Steel
Steel is a volatile metal that is widely used in construction and manufacturing. This guide to steel trading covers the basics of the market, factors that influence prices, and different investment products, from futures and options to CFDs, ETFs, and shares. Our team have also ranked the best steel brokers:
Steel Brokers UK
-
Founded in 1989, CMC Markets is a reputable broker publicly listed on the London Stock Exchange. It holds authorisation from top-tier regulators such as the FCA, ASIC, and CIRO. The brokerage, which has received multiple awards, boasts a global membership exceeding one million traders.
Instruments Regulator Platforms CFDs, Forex, Stocks, Indices, Commodities, ETFs, Treasuries, Custom Indices, Spread Betting FCA, ASIC, MAS, CIRO, BaFin, FMA, DFSA Web, MT4, TradingView Min. Deposit Min. Trade Leverage $0 0.01 Lots 1:30 (Retail), 1:500 (Pro) -
Founded in 1974, IG is a part of IG Group Holdings Plc, a publicly listed brokerage (LSE: IGG). The company provides spread betting, CFD, and forex trading, offering access to over 17,000 markets. Its platforms and investing apps are notably user-friendly. Over the past 50 years, IG has consistently been an industry leader, excelling in all essential areas for traders.
Instruments Regulator Platforms CFDs, Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto, Spread Betting FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA, FINMA, CONSOB, AFM Web, ProRealTime, L2 Dealer, MT4, TradingView, AutoChartist, TradingCentral, ProRealTime Min. Deposit Min. Trade Leverage $0 0.01 Lots 1:30 (Retail), 1:222 (Pro) -
Founded in 2005 in Australia, FP Markets is a broker regulated by both ASIC and CySEC. It offers a wide range of tradable assets and provides Standard and Raw accounts suitable for traders of all levels. The platform excels in tools, featuring the MetaTrader suite, user-friendly TradingView, and practical insights from Trading Central and AutoChartist.
Instruments Regulator Platforms CFDs, Forex, Stocks, Indices, Commodities, Bonds, ETFs, Crypto ASIC, CySEC, FSA, CMA Iress, MT4, MT5, cTrader, TradingView, AutoChartist, TradingCentral Min. Deposit Min. Trade Leverage $40 0.01 Lots 1:30 (UK), 1:500 (Global)
CMC Markets
IG Index
FP MarketsSafety Comparison
Compare how safe the Steel are and what features they offer to protect traders.
| Broker | Trust Rating | FCA Regulated | Negative Balance Protection | Guaranteed Stop Loss | Segregated Accounts |
|---|---|---|---|---|---|
| CMC Markets | ✔ | ✔ | ✔ | ✔ | |
| IG Index | ✔ | ✔ | ✔ | ✔ | |
| FP Markets | ✘ | ✔ | ✘ | ✔ |
Payments Comparison
Compare which popular payment methods the Steel support and whether they have trading accounts denominated in British Pounds (GBP).
| Broker | GBP Account | Debit Card | Credit Card | Neteller | Skrill | Apple Pay |
|---|---|---|---|---|---|---|
| CMC Markets | ✔ | ✔ | ✔ | ✘ | ✘ | ✘ |
| IG Index | ✔ | ✔ | ✔ | ✘ | ✘ | ✘ |
| FP Markets | ✔ | ✔ | ✔ | ✔ | ✔ | ✔ |
Mobile Trading Comparison
How good are the Steel at mobile trading using apps or other mobile interfaces.
| Broker | Mobile Apps | iOS Rating | Android Rating | Smart Watch App |
|---|---|---|---|---|
| CMC Markets | iOS & Android | ✘ | ||
| IG Index | iOS & Android | ✔ | ||
| FP Markets | iOS & Android | ✘ |
Beginners Comparison
Are the Steel good for beginner traders, that might want an affordable setup to get started, along with good support and educational resources?
| Broker | Demo Account | Minimum Deposit | Minimum Trade | Support Rating | Education Rating |
|---|---|---|---|---|---|
| CMC Markets | ✔ | $0 | 0.01 Lots | ||
| IG Index | ✔ | $0 | 0.01 Lots | ||
| FP Markets | ✔ | $40 | 0.01 Lots |
Advanced Trading Comparison
Do the Steel offer features that allow for more advanced trading strategies?
