which are standardized agreements to buy or sell a specific amount of a commodity at a set date and price; and commodity ETFs (Exchange Traded Funds), which track the price of a basket of commodities or a single commodity.
Below, you’ll find a summary of key commodities, including their main characteristics, investment profile, and how to access them.
Commodity | Category | Investor Profile | Description | Instruments Available | Popular Brokers |
---|---|---|---|---|---|
Brent Crude Oil | Energy | Dynamic, Risk-tolerant | Leading global oil benchmark, highly liquid, volatile | CFD, Futures, ETF | eToro, IG, XM |
Gold | Metals | Conservative to Balanced | Safe-haven asset, stores value in uncertain times | CFD, Futures, ETF | eToro, AvaTrade, Saxo |
Natural Gas | Energy | Opportunistic, Short term | Energy source with high price swings, seasonal trends | CFD, Futures, ETF | Plus500, IG, OANDA |
Aluminium | Metals | Balanced, Diversifies | Widely used in industry and transport, cyclical demand | CFD, Futures | IG, Saxo, eToro |
Wheat | Agriculture | Diversifier, Medium risk | Staple crop, sensitive to supply shocks and weather | CFD, Futures, ETF | Interactive Brokers |
Silver | Metals | Medium risk, Growth | Industrial use and value store, more volatile than gold | CFD, Futures, ETF | eToro, IG, Saxo |
Copper | Metals | Dynamic, Growth-oriented | Industrial/tech demand linked to global growth | CFD, Futures, ETF | Plus500, AvaTrade |
Soybeans | Agriculture | Diversifier, Medium-long | Key food and oil crop, demand from China/Asia | CFD, Futures | Interactive Brokers |
Investing in Gold
Criteria | Details |
---|---|
🧑💼 Profile | Conservative to Balanced |
⚠️ Risk Level | Low to Medium |
📉 Volatility | Low to Medium |
⏳ Investment Horizon | Short to Long term |
🛠️ Best Instruments | ETF, CFD, Physical Gold, Gold Futures |
Gold is well-known for its role as a “safe-haven” asset in times of economic or geopolitical stress. Its price tends to remain stable or even increase when stock markets drop, which makes it a popular choice for diversification. Gold can be traded either physically, through online brokers offering ETFs or CFDs, or via futures contracts. Due to its relatively lower volatility compared to other commodities, it suits investors seeking capital preservation and portfolio stability.
Investing in Brent Crude Oil
Criteria | Details |
---|---|
🧑💼 Profile | Dynamic, Risk-tolerant |
⚠️ Risk Level | High |
📉 Volatility | High |
⏳ Investment Horizon | Short to Medium term |
🛠️ Best Instruments | CFD, Futures, Oil ETF |
Brent oil is the world’s reference price for crude oil and symbolizes the heartbeat of the energy markets. Oil trading is highly speculative, driven by supply/demand dynamics, geopolitical events, OPEC decisions, and economic cycles. The commodity can experience rapid and significant price swings. It’s mainly suited for investors who can monitor markets actively and manage risk in volatile environments, using instruments like CFDs or oil ETFs.
Investing in Natural Gas
Criteria | Details |
---|---|
🧑💼 Profile | Short term, Speculative |
⚠️ Risk Level | High |
📉 Volatility | Very High |
⏳ Investment Horizon | Short term |
🛠️ Best Instruments | CFD, Futures, ETF |
Natural gas is a highly volatile energy commodity, with prices that react strongly to seasonal weather, storage levels, and geopolitical developments. It is well suited for experienced traders focused on short-term opportunities, given its price can swing sharply in a matter of days. Instruments such as CFDs and futures enable active speculation, though they require strict risk management.
Investing in Aluminium
Criteria | Details |
---|---|
🧑💼 Profile | Diversifier, Balanced |
⚠️ Risk Level | Medium |
📉 Volatility | Medium |
⏳ Investment Horizon | Medium to Long term |
🛠️ Best Instruments | CFD, Futures |
Aluminium is a versatile industrial metal, linked closely to the construction and automotive sectors. Its price is sensitive to global economic growth, changes in supply from major producers, and shifting trade policies. Investing in aluminium may appeal to investors looking to diversify outside of precious metals, via CFDs or futures, especially during periods of economic recovery.
