Commodity trading - where and how ?

Rhino666

Never got involved with this and could do with someone giving me a quick idea as to how it works and who best to deal through.

Interested in buying oil. Is it possible to buy virtual oil like a share and sell when I want ?

I have dealt with various stockbrokers in the past but none of these seem to have any association with commodity trading. Is there a best place to trade commodities ?

Apart from the obvious risk with the actual commodity price are there any other factors to put me off dealing with commodities - dealing fees, buy/sell spread, etc.

Cheers

Rob

tradetime

Two main ways to play commodities, as opposed to playing the companies such as oil producers and miners. You either trade the futures, such as Nymex Crude, for this I would suggest you take a look at Interactive Brokers, they offer commodity futures trading. If you are unfamiliar with futures trading you may want to lok at ETF's and ETN's they have opened the commodities market to those who feel more comfortable trading stocks.