Palladium
Palladium trading is popular due to its widespread applications and scarcity, plus its appeal during times of uncertainty. This article explains how to trade palladium online, from price analysis and market forecasts to trading hours in the UK. Our team have also listed the best palladium brokers and platforms:
Top Palladium Brokers UK
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Founded in 1974, IG is part of IG Group Holdings Plc, a publicly traded (LSE: IGG) brokerage. The brand offers spread betting, CFD and forex trading across an almost unrivalled selection of 17,000+ markets, with a range of user-friendly platforms and investing apps. For 50 years, IG has maintained its position as an industry leader, excelling in all key areas for traders.
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Founded in 2002 in Poland, XTB now serves more than 1 million clients. The forex and CFD broker combines a heavily regulated trading environment with an extensive selection of 6400+ assets and a commitment to trader satisfaction, featuring an intuitive in-house platform with superb tools to support aspiring traders.
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Established in 1989, CMC Markets is a respected broker listed on the London Stock Exchange and authorized by several tier-one regulators, including the FCA, ASIC and CIRO. More than 1 million traders from around the world have signed up with the multi-award winning brokerage.
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FXCC is an established broker that’s been offering low-cost online trading since 2010. Registered in Nevis and regulated by the CySEC, it stands out for its ECN trading conditions, no minimum deposit and smooth account opening that takes less than 5 minutes.
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Established in Australia in 2010, Pepperstone is a top-rated forex and CFD broker with over 400,000 clients worldwide. It offers access to 1,300+ instruments on leading platforms MT4, MT5, cTrader and TradingView, maintaining low, transparent fees. Pepperstone is also regulated by trusted authorities like the FCA, ASIC, and CySEC, ensuring a secure environment for traders at all levels.
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Eightcap is an award-winning, FCA-regulated broker offering industry-low trading fees. They are also the highest-rated brand by TradingView’s 50 million-strong users, who can trade directly on the platform. UK traders can sign up for a live account with an accessible £100 minimum deposit.
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RoboForex is an online broker, established in 2009 and registered with the IFSC in Belize. Traders can choose from five accounts (Prime, ECN, R StocksTrader, ProCent, Pro) catering to different needs with trades from 0.01 lots and spreads from 0 pips. RoboForex has also enhanced its offering over the years, adding CFD instruments and launching its stock trading platform, plus the CopyFX system.
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eToro is a top-rated multi-asset platform which offers trading services in thousands of CFDs, stocks and cryptoassets. Launched in 2007, the brand has millions of active traders globally and is authorized by tier one regulators, including the FCA and CySEC. The brand is particularly popular for its comprehensive social trading platform. Cryptoasset investing is highly volatile and unregulated in the UK and some EU countries. No consumer protection. Tax on profits may apply. 51% of retail CFD accounts lose money.
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InstaForex is a forex and CFD broker founded in 2007. The broker offers diverse market coverage to millions of clients, spanning traditional assets like currencies and shares, as well as other interesting opportunities such as IPOs.
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OANDA is an award-winning global broker, established in 1996. The hugely respected brand offers competitive trading accounts and serves clients from 196 countries. It remains a popular option with both beginners and experienced traders thanks to its user-friendly and sophisticated web platform, no minimum deposit and premium currency products and services. The company is also overseen by reputable regulators, including the FCA, ASIC and CIRO.
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Founded in 2009, Vantage offers trading on 1000+ short-term CFD products to over 900,000 clients. You can trade Forex CFDs from 0.0 pips on the RAW account through TradingView, MT4 or MT5. Vantage is ASIC-regulated and client funds are segregated. Copy traders will also appreciate the range of social trading tools.
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Founded in 2006, FxPro is an established forex, CFD and spread betting broker offering 2100+ assets to over 2 million clients worldwide. The broker is regulated in 4 jurisdictions and offers reliable 24/5 customer support, earning it a high trust and safety score. FxPro has also picked up more than 100 industry accolades for its competitive trading conditions, including fast execution and deep liquidity.
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Established in 2008 and headquartered in Israel, Plus500 is a prominent brokerage that boasts over 25 million registered traders in over 50 countries. Specializing in CFD trading, the company offers an intuitive, proprietary platform and mobile app. It maintains competitive spreads and does not charge commissions or deposit or withdrawal fees. Plus500 also continues to shine as one of the most trusted brokers with licenses from reputable regulators, including the FCA, ASIC and CySEC.
