What Are the Top 5 Commodities Exchanges?

Just as stocks and shares are traded on the stock exchange, so commodities are traded on a commodities exchange. Commodities may be viewed as tangible items, mainly those that are derived from agriculture. Typical examples include wheat, maize and barley, although there are many others. Other commodities can also be traded on these markets, including metals and coffee.

There are plenty of commodity exchanges all over the world, but some are more popular and better known than others. Here are the top five most commonly used commodity markets in the world today, in no particular order.

The Chicago Board of Trade

Not only is this the largest market of its kind, it is also the oldest of its kind. It was founded back in 1848 and some four dozen separate commodities are traded here every day.

Tokyo Commodity Exchange

It should not come as a surprise to hear that Japan has an entry in the top five, and it is the Tokyo Commodity Exchange. A range of metals are traded here daily, along with other oil based items.

NYSE Euronext

This is a very modern company, in stark contrast to the more traditional feel of the two above. It offers the opportunity to trade in commodities of all kinds and cocoa and coffee can be found among the items it offers.

Dalian Commodity Exchange

This commodity exchange hails from China and is nearly twenty years old. It does not make a profit on its trades but provides the opportunity to deal in soybean, palm oil and corn among other things.

Multi Commodity Exchange

The final entry in the top five is this exchange from India. It is commonly known by its abbreviation MCX. It focuses on trading in both non-ferrous and ferrous metals, as well as offering the ability to trade in potatoes and various agricultural oils.

Clearly the Chicago Board of Trade is streets ahead in terms of age, but each commodities exchange has its own style and focus. They do not all trade in exactly the same items, although there is some overlap there. The Chicago Board of Trade probably has one of the largest ranges of commodities to deal with on a daily basis, while others focus in a little more specifically on certain things. After these five there are a couple of other exchanges you may also have heard of, including the Intercontinental Exchange and the Africa Mercantile Exchange.

Dealing in commodities runs along the same lines as dealing in stocks and shares. This holds true in that the prices can go up or down, and you can also choose those items that you feel show more promise in the long run. Commodities are just as much affected by outside forces as stocks and shares are (perhaps even more) and so it makes sense to learn as much about commodities trading as you can if you want to get involved with it. This holds true regardless of which market you decide to use.

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