Aluminium Brokers 2024

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James Barra
James is an investment writer with a background in financial services. As a former management consultant, he has worked on major operational transformation programmes at prominent European banks. James authors, edits and fact-checks content for a series of investing websites.
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Jemma Grist
Jemma is a writer, editor and fact-checker focused on retail trading and investing. Jemma brings a unique perspective to the forex, stock, and cryptocurrency markets and works across several investment websites as a researcher and broker analyst.
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William Berg
William contributes to several investment websites, leveraging his experience as a consultant for IPOs in the Nordic market and background providing localization for forex trading software. William has worked as a writer and fact-checker for a long row of financial publications.
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Aluminium trading can be an attractive 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 2 best brokers for trading Aluminium:

Click a broker for details
  1. 1
    Interactive Brokers

    Ratings
    4.5 / 5
    3.5 / 5
    4.5 / 5
    4.3 / 5
    3.3 / 5
    3 / 5
    4.4 / 5
    4.3 / 5
    4.3 / 5
    4.5 / 5

    $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, eSignal, TradingCentral
    Cheque, ACH Transfer, Wire Transfer, Automated Customer Account Transfer Service, TransferWise, Debit Card
    USD, EUR, GBP, CAD, AUD, INR, JPY, SEK, NOK, DKK, CHF, AED, HUF
  2. 2
    IG
    Forex trading involves risk. Losses can exceed deposits.

    Ratings
    4.9 / 5
    4 / 5
    4.5 / 5
    3.5 / 5
    4.8 / 5
    4.5 / 5
    4.9 / 5
    5 / 5
    4.6 / 5
    4 / 5

    $0
    0.01 Lots
    1:30 (Retail), 1:250 (Pro)
    FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA, FINMA, CONSOB, AFM
    CFDs, Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto, Spread Betting
    Web, ProRealTime, L2 Dealer, MT4, AutoChartist, TradingCentral
    PayPal, Wire Transfer, Mastercard, Credit Card, Visa, Debit Card
    USD, EUR, GBP, CAD, AUD, JPY, ZAR, SEK, DKK, CHF, HKD, SGD

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 may make a profit, otherwise, they will make a loss.

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 some 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.

FAQs

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 chance of making a profit 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 returns, as well as 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.