Oil is popular among retail investors, especially during uncertain times when news can seriously shake its price. Traditionally, traders would open a futures account or buy energy ETFs to gain exposure but modern technologies including smartphones make the process much easier and comfortable. As tokenization platforms were introduced, retail traders now face lowered barriers.

Modern platforms such as MT4, MT5, cTrader, TradingView, and others all support oil and other energy trading. What’s more exciting is CFDs on oil enable traders instant execution, low spreads, and high leverage to maximize profits. 

Let’s analyze the best platforms to trade oil and also the best derivatives to make the retail trading experience much cheaper and swift. 

Oil trading instrument types

To invest in oil, you need to select the instrument type and then the trading platform and broker. Traders can rarely access real oil trading as the majority of retail trading is done through CFDs, meaning traders do not own underlying oil. CFDs are best suited for day trading as they allow low spreads, high leverage, and fast trade execution. 

Here is the list of different types of oil instruments:

• Spot – Immediate delivery.
• Futures – A contract for future delivery at set prices, which change and traders can buy and sell oil futures for profits.
• CFDs – Track oil price movements without owning the oil itself.
• Options – Right (not obligation, unlike futures contracts) to buy/sell oil at a set price.
• ETFs/ETNs – Tracks oil prices and includes USO, BNO, etc. (investors can buy these ETFs to gain exposure)
• Stocks – Buy and sell shares in oil companies such as Exxon, Chevron, etc. The prices of these stocks are heavily impacted by oil prices. 

The oil itself comes in many forms, including crude oil types (Brent Crude, WTI), refined products (gasoline, heating oil, diesel), and other energies (natural gas, oil Sands, and condensates). 

However, retail investors who want to buy oil and forget it for months should choose either ETFs or the shares of oil companies. When it comes to financial trading, CFDs are among the best derivatives for lightning-fast trade execution. However, futures and options traders can also trade various oil instruments offered by their platforms. 

Which one should you trade as a retail trader?

For retail traders who do not have large trading accounts, CFDs for oil such as Brent crude and WTI are the best. This is because oil CFDs enable traders to access sometimes 1:50 and even higher leverage, which enables them to trade with large positions using fairly small accounts. Spreads are also lower on CFDs and trade execution is fast. Traders can both buy and sell oil CFDs for quick profits. 

1. MetaTrader 4 & 5

When it comes to Forex trading, MetaTrader 4 and a newer MetaTrader 5 are absolute kings. These platforms enable traders to access Forex pairs, commodities, indices, and cryptos. Among commodities, oil is typically available for trading. 

MT4 and MT5 provide traders with advanced charting capabilities. There are drawing tools, analysis tools, technical indicators, and automated trading support through Expert Advisors (EAs). Traders can select between different cart types, and timeframes, and use plenty of order types to ensure their strategy requirements are met. 

Both platforms enable for fast CFD trading although the MT5 has a slight edge with its modern capabilities. What makes MT4 so suitable for oil trading is its customization where traders can fully change color scheme and other visual aspects of their platform and charts, which is very flexible. 

Both MT4 and MT5 have large communities and there are hundreds of different indicators and EAs available online for free and paid. The majority of brokers support either MT4 or MT5, which makes these platforms very useful for traders and there are available desktop, web, and mobile apps. 

2. cTrader

cTrader is similar to MT4 and MT5 advanced trading platforms and offers a modern design and perfect interface for oil and CFDs trading. The platform is also available for all devices including desktop, web, and mobile. Features include advanced charting capabilities with diverse chart types and plenty of different timeframes. With several order types, traders can execute either market or pending orders depending on their preferences. 

The platform is heavily customizable and supports both custom indicators and automated trading robots (cBots). The only downside when compared to MT4 and MT5 is that cTrader is supported by fewer brokers and traders might find it difficult to find an oil broker that offers it. 

3. TradingView

TradingView is yet another robust platform that was primarily web-based but is now offered for both desktop and mobile devices. TradingView is known for its multi-asset support and advanced charting capabilities. Indeed, the platform was designed for online technical analysis and asset tracking but incorporated many advanced features including advanced technical indicators, and a community-oriented approach. Many custom indicators are directly available on TradingView which do not require traders to download and install them, unlike MT4 and cTrader. The platform also supports automated trading systems and there almost all oil assets available including ETFs, stocks, and spot and CFD oil. 

The platform is supported by even fewer brokers than cTrader, and to use many indicators at once, traders need to subscribe to monthly subscription plans. 

4. NinjaTrader

NinjaTrader is an advanced trading platform designed for futures. Traders can use NinjaTrader to trade oil futures. The platform comes with advanced capabilities including custom indicators and automated trading systems. It is also available for mobile devices and offers advanced functions on the go. 

The platform is a niche platform offered by brokers that provide futures trading instruments. 

Which platform should you choose?

For trading oil in the form of CFDs, MT4, MT5, TradingView, and cTrader are perfectly suitable depending on the trader’s personal preferences and whether their broker offers access. These platforms allow access to stocks, ETFs, CFDs, and spot oil instruments as well. 

If you plan to trade oil futures, then NinjaTrader is the best option as it offers all the needed features and tools to trade oil and other commodities in the form of futures contracts. 

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Please note this is no investment advice.

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