Saxo Bank lowers barriers for entry with launch of commodity CFDs

Copenhagen-based investment bank Saxo Bank has launched its first contracts for difference (CFDs) for investors in commodities, which the bank says will lower barriers to trading energy, metals, soft commodities and grains.

The commodity CFDs have low margins, small trade sizes, and no commissions, which mean investors will be able to gain exposure to liquid commodities more readily than via futures contracts, according to Saxo Bank. The entry point for the US Crude CFD is 25 barrels of oil, rather than the standard 1,000 barrels. The CFDs are aimed at smaller investors, those who are willing to actively manage a portfolio, and high net worth individuals who want to hold a portion of their portfolio in commodities