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Fusion Markets is an online broker established in 2017 and regulated by the ASIC, VFSC and FSA. It is best known for its low-cost forex and CFD trading, although its multiple account types and copy trading solutions cater to a range of traders. New clients can sign up and start trading in 3 easy steps.
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Founded in 2001, easyMarkets is a multi-regulated forex broker offering leveraged trading opportunities on forex, stocks, indices, commodities and crypto. With fixed spreads, an affordable initial deposit, regulation from several reputable bodies and a diverse selection of account currencies, this broker provides simple and straightforward trading solutions to a diverse range of traders.
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Established in 2017, Pocket Option is a binary options broker offering high/low contracts on forex, stocks, indices, commodities and cryptocurrencies. With over 100,000 active users and a global reach, the platform continues to prove popular with budding traders.
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Markets.com is a respected broker, offering multi-asset trading opportunities through CFDs or spread betting (UK only). Established in 2008, the brand has an impressive 4.3 million registered customers and is overseen by trusted regulators, including the FCA, ASIC and CySEC. 79.1% of retail accounts lose money.
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Trade.com is a trustworthy online broker with a global presence. The broker offers 2,100+ CFDs in major markets, as well as futures, options and more. The broker offers best-in-class platforms and superior analysis tools for experienced traders. The broker is also regulated by top-tier authorities including the FCA and CySEC.
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Grand Capital is a MetaTrader broker with welcome bonuses, trading competitions and an intuitive copy trading service. Several account types and 400+ assets provide trading opportunities for various types of investors and strategies. New users can also open an account and start trading in a matter of minutes.
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IronFX is a multi-regulated forex and CFD broker founded in 2010. This award-winning firm offers 500+ markets to over 1.5 million clients across 180 countries. Traders can access various account types with competitive pricing on the MT4 platform, as well as 24/5 customer support in 30 languages.
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FinPros is an offshore broker that provides CFD trading on 400+ instruments with high leverage up to 1:500. This is a reliable bet for traders seeking offshore options, with strong security measures, negative balance protection and segregated client funds. The extra features including trading tools and commission-free stocks make this a good choice for beginners, and experienced traders will appreciate tight spreads.
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Uphold is a digital asset platform offering a range of services, from crypto trading and staking to payment cards that provides rewards and easy multi-currency payments. The company was established in 2015 and has enabled $4+ billion in transactions. Uphold is now active in 180+ countries and deals in 200+ crypto and fiat currencies.
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Scope Markets offers trading and investing in multiple spot and CFD instruments. The group of brokers is regulated in several locations, including Belize, Kenya and South Africa. Users get competitive trading conditions, a range of payment methods, strong support and can get started in a few straightforward steps.
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Dukascopy is an online broker operated by a Swiss-regulated banking group. It offers a good selection of 500+ markets, with forex, stocks, gold, ETFs, indices, bonds and cryptocurrencies available. It also offers flexible trading opportunities through the choice of CFDs or binary options. Traders will use MetaTrader 4 or a proprietary platform that is well-suited to automated trading.
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Kwakol Markets is a Nigerian headquartered broker with strong regulatory oversight in Australia and Canada. A great selection of trading assets are available, including synthetic products that simulate realistic market activity. Clients can trade on the MT4, MT5 and cTrader platforms, as well as a copy trading solution whereby a fee is only paid on profitable trades.
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Axofa is a forex and CFD broker registered in St Vincent and the Grenadines. The broker offers three account types with access to forex, commodities and indices. With ECN processing, low minimum deposits and no commissions, Axofa remains an attractive option, although the broker does not hold a reputable license.
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Errante is a Cyprus-based and regulated forex and CFD broker with leveraged trading on multiple assets, tiered accounts including a zero-spread option, and copy trading support. The broker offers leveraged trading up to 1:30 under its CySEC-regulated branch and 1:500 from an offshore branch, and supports the MetaTrader 4 and MetaTrader 5 platforms. Errante's asset list is relatively limited but it does offer fast execution and low latency, and it is a trustworthy brand.
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LonghornFX is a forex and CFD broker offering over 150 instruments with leverage up to 1:500. The firm is registered in Saint Vincent and the Grenadines and was launched in 2020. Clients can access a strong selection of cryptos, alongside forex, indices, commodities and stocks. With ECN/STP processing, this offshore broker promises tight spreads and fast execution.
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Baxia Markets is an offshore CFD broker that offers trading on forex, commodities and indices with tight spreads on a straight-through processing model with ultra-low latency. Trade on MetaTrader 4 or MetaTrader 5 with leverage up to 1:500 and no restrictions to scalping or hedging strategies. Users also benefit from third-party copy trading services.
