Best Natural Gas Brokers 2025

Explore our expert-driven ranking of the best natural gas brokers, backed by in-depth analysis and hands-on testing by seasoned traders and industry specialists.

Author Image Writer
Paul Holmes
Checker Image Fact Checker
Tobias Robinson
Editor Image Editor
James Barra
Brokers With:
Natural Gas
Showing top 5 of 46 matching brokers.
  1. 1
    Trust Platform Assets Fees Accounts Research Education Mobile Support 4.0
    Plus500 is a reputable broker that began operating in the US in 2021. It is accredited by the CFTC and NFA to provide futures trading on forex, indices, commodities, cryptocurrencies, and interest rates. The creation of an account on Plus500 takes only 10 minutes, and you need a minimum of $100 to start trading. Its user-friendly web platform makes it a strong choice for US traders.
    Demo Account
    Yes
    Minimum Deposit
    $100
    Minimum Trade
    0.0 Lots
    Leverage
    No
    Copy Trading
    No
    Regulator
    CFTC, NFA
    Instruments
    Futures on Cryptocurrencies, Metals, Agriculture, Forex, Interest rates, Energy, Equity Index future contracts
    Platforms
    WebTrader, App
    Account Currencies
    USD
    Automated Trading
    No
    AI
    No
    Guaranteed Stop Loss
    No
  2. 2
    Trust Platform Assets Fees Accounts Research Education Mobile Support 4.3
    Interactive Brokers (IBKR) is a top brokerage firm offering access to 150 markets in 33 countries and a range of investment services. With 40 years in the field, this company listed on Nasdaq strictly follows the rules set by authorities such as the SEC, FCA, CIRO, and SFC. It's recognized as one of the most reliable brokers for global trading.
    Demo Account
    Yes
    Minimum Deposit
    $0
    Minimum Trade
    $100
    Leverage
    1:50
    Copy Trading
    No
    Regulator
    FCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMA, AFM
    Instruments
    Stocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, CFDs, Cryptocurrencies
    Platforms
    Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, TradingView, eSignal, TradingCentral, ProRealTime, Quantower
    Account Currencies
    USD, EUR, GBP, CAD, AUD, INR, JPY, SEK, NOK, DKK, CHF, AED, HUF
    Automated Trading
    Capitalise.ai & TWS API
    AI
    Yes
    Guaranteed Stop Loss
    No
  3. 3
    Trust Platform Assets Fees Accounts Research Education Mobile Support 4.5
    Established in 1999, FOREX.com is part of StoneX, a global financial services company that serves over a million customers. It's regulated in the US, UK, EU, Australia, and other countries. The broker offers a wide range of markets beyond forex and provides competitive pricing on advanced platforms.
    Demo Account
    Yes
    Minimum Deposit
    $100
    Minimum Trade
    0.01 Lots
    Leverage
    1:50
    Copy Trading
    No
    Regulator
    NFA, CFTC
    Instruments
    Forex, Stocks, Futures, Futures OptionsForex, CFDs, Stocks, Indices, Commodities, Futures, Options, Crypto
    Platforms
    MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral
    Account Currencies
    USD, EUR, GBP, CAD, AUD, JPY, CHF, PLN
    Automated Trading
    Expert Advisors (EAs) on MetaTrader
    AI
    Yes
    Guaranteed Stop Loss
    No
  4. 4
    Trust Platform Assets Fees Accounts Research Education Mobile Support 3.8
    Introduced in 2020, RedMars, situated in Cyprus, provides competitive spreads across over 300 trading instruments with a leverage of up to 1:500. They offer three account tiers, namely, Standard, Pro, and VIP, catering to different budgets and levels of trading experience. RedMars also features a speedy, entirely digital account creation process.
    Demo Account
    Yes
    Minimum Deposit
    €250
    Minimum Trade
    0.01 Lots
    Leverage
    1:30 (Retail), 1:500 (Pro)
    Copy Trading
    No
    Regulator
    CySEC, AFM
    Instruments
    CFDs, Forex, Stocks, Indices, Commodities, Cryptos
    Platforms
    MT5
    Account Currencies
    USD, EUR
    Automated Trading
    Expert Advisors (EAs) on MetaTrader
    AI
    No
    Guaranteed Stop Loss
    No
  5. 5
    Trust Platform Assets Fees Accounts Research Education Mobile Support 3.6
    Founded in 2004, Dukascopy Bank SA is a Swiss online bank and brokerage offering trading on over 1,200 instruments, including binary options. It provides various accounts (JForex, MT4/5, Binary Options) and advanced platforms (JForex, MT4/MT5) with strong tools and market data for active traders.
    Demo Account
    Yes
    Minimum Deposit
    $100
    Minimum Trade
    0.01 Lots
    Leverage
    1:200
    Copy Trading
    No
    Regulator
    FINMA, JFSA, FCMC
    Instruments
    CFDs, Forex, Stocks, Indices, Commodities, Crypto, Bonds, Binary Options
    Platforms
    JForex, MT4, MT5
    Account Currencies
    USD, EUR, GBP, CAD, AUD, NZD, JPY, ZAR, TRY, SEK, NOK, DKK, CHF, HKD, SGD, PLN, CZK, AED, SAR, HUF, MXN
    Automated Trading
    Yes (EAs & FIX APIs)
    AI
    No
    Guaranteed Stop Loss
    No

