Wheat
Wheat is one of the most widely produced cereal grains in the world and a popular soft commodity in trading, with relatively high volatility. This guide to wheat trading online unpacks the factors influencing live prices, investing strategies, and opening hours. Our team have also ranked the best wheat brokers:
Top Wheat Trading Brokers UK
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AvaTrade is a leading forex and CFD broker, established in 2006 and regulated across 9 jurisdictions. Over 400,000 users have signed up with the broker which processes over 2 million trades each month. The firm offers multiple trading platforms, including MT4, MT5, and a proprietary WebTrader. 1250+ financial instruments are available for trading, alongside a comprehensive education center and multilingual customer support.
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Founded in 2002 in Poland, XTB now serves more than 935,000 clients. The forex and CFD broker combines a heavily regulated trading environment with an extensive selection of 5,600+ assets and a commitment to trader satisfaction, featuring an intuitive in-house platform with superb tools to support aspiring traders.
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Established in 1989, CMC Markets is a respected broker listed on the London Stock Exchange and authorized by several tier-one regulators, including the FCA, ASIC and CIRO. More than 1 million traders from around the world have signed up with the multi-award winning brokerage.
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Established in Australia in 2010, Pepperstone is a top-rated forex and CFD broker with over 400,000 clients worldwide. It offers access to 1,300+ instruments on leading platforms MT4, MT5, cTrader and TradingView, maintaining low, transparent fees. Pepperstone is also regulated by trusted authorities like the FCA, ASIC, and CySEC, ensuring a secure environment for traders at all levels.
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IC Markets is a globally recognized forex and CFD broker known for its excellent pricing, comprehensive range of trading instruments, and premium trading technology. Founded in 2007 and headquartered in Australia, the brokerage is regulated by the ASIC, CySEC and FSA, and has attracted more than 180,000 clients from over 200 countries.
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XM is a globally recognized forex and CFD broker with 10+ million clients in 190+ countries. Since 2009, this trusted broker has been known for its low fees on 1000+ instruments. XM is regulated by multiple financial bodies, including the ASIC and CySEC.
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Founded in 1999, FOREX.com is now part of StoneX, a financial services organization serving over one million customers worldwide. Regulated in the US, UK, EU, Australia and beyond, the broker offers thousands of markets, not just forex, and provides excellent pricing on cutting-edge platforms.
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eToro is a top-rated multi-asset platform which offers trading services in thousands of CFDs, stocks and cryptoassets. Launched in 2007, the brand has millions of active traders globally and is authorized by tier one regulators, including the FCA and CySEC. The brand is particularly popular for its comprehensive social trading platform. Cryptoasset investing is highly volatile and unregulated in the UK and some EU countries. No consumer protection. Tax on profits may apply. 76% of retail CFD accounts lose money.
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RoboForex is an online broker, established in 2009 and registered with the IFSC in Belize. Traders can choose from five accounts (Prime, ECN, R StocksTrader, ProCent, Pro) catering to different needs with trades from 0.01 lots and spreads from 0 pips. RoboForex has also enhanced its offering over the years, adding CFD instruments and launching its stock trading platform, plus the CopyFX system.
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InstaForex is a forex and CFD broker founded in 2010. The broker offers diverse market coverage to millions of clients, spanning traditional assets like currencies and shares, as well as other interesting opportunities such as IPOs.
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OANDA is an award-winning global broker, established in 1996. The hugely respected brand offers competitive trading accounts and serves clients from 196 countries. It remains a popular option with both beginners and experienced traders thanks to its user-friendly and sophisticated web platform, no minimum deposit and premium currency products and services. The company is also overseen by reputable regulators, including the FCA, ASIC and CIRO.
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Founded in 1974, IG is part of IG Group Holdings Plc, a publicly traded (LSE: IGG) brokerage. The brand offers spread betting, CFD and forex trading across an almost unrivalled selection of 17,000+ markets, with a range of user-friendly platforms and investing apps. For 50 years, IG has maintained its position as an industry leader, excelling in all key areas for traders.
