Knowledge Base

Reading time • 9 minute(s)

What Is Commodity Trading? How It Works and How to Start

Commodity trading is the buying and selling of standardised raw materials through financial derivatives or exchange-traded instruments without taking physical delivery of the underlying assets. The global commodities market sees trillions of dollars in daily trading volume, providing essential liquidity for producers hedging physical output. Investors use these markets to navigate macroeconomic shifts, combat inflation, and capitalise on geopolitical supply constraints. This guide breaks down the essential asset classes, market mechanisms, and risk management tools required to start navigating global resource markets effectively. Key Takeaways Commodity trading involves exchanging contract rights to raw materials rather than handling the physical goods. The market divides assets into hard commodities like gold and crude oil, and soft commodities like agricultural crops and livestock. Traders utilise tools like contracts for difference (CFDs) and exchange-traded funds (ETFs) to hedge against inflation and diversify traditional equity portfolios. The global commodities have an estimated nominal value of almost $135.5 trillion according to the Bank of International Settlements, and the United States is the largest market, capturing accounting for $62.75 trillion

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Reading time • 7 minute(s)

What Is the Vanguard FTSE Global All-Cap ETF (VALL)? A Beginner's Guide

Investing in the stock market doesn't necessarily mean choosing individual companies. What if you could gain exposure to thousands of businesses across the world through a single investment? That's the idea behind exchange-traded funds (ETFs), and the Vanguard FTSE Global All-Cap UCITS ETF (VALL) is one example. Designed to track the performance of the global stock market, VALL provides exposure to thousands of companies across developed and emerging markets, including some of the world's most recognisable businesses. But how exactly does VALL work? What companies does it invest in, how much does it cost, and what should investors consider before buying? In this guide, we'll explain everything you need to know about the Vanguard FTSE Global All-Cap ETF and how eligible new clients can receive 5 Vanguard ETF Shares with XTB.

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Reading time • 8 minute(s)

What is an ETF and how does it work?

An ETF (exchange-traded fund) is a pooled investment security that holds a basket of assets and trades on a stock exchange just like a regular stock. The global ETF market holds over $22 trillion in assets under management, with three giants holding almost $13 trillion. BlackRock holds $6.1 trillion in assets through iShares, Vanguard holds $4.7 trillion mostly in ETFs tracking US equity indices, while State Street (SPDR) manages $2.2 trillion. This reflects the massive popularity of ETFs among modern investors. Whether you are building a long-term portfolio or making short-term trades, using ETFs offers an accessible way to achieve diversification, keep costs low, and maintain high liquidity throughout the trading day. Single security, multiple assets: An ETF holds a basket of assets (like stocks or bonds) within a single investable instrument. Intraday trading: Unlike some traditional funds, ETF shares are bought and sold on a stock exchange throughout the day at market-determined prices. Index tracking: The majority of ETFs are passively managed and designed to track the performance of a specific market index. Dual returns: Investors can generate returns through both the market price appreciation of the shares and any dividends paid out by the underlying assets.

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Reading time • 8 minute(s)

How to Invest in Gold: 4 Methods Explained and Compared

Investors can choose from four primary methods to gain exposure to precious metals: physical gold, gold ETFs and ETCs, mining stocks, and CFDs on gold. Each option provides a distinct way to access the gold price, allowing you to align your strategy with your specific time horizon, risk appetite, and available capital. Gold typically plays a strategic role in diversified portfolios, with its primary function being to preserve purchasing power over time and provide long-term protection against inflation. Gold has surged past $4,000 per ounce for the first time in history, marking a remarkable 50% gain year-to-date, its strongest performance since 1979. The rally accelerated in August following the Federal Reserve’s dovish policy shift and new U.S. trade tariffs, with the ongoing government shutdown further intensifying market momentum.

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Reading time • 5 minute(s)

Why XTB Offers One of the Best Low-Cost ISAs in the UK

Individual Savings Accounts (ISAs) remain one of the most popular ways for UK investors and savers to grow their money in a tax-efficient environment. With the ability to invest or save up to £20,000 each tax year without paying UK capital gains tax or income tax on returns, ISAs are a powerful tool for long-term financial planning. However, choosing the right provider can make a significant difference to your overall returns. Platform fees, trading commissions, and low interest rates can all reduce the potential growth of your money over time.

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Reading time • 5 minute(s)

Brexit and the UK: The Impact 10 Years After the Brexit Vote and What the Future Holds

The 10-year anniversary of Britain’s decision to leave the EU is coming up. A shock win for the leave campaign rocked financial markets back in 2016, although it was not until January 2020 that the UK ceased to be an EU member state. At the end of 2020, the UK left the single market and customs union and its new trading relationship with the EU came into effect.

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Reading time • 2 minute(s)

Three stocks to watch for shareholder returns

When you think of income stocks, dividends usually spring to mind. However, there is another way to return money to shareholders and that is through share buybacks. There has been a buyback boom in the US over the last two decades, with share repurchases eclipsing dividends as the favoured way to return cash to shareholders. For example, roughly two thirds of the biggest US companies have repurchased shares in the last 12 months, according to Morningstar. Although the FTSE 100 traditionally pays a better dividend yield than the US, at 3.16% vs. 1.16% for the S&P 500, share buybacks have soared in the UK, especially since Covid19. The reasons for this include more flexibility, with dividend expectations for payouts every quarter, regardless of the fundamental backdrop. Also dividends can be taxed, and share buybacks are a way to help increase the price of the share price. The UK has recently become the share buyback capital of the developed world, with more companies looking at buying back shares than any other developed market in the last 2 years. Thus, when you’re looking for shareholder returns, think about buybacks and not only dividends. Below we look at 3 stocks that offer strong shareholder returns and could be a good investment.

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Reading time • 4 minute(s)

The Private Market Boom: What Every Investor Should Know About Private Markets

A buzz word in the financial sector right now is private assets and there is a broad trend in wealth management towards increasing the retail trading community’s access to private markets. These markets have long been the preserve of institutions and wealthy individuals. However, this sector is expanding, and retail traders are gaining access to a new suite of financial products that offer access to private assets.

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Reading time • 3 minute(s)

Best Trading Apps in the UK 2026

Selecting the right trading app is a crucial step for investors in the financial markets in 2026. With an increasing number of platforms available, each offering distinct features, tools, and fee structures, making an informed choice can be challenging. This article provides a review of the leading trading apps in the UK, highlighting their strengths and limitations to help you identify the best fit for your investment goals. At the forefront of this landscape is XTB, a well-regulated platform known for its advanced technology, comprehensive educational resources, and strong user support.

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Reading time • 5 minute(s)

5 FTSE 100 stocks to watch in 2025

The UK is in focus right now. From the threat of the biggest UK companies de-listing from the London Stock Exchange, to concerns about the economic and political landscape, and global tariffs, there has been much to bemoan about the outlook for UK corporates. However, it is not all doom and gloom. The main UK index is outperforming the main US blue chip indices YTD, along with the Eurostoxx 50 index and the Cac 40. Although IPO activity is fairly thin on the ground, and hopes for an anchor company that will list in the UK may not materialize in 2025, there are other reasons for optimism. The Bank of England is set to cut interest rates at the start of August, and there could be more rate cuts on the cards. Several economists think that a weakening labour market and expected tax rises in the October budget could lead to six interest rate cuts over the next year. This could have a significant impact on the UK market. Below, we pick 5 UK stocks that could shine for the rest of this year.

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