Cocoa
Cocoa is a popular commodity with growing demand, relatively stable production and wide availability through brokers. This guide will explain how to start trading cocoa, from production and consumption figures to factors that move prices. We also list the best cocoa brokers:
Top Cocoa Brokers UK
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Founded in Australia in 2010, Pepperstone is a highly regarded broker specialising in forex and CFDs. Serving more than 400,000 clients globally, it provides access to over 1,300 financial instruments through popular platforms like MT4, MT5, cTrader, and TradingView. Its fee structure is both low and transparent. With regulation by reputable bodies such as the FCA, ASIC, and CySEC, Pepperstone guarantees a safe trading environment for traders at every level.
Instruments Regulator Platforms CFDs, Forex, Currency Indices, Stocks, Indices, Commodities, ETFs, Crypto (only Pro clients), Spread Betting FCA, ASIC, CySEC, DFSA, CMA, BaFin, SCB MT4, MT5, cTrader, TradingView, AutoChartist, DupliTrade, Quantower Min. Deposit Min. Trade Leverage $0 0.01 Lots 1:30 (Retail), 1:500 (Pro) -
Established in Poland in 2002, XTB caters to over a million clients worldwide. This forex and CFD broker offers a robust regulatory framework, a diverse range of assets, and prioritises trader satisfaction. It provides an intuitive proprietary platform equipped with excellent tools to support aspiring traders.
Instruments Regulator Platforms CFDs on shares, Indices, ETFs, Raw Materials, Forex currencies, cryptocurrencies, Real shares, Real ETFs FCA, CySEC, KNF, DFSA, FSC, SCA, Bappebti xStation Min. Deposit Min. Trade Leverage $0 0.01 Lots 1:30 -
IC Markets is an internationally acclaimed forex and CFD broker, admired for its competitive pricing, diverse trading instruments, and superior technology. Established in 2007 and based in Australia, the firm is under the regulation of ASIC, CySEC, and FSA. It has successfully drawn over 180,000 clients from more than 200 nations.
Instruments Regulator Platforms CFDs, Forex, Stocks, Indices, Commodities, Bonds, Futures, Crypto ASIC, CySEC, FSA, CMA MT4, MT5, cTrader, TradingView, TradingCentral, DupliTrade, Quantower Min. Deposit Min. Trade Leverage $200 0.01 Lots 1:30 (ASIC & CySEC), 1:500 (FSA), 1:1000 (Global) -
IC Trading belongs to the reputable IC Markets group. Designed for dedicated traders, it offers highly competitive spreads, dependable order execution, and sophisticated trading tools. However, it operates from Mauritius, an offshore financial centre, allowing high leverage but within a less regulated environment.
Instruments Regulator Platforms CFDs, Forex, Stocks, Indices, Commodities, Bonds, Cryptos, Futures FSC MT4, MT5, cTrader, AutoChartist, TradingCentral Min. Deposit Min. Trade Leverage $200 0.01 Lots 1:500 -
Fusion Markets, an online broker since 2017, operates under the regulation of ASIC, VFSC, and FSA. Renowned for offering cost-effective forex and CFD trading, it provides various account options and copy trading solutions to suit diverse trading needs. New clients can begin trading with a simple three-step registration process.
Instruments Regulator Platforms CFDs, Forex, Stocks, Indices, Commodities, Crypto ASIC, VFSC, FSA MT4, MT5, cTrader, TradingView, DupliTrade Min. Deposit Min. Trade Leverage $0 0.01 Lots 1:500 -
BlackBull, a New Zealand-based CFD broker, offers a wide range of trading options across more than 26,000 instruments. Following a 2023 rebrand, it boasts a contemporary design and provides advanced trading tools along with ultra-fast execution speeds, averaging 20ms.