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BlackBull is a New Zealand-based CFD broker with trading opportunities on forex, stocks, indices, commodities and cryptos. The broker supports the MetaTrader 4 and 5 platforms as well as TradingView, cTrader and a proprietary mobile app. Clients can trade with high leverage and tight spreads from 0 pips on the broker's ECN accounts.
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Founded in 2009, Vantage offers trading on 1000+ short-term CFD products to over 900,000 clients. You can trade Forex CFDs from 0.0 pips on the RAW account through TradingView, MT4 or MT5. Vantage is ASIC-regulated and client funds are segregated. Copy traders will also appreciate the range of social trading tools.
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Established in 2008 and headquartered in Israel, Plus500 is a prominent brokerage that boasts over 25 million registered traders in over 50 countries. Specializing in CFD trading, the company offers an intuitive, proprietary platform and mobile app. It maintains competitive spreads and does not charge commissions or deposit or withdrawal fees. Plus500 also continues to shine as one of the most trusted brokers with licenses from reputable regulators, including the FCA, ASIC and CySEC.
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Fusion Markets is an online broker established in 2017 and regulated by the ASIC, VFSC and FSA. It is best known for its low-cost forex and CFD trading, although its multiple account types and copy trading solutions cater to a range of traders. New clients can sign up and start trading in 3 easy steps.
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GO Markets is an established forex and CFD broker with multiple industry awards and accolades. The ECN/STP broker is popular with budding traders, offering competitive accounts in multiple base currencies and a range of flexible payment methods. With top-tier regulation from CySEC and ASIC, GO Markets is a trusted broker.
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Markets.com is a respected broker, offering multi-asset trading opportunities through CFDs or spread betting (UK only). Established in 2008, the brand has an impressive 4.3 million registered customers and is overseen by trusted regulators, including the FCA, ASIC and CySEC. 79.1% of retail accounts lose money.
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Trade.com is a trustworthy online broker with a global presence. The broker offers 2,100+ CFDs in major markets, as well as futures, options and more. The broker offers best-in-class platforms and superior analysis tools for experienced traders. The broker is also regulated by top-tier authorities including the FCA and CySEC.
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Grand Capital is a MetaTrader broker with welcome bonuses, trading competitions and an intuitive copy trading service. Several account types and 400+ assets provide trading opportunities for various types of investors and strategies. New users can also open an account and start trading in a matter of minutes.
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IronFX is a multi-regulated forex and CFD broker founded in 2010. This award-winning firm offers 500+ markets to over 1.5 million clients across 180 countries. Traders can access various account types with competitive pricing on the MT4 platform, as well as 24/5 customer support in 30 languages.
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Ingot Brokers is a multi-regulated brokerage established in 2006. The broker offers CFD trading opportunities on 1000+ instruments including forex, stocks, indices, commodities and cryptocurrencies. The broker supports the MetaTrader 4 and MetaTrader 5 platforms and offers both raw spreads and commission-free account options.
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Pacific Union Prime is an FSCA and offshore-regulated multi-asset broker offering competitive fees and direct market access on forex, commodities, stocks, bonds and indices. The broker supports the popular MetaTrader 4 and MetaTrader 5 platforms and a proprietary mobile app. Fees vary by account type with no commission and spreads from 1.9 pips on the Standard account and $7 commission per lot and spreads from 0.4 pips on the Prime account.
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SimpleFX is an online broker specializing in CFD and cryptocurrency trading, with multi-currency accounts, STP execution, low pricing and no minimum deposit. Bringing innovation and gaining recognition at numerous industry events since 2014, SimpleFX now caters to retail traders from over 190 countries, boasting a client base exceeding 200,000 active users.
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ActivTrades is a UK-headquartered CFD and forex broker established in 2001. The brokerage is heavily regulated with licenses from the FCA, SCB, CSSF, BACEN & CVM and CMVM. Over 1000 CFDs are available spanning 7 asset classes. Over 93.60% of orders are executed at the requested price. ActivTraders also offers a selection of leading trading platforms, including MT4, MT5, TradingView and ActivTrader platforms.