Best Natural Gas Brokers Comparison

Broker
US Flag
USD Account
Demo Account
Minimum Deposit
Minimum Trade
Leverage
Copy Trading
Regulator
Instruments
Platforms
Account Currencies
Automated Trading
AI
Guaranteed Stop Loss
Plus500 US
$100 0.0 Lots CFTC, NFA Futures on Cryptocurrencies, Metals, Agriculture, Forex, Interest rates, Energy, Equity Index future contracts WebTrader, App USD
Interactive Brokers
$0 $100 1:50 FCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMA, AFM Stocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, CFDs, Cryptocurrencies Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, TradingView, eSignal, TradingCentral, ProRealTime, Quantower USD, EUR, GBP, CAD, AUD, INR, JPY, SEK, NOK, DKK, CHF, AED, HUF Capitalise.ai & TWS API
FOREX.com
$100 0.01 Lots 1:50 NFA, CFTC Forex, Stocks, Futures, Futures OptionsForex, CFDs, Stocks, Indices, Commodities, Futures, Options, Crypto MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral USD, EUR, GBP, CAD, AUD, JPY, CHF, PLN Expert Advisors (EAs) on MetaTrader
RedMars
€250 0.01 Lots 1:30 (Retail), 1:500 (Pro) CySEC, AFM CFDs, Forex, Stocks, Indices, Commodities, Cryptos MT5 USD, EUR Expert Advisors (EAs) on MetaTrader
Dukascopy
$100 0.01 Lots 1:200 FINMA, JFSA, FCMC CFDs, Forex, Stocks, Indices, Commodities, Crypto, Bonds, Binary Options JForex, MT4, MT5 USD, EUR, GBP, CAD, AUD, NZD, JPY, ZAR, TRY, SEK, NOK, DKK, CHF, HKD, SGD, PLN, CZK, AED, SAR, HUF, MXN Yes (EAs & FIX APIs)
Broker
US Flag
USD Account
Demo Account
Minimum Deposit
Minimum Trade
Leverage
Copy Trading
Regulator
Instruments
Platforms
Account Currencies
Automated Trading
AI
Guaranteed Stop Loss

Safety Comparison

Compare how safe the Best Natural Gas Brokers 2025 are.

Broker
Trust Rating
Guaranteed Stop Loss
Negative Balance Protection
Segregated Accounts
Plus500 US
3.5
Interactive Brokers
4.5
FOREX.com
4.9
RedMars
3.3
Dukascopy
3.5
Broker
Trust Rating
Guaranteed Stop Loss
Negative Balance Protection
Segregated Accounts

Mobile Trading Comparison

Compare the mobile trading features of the Best Natural Gas Brokers 2025.

