Which broker is best for trading oil?
Verdict
- For a UK resident, Pepperstone is our pick for trading oil. It offers energy markets as CFDs and spread bets through FCA-regulated Pepperstone Limited, among 40 commodities.
- Oil has tighter leverage than gold: the UK retail cap on commodities other than gold is 1:10, so £5,000 of oil exposure needs £500 of margin.
- We have no verified oil spread figure for Pepperstone or any rival, so compare live prices on the platform before you choose.
- Oil can gap on supply news. Capital.com sells guaranteed stops and Pepperstone doesn't, which makes Capital.com the safer choice for some oil traders.
Oil is one of the most volatile markets a retail broker offers, so for a UK trader the most important questions are regulation, margin and protection from gaps. We answer for a UK resident trading through an FCA-authorised firm. We can't give you a spread figure to compare, because neither Pepperstone's UK pages nor our rival data includes one.
Pepperstone for oil, and the pricing data we don't have
Pepperstone Limited (FCA 684312) includes energy markets in its 40-commodity range. You can trade them as spread bets in pounds per point or as CFDs on Razor or Standard. FSCS cover of up to £85,000 for eligible clients and negative balance protection for retail clients apply to the whole account. The gap in our data is oil spreads. Pepperstone's UK pricing page publishes minimums for FX, gold and indices but not for oil, so check the live quote on the platform rather than relying on any headline figure, including ours.
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How much margin oil needs compared with other markets
The FCA's retail caps put oil among the most margin-heavy markets you can trade:
- Oil can move several per cent in a day, so a 3% move isn't unusual. On a 1:10 position that is 30% of your margin.
| Market | Retail cap | Margin | Effect of a 3% move |
|---|---|---|---|
| Oil and other commodities (not gold) | 1:10 | £500 | £150 |
| Gold | 1:20 | £250 | £150 |
| Major index | 1:20 | £250 | £150 |
| Major FX pair | 1:30 | £166.67 | £150 |
Which oil products a UK retail client can use
- Standard oil CFDs and spread bets are available to retail clients, within Pepperstone's commodity range.
- Pepperstone's perpetual CFDs on WTI and Brent are open only to Professional clients in the UK. They run 24/7, have no expiry and carry a daily funding charge.
- Professional status raises Pepperstone's energy leverage to 1:200 but removes negative balance protection. You need two of Pepperstone's three Pro tests to qualify.
Pepperstone or Capital.com for oil
Both are FCA-authorised and both cap retail oil leverage at 1:10. Pepperstone gives you more platform choice and spread betting on MT4, MT5, cTrader and TradingView. Capital.com (FCA 793714) sells guaranteed stop-loss orders, which close at your exact level even if oil opens sharply higher or lower after a weekend or a surprise supply decision. If you hold oil positions through those events, that protection may be worth more than any difference in spread.
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Sources
Can I trade Brent and WTI perpetual CFDs as a UK retail client?
No. Pepperstone's UK site lists its perpetual CFDs, including WTI and Brent, as available to Professional clients only.
Why is oil leverage lower than gold leverage in the UK?
FCA rules set retail caps by asset class: 1:20 for gold and 1:10 for other commodities, including oil. Every UK broker applies the same caps.
Is a spread bet on oil taxed differently from an oil CFD?
Pepperstone says UK spread-betting profits are free of capital gains tax, while CFD profits are subject to CGT and losses can be offset. Your own position may differ.
Oil CFDs and spread bets are highly volatile, leveraged products, and you can lose money rapidly. 73.6% of retail investor accounts lose money when trading spread bets and CFDs with Pepperstone Limited. Only trade with money you can afford to lose. This is not investment advice.