Investing in Grains (Wheat, Maize, Soybeans)
Criteria | Details |
---|---|
🧑💼 Profile | Diversifier, Medium risk |
⚠️ Risk Level | Medium to High |
📉 Volatility | Medium to High, seasonal |
⏳ Investment Horizon | Short to Medium term |
🛠️ Best Instruments | CFD, Futures, ETF |
Grains like wheat, corn (maize), and soybeans are foundational to global food supply. Their prices are driven by weather conditions, harvest quality, global demand (especially from large importers like China), and trade policies. Grains can show significant price fluctuations at harvest time or during weather-related disruptions. They are suitable for investors wanting exposure to agriculture, typically through CFDs, futures, or agriculture ETFs, while keeping in mind their seasonal volatility.
How to invest in commodities?
Investing in commodities offers several approaches, depending on your goals and investor profile. Whether you’re looking for active short-term speculation or a more stable, long-term diversification, commodities represent a class of physical assets accessible through various financial instruments. This guide outlines the main methods available to investors, so you can understand the options and choose the one best suited to your needs in the Philippines.
Investing via CFDs (Contracts for Difference)
CFDs are derivative instruments that allow you to speculate on price movements of commodities without owning the underlying asset. With CFDs, you can enter trading positions by depositing a margin (a fraction of the contract value), giving you leverage to amplify potential gains—or losses. This approach is frequently used for short-term, active trading and offers flexibility for both rising and falling markets. However, leverage also introduces high risk, and a wrong price movement can lead to losses exceeding your initial investment.
Example of CFD on Oil
Suppose Brent crude oil is trading at $80 per barrel. You believe prices will rise, so you open a CFD position with a broker for 100 barrels, with 10% margin: - Margin required: $800 (10% of $8,000) - If the price rises to $82, you gain ($2 profit x 100) = $200 - If the price drops to $78, you lose ($2 loss x 100) = $200
Category | Examples of CFDs Available |
---|---|
Energy | Oil (Brent, WTI), Natural Gas |
Metals | Gold, Silver, Copper |
Agricultural Commodities | Wheat, Corn, Soybean |
Softs | Coffee, Cocoa, Sugar |
Investing via Futures Contracts
Futures contracts are standardized agreements to buy or sell a specific quantity of a commodity at a predetermined price and date in the future. Commonly traded on exchanges, futures allow both hedgers (such as producers and consumers) and speculators to participate. Futures are popular for actively managing risk or speculating on price trends, but they require a careful approach due to contract specifications, margin requirements, and expiration dates.
Example of Wheat Futures Contract
Suppose you buy a futures contract for 50 metric tons of wheat at $250 per ton, delivery in three months. If the market price rises to $270 per ton at contract maturity, your gain is ($20 x 50) = $1,000. If the price falls to $240 per ton, your loss is ($10 x 50) = $500.
Category | Examples of Futures Available |
---|---|
Energy | Crude Oil, Nat Gas, Gasoline |
Metals | Gold, Silver, Copper |
Agriculture | Wheat, Corn, Soybean, Coffee |
Livestock | Live Cattle, Lean Hogs |
Investing via ETFs (Exchange Traded Funds)
ETFs are investment funds traded on stock exchanges, offering indirect exposure to commodities or a diversified basket of them. Commodity ETFs track the price of a single commodity, like gold, or a group, such as energy or agricultural products. This method provides diversification, liquidity, and ease of trading—ideal for long-term investors seeking exposure without dealing with the logistics of physical delivery or futures management.
Example of Gold ETF Investment
You buy 100 shares of a gold ETF at PHP 2,500 per share. If the gold price increases and the ETF value rises to PHP 2,650 per share, your investment grows by PHP 15,000 (PHP 150 per share x 100 shares).