Instruments Regulator Platforms CFDs, Stocks, Indices, Commodities, Futures, Crypto FMA, FSA BlackBull Invest, BlackBull CopyTrader, MT4, MT5, cTrader, TradingView, AutoChartist Min. Deposit Min. Trade Leverage $0 0.01 Lots 1:500 -
eToro, a leading multi-asset platform, provides access to trading services across thousands of CFDs, stocks, and cryptocurrencies. Established in 2007, it boasts millions of active traders worldwide and is sanctioned by top-tier regulators such as the FCA and CySEC. It stands out for its extensive social trading feature. Crypto investments are unstable and carry risk. Tax implications might apply. Acknowledge the risks involved. 61% of retail CFD accounts incur losses.
Instruments Regulator Platforms CFDs, Forex, Stocks, Indices, ETFs, Smart Portfolios, Commodities, Futures, Crypto, NFTs FCA, ASIC, CySEC, FSA, FSRA, MFSA, CNMV, AMF eToro Web, CopyTrader, TradingCentral Min. Deposit Min. Trade Leverage $50 $10 1:30
Pepperstone
XTB
IC Markets
IC Trading
Fusion Markets
BlackBull Markets
eToroSafety Comparison
Compare how safe the Cocoa are and what features they offer to protect traders.
| Broker | Trust Rating | FCA Regulated | Negative Balance Protection | Guaranteed Stop Loss | Segregated Accounts |
|---|---|---|---|---|---|
| Pepperstone | ✔ | ✔ | ✘ | ✔ | |
| XTB | ✔ | ✔ | ✔ | ✔ | |
| IC Markets | ✘ | ✔ | ✘ | ✔ | |
| IC Trading | ✘ | ✘ | ✘ | ✔ | |
| Fusion Markets | ✘ | ✔ | ✘ | ✔ | |
| BlackBull Markets | ✘ | ✔ | ✘ | ✔ | |
| eToro | ✔ | ✔ | ✘ | ✔ |
Payments Comparison
Compare which popular payment methods the Cocoa support and whether they have trading accounts denominated in British Pounds (GBP).
| Broker | GBP Account | Debit Card | Credit Card | Neteller | Skrill | Apple Pay |
|---|---|---|---|---|---|---|
| Pepperstone | ✔ | ✔ | ✔ | ✔ | ✔ | ✔ |
| XTB | ✔ | ✔ | ✔ | ✔ | ✔ | ✘ |
| IC Markets | ✔ | ✘ | ✔ | ✔ | ✔ | ✘ |
| IC Trading | ✔ | ✔ | ✔ | ✔ | ✘ | ✘ |
| Fusion Markets | ✔ | ✔ | ✔ | ✔ | ✔ | ✘ |
| BlackBull Markets | ✔ | ✔ | ✔ | ✔ | ✔ | ✘ |
| eToro | ✔ | ✔ | ✘ | ✔ | ✔ | ✘ |
Mobile Trading Comparison
How good are the Cocoa at mobile trading using apps or other mobile interfaces.
| Broker | Mobile Apps | iOS Rating | Android Rating | Smart Watch App |
|---|---|---|---|---|
| Pepperstone | iOS & Android | ✘ | ||
| XTB | iOS & Android | ✔ | ||
| IC Markets | iOS & Android | ✘ | ||
| IC Trading | iOS & Android | ✘ | ||
| Fusion Markets | iOS & Android | ✘ | ||
| BlackBull Markets | iOS & Android | ✘ | ||
| eToro | iOS & Android | ✘ |
Beginners Comparison
Are the Cocoa good for beginner traders, that might want an affordable setup to get started, along with good support and educational resources?
| Broker | Demo Account | Minimum Deposit | Minimum Trade | Support Rating | Education Rating |
|---|---|---|---|---|---|
| Pepperstone | ✔ | $0 | 0.01 Lots | ||
| XTB | ✔ | $0 | 0.01 Lots | ||
| IC Markets | ✔ | $200 | 0.01 Lots | ||
| IC Trading | ✔ | $200 | 0.01 Lots | ||
| Fusion Markets | ✔ | $0 | 0.01 Lots | ||
| BlackBull Markets | ✔ | $0 | 0.01 Lots | ||
| eToro | ✔ | $50 | $10 |
Advanced Trading Comparison
Do the Cocoa offer features that allow for more advanced trading strategies?
