How to buy Oil Stocks on ASX or Globally
The best stock platform to buy oil CFD’s and oil based stocks is eToro. They offer instant and free AUD deposits from any bank account to trade Crude Oil, Oil miners, Oil ETFs, and much more. Their platform currently has over 3,000 Stocks, ETFs, Commodities, Options and 60 Cryptocurrencies to trade for Australian investors.
The eToro exchange is also the only brokerage that offers zero commissions on trades, making them far cheaper than alternatives like CommSec who charge a minimum of $20 per trade.
What are the Best Oil Stocks?
If you are using eToro, there is a variety of different ways that you can get exposure to Oil as an asset class. The list below is a summary of the best oil stocks to buy and invest in.
- Oil CFD: Oil CFDs are direct exposure to the price of oil and is the most popular instrument to trade and speculate on oil.
- Oil Stocks: With eToro, you can buy the largest oil miners that benefit from a high price of oil. These include Saudi Aramco, United States Oil Fund and many others.
- Oil ETFs: Oil ETFs are a basket of the top oil stocks around the world. This reduces idiosyncratic risk of buying a single oil stock that could have operational issues that are completely separate from the sentiment toward oil.
If you are looking to buy and hold oil for the long term, buying a mixture of the above list could be a great way to get started.
Best Oil ETFs
As mentioned above, ETFs are a great way to get broad exposure to an asset class. Oil ETFs enable investors to track the stock price of a wide range of oil companies, which significantly reduces portfolio risk.
In Australia, oil ETFs can be purchased through brokerage platforms like eToro, CommSec or Plus500. Here is a short list of some of the most traded oil commodity ETFs:
- United States Oil Fund (USO)
- BetaShares Crude Oil Index ETF (OOO)
- VanEck Vectors Australian Resources ETF (MVR)
It is important to note that some of these oil ETFs have yearly management fees. From our research, the United States Oil Fund (USO) is the cheapest way to get exposure to a basked of oil stocks.
Oil Price AUD
The chart below is the live price of Oil in Australian Dollars (AUD) as derived from the Betashares Crude Oil Index on the ASX.