Category | Examples of Commodity ETFs |
---|---|
Precious Metals | Gold ETFs, Silver ETFs |
Energy | Crude Oil ETFs, Energy Indexes |
Agriculture | Agriculture Basket ETFs |
Diversified Commodities | Broad Commodity ETFs |
Investing in Commodity-Related Stocks
Another indirect way to gain commodity exposure is by buying shares in companies involved in extraction, production, or processing of commodities. The performance of these stocks is partly linked to commodity prices, but also influenced by company-specific factors and broader market trends. This method adds an extra layer of diversification, but with risks and returns not solely tied to commodity prices.
Example of Commodity Stock Investment
You purchase 500 shares of a mining company at PHP 20 per share (total PHP 10,000). If the price of gold rises, the miner’s profits may increase, boosting the share price to PHP 25. Your investment becomes PHP 12,500—a PHP 2,500 gain.
Sector | Examples of Companies |
---|---|
Energy | Oil exploration, Gas producers |
Mining | Gold, Silver, Copper miners |
Agriculture | Large-scale plantations, Grain companies |
Chemicals | Fertilizer or agri-processing |
Investing in Physical Commodities
The traditional method is to buy and hold the physical commodity—mainly precious metals like gold, silver, or platinum—either in the form of bars, coins, or jewelry. This method is valued for its security: you own the asset directly, with no counterparty risk. However, issues such as secure storage, insurance, and reselling logistics can limit practicality, especially for larger investments or perishable goods.
Example of Physical Gold Investment
You buy a 50-gram gold bar at PHP 175,000 (calculated at PHP 3,500/gram). If the spot market price rises to PHP 3,800/gram, your bar’s value increases to PHP 190,000—a PHP 15,000 gain if you sell.
Physical Commodity | Forms Accessible |
---|---|
Gold | Bars, coins, jewelry |
Silver | Bars, coins |
Platinum, Palladium | Bars, coins |
Diamonds & Gems | Stones, jewelry |
Each of these methods comes with specific features, advantages, and risks. By understanding how each instrument works, investors in the Philippines can access global commodity markets with a strategy aligned to their investment goals and capabilities.
Which raw material according to your investor profile?
Not all commodities behave in the same way—some are stable safe havens, while others can fluctuate sharply due to economic data or geopolitics. Your experience, appetite for risk, and investment goals should guide your choice of assets. Here’s how you can classify major commodities by investor profile to choose opportunities in line with your skills and risk tolerance.
Investor profile | Recommended commodities |
---|---|
🟢 Beginner | Gold, Aluminium |
🟡 Intermediate | Oil, Grains (Wheat, Corn, Soybean) |
🔴 Expert | Natural Gas, Oil (short-term), Grains (short-term trading) |
🟢 Beginner: stable and predictable commodities
For new investors, it's essential to focus on assets that are less volatile and easier to understand. Here are the main features of gold and aluminium:
- Gold
- Known for its long-term stability and role as a “store of value.”
- Less impacted by short-term economic shocks or political events.
- Used mainly for capital preservation and diversification.
- Aluminium
- Volatility is typically low to moderate.
- Widely used in industries (transport, packaging), leading to steady demand.
- Prices are less exposed to sudden global events than energy or agricultural commodities.
Recommended strategies:
- Use ETFs (Exchange Traded Funds) to gain exposure without taking on delivery or leverage risks.
- Consider CFDs (Contracts for Difference) with low leverage.
- Avoid day trading or highly leveraged products; instead, invest with a medium- to long-term horizon.
🟡 Intermediate: more dynamic assets, exposed to current events
Intermediate investors looking for more dynamism can consider assets influenced by world events and economic data. Oil and grains fit this profile:
- Oil
- Sensitive to geopolitical tensions, supply cuts, and global growth.
- Potential for larger price swings and higher returns but with greater risk.
- Grains (Wheat, Corn, Soybean)
- Impacted by weather conditions, export policies, and global demand.