| Broker | Automated Trading | Pro Account | Leverage | VPS | AI | Low Latency | Extended Hours |
|---|---|---|---|---|---|---|---|
| Pepperstone | Expert Advisors (EAs) on MetaTrader | ✔ | 1:30 (Retail), 1:500 (Pro) | ✔ | ✘ | ✔ | ✘ |
| XTB | Open API | ✔ | 1:30 | ✘ | ✘ | ✔ | ✘ |
| IC Markets | Expert Advisors (EAs) on MetaTrader, cBots on cTrader, Myfxbook AutoTrade | ✘ | 1:30 (ASIC & CySEC), 1:500 (FSA), 1:1000 (Global) | ✔ | ✘ | ✔ | ✘ |
| IC Trading | Expert Advisors (EAs) on MetaTrader, cBots on cTrader | ✘ | 1:500 | ✔ | ✘ | ✔ | ✘ |
| Fusion Markets | Expert Advisors (EAs) on MetaTrader, cBots on cTrader | ✘ | 1:500 | ✔ | ✘ | ✔ | ✘ |
| BlackBull Markets | Expert Advisors (EAs) on MetaTrader, cTrader Automate | ✘ | 1:500 | ✔ | ✔ | ✔ | ✘ |
| eToro | Automate your trades via CopyTrader - follow profitable traders. Open and close trades automatically when they do. | ✘ | 1:30 | ✘ | ✔ | ✘ | ✔ |
Detailed Rating Comparison
Use this heatmap to compare our detailed ratings for all of the Cocoa.
| Broker | Trust | Platforms | Mobile | Assets | Fees | Accounts | Support | Research | Education |
|---|---|---|---|---|---|---|---|---|---|
| Pepperstone | |||||||||
| XTB | |||||||||
| IC Markets | |||||||||
| IC Trading | |||||||||
| Fusion Markets | |||||||||
| BlackBull Markets | |||||||||
| eToro |
Our Take On Pepperstone
"Pepperstone is a premier trading platform, providing tight spreads, swift execution, and sophisticated charting tools for seasoned traders. Beginners benefit from no minimum deposit, comprehensive learning materials, and outstanding 24/7 support."
Tobias Robinson
Reviewer
Pros
- Pepperstone presents itself as an economical choice for traders, offering spreads as low as 0.0 in its Razor account. The Active Trader programme provides rebates up to 30% on indices and commodities, plus $3 per lot on forex.
- The award-winning customer support can be accessed through phone, email, or live chat. During tests, response times have consistently been under 5 minutes.
- Support for top-tier charting platforms such as MT4, MT5, TradingView, and cTrader. These tools accommodate different short-term trading methods, including algorithmic trading.
Cons
- Pepperstone's demo accounts expire after 30 days, which may not provide sufficient time to explore various platforms and evaluate trading strategies.
- Although its market range has improved, its crypto offerings remain limited compared to brokers specialising in this sector, lacking real coin investment options.
- Pepperstone doesn't offer cTrader Copy, a favoured feature for copying trades found in the cTrader platform, which is available on other platforms such as IC Markets. However, Pepperstone has launched its own user-friendly copy trading app.
Our Take On XTB
"XTB emerges as an ideal option for novice traders, offering the impressive xStation platform, zero commission pricing, no required minimum deposit, and outstanding educational resources, many of which are conveniently integrated into the platform."
Pros
- The xStation platform stands out with its user-friendly design and intuitive tools, such as adaptable news feeds, sentiment heatmaps, and a trader calculator. These features streamline the learning process for new traders.
- XTB offers a diverse range of over 7,000 instruments, including CFDs on shares, indices, ETFs, commodities, forex, and cryptocurrencies. The platform also provides real shares, real ETFs, share dealing, and the latest addition, Investment Plans, serving both traders seeking short-term gains and investors focused on long-term growth.
- Top-notch customer support, available 24/5, includes a welcoming live chat with response times under two minutes during tests.
