Platinum

Platinum is a popular commodity that is frequently used in trading portfolios for hedging purposes. Though the metal is produced in much smaller quantities than gold and silver, it is used in a variety of global commercial and industrial sectors, leading to frequent price movements and trading opportunities that can be accessed through UK brokers.

This tutorial will explain how to start trading platinum online, with information on key price influences, major market players, and strategy tips. Our team have also reviewed and listed the top platinum brokers in 2025:

Platinum Trading Basics

Platinum is one of the four popular precious metals available to trade, alongside gold, silver, and palladium. It has many uses in the glass-making, chemical integration, electronics and automotive industries, especially as a component in catalytic converters in fuel engines, but it is also increasingly known for its use in jewellery-making, which in 2021 accounted for some 25% of global demand.

South Africa is the world’s leading supplier of platinum, with production reaching 156.3 metric tons in 2021 and an estimated 140 metric tons in 2022. The country is also believed to have the world’s largest deposit of platinum in the Merensky Reef in the Bushveld Complex. Platinum prices hit an all-time high in 2008 at $2253 per ounce when a power-delivery crisis hit South African mines, demonstrating the country’s importance to the platinum trade.

Traders typically speculate on platinum price movements through derivatives such as contracts for difference (CFDs), futures, or options, rather than directly buying the metal.

Platinum is traded under the symbol XPT on the New York Mercantile Exchange (NYMEX), the Chicago Board of Trade (eCBOT), and the Tokyo Commodity Exchange (TOCOM).

The global platinum market is predicted to reach $12.2 billion by 2030.

History

The Italian-French physician Julius Caesar Scaliger discovered platinum in 1557, but there was little interest in the metal until new industrial uses for it were discovered in the 1700s.

Platinum commodity trading was first established in the 1950s following the launch of platinum futures contracts by the New York Mercantile Exchange (NYMEX), giving investors the opportunity to diversify their portfolios outside of agriculture.

Platinum coins were introduced at a later date, with the US Mint launching the first platinum bullion coin, the Platinum American Eagle. The Platinum American Eagles experienced significant demand following the first release and many denominations sold out completely.

Platinum’s relative scarcity alongside an increasing list of uses makes it an attractive investment opportunity. Platinum and other precious metals have long been recognised for their tendency to appreciate when other financial instruments, like stocks and bonds, are in decline. The unique characteristics of trading platinum offer investors the ability to hedge against uncertainty and profit when demand grows.

Platinum Trading Price

Why Trade Platinum?

There are several good reasons to include platinum in your trading portfolio:

• Diversification – Trading platinum at leading brokers helps hedge against risk, as precious metals tend to rise in value during market downturns.
• Volatility – Platinum is typically more volatile than gold due to its scarcity and smaller production volumes. This presents an opportunity for traders to profit from significant price shifts. Due to its prominent requirement in the auto industry, trends in this market can help investors gauge price movements of platinum.
• Market Influence – Platinum is generally not as impacted by macroeconomic factors that influence the price of forex and other markets. This means it will generally perform well during a challenging economic climate. Put simply, platinum tends to hold its value when alternative markets are in decline.

What Moves The Price Of Platinum?

While the precious metal is recognised as a relatively ‘safe bet’ during times of market turmoil, platinum trading prices are determined by a range of factors:

Supply And Demand

Platinum is a scarce resource, and any changes in supply and extraction will have a substantial impact on its availability and therefore on the market price. The major producers of platinum are South Africa, Russia, and North America.

Some analysts and brokers predict that the global supply of platinum will face significant challenges from 2023 due to an inadequate supply of power to South Africa and power grid limitations.

Demand will be governed by the metal’s usage in industrial applications, but also in making jewellery, a luxury good, and for investment purposes.

Automotive & Other Industries

Since platinum is widely used in making parts for cars, demand will rise if car production increases. However, note that the introduction of more environmentally friendly technologies may lead to alternatives to the parts that are currently widely used in car manufacturing. If sustainable alternatives that do not need catalytic converters catch on, the demand for platinum could decrease.

Similarly, platinum is currently used in many other industries and any changes to these uses will affect the demand for the metal. New technological advances could increase the demand for the metal, especially if it is necessary to produce components in sustainable technologies; alternatively a new development could decrease demand if it presents a more affordable or sustainable alternative to an existing platinum product.

Jewellery Making

The demand for platinum in the jewellery industry has grown significantly in recent decades, with the pure, white metal particularly popular among consumers in China.

As such, demand for platinum is likely to rise during booming periods in China and other countries where platinum jewellery is popular, and to fall when those countries experience tighter periods.