Broker
Mobile Apps
iOS Rating
Android Rating
Smart Watch App
Plus500 US iOS & Android
4.1
4.3
Interactive Brokers iOS & Android
4.3
4.5
FOREX.com iOS & Android
3.6
3.8
RedMars iOS & Android
4.7
4.6
Dukascopy iOS & Android
4.6
3.7
Broker
Mobile Apps
iOS Rating
Android Rating
Smart Watch App

Comparison for Beginners

Compare how suitable the Best Natural Gas Brokers 2025 are for beginners.

Broker
Demo Account
Minimum Deposit
Minimum Trade
Education Rating
Support Rating
Fractional Shares
Demo Competitions
Plus500 US $100 0.0 Lots
3.5
3.5
Interactive Brokers $0 $100
4.3
3.0
FOREX.com $100 0.01 Lots
4.5
4.3
RedMars €250 0.01 Lots
3.0
4.0
Dukascopy $100 0.01 Lots
3.5
4.0
Broker
Demo Account
Minimum Deposit
Minimum Trade
Education Rating
Support Rating
Fractional Shares
Demo Competitions

Comparison for Advanced Traders

Compare how suitable the Best Natural Gas Brokers 2025 are for advanced or professional traders.

Broker
Automated Trading
VPS
API
AI
Pro Account
Leverage
Low Latency
Extended Hours
Plus500 US
Interactive Brokers Capitalise.ai & TWS API 1:50
FOREX.com Expert Advisors (EAs) on MetaTrader 1:50
RedMars Expert Advisors (EAs) on MetaTrader 1:30 (Retail), 1:500 (Pro)
Dukascopy Yes (EAs & FIX APIs) 1:200
Broker
Automated Trading
VPS
API
AI
Pro Account
Leverage
Low Latency
Extended Hours

Accounts Comparison

Compare the trading accounts offered by Best Natural Gas Brokers 2025.

Broker
Demo Account
Interest on Cash
Islamic Account
Joint Account
Managed Account
PAMM
MAM
LAMM
Pro Account
Plus500 US
Interactive Brokers USD: 4.8%, GBP: 4.7%
FOREX.com
RedMars
Dukascopy
Broker
Demo Account
Interest on Cash
Islamic Account
Joint Account
Managed Account
PAMM
MAM
LAMM
Pro Account

Detailed Rating Comparison

Compare how we rated the Best Natural Gas Brokers 2025 in key areas.

Broker
Trust
Platforms
Assets
Mobile
Fees
Accounts
Research
Education
Support
Plus500 US
3.5
3.3
3.5
4.2
3.3
3.7
2.8
3.5
3.5
Interactive Brokers
4.5
3.3
4.6
4.4
4.3
3.5
4.4
4.3
3.0
FOREX.com
4.9
4.6
4.3
3.7
4.6
4.0
4.8
4.5
4.3
RedMars
3.3
3.8
3.8
4.7
3.5
3.5
2.8
3.0
4.0
Dukascopy
3.5
4.3
3.8
4.2
3.0
3.5
4.5
3.5
4.0
Broker
Trust
Platforms
Assets
Mobile
Fees
Accounts
Research
Education
Support

Fee and Cost Comparison

Compare the cost of trading with the Best Natural Gas Brokers 2025.

Broker
Cost Rating
Fixed Spreads
Inactivity Fee
CFD Stocks Spread
EUR/USD Spread
Crypto Spread
Plus500 US
3.3
$0 0.75
Interactive Brokers
4.3
$0 0.003 0.08-0.20 bps x trade value 0.12%-0.18%
FOREX.com
4.6
$15 0.14 1.2 BTC 1.4%, ETH 2%
RedMars
3.5
€20 one-off, €10 thereafter Variable 0.7 65
Dukascopy
3.0
CHF 100 0.1 0.1 0.1
Broker
Cost Rating
Fixed Spreads
Inactivity Fee
CFD Stocks Spread
EUR/USD Spread
Crypto Spread

Broker Popularity

See how popular the Best Natural Gas Brokers 2025 are in terms of number of clients.