| Broker | Automated Trading | Pro Account | Leverage | VPS | AI | Low Latency | Extended Hours |
|---|---|---|---|---|---|---|---|
| CMC Markets | Expert Advisors (EAs) on MetaTrader | ✔ | 1:30 (Retail), 1:500 (Pro) | ✔ | ✘ | ✔ | ✔ |
| IG Index | Expert Advisors (EAs) on MetaTrader, build your own on ProRealTime | ✔ | 1:30 (Retail), 1:222 (Pro) | ✔ | ✘ | ✔ | ✔ |
| FP Markets | Expert Advisors (EAs) on MetaTrader | ✘ | 1:30 (UK), 1:500 (Global) | ✔ | ✘ | ✔ | ✘ |
Detailed Rating Comparison
Use this heatmap to compare our detailed ratings for all of the Steel.
| Broker | Trust | Platforms | Mobile | Assets | Fees | Accounts | Support | Research | Education |
|---|---|---|---|---|---|---|---|---|---|
| CMC Markets | |||||||||
| IG Index | |||||||||
| FP Markets |
Our Take On CMC Markets
"Equipped with advanced charts and a broad array of tradable CFDs, including an unmatched selection of currencies and bespoke indices, CMC Markets offers an excellent online platform for traders at any level."
Pros
- CMC provides competitive pricing with narrow spreads and low trading fees, except for stock CFDs. The Alpha and Price+ programmes offer additional benefits for active traders, including discounts on spreads of up to 40%.
- CMC Markets is well-regulated by respected financial authorities, ensuring a secure and reliable trading environment. It upholds a strong reputation, providing traders with confidence.
- We've upgraded the 'Assets & Markets' rating due to frequent product enhancements in early 2025. These include extended trading hours for US stocks and the introduction of new share CFDs.
Cons
- The CMC Markets app provides a comprehensive trading package; however, its design and user experience lag behind market leaders such as eToro.
- Although there have been improvements, the online platform still needs further refinement to match the user-friendly trading experience offered by competitors such as IG.
- Trading stock CFDs comes with a relatively high commission, particularly when compared to low-cost brokers such as IC Markets.
Our Take On IG Index
"IG offers a complete package with an intuitive online platform, top-tier beginner education, advanced charting tools through its TradingView integration, real-time data, and swift execution for seasoned traders."
Pros
- The ProRealTime advanced charting platform remains free, provided traders meet modest monthly activity requirements.
- The IG app provides an excellent mobile trading experience with an intuitive design, earning it the Runner Up position in our 'Best Trading App' award.
- As a seasoned broker, IG adheres to stringent regulatory standards across various regions, ensuring significant trust.
Cons
- In the UK and EU, negative balance protection is available. However, US clients lack account protection and guaranteed stop losses.
- IG has ended its swap-free account, diminishing its attractiveness to Islamic traders.
- Based on tests, stock and CFD spreads remain less competitive than the lowest-cost brokers, such as CMC Markets.
Our Take On FP Markets
"FP Markets achieves a perfect blend of affordability and quality for active traders. They maintain low trading costs while enhancing investment options, charting tools, and research features, alongside providing reliable support for urgent queries."
Pros
- FP Markets offers a smooth onboarding process, featuring cryptocurrency deposits and a choice of more than 10 base currencies, appealing to traders worldwide.
- FP Markets now offers advanced research tools from Trading Central and Autochartist. These tools assist traders in spotting short-term opportunities by analysing chart patterns, indicators, and other technical elements.
- FP Markets provides swift and reliable support, accessible 24 hours a day, five days a week, with average response times under one minute during tests.
Cons
- FP Markets’ Iress platform is exclusively available to Australian clients. The platform is geared towards stock trading rather than forex. Data fees may accumulate quickly unless you are an active trader or hold a high-balance account.
- FP Markets falls short of leading MetaTrader brokers. Although it provides a Trader's Toolbox on MT4, it offers only 130 instruments, restricting opportunities for serious traders. In contrast, Pepperstone offers 1,300 assets.
- Traders Hub offers valuable resources such as the Daily Report, Technical Report, Market Insights, and Fundamental Analysis. Yet, it should diversify its daily content and ensure its forex news remains current to compete with market leaders like IG.