Cons
- Trading fees are competitive, with average EUR/USD spreads of about 1 pip. However, they are not as low as the most affordable brokers, such as IC Markets. Additionally, an inactivity fee applies after a year.
- It is frustrating that XTB products do not allow traders to modify the default leverage level. Manually adjusting leverage can greatly reduce risk in forex and CFD trading.
- XTB lacks a raw spread account, a feature increasingly offered by competitors such as Pepperstone. This omission might not satisfy traders seeking the most competitive spreads.
Our Take On IC Markets
"IC Markets provides excellent pricing, swift execution, and easy deposits. With cutting-edge charting tools like TradingView and the Raw Trader Plus account, it continues to be a preferred option for intermediate and advanced traders."
Pros
- IC Markets provides some of the industry's narrowest spreads, offering 0.0-pip spreads on major currency pairs. This makes it an extremely cost-effective choice for traders.
- Access over 2,250 CFDs across diverse markets like forex, commodities, indices, shares, bonds, and cryptocurrencies. This variety enables traders to employ diversified strategies.
- In 2025, IC Markets earned DayTrading.com's accolade for 'Best MT4/MT5 Broker' due to its top-tier MetaTrader integration. This achievement highlights the broker's continuous refinement over the years to enhance the platform experience.
Cons
- IC Markets provides metals and cryptocurrencies for trading through CFDs, though the selection is narrower compared to brokers such as eToro. This limits opportunities for traders focused on these asset classes.
- Although there are four top-tier third-party platforms available, the absence of in-house software or a trading app tailored for novice traders is notable.
- The tutorials, webinars, and educational resources require enhancement, lagging behind competitors such as CMC Markets, which diminishes their appeal to novice traders.
Our Take On IC Trading
"IC Trading offers an ideal environment, featuring top-tier execution speeds of around 40 milliseconds, extensive liquidity, and advanced charting tools, perfect for scalpers, traders, and algorithmic traders."
Christian Harris
Reviewer
Pros
- IC Trading offers top-tier spreads, with some major currency pairs like EUR/USD featuring spreads as low as 0.0 pips, making it an excellent choice for traders.
- IC Trading provides exceptional flexibility, allowing traders to open as many as 10 live accounts and 20 demo accounts. This enables the management of distinct profiles for various activities, including manual and algorithmic trading.
- The streamlined digital account setup allows traders to commence trading swiftly, eliminating lengthy paperwork. Testing shows the process takes mere minutes.
Cons
- Although IC Trading operates under the reputable IC Markets group, it is licensed by the FSC in Mauritius, a regulator known for its limited financial transparency and lack of robust safeguards.
- The educational materials require significant enhancement unless accessed via the IC Markets website. This limitation is particularly disadvantageous for beginners seeking a thorough learning experience, especially when compared to industry leaders such as eToro.
- Unlike IC Markets, IC Trading lacks support for social trading via the IC Social app or the ZuluTrade platform.
Our Take On Fusion Markets
"Fusion Markets offers forex traders competitive pricing with minimal spreads, low commissions, and new TradingView integration. It is an excellent choice, especially for Australian traders, given its base and regulation by ASIC."
Pros
- With an average execution speed of approximately 37 milliseconds, traders can secure optimal prices more effectively, outpacing many competitors in rapidly changing markets.
- Fusion Markets provides algo traders with a sponsored VPS and offers a 25% discount for choosing the NYC Servers VPS for MT4 or cTrader.
- The selection of charting platforms and social trading features is outstanding. Options like MT4, MT5, cTrader, and the newer TradingView meet diverse trader preferences.
Cons
- Traders from outside Australia need to register with loosely regulated international firms that offer limited protection, lacking both safeguards and negative balance protection.
- Fusion Market falls short compared to competitors like IG in education, offering few guides and live video sessions for enhancing trader skills.
- The broker stands out with its extensive selection of currency pairs, surpassing most competitors. However, its alternative investment options are merely average, lacking stock CFDs outside the US.
Our Take On BlackBull Markets
"Following the upgrade to Equinix servers in New York, London, and Tokyo, BlackBull has reduced latency, making it a clear choice for stock CFD trading using ECN pricing."
