A common misconception among new traders is that you need futures contracts to trade commodities — that unless you’re accessing the futures market directly, you can’t meaningfully participate in oil, gold, wheat, or other raw materials. But the truth is: you don’t need futures to trade commodities. Today, traders have multiple access points to the commodities market — including ETFs, CFDs, spot contracts, options, and commodity-backed equities. Futures are just one of many tools — not a requirement.

This article explores the different ways to trade commodities, when futures make sense, and how you can build commodity exposure without ever touching a futures contract.

Why people believe futures are required

1. Commodities are traditionally futures-based
Historically, institutions, hedgers, and speculators traded commodities through futures on exchanges like CME or NYMEX — creating the impression that it’s the only way.

2. Educational materials focus on futures
Many trading books and courses use futures examples when explaining commodity strategies.

3. Confusion between access and ownership
Some traders assume that unless they’re trading physical delivery or regulated futures, they’re not trading “real” commodities.

4. Platform limitations
Certain platforms offer only futures access — leading traders to assume they must follow that route.

5. Futures are associated with professionalism
Since many institutional traders use them, some retail traders feel pressured to “graduate” to futures for legitimacy.

The truth: there are many ways to trade commodities

1. Commodity CFDs (Contracts for Difference)

• Offered by most retail brokers
• Allow you to trade oil, gold, silver, natural gas, coffee, wheat, and more
• No expiry dates, no physical delivery
• Ideal for short-term traders and swing traders

2. Commodity ETFs

• Instruments like GLD (gold), USO (oil), or DBA (agriculture) track underlying commodity prices
• Traded like stocks
• Great for investors or position traders
• No margin requirements or rollover costs

3. Spot trading (for metals)

• Many brokers offer spot gold and spot silver contracts
• Prices mirror real-time markets without expiry
• Popular with forex-style platforms

4. Commodity stocks and mining equities

• Trade shares of companies like ExxonMobil (oil), Barrick Gold (gold), or CF Industries (fertilisers)
• Provides indirect commodity exposure
• Often used to leverage macro trends in energy or metals

5. Options on commodity ETFs or futures

• For those with more experience, options offer leveraged exposure with controlled risk
• You don’t need to trade the underlying futures to use options on related ETFs

When futures do make sense

• You want deep liquidity and tight spreads (e.g. crude oil or gold futures)
• You’re trading short-term setups that require access to volume profiles, time & sales, and institutional order flow
• You need hedging capability or custom exposure via different expiry contracts
• You’re using advanced execution tools, trading at high frequency, or managing large capital

Benefits of not using futures

Alternative Method	Advantages over Futures
CFDs	No expiry, flexible sizing, lower barrier to entry
ETFs	Regulated, easy to hold long-term, no leverage required
Spot Metals	Transparent pricing, often integrated with forex platforms
Commodity Stocks	Diversified exposure, no direct commodity handling required
Options on ETFs	Defined risk, multiple strategies, no futures account needed

Conclusion

No — you don’t need futures to trade commodities. Futures are powerful, but not essential. Whether you’re a retail trader, investor, or swing trader, there are flexible, accessible, and cost-effective ways to gain commodity exposure without touching the futures market. What matters most is understanding your goals, style, and risk — not the instrument itself.

To learn how to trade commodities using the right vehicle for your strategy — from ETFs to CFDs and beyond — enrol in our Trading Courses at Traders MBA, where tools serve the trader — not the other way around.