Broker Popularity
Interactive Brokers
3,500,000
FOREX.com
450,000
Dukascopy
400,000

Why Trade With Plus500 US?

Plus500 US is an excellent choice for beginners, offering a user-friendly platform, low trading margins, and access to the Futures Academy to improve trading skills. Its strong tools and reliable service earned it second place in DayTrading.com's 'Best US Broker' award.

Pros

  • Plus500 US stands out due to its affordable fees for trading. It offers competitive margins and does not charge for inactivity, live data, routing, or platform usage.
  • The account setup, pricing structure, and web platform make futures trading simpler than competitors like NinjaTrader.
  • Plus500 is a respected publicly traded company. It boasts an impressive base of over 24 million traders and sponsors the Chicago Bulls, adding to its credibility.

Cons

  • Despite its competitive pricing, Plus500 US does not offer a discount for high-volume traders, a feature that brokers such as Interactive Brokers provide.
  • The private trading platform is easy to use, but doesn't have the advanced analysis tools that platforms like MetaTrader 4 do.
  • Testing showed fast response times for support, but phone aid is not available.
Go to Plus500 US
Trading with leverage involves risk.

Why Trade With Interactive Brokers?

Interactive Brokers is ideal for seasoned traders due to its robust charting platforms, updated data, and adaptability, especially with the IBKR Desktop application. Its exceptional pricing and advanced order features appeal to traders, and its variety of stocks remains unmatched in the market.
Christian Harris
Review Author

Pros

  • There's a large selection of free or paid research subscriptions available to all traders. If you subscribe to Toggle AI, you will also receive commission refunds from IBKR.
  • The new IBKR Desktop platform combines the advantages of TWS and adds unique tools like Option Lattice and Screeners with MultiSort to make trading accessible and impressive for traders of all levels.
  • Interactive Brokers was named Best US Broker for 2025 by DayTrading.com for its dedication to US traders, ultra-low margin rates, and affordable global market access.

Cons

  • Customer service may take time to respond, and there may be delays in fixing problems based on tests. It could be difficult to reach the customer service promptly.
  • IBKR offers many research tools. However, the tools are not uniformly distributed across trading platforms and the web-based 'Account Management' page, causing confusion for the users.
  • TWS's platform may be difficult for beginners to grasp because of its complexity. Plus500's web platform, on the other hand, is more appropriate for those new to trading.

Why Trade With FOREX.com?

FOREX.com is a top-tier brokerage suitable for forex traders of all skill levels. It offers more than 80 currency pairs, has small spreads starting from 0.0 pips, and features low fees. The platform provides powerful charting tools that include over 100 technical indicators and multiple research aids.
Christian Harris
Review Author

Pros

  • FOREX.com has over 20 years of experience with strong regulatory oversight, and has received multiple awards, including second place in our 'Best Forex Broker' awards. As such, FOREX.com is globally reputed as a reliable trading brokerage.
  • FOREX.com provides top-tier forex pricing beginning at 0.0 pips. They also offer competitive cashback rebates up to 15% for dedicated traders.
  • The Web Trader remains one of the top platforms for budding traders, boasting a sleek design and more than 80 technical indicators for market analysis.

Cons

  • US clients do not have negative balance protection, so you can potentially owe more than your original account deposit.
  • FOREX.com's MT4 platform provides around 600 instruments for trading, which is considerably less than the 5,500+ options accessible on its other platforms.
  • FOREX.com has expanded their trading offerings, but these remain limited to forex and CFDs. Unfortunately, they don't provide options to invest in actual stocks, ETFs, or cryptocurrencies.
Go to FOREX.com
74-76% of retail accounts lose money with this provider.

Why Trade With RedMars?