- Prices can move on seasonal trends and policy announcements.
Recommended strategies:
- Keep up to date with economic news and factors impacting global supply/demand.
- Use swing trading strategies via CFDs or ETFs, seeking medium-term opportunities.
- Set stop-loss orders to limit losses from sudden market reversals.
- Diversify across different commodities to reduce overall risk.
🔴 Expert: highly volatile assets, sensitive to external data
Expert investors with advanced skills and higher risk tolerance can focus on the most volatile commodities. These markets often require speed, discipline, and professional-grade tools.
- Natural Gas
- Highly volatile, driven by weather, inventory reports, and energy transitions.
- Prices can change sharply within hours due to shifting demand and supply.
- Oil (day trading)
- Intra-day price moves can be dramatic; requires tracking real-time data.
- Influenced by OPEC announcements, inventory data, and geopolitical developments.
- Grains (short-term trading)
- Extreme price sensitivity to climate forecasts, export bans, or crop reports.
- Often affected by news during specific agricultural seasons.
Recommended strategies:
- Use advanced charting tools and technical indicators to spot short-term trends.
- Apply scalping or short-term trading methods to benefit from rapid price changes.
- Manage leverage carefully; use hedging techniques to control downside risk.
- Maintain disciplined risk management, as losses can be rapid and large in scale.
By selecting commodities that match your skill level and investment approach, you’re better positioned to manage risk and pursue consistent returns.
How to choose a broker to trade commodities?
Choosing the right broker is a key step to trade commodities safely and effectively. The broker you select impacts your access to markets, security of your funds, fees, trading tools, and overall user experience. For investors in the Philippines, understanding what makes a broker trustworthy and suitable for commodity trading is crucial to protect your investments and maximize your potential returns.
Criterion | What to Look For |
---|---|
Regulation | Make sure the broker is regulated by well-known authorities. In PH, check for accreditation from the Securities and Exchange Commission (SEC), Bangko Sentral ng Pilipinas (BSP), or international regulators like FCA (UK), CySEC (EU), or ASIC (Australia). |
Fund Protection | Your funds should be held in segregated accounts, separate from the broker’s assets. Brokers may also offer protection mechanisms such as participation in deposit guarantee schemes, ensuring compensation in case of broker insolvency. |
Commodity Offering | Confirm the broker gives access to a wide range of commodities including energy (oil, gas), metals (gold, silver), and agricultural products (wheat, coffee, etc.), allowing you to diversify your trades. |
Instruments Available | Check what financial instruments can be traded: CFDs, futures, ETFs, and commodity-related stocks. Availability of multiple instruments allows flexibility in your trading strategies. |
Trading Fees | Analyze all costs: spreads (difference between buy/sell prices), commissions per trade, overnight (swap) fees, and inactivity fees. Competitive fees help improve your overall performance. |
Trading Platform | The platform should be user-friendly, stable, and responsive. Compatibility with popular software like MetaTrader 4/5 and a mobile version are important for trading on-the-go. |
Trading Tools | Look for advanced charting tools, technical indicators, real-time data, price alerts, and analytic resources that support informed decision-making. |
Leverage | Verify the maximum leverage permitted in PH. Higher leverage can increase both potential gains and losses, so ensure the broker follows local regulations and provides transparent info on leverage limits. |
Risk Management | Essential features include stop-loss and take-profit orders, margin alerts, and negative balance protection to help control your risks and safeguard your account from large losses. |
Customer Support | Customer service should be available in your preferred language (English, Filipino, etc.), responsive, and accessible via multiple channels (chat, phone, email) to resolve any issues quickly. |
By analyzing each of these criteria, you can choose a commodity broker that fits your trading needs and provides a secure, reliable environment for your investments.
Why invest in commodities?
Is it relevant to include commodities in an investment portfolio? For many investors, traditional choices like stocks and bonds are the cornerstone of a balanced strategy. Yet, commodities—be they agricultural products, energy resources, or metals—deserve serious consideration for several strategic reasons. Their unique characteristics can add valuable balance to your holdings, provided you understand their specific roles and risks.
