Natural gas is a fossil fuel with a clean burning property that reduces pollution and carbon emissions. It is much in demand in today's save the earth environment. Natural gas brokers allows traders to invest money in natural gas futures and CFDs on the financial markets. The United States is one of the major producers of natural gas, which is converted to Liquid Petroleum Gas, commonly known as LPG, to pump it from the pumping station to long distances, to key markets.
Most traders in natural gas do not take delivery of actual natural gas. Traders in natural gas take a position on its future price. Depending on the investment strategy traders profit from natural gas prices going up or down before the expiry of the future or CFD contract. Natural gas brokers or brokerages that allow trading in natural gas futures or CFDs can facilitate this type of trading.
Earlier this decade Russia and the United States became the top two producers of natural gas. Iran, Canada and Qatar were also among the top five leading natural gas producers. Similarly, in 2015 the top consumers of natural gas were Iran, China, Japan, the Russian Federation and the United States. In the same period, the European Union consumed less natural gas compared to the Middle East. The Fukushima reactor accident resulted in a shift from nuclear gas to natural gas for Japan to a great extent. As natural gas is transported from one place to another through pipelines a couple of factors can disrupt natural gas prices, like weather or political unrest in the regions where the pipelines go through.
Traders can trade natural gas CFDs using natural gas brokerages and take a position on whether there will be a rise or fall in price. Natural gas brokers allow CFD trading. If you are an experienced trader, a natural gas CFD trade will allow you to trade an amount of natural gas commodity that is larger than your deposited amount. This is due to the leverage that CFD trading offers. CFD trading allows you to have a financial exposure in natural gas that is greater than your deposited amount. Your amount of natural gas commodity could be a multiple of the amount you have deposited due to the CFD leverage. Be aware that although you can end up with more buying power with a natural gas CFD, you may lose more than your deposited amount if the trade short or long does not go in your favor. Natural Gas Futures are mostly traded by energy corporations and not individuals. Some natural gas brokers also offer a spread bet, which is just like the CFD on an index. In this case, no expiry time is accompanied but a charge is paid for holding the position beyond a day. Natural Gas Futures & Spot Spot trades on actual price and is favored by institutional traders, usually large firms. Spot trading does not use Futures and settles immediately for cash. The spot market is comparatively more volatile than Futures. One of the primary reasons is the sudden difficulty in deliveries. This will immediately affect the spot price. In Futures, the price change can be predicted like winters are followed with lower prices.
Natural gas is one of the worlds oldest natural resources. The earliest historical records show that natural gas has been utilized by man for hundreds of years. Trading natural gas on the financial markets is a relatively new, having increased dramatically since the 1990s. The main gas assets usually talked about in financial markets, are methane, hydrocarbon and nonhydrocarbon gases. Natural gas is formed basically from the decaying of plants and dead animals. This organic matter is buried and over time mixed with silt and sand beneath the surface of the earth. With heat and pressure, the materials are transformed into fossil fuels.
Even though natural gas is on our earth for millions of years and ancient civilizations knew about it but only after the Industrial Revolution the commercial extraction of it began.
In the 20th century, gas pipelines were developed and natural gas paved its way to new markets. Its use expanded to cooking, home heating and boilers. Today, the United States is the leading natural gas producer in the world.
Natural gas is available in abundance but finding spots, drilling and extracting is a lengthy and time intensive process. However, a slight change in either supply or demand for it causes big price fluctuation. One basic reason is that consumers cannot immediately switch over to alternate fuel.
Below are some factors that swing natural gas price:
Gas consumption mostly relies on domestic production as transportation of natural gas needs pipelines. This is the reason the price falls when production increases and vice versa.
Hurricanes and other severe weather conditions impact drilling activity and this results with short supply. The price of gas tends to rise in such cases.
If an economy graph is on an upward tren, the price of natural gas increases due to higher demand for it.
Sometimes storage in underground facilities impact on natural gas price. The impact is more when demand is high. Countries store natural gas to keep the supply smooth. During low demand, such activity prevents the fall of price. In the United States the demand decreases between April and October.
Alternatives or substitutes play an important role in any product. Coal, wind, solar and hydroelectric power are the substitutes of natural gas.
The United States, Russia and Iran are the top three leading natural gas producing countries. These are followed by Qatar, Canada, China, EU, Norway, Saudi Arabia and Turkmenistan. However, the list differs when discussed which countries have abundant gas stores. Russia has the most natural gas followed by Iran, Qatar and the United States.
Natural gas is much in demand across the world. Its price and supply are highly controlled by blocs like OPEC. Natural gas brokers play important roles to help traders to trade natural gas as a commodity. However, take note that natural gas is a volatile commodity and its price can change frequently and significantly. We've collected thousands of datapoints and written a guide to help you find the best Best Natural Gas Brokers for you. Our aim is that this information helps you choose a trustworthy, reputable and professional broker who can satisfy your trading needs online. We have compiled a list of what we consider the best natural gas brokers below.
There are a number of important factors to consider when picking an online Natural Gas trading brokerage. Check your Natural Gas broker has a history of at least 2 years. Check your Natural Gas broker has a reasonable sized customer support of at least 15. Does the Natural Gas broker fall under regulation from a jurisdiction that can hold a broker responsible for its misgivings; or at best play an arbitration role in case of bigger disputes. Check your Natural Gas broker has the ability to get deposits and withdrawals processed within 2 to 3 days. This is important when withdrawing funds. Does your Natural Gas broker have an international presence in multiple countries. This includes local seminar presentations and training. Make sure your Natural Gas can hire people from various locations in the world who can better communicate in your local language. Our team have listed brokers that match your criteria for you below. All brokerage data has been summarised into a comparison table. Scroll down.
Allows you to compare the below features for brokers offering Natural Gas Brokers.
We compare these features to make it easier for you to make a more informed choice. Minimum deposit to open an account. Available funding methods for the below Natural Gas Brokers. What you are able to trade with each brokerage. Trading Platforms offered by these brokers. Spread type (if applicable) for each brokerage. Customer support levels offered. We show if each brokerage offers Micro, Standard, VIP and Islamic accounts.
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