Top Palladium Trading Brokers

Best Palladium Trading Platforms 2024

Pepperstone

Licenses:

CySEC, BaFin, FCA, SCB, CMA

Minimum Deposit:

$0

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XM

Licenses:

CySEC, ASIC, IFSC, DFSA, FCA

Minimum Deposit:

$5

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Palladium: How to Trade and Influencing Factors

Palladium, part of the platinum group metals which includes rhodium, iridium, and osmium, is 12.6% harder than platinum, making it more durable. It has many industrial applications, is used in the jewelry industry, and some dental equipment.

Palladium Market

Palladium is traded on the New York Mercantile Exchange (NYMEX) and the trading hours are Monday to Friday from 23:00 to 21:59 GMT. Prices are quoted in dollars per ounce, with the minimum trading volume being one ounce.

Factors Affecting Palladium Prices

• Transparency: Russia, providing about 50% of the total palladium supply, and South Africa, providing 30%, dominate the market. Russia's non-disclosure of its palladium stockpile leads to speculative lower production estimates, raising prices.
• State Policy: Being controlled by just two countries increases risks; any political disruptions can impact the market significantly.
• Auto Industry: With nearly 60% of palladium used in the automotive industry, an increase in car demand can significantly drive up palladium prices.

How to Trade Palladium?

Palladium trading varies as with other precious metals, with several investment methods offering different levels of risk and return:

• Palladium Futures Contracts: Futures are agreements to buy or sell the commodity at a future date. Each contract is for one ounce of palladium.
• Binary Options Contracts: These contracts allow trading on the future price of palladium but become worthless if the set price is not reached, posing high risks.
• Copper ETFs: These funds track the price movements of palladium, investing either directly in physical commodities or in stocks of companies in the industry.
• CFDs: Contract for Difference (CFDs) involve the buyer and seller agreeing to pay the price difference from when the contract is opened to when it is closed.