Commodities stand out for their low or even negative correlation with conventional assets like stocks and bonds. This means their market movements often respond to distinct factors—such as weather patterns, global supply and demand shifts, or geopolitical events—rather than company performance or interest rates. By incorporating commodities, investors can reduce the overall volatility of their portfolio. In essence, when other assets are under pressure, commodities may move independently, helping smooth out returns over time.
Inflation is a persistent concern for investors aiming to preserve purchasing power. Commodities, particularly agricultural goods and energy products, have historically shown a tendency to rise in price during inflationary periods. As the cost of living increases, so does the price of essential raw materials. This makes commodities a potential “hedge” against inflation: they can help cushion the portfolio against the eroding effects of rising prices, especially in environments where stocks and bonds may struggle.
Among commodities, precious metals—including gold and silver—often play a special role. These assets are renowned as “safe havens,” attracting investors during periods of financial turbulence, geopolitical uncertainty, or economic downturns. While not immune to price swings, precious metals tend to maintain their value better than riskier assets when confidence in markets falters. Their inclusion can therefore offer a buffer—a form of insurance—when other portfolio components encounter difficulties.
Finally, certain commodities present tactical opportunities for more active investors. For example, the oil market is highly sensitive to geopolitical developments and shifts in global demand, which can lead to pronounced price movements. Identifying such trends allows investors to potentially achieve gains over the short or medium term. However, this requires careful analysis and timing, as commodities markets can be volatile and influenced by unpredictable factors.
Key takeaway
Commodities are not a guaranteed way to boost portfolio performance, and they carry their own risks. However, when thoughtfully included, they contribute to diversification, offer potential protection against inflation, add a stabilizing element through precious metals, and create space for tactical opportunities. For investors in PH seeking a robust and resilient portfolio, understanding the place of commodities is an important step towards building long-term financial stability.
How much does commodity trading cost?
Trading commodities, such as gold, oil, or agricultural products, offers many opportunities, but comes with specific costs that every trader should understand before starting. The main fees linked to commodities trading are the spread (the difference between buy and sell price), transaction commissions, overnight financing fees (“swaps”), inactivity fees and withdrawal charges. Knowing the details and real impact of these fees is key to maximizing your earnings and avoiding unpleasant surprises. Even small costs can accumulate over time and significantly impact your final profit, especially if you trade regularly or maintain positions for several days.
Type of fee | Explanation | Real-life example |
---|---|---|
Spread | Difference between the buy (ask) and sell (bid) price of a commodity | If gold’s buy price is $2,000 and sell price is $1,998, spread = $2 per ounce |
Transaction commission | Fixed or percentage fee per trade, charged by your broker or platform | $5 commission per round-trip trade, regardless of position size |
Financing fee (swap rate) | Cost (or gain) for holding a position overnight, based on daily interest | Holding an oil contract overnight incurs a $3/day swap fee |
Inactivity fee | Fee if your account is inactive for a set period (e.g., 3 or 6 months) | $10 charged monthly after 3 months of no activity |
Withdrawal fee | Fee for transferring money from your trading account to your bank/wallet | ₱200 fee per withdrawal request |
1. Spread
The spread is the difference between the price you can buy (ask) and sell (bid) a commodity on your trading platform. It is usually measured in points, cents, or dollars, depending on the commodity. Spreads compensate the broker for providing market access, and they affect both the entry and the exit price, so you “pay” the spread twice on a round-trip trade.
Example of spread
Suppose you want to trade 10 ounces of gold. The buy (ask) price is $2,000, and the sell (bid) price is $1,998. The spread is $2 per ounce. When you buy and immediately sell, this $2 per ounce is your effective cost per trade:
10 ounces x $2 = $20 spread cost
2. Transaction commission
Some brokers charge a fixed or percentage fee for each trade you execute (“per transaction”). This cost is charged separately from the spread and applies whether you win or lose on your trade. Not all brokers apply a commission, and fees can differ depending on the product or platform.