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Revolut has emerged as the most downloaded financial app in 11 countries with over 45 million users and more than $23 billion held in customer balances. It facilitates commission-free trading on over 2000 stocks and commodities, alongside 185 cryptos with a minimum investment of just $1. The mobile trading experience remains market-leading for casual investors seeking low, transparent fees.
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ActivTrades is a UK-headquartered CFD and forex broker established in 2001. The award-winning brokerage has secured licenses from trusted bodies, notably the UK’s FCA, and facilitates trading on over 1000 instruments spanning 7 asset classes, with over 93.60% of orders are executed at the requested price.
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Swissquote is a Switzerland-based bank and broker that offers online trading and investing. The company has a high safety score and is listed on the Swiss stock exchange. The firm offers a huge range of products, from stocks, ETFs, bonds and futures to 400+ forex and CFD assets. Hundreds of thousands of traders have opened an account with the multi-regulated brokerage. Clients can get started in three easy steps while 24/7 customer support is available to assist new users.
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SimpleFX is an online broker specializing in CFD and cryptocurrency trading, with multi-currency accounts, STP execution, low pricing and no minimum deposit. Bringing innovation and gaining recognition at numerous industry events since 2014, SimpleFX now caters to retail traders from over 190 countries, boasting a client base exceeding 200,000 active users.
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Fortrade is a multi-asset, multi-regulated broker with branches regulated by the FCA, CySEC and ASIC among others. The brand offers trading opportunities on a wide range of instruments including stocks, bonds, commodities, forex, indices, cryptocurrencies and ETFs, with competitive fees and support for MetaTrader 4 and a proprietary platform.
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Established in 2005 in Australia, FP Markets is an ASIC- and CySEC-regulated broker boasting an extensive suite of tradable assets. Its Standard and Raw accounts cater to traders at every level, while it packs a punch in the tooling department, from the MetaTrader suite and intuitive TradingView to actionable trading ideas from Trading Central and AutoChartist.
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HYCM is an online broker with authorization from four international bodies including the FCA and CySEC. The broker offers short-term CFD trading on forex, shares, commodities, indices, ETFs and Bitcoin, and supports the MT4 and MT5 platforms, as well as Trading Central analysis.
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Established in 2013, SuperForex is an offshore CFD and forex broker offering highly leveraged trades on 400+ instruments via the popular MetaTrader 4 platform. The broker has gained clients in over 150 countries and is regulated by the Belize IFSC. With a range of STP/ECN account types, including swap-free, micro and zero spread, this broker continues to suit traders with different styles and setups. SuperForex also offers a range of welcome bonuses and trading contests.
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Amega is an offshore STP broker offering CFD trading fon forex, stocks, indices and commodities with very high leverage up to 1:1000 and a zero-commission pricing structure. Traders access markets through the MT5 platform and can test the broker's services through a demo account.
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Just2Trade is a reliable multi-regulated broker registered with FINRA, NFA and CySEC. The company has 155,000 clients from 130 countries and stands out for its huge suite of instruments and additional features, including a social network, robo advisors and a funded trader programme.
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World Forex is an offshore broker registered in St Vincent and the Grenadines, offering commission-free trading with a $1 minimum deposit and 1:1000 leverage. Digital contracts are also available, offering beginners a straightforward way to speculate on popular financial markets.
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Capital.com offer CFDs on a range of markets with competitive spreads and zero commissions. The broker also offers the Investmate app, negative balance protection and leveraged trading.
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Trading 212 is a European and UK-regulated CFD broker that also offers stock investing and ISAs. It’s best known for its commission-free trading model and beginner-friendly app, which has helped it attract 2.5 million users and £3.5 billion in client assets.
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LegacyFX is a multi-asset broker offering an MT5 download & free signals.
Palladium Trading – The Basics
Palladium is a gleaming silvery-white metal discovered in 1803 by English chemist William Hyde Wollaston. It is thirty times scarcer than gold and over half of its current production is used in catalytic converters. Requirements to reduce carbon emissions increase demand for it, while the transition to electric vehicles militates against this.
Palladium is also used in electronics, dentistry, medicine, groundwater treatment, hydrogen purification and jewellery. Malleable to extremely thin sheets it is also a key component in fuel cells and solar panels. Environmental concerns suggest continuing demand for the commodity.
Russia is the top producer of palladium accounting for 39% of global production, followed by South Africa, Canada, the US and Zimbabwe.