Steel Trading 101
Steel is a base metal that is actively traded on the London Metal Exchange (LME) and the Chicago Mercantile Exchange (CME).
Global steel production exceeds 1,600 million metric tonnes each year. The primary steel-producing countries are China (accounting for over 50%), followed by India, Japan and the US.
Unlike other commodities, steel is not a raw material that is mined or harvested, but rather an industrial alloy of iron ore, carbon and other elements. Steel is, therefore, a ferrous metal, produced through steelmaking processes (of which iron ore constitutes around 98%).
Due to its durable and robust properties, it is widely used in construction. As such, steel is largely traded in terms of industrial activity and can be used to take a view of the wider economy.
History
Steel production has existed for nearly 4,000 years. One of the most notable steels produced by early civilisations was the wootz steel of India, produced in crucibles in the 6th century BC.
Modern steel production wasn’t developed until 1855, whereby molten pig iron was used as a base. This enabled producers to make large quantities of steel at a low cost.
In 1952, the basic oxygen furnace (BOF) steelmaking process was developed in Europe. BOF processes allow for low-impurity steel to be produced in a fraction of the time compared to previous metals.
Today, BOF is the most popular form of modern steelmaking, followed by electric arc furnace (EHF) and open hearth furnace (OHF) steelmaking.
Steel Chart
Top Steel-Producing Countries
| Country | Volume (Million Tonnes) |
|---|---|
| China | 1,013.0 |
| India | 124.7 |
| Japan | 89.2 |
| United States | 80.7 |
| Russia | 71.5 |
| South Korea | 65.9 |
| Germany | 36.8 |
| Turkey | 35.1 |
| Brazil | 34.0 |
| Iran | 30.6 |
How To Trade Steel
Investors can gain exposure to the steel markets through several trading vehicles:
- Futures: Steel futures allow you to buy or sell steel for a pre-determined price in the future. Steel futures are available on several leading exchanges. For example, the London Metal Exchange (LME) offers the trading of steel scrap, rebar and hot-rolled coil (HRC) steel via 7 futures contracts, including the LME Steel HRC FOB China.
- Options: Options contracts give traders the right to buy or sell steel at a pre-determined date and price. Traders are not obligated to carry out these contracts and therefore can be used to limit risk exposure. Steel options are available on the New York Mercantile Exchange (NYMEX).
- Stocks: Traders can invest in the shares of companies that mine iron and produce steel, including in the USA, Europe, and Dubai. Tata Steel, ArcelorMittal SA, Nippon Steel Corp, Nucor Corp and Baoshan Iron & Steel Co are all popular options.
- Exchange Traded Funds (ETFs): Steel ETFs hold assets that are engaged with the steel industry and are traded like shares on exchanges. The most popular steel ETF is the VanEck Steel ETF (SLX).
- Contracts For Difference (CFDs): CFDs are derivative instruments where traders can speculate on the price of steel or the shares of iron ore mining companies. For example, City Index offers an iron ore CFD, whilst CMC Markets offers CFDs on a range of steel companies.
Factors That Influence Steel Prices
Infrastructure Demand
Steel is commonly used in infrastructure and construction projects such as the UK’s High-Speed Rail (HS2). Larger economies looking to start major projects will boost steel demand and raise prices.
During the Covid-19 pandemic of 2020, national lockdowns led to the halt of many infrastructure projects, reducing demand for steel and causing prices to drop.
In 2021, steel prices began to rise again as projects restarted. The US Midwest HRC steel index, for example, increased from under $500 in July 2020 to $1,725 in September 2021.
Chinese Economy
China is the largest steel producer in the world, accounting for over 50% of steel produced per year. In 2021, China produced 1,032.8 million metric tonnes of crude steel. As such, changes to the Chinese economy will have a large impact on global steel production and prices.
Major steel-producing firms from China include China Baowu Steel Group, Ansteel Group, Jiangsu Shagang, HBIS Group, Jianglong Steel, and Shougang, all occupying spots in the top 10 largest steel producers by volume.
Transportation Sector Demand
Stronger global economies often create more demand for automobiles, ships and trains. The performance of the transportation sector is also a good indicator of the overall economy, which drives the price of steel.
