Top Brokers for Trading Platinum Futures
Best Platinum Trading Platforms 2024
What is platinum trading?
Currently, South Africa produces 80% of the platinum that is traded, with the remaining 20% going to Russia and North America. Platinum trades at a higher unit price because it is a relatively rare precious metal. It is said that platinum is 15 to 20 times rarer than gold. 160 tons of platinum were mined in 2021. In contrast, 17,000 tons of silver and 2,600 tons of gold were mined.
Not all exchanges offer platinum trading. However, it is supported by two major exchanges: the London Platinum and Palladium Market and the New York Mercantile Exchange (NYMEX). The platinum market was valued at USD 6.5 billion in 2019 and is expected to grow at a compound annual growth rate of 5.0% by 2027.
What drives platinum trading?
- Maintaining its value: Platinum is perhaps the rarest of all precious metals and highly sought after in the jewelry and automotive industries.
- Safe haven: Used as a hedge against currency deterioration, similar to gold.
- A positive view: Provides an opportunity to express optimism about global economic expansion.
What affects the price of platinum?
- Gold: Platinum often has an inverse relationship with gold, with its value influenced by comparisons.
- Supply and Demand: Most platinum is mined in Africa, where it is a valuable but limited mineral.
- Industry: Disruptions or major changes in industries like jewelry and automotive manufacturing can impact platinum prices.
Methods of platinum trading
- ETFs: Invest in platinum ETFs listed on major stock exchanges.
- Coins and Bullion: Purchase and store physical platinum.
- Swiss Banks: Buy and sell platinum through banks, though ownership is indirect.
- Futures: Trade platinum futures contracts with defined terms.
- Options: Engage in platinum options trading for flexibility.
Benefits of Platinum Trading
- Risk-free entry
- Generally stable
- Global growth indicator
- Diversity of holdings
- Protection against a downturn
- Responsive to trends in the jewelry and automotive sectors
How to start trading platinum?
Finding a broker is your first priority. The secret to successful long-term trading is finding the right broker. Consider their reputation, platforms and tools, as well as cost, demo accounts and regulations, when doing your research. Plus500 offer you all these tools to succeed in platinum trading. A demo account can be set for free and for unlimited time period.
Once you've chosen your broker, you need to develop your plan and place an order. Consider a trade based on the spread between platinum and other precious metals using options or futures if you are a more experienced trader. If you are new to trading platinum, you may choose to trade CFDs for added security. Whichever approach you use, make sure it is always backed by a solid risk management system to reduce losses.
Finally, keep an eye on your chosen position(s). To put yourself in the best possible position analyze the market, consult with experts, and make sure you are aware of the most recent news and developments.
A Final Word on Platinum Trading
Platinum trading has a lot to offer as an investment strategy. This once overlooked asset has recently shown its real potential, whether you want to hedge, hold capital or engage in global expansion. It is expected to continue its momentum as developing countries grow and demand for platinum increases. To increase your chances of success, choose the best broker and implement a well thought out plan. In addition, we advise you to use charts, analytical concepts and prices to their full potential.
3 Best Brokers for Trading Platinum
- Pepperstone - Best Overall Broker for Trading Platinum.
Pepperstone is well-regarded for offering a robust trading environment for platinum traders. With competitive spreads, advanced trading tools, and fast execution speeds, Pepperstone stands out as an excellent choice for both novice and experienced traders.
- Plus500 - Best Broker with Multiple Licenses.
Plus500 offers a secure and user-friendly platform for trading platinum. With numerous regulatory licenses and strong investor protection measures, Plus500 is ideal for traders seeking a reliable platform for various financial instruments.
- XM - Best Platform and Excellent Brokerage for Beginners.
XM excels by providing extensive educational resources and practical online workshops to support platinum traders. Its user-friendly interface and comprehensive support make XM a great choice for beginners.