Relatively dormant in the markets prior to the mid-nineties, palladium trading since has seen significant peaks and troughs, though the movement has been mostly upwards.
Palladium is priced per ounce and reached an all-time high on 3 May 2021, when an ounce was priced at $2,981.40. Low points have been in 2003 when it fell to $170.35, and during the global financial crisis of 2007- 2008 when it dropped to a value of $178.95. A lesser dip to $502.10 came in January 2016.
Price Chart
What Moves The Price Of Palladium?
Supply
As with all commodities, supply drives changes in the palladium trading price.
Palladium’s market value of $2,548.10 on 28 February 2020, for example, came as a result of supply shortages. Disrupted production in the automotive industry due to the Covid-19 crisis led to a decrease in value, while Covid-related shutdowns also interrupted production in South Africa. A global semiconductor shortage in December 2021 also lowered automotive production, and with it, the value of palladium.
Flooding in Russian palladium mines affected a surge in value in May 2021 as demand continued to grow. Russia’s invasion of Ukraine in February 2022 has led to further uncertainty in the palladium market, as speculation continues regarding global supply lines.
Demand
Demand for palladium shows changing patterns. The chemical industry is a sector showing increasing demand, with 2021 seeing particularly high consumption.
By contrast, consumption has decreased in electronics as nickel has become preferred in capacitors used in power supply circuits. Consumption in dentistry has similarly declined as the cost of palladium has driven dentists towards lower-cost alternatives.
As the automotive industry is the primary consumer of palladium, demand for it is affected by governments enforcing stricter emissions restrictions. In time this demand is expected to subside as electric vehicle production increases. New applications requiring palladium trading, however, may well open up.
Strength Of The Dollar
Palladium tends to increase and decrease in value in inverse proportion to the value of the US dollar against other currencies. Essentially, a weak dollar typically means a higher palladium price and vice-versa.
Market Sentiment
Another key factor moving palladium prices is market sentiment.
The palladium metals market offers low liquidity and volume when compared to gold, silver and platinum. Investors are more likely to use palladium to hedge and diversify their portfolios, and will be influenced by market sentiment. This has its own effect on the volatility of palladium prices.
Why Trade In Palladium?
Volatility in trading palladium brings its own opportunities and risks.
In general, traders will include it as part of a broader metals portfolio alongside gold and silver. Trading solely in palladium is less common due to the volatility we have indicated.
When part of a broader portfolio palladium can provide protection in times of inflation and economic instability. It shares the financial qualities of other metals in this regard.
What stands in favour of trading palladium is the demand for the metal in a wide variety of applications, which leads to huge industrial and commercial demand. In addition, its rarity alongside environmental policies inhibiting its extraction can lead to supply deficiencies which enhance its value.
How To Start Trading Palladium
Numerous vehicles are available to start trading and investing in palladium online:
Stocks
You can invest in the metal by buying shares in companies involved in palladium production. Companies to consider include:
- Silbanye Stillwater (2013, South Africa – specialises in palladium, platinum and gold and also owns Stillwater and East Boulder palladium mines in the US)
- Ivanhoe Mines (1993, Canada – develops and explores various metals and minerals. Its primary operations are in Africa)
- Anglo American Platinum (1995, headquarters in South Africa – specialises in the platinum group of metals with wide global reach and involvement in palladium recycling)
- A-Mark Precious Metals (1965, current location in the US – focuses on marketing and distribution. It serves many countries including the UK)
- New Age Metals (1996, Canada – the owner of one of the largest undeveloped palladium projects in the US and has funding ties with Mineral Resources Limited, Australia)
CFDs
Contracts for difference (CFDs) are a contract between a trader and a broker. They amount to a bet with regard to whether a commodity will gain or lose value between the start and end of the contract. The trader either earns or pays the final difference, less any fees.
CFDs offer the advantage of initial low outlay since the contract concerns price rather than physical possession of the commodity, which would entail costs in storage and transportation. Trades can also be leveraged, meaning a multiplication of potential gains and losses.
Spread Betting
This also involves exposure to the value of palladium without its physical ownership. A key difference between spread betting and CFDs is that here the trader speculates only on whether the price of the commodity will rise or fall by a defined time. How much they stake on this outcome is in the hands of the trader.
Spread betting is also usually tax-free in the UK.
Futures
Trading palladium futures is also a popular approach. Futures are a contract with a broker to buy a defined quantity of palladium for a specified price at a particular date in the future.
