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Best ETF to Trade Oil – Trading Commodities – Best Oil ETFs

Auteur :

More and more retail investors are searching for simple and affordable ways to speculate on oil prices. There exist two effective ways to trade oil: through ETF and through binary options. An ETF (Exchange Traded Fund) is a listed instrument that tracks the performance of oil but that trades like an equity stock and that is a lot more affordable than Oil Futures. You will need a minimum capital of 50’000 US dollars to buy one WTI oil future contract for instance, not everybody can afford this kind of investment. ETFs allow you to speculate on oil with a small capital, some ETFs are trading as low as 50 US Dollars.

best-oil-etf-trade-binary-option

There exist multiple exchange traded product on crude Oil (long, short, leveraged…) and most of them are either tracking the WTI or the Brent.  You should nevertheless note that the main disadvantage of oil ETFs is rolling costs. To replicate the performance of crude oil, the ETF issuer needs to BUY oil futures contract and roll them every time the contract expires (most of the time they have to sell the expired contract at a lower price than the next expiry contract they need to buy – this trading conditions are called Contango if you need further information)

Most traded and liquid Oil ETF

Please find below a list of the most traded oil ETFs in the world

Non-leveraged (long and short):

  • USO US – US73936B5075 – UNITED STATES OIL FUND LP – fees 0.74% – WTI Futures
  • BNO US – US91167Q1004 – UNITED STATES BRENT FUND fees 0.96% – BRENT Futures
  • OILB LN – GB00B0CTWC01 – ETFS BRENT 1MTH OIL – fees 0.49% – BRENT Futures
  • OIL US – US06738C7864 – IPATH GOLDMAN SACHS CRUDE – fees 0.75% – WTI Index
  • CRUD LN – GB00B15KXV33 – ETFS WTI CRUDE OIL – fees 0.49% – WTI Index
  • BRNT LN – JE00B78CGV99 – ETFS BRENT CRUDE – fees 0.49% – BRENT Index
  • DBO US – US73936B5075 – POWERSHARES DB OIL FUND – fees 0.79% – WTI Index

Leveraged (double long and double short):

  • LOIL LN – JE00B2NFTJ73 – ETFS DY LEVERAGED CRUDE OIL – fees 0.98% – WTI Index
  • UCO – US74347W6509 – PROSHARE ULTRA DJ-UBS CRUDE OIL – fees 0.95% – WTI Index
  • SCO US – PROSHRE U/S DJ-UBS CRUDE OIL – US74347W6681 – fees 0.95% – WTI Index
  • DTO US – POWERSHARES DB OIL 2X SHORT – US25154K8099 – fees 0.75% – OIL Index

Leveraged (triple long and triple short):

  • UWTI US – US22542D5894 – VELOCITYSHARES 3X LONG CRUDE – fees 1.35%
  • UOIL US – US22542D5977 – VELOCITYSHARES 3X LONG BRENT – fees 1.35%
  • DWTI US – US22542D5480 – VELOCITYSHARES 3X INVERSE CR – fees 1.35%
  • DOIL US – US22542D5555 – VELOCITYSHARES 3X INVERSE BR – fees 1.35%

Of course, if you want to build a short-term trading strategy on oil, then binary options might be the best financial instrument for you.  Don’t hesitate to have a look at our detailed review of OptionTime, AnyOption, 24Option and TopOption that all offer binary options on oil. 24Option is the broker that proposes the most extended combination of binary option types and maturities on oil. We highly recommend that you only deposit with brokers that you find listed on our website. This will secure safe payouts and should you face any difficulties we will be able to assist you.

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