The price of copper is a significant factor in the global economy, affecting everything from construction projects to the production of electronics. From wiring in homes and buildings to components in electric vehicles and renewable energy systems, copper is used for many purposes. As we enter 2024, the demand for copper continues to rise, driven by infrastructure development and the shift towards greener technologies. This trend makes copper stocks worth looking into and exploring. In this article, we'll highlight some of the top copper stocks to watch in 2024 and how to trade these stocks online.
List of best performing copper stocks in 2024
1. Freeport McMoran (FCX)
Market cap as of July 28, 2024: $64.64 billion
One-year performance: 3.14%
Freeport McMoran (FCX) is one of the largest publicly traded copper producers in the world. Established in 1912, the company operates major mining properties in North America, South America, and Indonesia. FCX's primary business is the extraction and processing of copper, along with byproducts such as gold and molybdenum. The company's diverse portfolio and extensive mining operations make it a key player in the global copper market. Despite challenges in the mining sector, Freeport McMoran has shown resilience, posting a modest positive performance over the past year.
2. Rio Tinto (RIO.US)
Market cap as of July 28, 2024: $109.33 billion
One-year performance: -0.61%
Rio Tinto is a global mining giant, with a diversified portfolio that includes aluminum, diamonds, gold, iron ore, and, notably, copper. Founded in 1873, the company operates in various regions, including Australia, North and South America, and Africa. Rio Tinto's copper operations are an essential part of its business, contributing significantly to its revenue. The company focuses on sustainable mining practices and innovation to improve efficiency and reduce environmental impact. Despite its strong market presence, Rio Tinto's one-year performance has been slightly negative, reflecting broader market conditions and sector-specific challenges.
3. BHP Billiton (BHP.US)
Market cap as of July 28, 2024: $139.78 billion
One-year performance: -8.08%
BHP Billiton, commonly known as BHP, is another major player in the global mining industry. Founded in 1885, BHP is headquartered in Melbourne, Australia, and operates across multiple continents. The company is a leading producer of essential commodities, including copper, iron ore, coal, and petroleum. BHP's copper division is a critical component of its operations, with major projects in South America and Australia. The company's recent performance has been impacted by fluctuating commodity prices and operational challenges, leading to a decline in its one-year performance. However, BHP remains a significant force in the mining sector, known for its large-scale operations and strong focus on sustainability.
Understanding copper stocks and their risks
While copper stocks offer exposure to the commodities and industrial sectors, they come with certain risks that traders and investors should consider. Copper is a key material used in industries like construction, electronics, and renewable energy, making it crucial for global economic activities. However, the price of copper can be volatile due to factors such as geopolitical events, supply and demand changes, and global economic fluctuations. Additionally, companies in the copper sector may face operational challenges, including environmental regulations, labor disputes, and resource depletion, which can impact profitability and stock prices.
Source: investing.com
How to trade copper stocks online
Before you consider trading copper stocks online, it's important to find a reputable and efficient platform to do so. Skilling is a reputable multi-award-winning CFD broker offering over 1200 global CFD assets, including commodities like copper, gold (XAUUSD), and more. Skilling provides a user-friendly platform with advanced trading tools, making it accessible for both beginner and experienced traders. To get started follow the steps below:
- Create your account: Visit Skilling and sign up.
- Fund your account: Once your account is set up, deposit funds using one of the available payment methods. Skilling offers a range of options, including credit/debit cards, bank transfers, and e-wallets, allowing you to choose the most convenient method.
- Choose your trading platform: Skilling offers multiple platforms to suit different trading styles and preferences. You can choose from Skilling Trader, Skilling cTrader, or Skilling MetaTrader 4 (MT4). Each platform provides a range of features, including charting tools, technical analysis, and risk management tools.
- Select copper stocks CFDs: Navigate to the market section and search for the copper stocks you want to trade from the available asset list.
- Analyze the market: Use the platform's tools and resources to analyze the market. You can access real-time price charts and technical indicators to help you make informed trading decisions. It's important to understand market trends, news events, and technical levels that could impact the price of copper stocks.
- Place your trade: Once you've done your analysis, decide whether you want to go long (buy) or short (sell) based on your market outlook. Set your position size and choose any additional parameters, such as stop-loss or take-profit levels, to manage your risk.
- Monitor and manage your trade: After placing your trade, keep an eye on the market and your position. Skilling's platform allows you to easily monitor your trades and make adjustments as needed. You can close your position at any time or set automatic closing conditions.
- Withdraw profits: If your trade is successful, you can withdraw your profits using your preferred payment method.
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