Example of transaction commission
You buy and later sell one lot of oil. The broker charges a fixed $5 commission per trade, so round-trip (open and close), your commission totals $10 for the trade, regardless of your trade size or outcome.
3. Financing fee (swap rate)
If you hold a leveraged or margin position overnight, your broker applies a “swap” or overnight financing fee. This reflects the cost of borrowing money to maintain your position. Rates can be positive or negative depending on the commodity and market conditions. This fee is usually charged daily after the trading session closes.
Example of financing fee (swap)
You hold a position in a silver contract for 3 nights. The swap rate charged by your broker is $2 per night. The total financing cost for holding this position overnight is:
3 nights x $2 = $6 swap fee
4. Inactivity fee
If you do not place any trades or log in for a fixed number of months, some brokers charge an inactivity fee. This fee usually applies monthly until you reactivate your account.
Example of inactivity fee
Your account shows no trading activity for four consecutive months. The broker charges a ₱500 inactivity fee per month. After four months of inactivity, the total fee deducted is:
4 months x ₱500 = ₱2,000 total inactivity fees
5. Withdrawal fee
When you want to transfer money from your trading account to your bank or e-wallet, platforms often charge a withdrawal fee. This can be a flat rate or a percentage of the amount. The fee varies depending on your withdrawal method and the broker’s policy.
Example of withdrawal fee
After closing your trades, you withdraw ₱50,000 to your bank account. The broker charges a ₱200 flat withdrawal fee. The amount you actually receive is:
₱50,000 - ₱200 = ₱49,800
Understanding, calculating, and comparing these fees before trading can help you make more informed decisions and optimize your potential returns.
Live commodity prices
What is the taxation on income from commodities in PH?
The taxation of income from commodities in the Philippines (PH) depends on both the type of financial instrument used—such as derivatives, funds, shares, or physical metals—and the local fiscal rules in place. In general, such income is treated as capital income and falls under specific regimes depending on the product category. Below is an overview of the main tax rules applicable to different types of commodity investments for taxpayers resident in PH.
Type of Investment | Applicable Taxation | Special Considerations |
---|---|---|
CFD and futures | Final tax on net capital gains, or ordinary income tax rates if considered business income | Gains considered as financial income; losses may be deductible in some cases |
Commodity ETFs | Capital gains tax; dividends subject to final withholding tax | Taxation may differ if ETF is PH-listed or foreign |
Shares in mining/oil companies | Capital gains tax (for PH shares); dividends subject to withholding tax | Preferential tax on listed shares; tax treaty benefits for dividends possible |
Physical precious metals (gold, silver, etc.) | VAT or percentage tax on acquisition; no capital gains tax upon individual sale | Tax treatment varies on form (bullion, jewellery); resale may be subject to other taxes |
CFDs (Contracts for Difference) and commodity futures are generally considered financial instruments. In PH, gains realized from trading these derivatives are treated as capital gains and subject to a final tax if considered as passive investment income, typically at a rate of 15%. However, if trading is frequent or constitutes a business activity, gains may be subject to regular graduated income tax rates. Losses on such instruments may be deductible, subject to limitations, especially if the taxpayer is classified as engaged in business.
Commodity ETFs, whether focused on gold, oil, or other raw materials, are taxed mainly based on their legal structure and listing. For PH-listed ETFs, gains from sales are subject to the stock transaction tax and, if held long-term, to final capital gains tax (usually at 15%). Dividends distributed by ETFs are subject to a final withholding tax, commonly at 10%. Investments in foreign ETFs may entail additional considerations, such as potential double taxation, but tax treaties may provide relief.
Shares in mining or oil companies traded on the Philippine Stock Exchange are usually taxed under the preferential regime for listed securities. Sale of shares is subject to the 0.6% stock transaction tax (on gross selling price) and long-term capital gains (15%) if applicable. Cash dividends are taxed via a 10% final withholding tax for resident individuals. For nonresident investors or foreign shares, specific rules may apply, including potential benefits under tax treaties.
