Commodities Trading with Prop Trading Firms: All You Need to Know

Ankit Gupta
August 7, 2025

Introduction:

When you think of trading, chances are stocks and forex are the first things that pop into your head. But have you ever thought about commodities? Well, there are things like oil, gold, coffee, or even natural gas, which also keep traders interested. These are the lifeblood and essential resources of the global economy and life in general, and trading them can be just as exciting, sometimes even more profitable. The best part? Thanks to prop trading firms, you don’t need to be a millionaire to get involved.

In this guide, we’ll walk you through what commodities trading is, how prop firms make it easier for you, and some strategies you can use to trade like a pro.

What is Commodities Trading?

Commodities trading means the selling and buying of resources such as gold, silver, corn, crude oil, or even energy without owning these assets. Whether you are an investor or a trader, the commodities market can be useful for you to diversify your portfolio as it is not closely correlated with the stock market and has little to very low impact from the fluctuations in equity assets. Also, trading commodities doesn’t mean that you have to store barrels of oil or sacks of wheat.

Instead, you trade contracts that represent these goods and speculate on the price fluctuations. For example, say crude oil is priced at $80 a barrel. You can trade a contract linked to that price instead of physically owning 1,000 barrels of oil. If oil prices jump to $85, you pocket the difference. Simple, right?

Benefits of Trading Commodities with a Prop Firm?

One of the biggest reasons many traders avoid commodities is the high cost of entry. But that’s where prop trading firms change the game for you.

1. Access to Capital:

Commodity contracts are big and often need huge capital. With a prop firm, you get access to their money, not just your own. That means you can trade gold or crude oil with only a small evaluation fee upfront.

2. Advanced Tools:

When you trade with a prop firm, you get access to advanced trading platforms, charting tools, and analytics. These tools can help you analyse better, research the market, and eventually aid in levelling up your trading journey.

3. Structured Challenges:

Before you start trading real money, most prop firms test you through a challenge. This is your chance to prove your skills, hit profit targets, manage risk, and show you can handle real-world trading pressure. Once you pass, you get access to simulated funded accounts.

4. Risk Management Rules:

Commodity markets can be volatile. Think of oil prices jumping after an OPEC announcement or gold spiking after a big geopolitical event. Therefore, prop firms have rules to keep you safe and keep your losses in check. There are rules such as maximum daily drawdowns, stop-loss levels, and risk limits that help you stay in a reasonable risk and keep track.

5. Learning Opportunities:

If you’re new to commodities trading, prop trading is the best option for you. There is not much capital involved and you can learn trading with hands-on practice. Moreover, there are some prop firms like Hola Prime Futures, which provide 1-on-1 coaching to the traders to help them learn new strategies and level up. Join Hola Prime Futures Discord and talk to top coaches.

Commodities Trading Strategies for Prop Traders:

1. Trend Following:

Commodities love trends. You will see oil prices rising for weeks after a supply shortage, and likewise, gold climbing when the US dollar weakens. If you can spot these trends early, you can place timely trades and earn profit. Tools like moving averages and breakout patterns are your best friends here.

2. Range Trading:

Sometimes, prices don’t trend but move back and forth between two levels. Think of natural gas bouncing between support and resistance during mild weather seasons. You can buy near support and sell near resistance to capture profits from those swings.

3. Event-Driven Trading:

The commodity market reacts strongly to events. For instance, an unexpected OPEC production cut can send oil prices soaring overnight, or a poor corn harvest can raise its prices in days. To benefit from these events, you have to keep an eye on the economic calendar or any major developments in the global economy or geopolitical landscape.

4. Correlation Strategies:

Many commodities move with (or against) other markets. Gold often moves opposite to the US dollar. Copper prices can signal industrial growth. By understanding these relationships, you can make smarter trades.

Conclusion:

You must have got a clear understanding of what commodity markets are and how prop firms can help you in trading commodities. There are many strategies that you can utilize while trading commodities, some of which we briefly explained in this blog. If you are interested to learn more about commodities trading, we highly recommend joining the Hola Prime Futures Discord channel.

FAQs: Commodities Trading with Prop Trading Firms

1. What commodities can I trade?

In commodities trading, you can trade a variety of commodities such as oil, gold, silver, corn, and natural gas. The commodities offered also depend on the prop firm you choose to trade with. In most cases, the aforementioned commodities would be available for trade.

2. Should I trade commodities with a prop firm?

Yes, there are a lot of benefits of trading commodities with a prop firm. You get capital, advanced tools, coaching, and many other advantages.

3. Do I need prior experience to trade commodities with a prop firm?

Not necessarily. Prop trading firms allow beginners to start trading commodities.

4. What factors impact the commodities market?

There are different factors that can impact the commodities market, such as dollar price, environmental conditions, geopolitical conditions, and more.

5. How much capital do I need to get started with commodities trading?

To start commodities trading with a prop firm, you just need to pay the challenge fees that start from $48.

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Disclaimer: All information provided on this site is for educational purposes only, related to trading in financial markets. It is not intended as financial advice, business or investment recommendation, or as an opportunity or recommendation to trade any investment instruments. Hola Prime only provides an educational environment to traders, including tools, materials and simulated trading platforms which have data feed provided by Liquidity Providers. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local laws or regulations.