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Established in 2005 in Australia, FP Markets is an ASIC- and CySEC-regulated broker boasting an extensive suite of tradable assets. Its Standard and Raw accounts cater to traders at every level, while it packs a punch in the tooling department, from the MetaTrader suite and intuitive TradingView to actionable trading ideas from Trading Central and AutoChartist.
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Fortrade is a multi-asset, multi-regulated broker with branches regulated by the FCA, CySEC and ASIC among others. The brand offers trading opportunities on a wide range of instruments including stocks, bonds, commodities, forex, indices, cryptocurrencies and ETFs, with competitive fees and support for MetaTrader 4 and a proprietary platform.
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Libertex is a well-known broker, established in 2012. The regulated brand has served numerous clients and is regulated by the Cyprus Securities and Exchange Commission with license number 164/12. Libertex offers CFD trading on 250+ underlying assets, including through an innovative and user-friendly proprietary web trader platform. Choose between CFDs on forex, cryptocurrencies, commodities, stocks, indices and ETFs, which are available with tight spreads and low commissions.
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Infinox is a UK-based and FCA-regulated broker that offers diverse trading products thanks to its STP and ECN account types and support for MetaTrader 4, MetaTrader 5 and a proprietary platform. Clients can also benefit from a free VPS that can support automated strategies and a social trading platform, catering to both beginner and seasoned traders.
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Amega is an offshore STP broker offering CFD trading on forex, stocks, indices and commodities with very high leverage up to 1:1000 and a zero-commission pricing structure. Traders access markets through the MT5 platform and can test the broker's services through a demo account.
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Capital.com offer CFDs on a range of markets with competitive spreads and zero commissions. The broker also offers the Investmate app, negative balance protection and leveraged trading.
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Trading 212 is a European and UK-regulated CFD broker that also offers stock investing and ISAs. It’s best known for its commission-free trading model and beginner-friendly app, which has helped it attract 2.5 million users and £3.5 billion in client assets.
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LegacyFX is a multi-asset broker offering an MT5 download & free signals.
How To Trade Wheat
Wheat trading is the act of speculating on current and future wheat prices.
Wheat is one of the most popular soft commodities, with its worldwide abundance and impact on daily life. With 761 million tonnes produced in 2020, it is the second most-cultivated cereal grain by volume after corn and the key ingredient of staple foods across the planet. It is also used to make soaps, lipstick, lotion, paper, chewing gum and many other products.
Because of the huge amount of wheat that is produced and consumed, prices can be volatile, with supply-side factors having huge effects. This creates profit opportunities for keen traders.
Investors can trade wheat through several vehicles, including futures, options, and CFDs. Importantly, wheat presents opportunities because of its inherent volatility. Arbitrage opportunities are also present because of the relationship between the cash wheat grain and the futures market.
Investors can also trade UK-produced wheat on the ICE directly in GBP, taking away foreign exchange fees.
History
Wheat trading has been around for millennia, stretching as far back as human civilisation. However, the wheat trade as we know it today can be traced back to the 19th century and the Chicago Board of Trade (CBOT)’s opening in 1848 as a cash market for grain. Forward contracts began trading almost instantly. The beginning of wheat futures trading on the CBOT was in 1859.
Nowadays, wheat trading occurs all over the world on many centralised exchanges and in many guises – for example, UK Feed Wheat Futures are traded on the Intercontinental Exchange (ICE).
Trading wheat contracts for physical delivery is not the only way to speculate on prices. Other instruments like CFDs and ETFs can also be used to speculate the price of wheat, with many derivatives available that do not require physical delivery.
What Is Wheat Trading At Today?
What Influences The Price Of Wheat?
Geopolitical Events
Geopolitical events can cause supply chain or production shocks that have a large knock-on effect on wheat prices, particularly if they affect a major wheat-producing country.
For example, the Russian invasion of Ukraine led to a significant rise in grain prices in February/March 2022. In August 2022, UK Flour Millers saw a 60% rise in wheat prices between July 2021 and July 2022, climbing from £206.00 to £328.50. This was caused in part by disruption to exports leaving Ukraine, as well as increased gas and fertiliser costs, among other factors.