Pros
- BlackBull provides three ECN-powered accounts—Standard, Prime, and Institutional—to cater to traders of all experience levels, from novices to seasoned professionals. The variety of account types allows for flexible options tailored to individual trading needs and available capital.
- BlackBull provides everything a trader needs: execution speeds under 100ms, leverage as high as 1:500, and competitive spreads starting at 0.0 pips.
- BlackBulls's research excels, particularly in the daily 'Trading Opportunities' articles. These publications simplify complex market dynamics into clear insights, enabling traders to effectively capitalise on emerging trends.
Cons
- Despite enhancements such as webinars and tutorials in the Education Hub, our review indicates that the courses still require greater emphasis on elucidating broader economic factors affecting prices.
- Unlike many leading brokers, BlackBull imposes a bothersome $5 fee for withdrawals. This charge can reduce the overall cost-effectiveness, particularly for traders who regularly transfer funds.
- Despite an expanding range of over 26,000 assets, including new additions to Asia Pacific indices, their offerings are primarily equities. The selection of currency pairs and indices remains average.
Our Take On eToro
"eToro's social trading platform excels with its outstanding user experience and lively community chat, aiding beginners in spotting opportunities. It offers competitive fees on numerous CFDs and real stocks, alongside exceptional rewards for seasoned strategists."
Pros
- There is an extensive online training academy offering a range of accessible resources, from concise articles to detailed courses.
- The trading app provides a top-tier social environment featuring an engaging feed and community chat, which we enjoy using.
- eToro secured second place in DayTrading.com's 'Best Crypto Broker' for 2025, offering a vast selection of tokens, dependable service, and competitive fees.
Cons
- The minimum withdrawal is set at $30, accompanied by a $5 fee. This may impact traders with limited funds, particularly those just starting out.
- The only significant contact option, besides the in-platform live chat, is limited.
- The absence of extra charting platforms such as MT4 may deter experienced traders who rely on external software.
Cocoa Trading – The Basics
Cocoa beans originate from seeds of a cacao tree known as Theobroma cacao. Processed cocoa is the main ingredient in chocolate and is used in a range of comestibles such as drinking powder and baked goods, and even in some cosmetics.
The global cocoa market was valued at around $14.5 billion in 2022 and is projected to increase to over $19 billion by 2028. The average trading price of cocoa ranged between $1900 and $2700 per metric ton between 2016 and 2023.
Cocoa demand and production are generally rising. Production is expected to reach over 5 million metric tons in the year 2022/2023. Typically, the beans are sourced in tropical countries near the equator, particularly in Africa.
Large producers include Ghana, Indonesia, Nigeria, Ecuador, Uganda, and the world’s largest producer, the Ivory Coast. In the crop year 2021 to 2022, an average of 2.1 million metric tons of cocoa beans was sourced in the Ivory Coast alone. By comparison, just over 950,000 tons were produced from South American regions during the same time frame, and Ghana, the second largest producer, clocked in around 800,000 tons. The third, Indonesia, produced around 750,000 tons.
All of the world’s top cocoa importers are Western countries, with the USA importing the most followed by Germany, Netherlands, France and Belgium.
Cocoa can be traded on London’s Intercontinental Exchange (ICE) or the New York Mercantile Exchange (NYMEX).
Futures contracts are the most popular investment products when trading cocoa. The ticker symbol on the UK exchange is CC=F.
Why Trade Cocoa?
- Chocolate – Cocoa is the key ingredient in chocolate-based products, with rising demand in recent years. The global chocolate market was valued at just over $131 billion in 2021 with forecasts expecting this figure to reach nearly $196 billion by 2029. Consumer demand for dark chocolate is also on the rise, with individuals recognising its benefits such as antioxidants. Some of the largest food giants with a heavy interest in cocoa include Nestle, Kraft Foods, Mars Inc, Cadbury, and Hershey Foods Corp.
