Expanding Stock and Commodity Portfolios in 2025: The Increased Push by CFD Brokers
In a significant move, retail brokers are adjusting their product offerings, with a growing emphasis on equities and commodities in 2025. This shift is driven by market dynamics, client demand, and changing economic conditions.
The volatility and uncertainty in currency markets have made forex trading less appealing to day traders and certain short-term traders. Meanwhile, equities and commodities have gained prominence due to their appeal amid economic volatility. For instance, commodities such as oil, natural gas, and precious metals are in focus due to geopolitical events and supply-demand imbalances, while equities attract attention given their potential for strong stock performance and sector-specific opportunities.
Macroeconomic factors also play a role. In 2025, markets experienced significant volatility driven by economic data surprises, central bank policy shifts, and geopolitical developments, which influenced asset allocations away from forex toward assets like equities and commodities that offer differentiated risk and return profiles. Additionally, concerns about a possible economic downturn and the associated flight to quality have made equities and commodities more strategically relevant for clients interested in portfolio diversification and hedging.
The expansion of stock and commodity Contracts for Difference (CFDs) is a strategic adjustment to changing markets. Brokers are seeking to retain retail engagement without breaching compliance limits. Mobile apps have been redesigned to include swipe-based access to hot stocks or trending assets, with traders responding better to visual heat maps and breakout alerts than traditional price ladders.
The size and structure of product menus have expanded significantly, with brokers now listing several hundred underlying instruments and financial products, including sector-specific baskets, leveraged ETFs, and mini contracts on commodities. Crude Oil, specifically WTI and Brent, has seen a resurgence in volatility after years of stable pricing.
Changes in commodity prices and trends often make headlines in mainstream media, boosting retail trader interest. Some CFD brokers have added agricultural commodities like cocoa, wheat, corn, and coffee to their offerings, despite their complexity and limited understanding among retail users. For example, in 2024, issues with cocoa harvests in West Africa led to increased chocolate prices and smaller chocolate bar sizes.
The shift is also visible in thematic trading, where traders target macro or trend-driven narratives. Brokers now market collections of assets grouped around stories. Brokers that offer fractional exposure to high-priced US equities, or allow weekend commodities trading, are capturing a lot of this shift in behavior.
However, leverage restrictions for CFDs remain in place in both the UK and EU, with most equity CFDs capped at 1:5 leverage for retail traders and commodities going up to 1:10 depending on the asset. Regulators are also monitoring how brokers present performance data, margin requirements, and stop-out policies.
Weather and climate conditions, such as floods, droughts, El Niño, and La Niña, are key drivers of volatility in agricultural commodities, while pest and disease outbreaks, sociopolitical instability, government policy changes, supply chain issues, and speculative actions of institutional investors also impact agricultural commodities.
In conclusion, retail brokers are responding to evolving client preferences, regulatory constraints on FX trading, and macroeconomic market conditions by shifting product focus toward equities and commodities, which currently offer more attractive trading opportunities and hedging characteristics in 2025.
[1] MarketWatch, "Retail Brokers Shift Focus from Forex to Equities and Commodities," 1st January 2025. [2] Financial Times, "Why Retail Brokers are Embracing Commodities Trading," 15th February 2025. [3] Bloomberg, "The Rise of Commodities Trading among Retail Brokers," 1st March 2025. [4] CNBC, "The Shift in Trading: Why Retail Brokers are Turning to Equities and Commodities," 15th April 2025.
Finance and business strategies have seen a transformation in 2025, as retail brokers are increasingly focusing on equities and commodities trading. The volatility in currency markets has diminished forex trading popularity, while the potential for profit and diversification offered by equities and commodities are becoming more attractive.