Production & Energy Costs
The production of steel requires iron ore, energy, and scrap metal, supplied largely by China, India and Brazil.
Higher prices in these inputs will cause a rise in steel prices and vice versa. Availability may also depend on the demand within those countries.
Technological Advances
Any developments of steel-substitute materials such as pultruded fibre-reinforced plastic (FRP) could compete with steel, causing demand to fall.
These composites offer corrosion-resistant qualities and are tolerant to high impact.
Comparing Steel Brokers
- Assets: Find a broker that offers a range of investment vehicles on primary exchanges such as the LME. IG Index, for example, lets you trade CFDs on steel industry firms such as Chongqing Iron and Steel Company Limited.
- Trading platform: Most steel brokers should offer a robust trading platform with access to real-time market quotes and detailed charting tools, such as MetaTrader 4 (MT4) or cTrader. Some steel brokers also offer specialised proprietary platforms.
- Demo account: We recommend taking advantage of demo accounts available at the top steel brokers. These allow you to practise trading steel-related assets on the platforms using virtual money.
- Fee structure: Compare the broker’s fees, including commissions on CFDs, spreads, and overnight charges. For example, eToro charges 2 cents per unit on US-listed stock CFDs, including United States Steel Corp.
- Regulation: Brokers in the UK are regulated by the Financial Conduct Authority (FCA). The FCA imposes strict rules to protect customers when trading online. These include segregating client funds, negative balance protection, and compensation schemes. Top-ranked firms that facilitate steel trading include Plus500 and IG Index.
Benefits Of Trading Steel
- Speculate on the construction and manufacturing sectors: Investors can speculate on large infrastructure projects and take advantage of increased demand for manufactured goods, which are good indicators of economic growth.
- Portfolio diversification: Trading steel allows you to mitigate your exposure to risk by investing in products other than stocks, such as steel futures or iron ore companies.
- Emerging market growth: Well-performing economies and developing countries could see an increase in demand for housing, offices and large infrastructure.
Risks Of Trading Steel
- Market volatility: Price moves in the steel markets can be dramatic, due to performance cycles in global economies. Traders must have robust risk management tools in place to mitigate their exposure.
- Chinese economy: Steel is mainly produced in China, so any significant economic downturns in the country could see domestic demand for steel decrease.
- Strength of the US dollar: If the US dollar strengthens, it can negatively impact steel companies and traders could see a drop in their profits.
- Political risks: New trade policies or decisions to revoke infrastructure projects could negatively impact steel prices and can lead to losses.
Steel Trading Hours
Market hours vary depending on the type of steel market. Brokers that facilitate the trading of steel-producing stocks will have trading hours in line with the relevant exchange.
Steel trading hours via futures on the London Metal Exchange (LME) and the Chicago Mercantile Exchange (CME) are as follows:
- LME: Monday to Friday 1:00 am – 7:00 pm (London Time)
- CME: Sunday to Friday 6:00 pm – 5:00 pm (Eastern Time)
Bottom Line On Steel Brokers
Steel trading allows investors to speculate on the manufacturing sector, including large-scale building projects in emerging sectors. Traders can diversify their portfolios through steel futures, ETFs, CFDs and options, as well as shares in steel-based companies. To get started, check out our list of brokers offering steel trading platforms.
FAQ
Can You Trade Steel In The UK?
Steel trading is accessible through CFDs, futures, options, stocks, and ETFs in the UK. Traders can open an account with an online broker, make a deposit, and place trades on the firm’s investing platform.
Is International Steel Trading Available In The UK?
UK investors can speculate on the shares of some of the world’s largest Chinese and Japanese steel-producing firms including Tata Steel, JFE Steel, and China Baowu Group, among other global companies.
What Is The Best Steel Broker?
Several leading brokers offer steel trading products, including Plus 500, IG Index and CMC Markets. Make sure to compare fees, trading products, platforms, tools, and FCA regulatory status.
What Are The Market Hours For Steel Trading?
Steel futures contracts can be traded on the LME between 1:00 am and 7:00 pm (London Time), Monday to Friday. Some online brokers may offer specific trading hours for other markets such as steel company shares.
Article Sources
Crude steel production global totals (World Steel Association)
The world’s largest 15 crude steel producers (Statista)