RedMars is suitable for expert traders in the EU who are comfortable with the MetaTrader 5 platform, as the broker is approved by the CySEC. However, due to its minimal education and research tools, it is not recommended for beginners.
Christian Harris
Review Author

Pros

  • RedMars provides a superior trading platform, MT5, equipped with 21 timeframes, multiple analytical tools, customizable templates, and algorithmic trading.
  • The broker is among a few firms that provide a special account for VIPs featuring premium support and exclusive event invitations.
  • Starting on RedMars is very straightforward. You can be operational in just a few minutes according to tests.

Cons

  • RedMars provides a constrained trading platform, offering just 300 instruments. This is quite limited compared to top competitors such as BlackBull Markets, which boasts 26,000 assets.
  • RedMars is not suitable for new traders. It lacks educational resources, has no user-friendly platform, requires a high minimum deposit, and demonstrated insufficient customer support during testing.
  • The trading platform is simple, lacking advanced features like Islamic account, PAMM account, or copy trading.

Why Trade With Dukascopy?

If you're an experienced trader, Dukascopy offers the tools you need: JForex for algorithmic strategies, competitive spreads from 0.1 pips, leverage up to 1:200, and the assurance of a Swiss-regulated bank and broker.
Christian Harris
Review Author

Pros

  • Dukascopy offers top-notch research, including a professional TV studio in Geneva for financial news, market analysis, and daily expert insights.
  • The proprietary JForex platform is advanced, offering tools for algorithmic trading, detailed charting, and access to deep liquidity for traders.
  • Dukascopy is regulated by the Swiss Financial Market Supervisory Authority (FINMA) as a broker and a bank, providing high-level financial security and compliance with strict standards.

Cons

  • JForex offers many features, but its complexity makes it less ideal for beginner traders who might prefer simpler platforms.
  • Dukascopy's withdrawal fees are higher than most competitors we've tested, especially for bank wire transfers, which may discourage traders who need frequent fund access.
  • Certain account types, like MT4/MT5 accounts, need a higher minimum deposit of $1,000. This might not be suitable for traders with limited budgets.
Top Pick
Visit
LOADING...
Close

Filters

Loading...

How We Chose the Best Natural Gas Brokers

To identify the top brokers for trading natural gas, we ranked providers from our evolving database by their overall ratings, assigned by our experts.

Our evaluation process:

  • Comprehensive Data Analysis – We examined over 200 critical factors for each broker, from the availability of natural gas trading instruments, to contract spreads and trading tools.
  • Hands-On Testing – Beyond the data, we personally used each broker’s platform to assess trading tools, user experience, and key features like risk management options and advanced charting capabilities.

What to Look for in a Natural Gas Trading Broker

Choosing the right broker is the foundation of successful natural gas trading; the brokerage you pick can make or break your trading experience.

Natural gas is a unique commodity, and not all brokers are equipped to handle its complexities.

Here’s a detailed breakdown of what to look for:

Commodity Trading Availability

Not all brokers offer natural gas trading. Look for brokers that provide natural gas CFDs (Contracts for Difference) or futures.

CFDs are particularly popular among retail traders because they allow you to speculate on price movements without owning the physical commodity.

Ensure the broker offers competitive pricing and liquidity for natural gas markets. Pepperstone is a good option here, with natural gas CFDs featuring tight spreads (Razor) and no commission on standard accounts.

User-Friendly Trading Platform

A good platform should be intuitive, even for beginners. Look for platforms like MetaTrader 4 (MT4) or MetaTrader 5 (MT5), which are widely used and offer advanced charting tools.

Some brokers have proprietary platforms with features tailored for commodity trading. I recommend always testing these platforms with a demo trading account before committing.

For example, CMC Markets has an excellent proprietary platform with advanced charting and risk management tools that we enjoyed using during testing.

Regulation and Security

Always choose a broker regulated by a reputable authority. This includes:

  • CFTC (Commodities Futures Trading Commission) in the US
  • FCA (Financial Conduct Authority) in the UK
  • CySEC (Cyprus Securities and Exchange Commission) in Cyprus
  • BaFin (Federal Financial Supervisory Authority) in Germany

Regulation ensures the broker follows strict financial standards and protects your funds.