Pepperstone
Pepperstone offers a wide range of trading instruments, including platinum. Their focus on tight spreads, fast execution, and advanced trading platforms makes it an excellent choice for platinum traders.
| Licenses | CySEC, BaFin, FCA, SCB, CMA |
| Minimum Deposit | $0 |
| Trading Platforms | MT4, MT5, cTrader |
| Asset Coverage | Forex, Commodities, CFDs, Cryptocurrencies, Indices |
| Customer Support | 24/5 |
| Account Types | Standard, Razor, Swap-free |
Cons
- Limited support for lesser-known instruments
Pros
- Low spreads for cost-effective trading
- High-speed execution to capitalize on market movements
- Advanced analytical tools for strategic planning
Plus500
Plus500 is a trading platform focused on providing investment services for platinum traders. It features an easy-to-use interface and powerful trading tools, and is fully licensed and regulated, offering a secure trading environment for investors.
| Licenses | FCA, CySEC, ASIC |
| Minimum Deposit | $100 |
| Trading Platforms | WebTrader, Windows 10, Mobile Apps |
| Asset Coverage | Forex, Commodities, CFDs, Cryptocurrencies, Indices |
| Customer Support | 24/7 |
| Account Types | Standard, Professional |
Cons
- Restrictions in some countries
- No social trading features
Pros
- Protected and secure accounts
- Established since 2008
- Licensed by authorities in Dubai
XM
XM is a global trading platform focused on providing investment services for platinum traders. XM is renowned for offering advanced educational materials for traders and provides a flexible and reliable trading environment with 24/7 customer support.
| Licenses | CySEC, ASIC, IFSC |
| Minimum Deposit | $5 |
| Trading Platforms | MT4, MT5, WebTrader |
| Asset Coverage | Forex, Commodities, CFDs, Cryptocurrencies, Indices |
| Customer Support | 24/7 |
| Account Types | Various, including Islamic accounts |
Cons
- Service restrictions in some countries
Pros
- Wide range of financial instruments
- Transparent deposit and withdrawal policies
- Excellent customer support and comprehensive educational materials
F.A.Q
- What are the advantages of trading platinum?
Although it has more applications and is rarer than gold, platinum is often overlooked when it comes to investments. Platinum offers a significant opportunity for portfolio diversification. Due to its ties to the jewelry and automotive industries, platinum's trading value offers a variety of fundamental research opportunities in addition to traditional technical analysis techniques for volatility. - What is the best trading strategy for platinum?
Time, goals, risk appetite and money are just some of the individual aspects that influence strategies. There is no single answer. Breakout trading, scalping, arbitrage and novel trading are common tactics. There are several excellent university courses, programs, academy courses and organizations that you can use if you want to improve your understanding. - Where can I trade platinum and how?
From India to Tokyo, from the US to Dubai, you can trade platinum online, on mobile or desktop platforms, anywhere in the world. The need to trade platinum has increased as applications for the metal grow. - What are the best trading platforms for platinum?
For platinum trading, we suggest a number of brokers and platforms, including Plus500 and XM. These brokers offer favorable trading conditions, popular systems and reliable regulation. See here for more information.
News
Commodities
Platinum sharpens losses to two-week trough on weak demand
Platinum prices declined in European trade on Thursday, sharpening losses for the fourth straight ...
Commodities
Platinum sharpens decline to three-month trough as dollar strengthens
Platinum prices declined in European trade for the second session to three-month lows as the dollar ...
Commodities
Palladium drops over 1% on rising dollar and US political tensions
Palladium prices fell on Thursday, as the US dollar rose against its peers, which weighs down on ...
Analysis
Commodities
Platinum price fails to confirm the breach – Forecast today – 21-5-2024
Platinum Price Analysis Expected Scenario The Platinum price failed to confirm breaching ...
Commodities
Platinum price tends to resume the bullish attack – Forecast today – 20-5-2024
Platinum Price Analysis Expected Scenario The platinum price repeated attempts to breach ...
