Getting exposure to commodities with index derivatives?

telstra111 · 13 May 2013

I'm looking to get exposure to various commodities without having to trade on margin with a commodities broker and deal with contract roll-overs etc. So I was looking at trading derivatives such as the Dow Jones Commodity Subindices. If anyone has a better suggestion, I'm all ears.

As far as the commodity subindices go, I would need to find a broker that offers them either in Australia or overseas. I suppose most brokers would offer them in the US but as I've discovered recently, many don't offer accounts to non-US citizens.

Gringotts Bank · 13 May 2013

telstra111 said:
I'm looking to get exposure to various commodities without having to trade on margin with a commodities broker and deal with contract roll-overs etc. So I was looking at trading derivatives such as the Dow Jones Commodity Subindices. If anyone has a better suggestion, I'm all ears.

As far as the commodity subindices go, I would need to find a broker that offers them either in Australia or overseas. I suppose most brokers would offer them in the US but as I've discovered recently, many don't offer accounts to non-US citizens.

Wouldn't IG Markets offer something like this ?

sinner · 13 May 2013

telstra111 said:
I'm looking to get exposure to various commodities without having to trade on margin with a commodities broker and deal with contract roll-overs etc. So I was looking at trading derivatives such as the Dow Jones Commodity Subindices. If anyone has a better suggestion, I'm all ears.

As far as the commodity subindices go, I would need to find a broker that offers them either in Australia or overseas. I suppose most brokers would offer them in the US but as I've discovered recently, many don't offer accounts to non-US citizens.

I do not recommend IG as Gringotts suggested, you will pay margin interest even if you've got full size equity in the account.

Go here

http://www.asx.com.au/products/managed-funds-product-list.htm

Then click "ETPs" and go down to the "Commodity Exposure" section, there are heaps these days.

thembi · 13 May 2013

telstra111 said:
I'm looking to get exposure to various commodities without having to trade on margin with a commodities broker and deal with contract roll-overs etc. So I was looking at trading derivatives such as the Dow Jones Commodity Subindices. If anyone has a better suggestion, I'm all ears.

As far as the commodity subindices go, I would need to find a broker that offers them either in Australia or overseas. I suppose most brokers would offer them in the US but as I've discovered recently, many don't offer accounts to non-US citizens.

Depending on what sort of exposure you are seeking, you might consider obtaining exposure via ETFs. There are ETFs available currently providing exposure to Crude Oil (http://www.betashares.com.au/produc...-etf-currency-hedged-synthetic/#each-overview), Agricultural Commodities (http://www.betashares.com.au/products/name/agriculture-etf-currency-hedged-synthetic/#each-overview) and a broad commodities basket (http://www.betashares.com.au/produc...-etf-currency-hedged-synthetic/#each-overview). In all cases these products provide exposure to indices that track the price of commodity futures.

telstra111 · 13 May 2013

Gringotts Bank said:
Wouldn't IG Markets offer something like this ?

Thanks. They have commodity based products but they are traded on margin.

Getting exposure to commodities with index derivatives?

telstra111

Gringotts Bank

sinner

thembi

telstra111

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