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One thing to watch out for while trading energy companies is that the movements in their stock prices are not just affected by the energy prices. The companies can be affected by a variety of other factors too<\/strong>, which is why it is important for the companies you invest in to have solid fundamentals.<\/p>\nWhen trading or investing in energy stocks, you should consider all aspects of company fundamentals<\/strong>, including its market capitalisation, share price, P\/E ratio and dividend yield. In particular, a high dividend payout indicates that the company has relatively stable cash flows and balance sheets, which rewards the investor with consistent dividends.<\/p>\nTrading ETFs and Indices Tied to Energy Prices<\/h3>\n
The last way to trade energy prices is to do so via ETFs. There are several ETFs that track energy price movements and move in tandem with these prices. Investing in such ETFs will allow you to profit from energy price movements in a convenient manner<\/strong>.<\/p>\nSome of the common oil and natural gas ETFs include the Vanguard Energy ETF, the iShares Global Energy ETF, and the Invesco Solar ETF. In addition to this, you can also invest in a variety of funds that allocate their money among a pool of companies<\/strong> that have something in common.<\/p>\nThis is more commonly done in case you wish to invest in renewable sources of energy. Since there are no major companies that trade in renewable energy sources<\/strong> the way there are with non-renewable sources, and the commodities markets for renewable energy assets are not very liquid, it is much better and safer to invest in ETFs and funds for this type of investing.<\/p>\n\n
How We Chose The Best Energy Brokers<\/h2>\n\n- When choosing the platforms to recommend for trading and investing in energy assets, our experts take into account several important aspects. Firstly, the chosen platforms offer competitive spreads for trading energy and do not charge commissions.<\/li>\n
- Secondly, all of the platforms mentioned above are regulated in multiple jurisdictions, including the FCA in the UK. This is very important as it increases trust and security.<\/li>\n
- We have also highlighted the variety of assets that you can trade, as well as the educational and analytical tools that will help you understand how the platform works and get familiar with it.<\/li>\n<\/ul>\n<\/div><\/div>\n
Best Commodity Brokers for Energy Trading in the UK<\/h2>\n
We spent time reviewing different platforms that offer power trading to find the best options for UK investors.<\/p>\n
1. XTB \u2013 Trade energy stocks with 0% commissions<\/h3>\n
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XTB<\/a> is an established online trading platform that offers 0% commissions on stock trading<\/strong>. That means it is possible to trade energy stocks for free (although a spread may be charged).<\/p>\n