Weather
As with all crops, the weather can have a huge effect on wheat yields. One year of bad farming weather can lead to a major fall in wheat supplies and cause prices to spike. The top wheat producing countries include the US, China, India, Russia, Ukraine and France.
The unpredictable nature of the weather is something that farmers struggle with and is one reason that wheat derivatives are so popular – these contracts can protect buyers and sellers from unforeseen price shocks.
Note that price determinants like weather can be difficult to predict, heightening risk for retail traders.
Growing Demand
Recent decades have seen a marked increase in demand for wheat in developing countries such as China that do not traditionally use the crop widely in their staple foods. This can be caused by increased demand for meat and animal feeds that contain wheat, or by other factors such as changing dietary trends.
Growing demand will push wheat prices up, but if the trend reverses you can expect cheaper wheat.
Technological Advancements
The introduction of new technology can have a great effect on wheat prices. New, more efficient farming methods or better storage facilities can increase the supply of wheat, allowing for a fall in price.
The same is true for competing grains, such as barley, corn and oats.
Government Intervention
Governments can also have an impact on wheat prices. Placing price or export limits can vary the supply available, causing price changes. Other factors such as agricultural subsidies can also increase the overall supply, usually lowering prices.
How To Trade Wheat
Wheat trading is available in many forms. UK traders can choose to trade contracts with physical delivery directly on exchanges like the ICE.
Alternatively, they can look for cash-settled futures and options (put and call) or trade popular derivatives such as CFDs where you don’t need to actually purchase bushels of the soft commodity.
Another option is investing in companies involved in the production, distribution and sale of wheat and wheat-related products, such as flour and lipstick.
Stocks
Traders can choose to invest in stocks of companies that have direct involvement in growing or trading wheat. This could include wheat producers, like publicly traded farms, or companies that process wheat for other purposes. These companies’ share prices will often, but not always, move in line with the price of wheat as a commodity.
Popular wheat stocks include Bunge (BG), Deere & Company (DE), and Adecoagro (AGRO).
ETFs
ETFs with wheat usually also contain other agricultural commodities, making them less volatile than trading wheat alone.
ETFs can be bought and sold in a similar way to trading shares in a company; they can also be used as the underlying asset in derivatives contracts such as CFDs.
Popular wheat ETFs include Invesco DB Agriculture Fund and iPath Bloomberg Agriculture Subindex Total Return ETN.
CFDs
CFDs, or contracts for difference, allow traders to speculate on the price of wheat without buying or selling the underlying commodity. This is a popular form of online trading and is widely available through wheat brokers in the UK.
Traders can speculate on rising or falling wheat prices with CFDs. Additionally, margin trading is available with leverage of up to 1:10 typically offered to the UK retail market. This means traders can magnify potential returns (and losses).
Futures
Futures contracts are an agreement between buyers and sellers to buy/sell wheat at a predetermined price at a set future date.
In a classic futures contract, delivery of wheat will take place when the contract expires, but cash-settled futures that require no physical delivery are also available.
Options
Options contracts are similar to futures with the key difference that the contract buyer has the right but not the obligation to settle the contract.
This means that when the expiration date comes, they can choose not to buy or sell the wheat if this would result in a monetary loss, for example. In this case, the trader’s losses would be limited to the premium paid for the contract.
Strategies
Various wheat trading strategies are available to retail investors. Popular systems include:
Spread Trading/Arbitrage
Spread trading, a form of arbitrage, involves opening opposing positions on wheat by buying and selling at the same time and taking advantage of the price discrepancy between different contracts, markets or trading vehicles.
For example, if the spot price of wheat is below the futures price, traders can both buy wheat in the spot market and sell in the futures market to make the difference in profits.
Trend Trading
Trend trading involves finding a pattern, or trend, in the price movement of wheat. When you are confident that you have identified a trend and that it is set to continue, you can profit by placing a trade to follow it.