Physical precious metals, such as bullion gold or silver, are not directly subject to capital gains tax upon sale by individuals. Instead, acquisition may be subject to Value-Added Tax (12% standard rate) or a percentage tax if sold by dealers. The sale by private individuals is typically VAT-exempt, but regular reselling activity could classify as a business, leading to further tax obligations. Classification as "jewellery" or "collectors’ items" can impact tax treatment, and reporting requirements may apply for large transactions.
Each investment category has specific tax rules in PH; careful documentation and consideration of the legal nature of the asset and transaction frequency is essential to determine the proper tax regime. Local tax developments, reporting requirements, and changes to capital gains or transaction taxes should be checked regularly as the fiscal landscape evolves. For individual cases, professional advice based on the latest PH tax law is recommended.
Raw materials: understanding the Contango and Backwardation effect
Understanding how commodity prices move over time is key for any investor considering exposures to these markets. One fundamental concept is the "forward curve," which compares the current spot price (the price for immediate delivery) with prices for future deliveries (futures contracts). The shape of this curve reveals whether future prices are higher or lower than today's spot price—a signal that directly influences investment decisions. Specifically, two typical shapes dominate: contango and backwardation. Recognizing these can help investors read the market, anticipate costs, and adjust strategies accordingly.
Contango: A Future More Expensive Than Today
Contango describes a market condition where futures prices are higher than the current spot price. In simple terms, buying a commodity for delivery in the future costs more than buying it now. This situation is especially common in commodities that can be stored—like oil, metals, or grains.
The main reasons for contango are:
- Storage costs: Holding a commodity until a future date involves paying for storage facilities.
- Financing costs: Tying up capital in stored goods has a financial cost.
- Insurance and other risks: There may be costs to insure stored commodities against damage or theft.
When these costs are significant, future contracts become more expensive, leading to contango.
Example of Contango
Imagine oil markets during a time of excess supply. If there is more oil than immediate demand, companies fill up tanks and wait for better prices. But storage is not free. So, the price for oil delivered in six months includes today’s spot price plus storage and financing, causing futures prices to be higher than spot. This pattern, seen during oil gluts, is classic contango.
Backwardation: When Urgency Drives Prices
Backwardation is the opposite scenario: futures prices are lower than the current spot price. Here, buying commodities for immediate delivery is more expensive than locking in future delivery. This typically occurs when there is a supply shortage or urgent demand.
Causes of backwardation include:
- Supply disruption: Events like poor harvests or geopolitical crises limit supply.
- High immediate demand: Industries need raw materials right away, pushing up spot prices.
- Inventory shortages: With little stock available, buyers are willing to pay more today than wait.
Backwardation signals that the market rewards immediate delivery, reflecting urgency or scarcity.
Example of Backwardation
Consider wheat during the early months of the Ukraine war. Supply routes were interrupted, reducing global wheat availability. Buyers competed to secure shipments promptly, sending spot prices surging above futures contracts. Futures for later delivery were cheaper, reflecting hopes that supply chains would normalize. This scenario is typical backwardation.
Why Does This Matter to Investors?
For investors using products like ETFs, ETCs, or funds based on commodity futures, the curve matters a lot. These products often don’t hold the physical commodity—they invest via rolling futures contracts (selling the near-term contract before expiry and buying the next one). In a contango market, each roll usually means selling cheaper and buying slightly more expensive, steadily eroding returns—a phenomenon known as "roll yield." In backwardation, the opposite is true: rolling from a high spot price to a lower future price can boost returns. So, knowing whether the market is in contango or backwardation helps anticipate potential gains or losses unrelated to the commodity’s spot price.
In summary
Analyzing the price curve—whether contango or backwardation—gives investors crucial insights: it reveals how the market views future supply and demand, signals potential storage or scarcity issues, and affects the performance of investment products based on futures. Keeping an eye on this curve allows better anticipation of market costs or opportunities, and helps shape sound investment strategies.