Commodity trading and currency trading are two completely different types of trading and can be done online. Both the trading options have their own pros and cons, and have their own share of traders. In commodity trading, one deals with tradable commodities that include metals like gold and silver, agricultural products like sugar, coffee, wheat, and many more. Currently, there are around 50 important markets for commodity trading in the world where more than 100 commodities are traded. The process includes purchasing and selling the commodities and making profit.
If we talk about currency trading, it works in a different manner. The very first difference is the number of items used. In online commodities trading Dubai, one can deal with a single tradable commodity and earn money; but in currency trading, the scenario is different. You have to deal with two currencies that are known as currency pairs. You trade using currency pairs, and not just one currency. So, you depend more as two currencies and their fluctuations are to be taken into account. Here are a few factors that are common and affect both of these. You can go through them and pick the type of trading which is more suitable for you:
Geographical Conditions
Both the options get affected by the geographical conditions but in completely different ways. In instance of a natural disaster such as drought or something similar, currencies tend to fall and it may be a tough time for the ones practicing online currency trading Dubai at that moment. However, commodity prices tend to rise due to increase in demand in such cases, or at least remain constant which makes online commodities trading Dubai a better option in such scenarios.
Regulations
If we talk about regulations, the comparison is very easy. While online commodity markets are highly regulated, that’s not the case with currencies. Currency markets are almost like a wild game and regulation is a bit looser. So, if you are someone who loves to adhere to rules and regulations, you should prefer commodities; and if you are a free soul, online currency trading Dubai is perfect for you.
Leverage
Another comparable factor is the leverage for both the trading options. Currency markets offer a great amount of leverage and allow traders to control thousands just by funding their accounts with a few hundred dollars. Though commodities markets too offer leverage, currency markets are far better in this aspect.
Comfort
Different people have different comfort zones. While commodities are more physical in nature, currency trading is a virtual world. So, you can choose one as per your comfort. There are many free online trading sites in UAE that can help you with more information on this.
Ellipsys Financial Markets
4th Floor, C&R Court,
49, Labourdonnais Street,
Port-Louis, Mauritius.
info@elpmarkets.com
Ellipsys Financial Markets 