Traders usually rely heavily on technical analysis for trend trading, though fundamentals could help to build a stronger picture in longer-term trades.
Range Trading
Range trading involves finding the lower and upper limits in the wheat’s price during your chosen timeframe; these are known respectively as support and resistance levels.
Prices tend to bounce between the support and resistance lines, allowing you to buy at the support and sell at resistance for profit.
Comparing Wheat Brokers
The broker you choose to trade wheat with will heavily impact your investing experience. Key comparison factors include:
Fees
Top-rated wheat trading brokers offer tight spreads and competitive commissions. Pepperstone, for example, offers wheat CFDs with an average spread of 0.8 pips and a minimum contract size of 1 bushel.
Other fees to consider include overnight fees for derivatives, deposit or withdrawal charges, plus inactivity penalties.
Leading wheat brokers publish a fee schedule on their websites.
Trading Platform
The platform is where you will place wheat buy and sell orders, and conduct any analysis.
The best wheat trading brokers in the UK offer a bespoke platform and/or a user-friendly terminal like MetaTrader 4 (MT4). MT4 is home to dozens of indicators and drawing tools, multiple order types, automated trading capabilities, and a variety of charts and graphs.
Extra Features
Some wheat trading brokers offer additional features that can make a difference to your investing experience. These range from educational resources on soft commodities to advanced market data or copy trading.
eToro, for example, offers automated copy trading where you can leverage the expertise of experienced investors. There are also no additional fees to use the copy trading tool.
Regulation
Wheat trading brokers regulated by the Financial Conduct Authority (FCA) are the best pick for UK traders. FCA-registered brokerages offer a more secure investing experience than their unregulated counterparts.
UK-licensed brokers must provide negative balance protection so that client accounts cannot go into negative equity. They also have to cap retail trading leverage to limit risk exposure, typically 1:10 on wheat derivatives.
Demo Accounts
Top wheat brokers provide demo accounts so users can practice soft commodity strategies with virtual money. This is also a good opportunity to get familiar with a firm’s platforms, apps and futures trading tools.
Wheat trading broker, AvaTrade for instance, offers demo accounts.
Wheat Trading Hours
Wheat trading times vary by exchange. However, on the ICE, UK Feed Wheat Futures and Options trade between 09:25 and 17:28 for a total trading period of 8 hours and 3 minutes. The pre-open period starts at 06:03.
Trading hours may also vary between online brokers. CMC Markets, for example, offers wheat trading Monday to Friday between 01:00 – 13:45 and 14:30 – 19:20. Weekend trading is not available.
Bottom Line On Trading Wheat
Wheat is a key commodity across the globe that offers high volatility and liquidity. UK traders can speculate on wheat prices through various vehicles, including CFDs and futures. The top wheat trading brokers offer low spreads, stable trading platforms, and hold a license with the FCA.
See our ranking of the best wheat brokers to start trading online.
FAQ
Can UK Investors Trade Wheat?
UK investors can trade wheat through multiple vehicles and exchanges. UK feed wheat can be traded on the ICE through both futures contracts and options. Alternatively, investors can trade wheat CFDs at FCA- regulated brokers like Pepperstone, IG, and Interactive Brokers.
What Affects Wheat Trading Prices?
Multiple factors can impact the price of wheat, including weather conditions, geopolitical events, dietary changes, and government interventions. Russia’s invasion of Ukraine, for example, saw wheat prices rise by over 60% amidst production and export issues.
What Are Wheat Trading Hours?
Wheat futures and products can be traded on various exchanges across the world and thus can be traded in many different time periods. In the UK, domestic wheat can be traded on the ICE, with a trading period of 9:25 am to 17:28 pm (London Time). Most top wheat brokers offer trading on the commodity Monday to Friday.
Which Is The Best Wheat Trading Broker?
The best wheat trading broker will depend on your investing goals and personal preferences. With that said, consider spreads and commissions on wheat products, the reliability of the platform and app, the accessibility of the customer support team, and the regulatory status of brokers serving UK traders.