For example, IG is heavily regulated by the FCA (UK) and other top-tier authorities. It also offers tight spreads and no commission on natural gas CFDs

Also check if the broker keeps client funds in segregated accounts. This means your money is kept separate from the broker’s operating funds, reducing the risk of misuse.

Expert take: When I’m trading, I always look for brokers that offer negative balance protection; this ensures you can’t lose more than your account balance.

A trustworthy broker will disclose all fees, terms, and conditions on their website. Avoid brokers with vague or hard-to-find information.

Natural gas commodity in IG web platform

IG Web Platform

Leverage Options

Leverage allows you to trade larger positions with a smaller amount of capital. For example, with 1:10 leverage, you can control 10,000 worth of natural gas with just 1,000.

However, leverage amplifies profits and losses, so choose a broker offering flexible leverage options to suit your risk tolerance.

Note: Due to regulatory restrictions, EU, UK and Australian-regulated brokers cap leverage at 1:30 for retail traders.

Educational Resources

If you’re new to natural gas trading, look for brokers that offer educational resources like tutorials, webinars, eBooks, and market analysis.

Some brokers provide demo accounts where you can practice trading natural gas with virtual money. This is a great way to build confidence before trading with real funds.

XTB offers an easy-access demo account that we’ve used to test natural gas trading conditions. It also provides excellent education, including a guide covering how to trade natural gas.

Market Analysis Tools

Weather patterns, supply and demand, and geopolitical events influence natural gas prices.

A good brokerage will provide real-time news feeds, economic calendars, and technical analysis tools to help you make informed decisions about when to enter and exit natural gas trades.

Market news and analysis of natural gas prices in the XTB trading platform

XTB xStation Platform

Customer Support

  • Availability: Natural gas markets can move quickly, so you need a broker with 24/7 customer support. Look for brokers that offer multiple contact methods, such as live chat, email, and phone support.
  • Responsiveness: Before opening an account, test the broker’s customer support. Are they quick to respond? Are they knowledgeable and helpful?
  • Multilingual Support: If English isn’t your first language, check if the broker offers support in your preferred language.

Interactive Brokers scored high during our tests of its customer support. It also offers great flexibility with natural gas futures and options, in addition to CFDs.

Fees and Spreads

The spread is the difference between the bid (buy) and ask (sell) price. For natural gas, spreads can vary significantly between brokers. Look for brokers with tight spreads, especially if you’re a frequent trader.

  • Commissions: Some brokers charge a commission per trade, while others build their costs into the spread. Compare both options to see which is more cost-effective for your trading style.
  • Overnight Financing Costs: If you hold a position open overnight, you may incur swap fees or rollover charges. These can add up, so check the broker’s fee structure.
  • Deposit and Withdrawal Fees: Some brokers charge fees for depositing or withdrawing funds. Look for brokers that offer free deposits and low withdrawal fees.

Years on and IC Markets still offers some of the lowest spreads on natural gas (averaging 0.004) and the fastest execution that we’ve seen.

Natural gas spread table at Pepperstone

Peppertone Natural Gas Spreads

How to Trade Natural Gas with the Best Brokers

Now you’ve chosen a reliable broker, this section will walk you through the process step-by-step, from opening your account to placing your first trade.

Open and Fund Your Account

Visit the broker’s website and click the “Sign Up” or “Open Account” button. Fill in your details, including your name, email address, and phone number.

Most brokers require you to verify your identity and address. This is a standard procedure to comply with anti-money laundering (AML) regulations.

Once your account is verified, deposit funds using a secure payment method. Most brokers we’ve evaluated accept:

Pro tip: Check if the broker offers new clients a welcome bonus or deposit match (not available in all regions).