- Portfolio Diversification – Cocoa is a soft commodity that can be introduced to trading portfolios. It is a volatile asset due to various factors influencing supply and demand, and this can bring returns to traders who perform well. The opportunity to trade cocoa futures also brings the possibility of making trades for hedging purposes.
- Wide Availability – Cocoa is offered by the biggest brokers in the UK, and you should be able to choose from several trading instruments based on your strategy. This includes CFDs, which UK cocoa brokers will usually offer leverage up to 1:10 on, as with other commodities.
Cocoa Price Today
Factors That Impact Cocoa Trading Prices
Weather & Disease
As an agricultural commodity, cocoa supply and companies rely on good weather and healthy crops, and any large impacts on the climate of the world’s major cocoa producers will hit global supply.
A lack of rainfall and sub-par tropical temperatures will reduce the exported volumes of cocoa, while a good harvest will lead to a surplus and lower prices.
Similarly, a disease affecting cacao trees will hit supply, particularly if it spreads in a major cocoa producer.
Geopolitical Events
Economic instability in the major producing countries such as Ghana and Ivory Coast may reduce supply if it reduces the country’s agricultural output or leads to political developments that prevent exports, such as sanctions.
For example, the post-election conflict in 2010 saw a reduction of around 2500 metric tons of cocoa exports from the Ivory Coast.
Lifestyle & Tastes
The demand for cocoa is linked to trends and lifestyle factors, particularly health and wellness, as chocolate-based products typically have a negative association with links to obesity.
Trends for healthy living may lower demand if they spread in large chocolate consumer countries, though customers may still seek healthier alternatives such as dark chocolate or organic options.
According to the CBI, the organic chocolate market is forecasted to grow by almost 7% between 2021 and 2028.
Fairtrade Legislations
The price of trading cocoa is influenced heavily by the cost of labour. Changes to rules and regulations from global associations such as Fairtrade International and sustainability practices implemented by processors such as Ecom and Olam aim to improve this.
In 2018, Fairtrade announced that it would increase the minimum price it pays for cocoa bean exports from $2000 per MT to $2400. This could lead to a higher supply if it encourages more cocoa farming, but it could also increase the price of the commodity.
Currency Value
The price of cocoa is typically listed in USD or GBP. Therefore, any influences on the value of these currencies can impact the price of the commodity.
For example, if the GBP gains against other currencies, cocoa will tend to become more expensive. The UK’s withdrawal from the European Union saw the GBP vs USD drop from $1.50 to $1.20.
In this same period, the Brexit agreement may have played a role in the price of cocoa futures dropping from $3200 per tonne in 2016 to $1769 per tonne recorded in June 2017.
Production Cycle
The full production cycle of cocoa from extraction to exportation can be as long as a few years. This includes transportation, quality checks, and storage. Due to this, it is not unusual to see supply shortages in relation to demand due to the lack of reactiveness.
On the other hand, there may also be periods of heavy supply which can reduce the price.
Infrastructure
Most cocoa is produced in developing countries where transport links can be poorly maintained and prone to disruptions.
Any challenges that disrupt infrastructure in supplier countries will slow the supply; on the other hand, new infrastructure products could have the opposite effect.
How To Trade Cocoa
Futures
Futures are the most popular method of trading cocoa.
A futures contract is a transactional agreement to buy or sell a specified amount of cocoa beans for an agreed price at a future date. The ICE, for example, offers cocoa futures with contract sizes of 10 metric tonnes and prices quoted in GBP.
While many commodities futures require the buyer to take physical delivery of the cocoa beans when the contract expires, cash-settled futures do not.
CFDs
Contracts for difference (CFDs) are a straightforward investment vehicle that allows retail traders to speculate on cocoa prices without owning the underlying asset. The profit or loss in a CFD is determined by the difference between the price of cocoa at the open and close of the contract, and traders can make use of leverage when trading.
Pepperstone, for instance, offers cocoa CFDs with leverage up to 1:10.
Shares
Traders who want to gain exposure to cocoa without trading it directly can invest in stocks of companies that produce, process or otherwise use the commodity. The share price of these companies may reflect the price of cocoa to some extent.