A futures contract can be settled with a broker before expiration by rolling forward to a new futures contract or by exchange for a spot trade.
Options
Options are similar to futures contracts, but give the option not to buy or sell at the contract’s expiry. Traders pay a premium for this flexibility.
Spot Trades
Spot trading involves buying a certain quantity of palladium at the current market price. This enables you to buy physical palladium in the form of coins or bars, for example, that could serve to hedge against the risks involved with other assets.
A spot trade can take the form of a paper product with a brokerage or other intermediary who will store and insure the palladium itself.
ETFs
Exchange-traded funds (ETFs) generally combine various stocks into a single cluster that is then placed on a stock exchange and traded as a single product. In this way, they can be bought and sold like regular company shares.
ETFs have the advantages of simplicity and flexibility, allowing the trader to diversify their portfolio and/or hedge. These palladium products can also offer leverage and inverse leverage through derivative ETFs.
Choosing Palladium Brokers
Success or failure in palladium trading can partly depend on your choice of brokers. In general, you should look for palladium brokers that offer the following:
FCA Regulation
The FCA oversees the best trading brokers serving the UK retail market. It facilitates legal action against brokers in the case of disagreements. It caps leverage at 1:5 for trading palladium derivatives. The regulator also ensures access to investor compensation schemes and measures like negative balance protection.
Trading Platform
Check the broker offers a user-friendly and efficient palladium trading platform, such as MetaTrader 4, MetaTrader 5 or cTrader.
They should offer good features for technical and fundamental analysis. Advanced research resources and learning materials will also enhance your experience.
Trading Vehicles
It is important to choose a broker that offers the palladium trading vehicles that best suit your investing style and financial needs.
Platinum futures or ETFs may suit a longer-term investor; day traders could consider brokers that offer vehicles such as CFDs or spread betting.
Fees
You need to consider the costs of deposit, withdrawal and any other charges. Also look for tight spreads and low/no commission fees.
CMC Markets, for example, for its palladium cash price offers a minimum spread of 24.90. Margin rates (the amount of capital to open a position) are 10%. There is no minimum deposit and no withdrawal charges.
Customer Service
In palladium trading, as with the use of any services, challenges can arise. You need to be confident that your broker is committed to customer support and that you can communicate with them when you need to. This may mean 24/5 or 24/7 availability. At the least, ensure that the broker’s schedule aligns with your own trading hours.
Trading Hours UK
Palladium trading hours are generally 23:00 to 21:59 GMT Monday to Friday. Palladium is primarily traded on the New York Mercantile Exchange (NYMEX).
The palladium trading symbol is PA:NMX. Note, palladium brokers may have their own symbols for the metal on their trading platforms.
Bottom Line On Palladium Trading
Palladium trading offers investment opportunities given its scarcity, volatility and the important role it plays in various industries. Those interested in metals investments might consider diversification in purchasing palladium to accompany their gold and silver holdings.
To start trading today, head to our list of top-rated palladium brokers.
FAQ
How Can I Invest In Palladium?
There are several ways to invest in palladium including via futures, contracts for difference (CFDs), exchange-traded funds (ETFs), and stocks of companies involved in the mining/production, distribution and use of the soft metal. The best palladium trading brokers offer a choice of vehicles and services to suit different trading timeframes and strategies.
Is Palladium A Good Investment?
It could be argued that because of its importance to the automotive industry and technologies combatting climate change, palladium is an attractive future investment. Current geopolitical events, however, make supply and demand uncertain, though some analysts expect greater stability in the coming years.
Palladium may also be a good investment for those looking to diversify their portfolios. It is a volatile commodity that often sees sharp price fluctuations, which in turn creates opportunities for profits. It can also be used as a hedge since it tends to retain its value during market downturns.
Which Are The Best Brokers For Trading Palladium?
The top UK brokers for investing in palladium include Pepperstone, which offers user-friendly trading platforms, a minimum deposit of £200, plus low commissions for palladium and other commodities. CMC Markets has London headquarters and is listed on the LSE. It offers competitive spreads on a range of assets, including palladium, via its Next Generation platform. eToro has a beginner-friendly copy trading feature which allows the inexperienced trader to follow the movements of established investors. You can set your account to invest in the same palladium trades that others make.
Is Trading Palladium Easy?
As with any online investing, trading palladium has its challenges with notable price volatility. Palladium trading requires being abreast of news updates and market economics, particularly those affecting countries involved in its production, notably South Africa and Russia. Any political upheavals or economic shifts within these locations can largely impact the price of palladium.