Geographic Influences

The production of platinum is limited to just a few countries, meaning any political unrest or economic changes can have a major impact on the extraction of the resource. The whole production chain may come to a near-standstill if events were to occur in a major exporter country.

For example, sanctions following the 2022 Russian invasion of Ukraine significantly reduced the overall supply in the global market. The London Platinum and Palladium (LPPM) Market suspended two government-owned Russian platinum refiners from its ‘good delivery and accreditation list’ in April 2022.

How To Trade Platinum

CFDs

Contracts for difference (CFDs) are one of the most popular ways that retail traders speculate on platinum price movements by opening long or short positions. The difference between the strike price set when the CFD begins and the market price of the asset when it closes determines the trader’s profit or loss (minus fees), and this can be augmented through margin trading.

CMC Markets, for example, offers platinum CFDs with leverage up to 1:10 and no commission fees.

Futures Contracts

Some brokers offer platinum futures. With this style of contract, you can speculate on the price movements of the precious metal through contracts to buy or sell it at an agreed price at a certain future date.

Platinum futures contracts can also be leveraged, meaning you can benefit from increased market exposure for a relatively small initial investment.

ETFs

Individual investors can also gain exposure to platinum through exchange-traded funds (ETFs), which may include direct exposure to shares in platinum mining companies as part of a ‘basket’ of relevant investments.

ETFs often comprise a selection of assets to give a general view of the performance of a sector, country or geographical region, and tend to be less volatile than trading individual stocks or commodities.

Options

Options work in a similar way to futures, but in this case, the contract buyer has the right but no obligation to exercise the contract when it expires.

This shields the trader from large losses that they would be liable to in a bad futures contract, as they will only lose the premium paid for the contract.

Spot Market

Retail investors can purchase platinum coins or bullion bars from a registered platinum trading company such as the Royal Mint. The bullion bars are a physical investment, available in a variety of weights typically from one troy ounce to one kilogram.

Some firms will provide secure storage facilities and insurance for your precious metal purchases. The coins and bullion bars can also be traded back to investment firms for a potential profit.

How To Compare Platinum Trading Brokers

• Assets – Platinum is usually not the only asset in a trading portfolio, and you may be interested in trading other precious metals or instruments such as forex or stocks. Interactive Brokers is a good multi-asset broker available to UK residents offering the Platinum Index (PL) and Micro Platinum Index (PLM) alongside thousands of other instruments.
• Platform – Platinum trading brokers may offer a choice of proprietary terminals and/or third-party platforms such as TradingView or MetaTrader 4 (MT4). You will need access to a stable and reliable terminal for live price analysis and evaluation of platinum’s performance vs alternative precious metals and associated markets. Additional features to look out for include custom charts, integrated news streams, and technical analysis tools. FxPro, for example, provides customers with cTrader, MT4, and MT5 program options to trade platinum.
• Trading Vehicles – It is important to choose a broker that offers the trading vehicles that best suit your investing style and financial needs. Platinum futures or ETFs may suit a longer-term trader; day traders could consider brokers that offer vehicles such as CFDs.
• Fees – Look out for platinum brokers with tight spreads and no/low commission fees, but also consider deposit/withdrawal charges, account maintenance fees, and overnight rollover costs.
• Customer Support – The best brokers that offer platinum trading opportunities will have a responsive customer service team that allows traders to easily reach a human assistant if the need arises. Given the long trading hours of the precious metal, look out for platinum brokers that provide 24-hour support by telephone or live chat.
• Regulation – Regulatory status should be a priority when comparing platinum brokers. You should always sign up with those authorised by top-tier financial bodies such as the Financial Conduct Authority (FCA).
• Demo Account – New traders are advised to sign up with a broker that provides a demo account so they can practice risk-free platinum trades and get to know the market before staking real cash.
• Tools – The best platinum brokerages also offer insights, courses and ideas from expert analysts, plus tools like copy trading for novice investors.

Pepperstone – Platinum Trading Conditions

How To Get Started With A Platinum Broker

1. Register with one of the top platinum brokers and log in to the client dashboard
2. Identify market opportunities and trends using the trading platform, app and tools
3. Open a platinum trading position and apply risk management parameters if required
4. Monitor your trade and close when a profit is made or your platinum trading strategy is complete

Trading Hours

Platinum is traded on the New York Mercantile Exchange (NYMEX), the Chicago Board of Trade (eCBOT), and the Tokyo Commodity Exchange (TOCOM).

The platinum market is generally open for trading from 22:00 to 20:59 (GMT).

Bottom Line On Trading Platinum

Platinum trading offers investment opportunities given its scarcity, volatility and the important role it plays in several industries. It may be an attractive asset, particularly during a market downturn, due to its lack of correlation with volatile economic conditions.

Use our list of the best brokers with platinum trading to get started.

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