Aluminium trading can be an effective way to diversity your investment portfolio. Read on for a dive into what trading aluminium is, a brief history, factors that influence its price, how to trade this commodity, the benefits, the drawbacks, some strategies and a step-by-step guide to getting started. We also list the best aluminium brokers in 2024.

Top Brokers For Aluminium Trading

These are the 3 best brokers for trading Aluminium:

74-89 % of retail investor accounts lose money when trading CFDs
Trade Nation
200 Sign-Up Reward Points

What is Aluminium Trading?

Aluminium trading involves an investor selling or purchasing some form of a financial asset that is based on the price of aluminium, be it futures, ETFs or bullion. In doing this, the trader is essentially making a prediction that the value of the commodity will either rise or fall over time, depending on the asset they purchase, and staking some of their capital on this fact.

Aluminium trading is most often done in the retail trading space through CFDs and futures contracts. Each of these allows investors to predict whether the value will rise (going long) or fall (going short) compared to another financial asset (usually USD). If the trader correctly predicts the movement of the aluminium price, they will make a profit, otherwise, they will make a loss.

Find out the best stock for aluminium trading today

History Of Trading Aluminium

Aluminium contracts first became available to trade on the London Metal Exchange in 1978, spearheaded by huge growth in demand for aluminium. This resulted in the volume of aluminium production growing substantially worldwide, reaching 19 million tonnes by the start of the 1990s.

Russia, before the dissolution of the Soviet Union, was a huge producer of the metal, though it was soon overtaken by China, whose aluminium production grew from roughly 900 tonnes to 10 million tonnes in less than 20 years. This led to the formation of China’s own commodity exchange, which merged with the Shanghai Futures Exchange (SHFE). The UAE is also a notable player in aluminium production due to access to cheap oil and natural gas.

The market experienced overproduction following the 2008 global recession, leading to a 50% drop in price. Nowadays, aluminium is mostly traded on the LME, SHFE and the New York Mercantile Exchange (COMEX).

What Influences The Price Of Aluminium?

Factors that directly impact the supply and demand of aluminium ultimately impact the price of the commodity:

Ways To Trade Aluminium

Here is a catalogue of different aluminium products to serve as a window into how it can be traded.

Pros Of Trading Aluminium

Cons Of Trading Aluminium

Strategies For Trading Aluminium

Having the right trading strategy for your needs can be the door to begin successfully speculating on the value of aluminium. In this section, we will go through a few examples to help you get started.

How To Start Trading Aluminium

Aluminium Trading Tips

Final Word On Aluminium Trading

Aluminium trading is not quite as popular as gold or silver, though it can offer many of the same benefits. This includes portfolio diversification, wealth storage, hedging and more. The metal can be traded via a wide range of instruments, such as CFDs, futures, options and even equities. However, the lower popularity of aluminium as a speculative vehicle means that it does not quite demonstrate the same price stability that one would find from gold.

Use our list of aluminium brokers to start trading today.


Is Aluminium Trading Halal?

Trading aluminium can be done in a halal manner, though it is not always the case. So long as you are using valid analysis techniques and have an Islamic (swap-free) trading account with your broker, it should not be haram. However, we recommend checking with your local religious leader before you get started.

Is Aluminium Trading Risky?

All trading is risky and aluminium trading is no different. To minimize this danger, we recommend employing risk management and sticking strictly to your strategy.

What Brokers Offer Aluminium Trading?

Some well-known brokers that offer aluminium trading are eToro, IC Markets, RoboForex, Avatrade and Pepperstone.

Can I Make Money From Trading Aluminium?

To maximize your profit to yield from trading aluminium, you should follow tight risk management procedures and find a strategy and asset type that best suits your investment style.

Is Trading Aluminium Better Or Worse Than Trading Stocks And Shares?

Both commodity and stock speculation have the potential to make high returns, as well as large losses. Neither asset type is strictly better or worse than the others, it is often a very specific case that varies with your portfolio as a whole.