Expanding Stock and Commodity Portfolios: The Rise of CFD Brokers in 2025
In a strategic move to adapt to changing markets, retail brokers are shifting their focus from forex to equities and commodities in 2025. This transition is driven by a combination of factors, including increased client demand, expanded product offerings, favourable market conditions, and strategic business imperatives.
Client Demand and Trading Volume Shifts
Brokers report growing interest and higher volumes in equities and commodities, as retail investors seek broader exposure beyond forex. For instance, XTB reported record growth in active clients and a significant increase in trading volumes in Q2 2025, partly fueled by more diversified asset offerings.
Expanded Product Offerings by Brokers
Many CFD brokers are ramping up stock and commodity offerings in 2025 to capitalise on market opportunities and client interest. New futures contracts and refreshed micro contracts on major indexes and commodities are launching throughout 2025 on exchanges like CME and ICE, facilitating easier retail access to these markets.
Market Conditions and USD Stability
The forex market in 2025 shows mixed dynamics with fluctuating deposit flows among brokers, influenced by dollar strength and Federal Reserve policies. While the USD remains relatively stable, commodity prices are undergoing volatility with forecasts suggesting surplus in crude oil and easing prices in metals and agriculture.
Strategic Business Imperatives
Brokers seek to diversify revenue streams and client bases due to saturated or subdued growth in forex. By expanding into equities and commodities, brokers can tap into new retail investor trends driven by themes like ESG investing and inflation hedging, supported by new futures contracts targeting sustainability and agricultural sectors.
Platform Adjustments and New Features
To support expanded product offerings, some CFD brokers have adjusted their platforms, including defaulting asset filters, watchlists, and price alerts to stock and commodity instruments, and displaying real-time earnings calendars, sector performance summaries, and news feeds focused on equities.
Focus on Volatile Assets
Stock markets, particularly large-cap tech companies, and commodity markets like crude oil, natural gas, and gold have delivered more consistent, headline-driven volatility. Brokers that offer fractional exposure to high-priced US equities, or allow weekend commodities trading, are capturing a lot of the shift in trader behaviour.
Regulatory Scrutiny
There is increased scrutiny on how brokers present performance data, margin requirements, and stop-out policies, particularly where they are onboarding inexperienced traders through social media channels or affiliate funnels.
Emerging Markets and Thematic Trading
The shift is evident in platform menus, marketing campaigns, and product updates, with an increase in single-stock CFDs, thematic baskets, fractional share derivatives, and short-term commodity contracts. Thematic trading, where traders target macro or trend-driven narratives, is growing in the retail space, with brokers now marketing collections of assets grouped around stories like AI adoption, electric vehicle rollouts, food supply chains, or geopolitical tension in energy-producing regions.
Case Studies
In 2024, NY ICE futures for orange juice climbed to an astonishing ~$4.92/lb due to droughts, heat waves, and citrus greening disease in Brazil, which produced 70% of global orange juice exports. Similarly, poor cocoa harvests in West Africa caused a surge in chocolate prices and decreased chocolate bar sizes. Crude Oil, particularly WTI and Brent, have seen a resurgence in volatility after several years of stable pricing.
Leverage Restrictions
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 capped at 1:10.
In conclusion, the shift from forex to equities and commodities is a strategic response to changing market conditions and client demand. Brokers are expanding their product offerings, adjusting their platforms, and capitalising on volatile assets to attract and retain retail traders in 2025.
- In light of increased client demand for diversified asset exposure, brokers are reporting higher trading volumes in equities and commodities, with some, like XTB, experiencing record growth.
- To capitalize on these market opportunities and retail investor interest, many CFD brokers are launching new futures contracts and refreshed micro contracts on major indexes and commodities, such as on exchanges like CME and ICE.