Choose Your Trading Platform

  • MetaTrader 4/5 (MT4/MT5): MT4 and MT5 are the most popular trading platforms for natural gas. They offer advanced charting tools, technical indicators, and automated trading options. You can download the platform from your broker’s website or use the web-based version.
  • Proprietary Platforms: Some brokers we’ve tested offer their own trading platforms, which may have unique features tailored for commodity trading. Try the platform with a demo account to ensure it meets your needs.
  • Mobile Trading Apps: If you prefer trading on the go, check if the broker offers a mobile app. Most apps allow you to monitor the market, place natural gas trades, and manage your account from your smartphone.

Pro tip: IC Markets offers natural gas CFDs on MetaTrader4/5, TradingView and cTrader – providing among the best range of trading platforms we’ve seen.

Tips for Successful Natural Gas Trading

  • Start Small: If you’re new to natural gas trading, start with a small position size and gradually increase as you gain experience.
  • Stay Disciplined: Stick to your trading plan and avoid impulsive decisions. Emotional trading is one of the biggest reasons traders lose money.
  • Diversify Your Portfolio: Don’t put all your capital into natural gas. Consider trading other commodities, forex, or stocks to spread your risk.

Expert take: Natural gas trading is complex, and the market is constantly changing. That’s why I stay updated on market trends and continue developing and adjusting my trading strategies.

Example Trade: Trading Natural Gas with a Top Broker

Let’s say you’re using IG, a popular global broker, to trade natural gas. Here’s how it might look:

  1. Account Setup: You open an account, verify your identity, and deposit $10,000.
  2. Market Analysis: You notice that a cold winter is forecasted, which could increase demand for natural gas.
  3. Placing the Trade: You decide to go long on natural gas CFDs at 3,600.
  4. Stop Loss Order: You set the stop loss order at 3,500 and a take-profit at $100.
  5. Monitoring: Over the following sessions, natural gas prices rise due to increased demand.
  6. Closing the Trade: Your take-profit order is triggered, and you close the trade with a $100 profit.

What Are the Pros and Cons of Trading Natural Gas?

Whether you’re a beginner or an experienced trader, it’s important to understand this commodity’s unique advantages and risks.

Pros:

  • High Volatility: Natural gas prices can fluctuate significantly due to factors like weather, supply disruptions, and geopolitical events. This creates opportunities for traders to profit from short-term and long-term price movements.
  • Liquidity: Natural gas is one of the most actively traded commodities, ensuring you can enter and exit positions quickly without significant price slippage.
  • Diversification: Adding natural gas to your portfolio can help diversify your investments, reducing overall risk.
  • Leverage Opportunities: Most brokers we’ve evaluated offer leverage, allowing you to control larger positions with less capital. This can amplify profits (but also losses).
  • Global Demand: Natural gas is a key energy source worldwide, used for heating, electricity, and industrial processes. This ensures consistent market activity.
  • Multiple Trading Instruments: You can trade natural gas through CFDs, futures, options, or ETFs, giving you flexibility in how you approach the market.
  • Seasonal Trends: Natural gas prices often follow predictable seasonal patterns (e.g., higher demand in winter for heating), making it easier to plan trades.

Cons:

  • High Volatility: While volatility can be a pro, it also increases risk. Prices can swing dramatically quickly, leading to significant losses if not managed properly.
  • Complex Market Drivers: Natural gas prices are influenced by a wide range of factors, including weather, storage levels, geopolitical events, and economic data. Keeping up with these can be overwhelming for beginners.
  • Leverage Risks: While leverage can amplify profits, it can also magnify losses. Over-leveraging is a common pitfall for inexperienced traders.
  • Storage and Transportation Costs: Unlike stocks or forex, natural gas is a physical commodity with storage and transportation costs, which can impact prices and trading strategies.
  • Regulatory Changes: Government policies, environmental regulations, and energy transitions (e.g., toward renewables) can significantly impact natural gas prices.
  • Limited Trading Hours: Natural gas futures have specific trading hours, unlike forex markets, which operate 24/5. This can limit your ability to react to market-moving events.
  • Weather Dependency: Prices are heavily influenced by unpredictable weather patterns. A mild winter, for example, can lead to oversupply and falling prices.