Trading commodities with personal/low capital

[Brennen81]

Hello,

I am in the middle of trying out a CMC Markets demo account to trade the available commodities. I am noticing that each trade is very costly and do not think this could work for anyone really. But it must for some. They give you $10,000, I bought about $3,300 margin worth of coffee and I was instantly down $200. We are talking 2% gone right there.

Does anyone have any suggestions for a platform/broker to trade a good variety of commodities? I do hold my position for 10-60 days.

thanks
Brennen

 

[tar]

CFD account ?

In CMC's demo i see you can trade in fractions , example : 0.01 unit . Which is perfect for you .

 

[Brennen81]

I'm open to any type of account. Just somewhere I can trade a good portion of the commodities available as futures. My approach uses historical close data.

CMC is just costing so much per trade. If there were more commodities available in ETF or index option format I would just use my IB account. For example. The Coffee ETF is far to slim in colume and little options. And thee are no ETF's for Rough Rice, Lumber (Directly), etc

 

[tar]

I just explained to you , trade in fractions , try CMC cfd demo account and type 0.01 or 0.1 instead of 1 unit , it is very flexible . That should do for you .
CMC doesn't charge commissions for commodities/cfds , just the spread , a bit wider than futures' but its ok .

 

[Brennen81]

Oh. I didn't know you could trade in fractions??!?!?!!! Thanks. Sorry. I didn't read fully and jumped the gun.

 

[Brennen81]

Either way. The cost is proportionate to the amount traded. If I trade 1/10th 10 times I still loose the same amount of money. Which in the end seems like quite a bit.

 

[tar]

Either way. The cost is proportionate to the amount traded. If I trade 1/10th 10 times I still loose the same amount of money. Which in the end seems like quite a bit.

I don't understand , for example i see they have Arabica coffee with 0.4 spread which is acceptable .
BTW re trading in fractions , i'm speaking about their demo not really sure if it is available for live accounts .