Trade Oil
0% Commission
Start trading oil today, with Switch Markets
What is oil trading?
Switch Markets lets you trade oil via CFDs, so you can speculate on price changes without owning the asset, and trade long or short with leverage on MT4 or MT5.
Open AccountWTI Price Chart
Weekly candlestick chart - Past performance is not a reliable indicator of future results
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Oil (WTI/USD) CFDs Explained - What Are CFDs on oil?
Oil CFDs (Contracts for Difference) are financial derivatives that allow traders to speculate on the price movements of oil without owning the physical commodity. Instead of buying barrels of crude or arranging delivery, you simply open a position based on whether you believe the price of oil will rise or fall. The profit or loss is determined by the difference between the opening and closing Brent and crude oil prices of the contract. CFDs are popular because they provide flexibility, allow both long and short trading, and typically require a smaller initial deposit compared to traditional futures trading.
When trading oil CFDs, you are essentially following the crude oil market price of major oil benchmarks such as WTI (Crude Oil) and Brent Crude Oil. These benchmarks reflect global supply and demand conditions, geopolitical developments, inventory reports, and macroeconomic trends. Because CFDs are leveraged products, traders can gain larger market exposure with a relatively small amount of capital, but this also increases risk. As a result, oil CFDs are commonly used by both short-term traders looking to capture price volatility and longer-term traders seeking exposure to energy markets.
With Switch Markets, traders can access both Crude (WTI) and Brent oil spot contracts, as well as the nearest two futures contracts for each oil benchmark. This structure allows traders to choose between immediate spot pricing or future-dated contracts depending on their strategy. In addition, Switch Markets enables trading crude oil futures spreads, which allows traders to speculate on the price difference between two oil futures contracts rather than the outright direction of oil itself. This can be useful for strategies focused on market structure, seasonality, or hedging rather than simple price direction.
A key advantage of oil CFDs is leverage, which allows traders to control larger positions with a smaller initial investment. This can magnify potential profits, but it also increases risk, so proper risk management is essential. CFDs also allow traders to go long or short, meaning they can potentially benefit from both rising and falling oil prices. The requirement to start trading oil CFDs is significantly lower than futures, which enables beginners and advanced traders to start trading oil with a low initial deposit.
Additionally, oil CFDs provide flexibility and accessibility compared to traditional commodity trading. There is no need for physical delivery, storage, or large capital requirements, and trades can usually be executed quickly through online platforms. This makes oil CFDs a popular choice for traders seeking efficient exposure to commodity price movements without the logistical challenges of physical ownership.
Why trade oil with Switch Markets?
Experience fast execution, tight spreads, and transparent pricing on oil CFDs, along with powerful free trading tools to enhance your trading strategy.
Low spreads
We provide low and competitive spreads on oil, ensuring you receive the best value when trading. Our minimal trading costs make it easier to trade efficiently.
0% commission account
Trading oil incurs zero commission, with no deposit or withdrawal fees, and no inactivity charges, allowing you to retain more of your profits.
Free Trading Tools
With us, you gain access to a variety of free trading tools, including AlgoBuilder, PineConnector, Trackatrader, and Expert Advisors (EAs).
High leverage ratio
We offer oil traders a high leverage of up to 1:500, providing greater flexibility and trading opportunities.
Trading accounts
Choose from a diverse range of account options tailored to various trading needs, including Cent, Standard, ECN, Islamic, VIP, and PAMM accounts.
Start with as little as $50
Begin trading oil with just $50, with no deposit or withdrawal fees and access to a variety of convenient payment methods.
Key factors influencing oil prices
Supply and Demand
The most fundamental driver of oil prices is the balance between global supply and demand. When demand for oil rises. For example, due to increased transportation, manufacturing, or energy consumption, prices tend to climb if supply cannot keep up. Conversely, oversupply or reduced consumption can push prices lower. Inventory reports, production levels, and consumption forecasts are closely watched by traders because even small imbalances can lead to significant price swings.
Geopolitical Events
Oil is heavily influenced by geopolitical tensions because many major oil-producing regions are politically sensitive. Conflicts, sanctions, trade restrictions, or instability in key regions such as the Middle East, Russia, or parts of Africa can disrupt supply chains and create uncertainty. Even the threat of disruption can lead to price spikes, as markets often react in anticipation rather than waiting for actual shortages.
Economic Growth and Global Activity
Oil is one of the most heavily traded commodities worldwide, and as such, oil demand is strongly tied to economic performance. When global economies grow, industries expand, travel increases, and energy consumption rises - all of which support higher oil prices. During recessions or economic slowdowns, demand typically weakens, putting downward pressure on prices. Indicators such as GDP growth, manufacturing data, and employment figures often serve as early signals for future oil demand trends.
OPEC and Major Oil-Producing Countries
Organizations and countries that control large portions of oil production have substantial influence over prices. The Organization of the Petroleum Exporting Countries (OPEC) and its allies (often referred to as OPEC+) frequently adjust production quotas to stabilize or influence the market. Decisions from leading producers like Saudi Arabia, the United States, and Russia can quickly shift global supply expectations and trigger volatility.
Green Energy and Technological Developments
Long-term oil price trends are increasingly shaped by the transition toward renewable energy and technological innovation. The rise of electric vehicles, improvements in battery storage, and government policies promoting clean energy can gradually reduce oil demand. At the same time, technological advancements in drilling and extraction, such as shale oil production, can increase supply efficiency and place downward pressure on prices.
Seasonality
Oil prices often follow seasonal patterns, making it a seasonal commodity. For example, demand for gasoline typically rises during the summer driving season in the United States, while heating oil demand increases in the winter months. These predictable consumption cycles can influence short-term price movements, and traders often anticipate them when planning strategies.
The US Dollar
Because oil is globally priced in US dollars, currency fluctuations play an important role. When the US dollar strengthens, oil becomes more expensive for buyers using other currencies, which can reduce demand and weigh on prices. Conversely, a weaker dollar can make oil cheaper internationally and support higher prices. As a result, forex market movements and central bank policies can indirectly impact oil markets.
Start Trading Oil in 3 Easy Steps
Trade instantly with tight spreads and zero commission.
1
Open Account
Register and start trading in less than 5 minutes.
2
Deposit Funds
Make min. deposit of $50 using any of our deposit methods.
3
Start Trading Oil
Trade instantly with tight spreads and zero commission.
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High Liquidity and Global Demand.
Opportunities in Both Rising and Falling Markets.
Strong volatility makes it appealing to day traders and swing traders.
Easier to trade oil via CFD than handle the commodity itself.
What is a Contract for Differences (CFD)?
A contract for differences (CFD) is a financial agreement where investors exchange the difference in values of an asset between when the contract opens and closes.
CFD investors speculate on price movements without owning the underlying asset, allowing for potential profits from both rising and falling markets.
Advantages of CFDs include lower capital requirements through leverage, global market access, no shorting restrictions, and flexible trading options.
Trade oil on the most powerful metatrader platforms.
Trade with the world's most popular trading platforms - on any device.
Tap into oil. Trade the momentum.
Join thousands of savvy traders capitalizing on one of the most exciting precious metals markets in history. There's never been a better time to add oil to your trading portfolio.
Open AccountFrequently Asked Questions
Everything you need to know about trading oil with Switch Markets.