Cargill, for example, has been sourcing Cocoa beans and producing cocoa-based products in Ghana for over 40 years with an innovative processing plant launched in 2008.
Alternatively, you could consider purchasing shares of firms that are involved in chocolate manufacturing such as Cadbury and Nestle.
ETFs
Another option is exchange-traded funds. ETFs track a specific market segment by investing in several relevant assets – in this case, companies that produce cocoa or manufacture cocoa products.
Popular funds include the WisdomTree Cocoa ETF and the iPath Bloomberg Cocoa Subindex ETN.
ETFs focussing on the agriculture or food manufacturing sectors may also have significant exposure to cocoa.
How To Compare Cocoa Brokers
The main factors to consider when comparing cocoa brokers include:
Products
Choose a cocoa broker that offers your choice of cocoa futures, options, ETFs, CFDs or stocks.
Also check the amount of leverage available. UK-regulated firms typically cap leverage on soft commodities to 1:10.
Fees
The top cocoa brokers offer tight spreads and low fees.
Pepperstone, for example, offers spreads from 5 pips on its cocoa CFD with an average spread of 5.26. The contract size is 1 metric tonne.
Trading Platform
The platform is where you will analyse cocoa price history and plan trades. The best cocoa brokers offer a choice of platforms as well as mobile app compatibility.
Leading brokers may provide bespoke software, a selection of third-party platforms such as MetaTrader 4 or cTrader, or a combination of both.
Most traders look for an interface with custom charts, a range of timeframes, access to historical price data, technical indicators, and drawing tools. Algo trading or automated investment options such as copy trading are also popular.
Regulation
Oversight from a top-tier financial body such as the UK’s Financial Conduct Authority (FCA) is a good way to ensure the cocoa broker has tight security and offers customers protections, such as segregated client fund accounts and negative balance protection.
If you sign up with an overseas cocoa broker, check that it is overseen by a reputable regulator and research its track record.
Customer Service
Leading cocoa brokers offer accessible customer support with fast response times and several contact methods including telephone, live chat, or email. A good support hub or FAQ section can also be useful.
XTB, for example, provides local customer support for UK traders including a toll-free telephone number and live chat, available 24/5.
Trading Hours
Cocoa trading hours vary between markets and brokers.
ICE London, for instance, offers trading opportunities between 9:45am and 6:30pm (GMT).
Bottom Line On Cocoa Trading
Cocoa trading can be used to bet on chocolate demand, manage risk, and diversify portfolios. The best cocoa brokers offer a choice of trading products, including CFDs and futures. However, cocoa prices can be severely impacted by climate change and supply issues in major exporter countries such as Nigeria, Ghana, and the Ivory Coast. As a result, only risk what you can afford to lose.
FAQs
How Can I Trade Cocoa?
UK brokers offer several cocoa trading instruments, including futures, CFDs, ETFs, and shares in companies involved in the production, processing and sale of related products. Trading cocoa futures is particularly popular, and available on the ICE and NYMEX exchanges.
Which Are The Best Brokers For Trading Cocoa?
The best brokers for trading cocoa will depend on your trading strategy, investment goals, and personal requirements. However, look for low fees, FCA oversight, a stable platform and app, plus fast execution speeds.
What Are The Largest Exporting Countries Of Cocoa?
The largest exporters of cocoa include the Ivory Coast, Ghana, Indonesia and Nigeria. Any political, economic, or climate changes in these countries can have a major impact on the supply of cocoa and therefore the price of the commodity.
Is Cocoa Trading Safe?
No trades are guaranteed to make a profit and cocoa is a volatile commodity. Keep an eye on key price influences such as supply news from major producing countries and worldwide demand for cocoa products like drinking powder and chocolate bars. Also trade with regulated brokers and trading platforms.
What Are The Intercontinental Exchange (ICE) Cocoa Trading Hours?
ICE London cocoa market opening hours are 9:45am and 6:30pm (GMT).
Article Sources
Cocoa Industry Facts (Statistica)
Global Cocoa Market Report (EMR Insights)
Cocoa Farming Practices (Fairtrade)