How to invest in natural gas

9.2 Excellent

Go to site

Top pick for crypto future trading

• $0.89 per side for standard & e-mini contract.
• $0.40 per side for micro contract commission.
• Trade futures on crypto, energy, metal, equity, interest rates and more.
• Trade without commissions with a bonus of up to $200 when you make your first deposit.

Partner terms and conditions

Trading in futures involves the risk of loss

4 ways to invest in natural gas

1. Buy stocks in natural gas companies.
2. Exchange-traded funds (ETFs).
3. Master limited partnership stocks (MLPs).
4. Natural gas futures

1. Buy stocks in natural gas companies

Buy stocks in a company are one of the more conventional ways to invest in any commodity. Stocks are simple to buy through brokerage accounts and online trading platforms. There are multiple natural gas companies you can invest in. While many are big oil names you’re familiar with, others are smaller names of specialty companies. Here are a few to consider researching:

Big natural gas producers

• Exxon Mobil (XOM)
• British Petroleum (BP)
• ConocoPhillips (COP)

Smaller natural gas companies

• Anadarko Petroleum (APC)
• Chesapeake Energy (CHK)
• Devon Energy (DVN)
• Encana (ECA)

Pros

• Buying stocks is one of the most conventional and accessible ways of entering the market.
• You can choose to invest in a variety of different companies.
• You can exit the market at any time by selling your stocks.

Cons

• Interference from businesses involved in the refining and distribution processes can curb a company’s stock value, meaning value doesn’t always grow at the same rate as the price of the commodity.
• Geo-political and environmental factors can easily influence the performance of a natural gas company’s stock.

Our top picks for where to invest in natural gas stocks & ETFs

Top pick for stock bonuses

Go to site

• Trade stocks, options, ETFs, mutual funds, alternative asset funds
• $0 commission on stocks, ETFs and options with no options contract fees
• Get up to $1,000 in stock when you open and fund a new account within 45 days
• Access to a financial planner

Disclaimer

Probability of Member receiving $1,000 is a probability of 0.026%; If you don’t make a selection in 45 days, you’ll no longer qualify for the promo. Customer must fund their account with a minimum of $50.00 to qualify. Probability percentage is subject to decrease.

Terms and conditions apply*. For 401k rollovers, existing SoFi IRA members must complete 401k rollovers via this link For SoFi members without a SoFi IRA, a SoFi IRA must first be opened, and 401k rollover must be completed utilizing Capitalize via this link. SoFi and Capitalize will charge no additional fees to process a 401(k) rollover to a SoFi IRA. SoFi is not liable for any costs incurred from the existing 401k provider for rollover. Please check with your 401k provider for any fees or costs associated with the rollover. For IRA contributions, only deposits made via ACH and cash transfer from SoFi Bank accounts are eligible for the match. Click here for the 1% Match terms and conditions.

Up to 2% match

Go to site

• Trade stocks, ETFs, options, futures and bonds all in one place
• $0 commissions on stocks, ETFs and equity options, with low contract fees
• Deposit or transfer $10,000+ to earn a 2% Match Bonus. Plus: Get a $100 transfer fee reimbursement on your first brokerage transfer of $2,000 or more. T&C apply.

Top pick for intuitive trading tools

Go to site

• Trade $0 commission stocks, ETFs, futures and options with as little as $1
• After-hours trading available
• Earn 3.75% interest on uninvested cash with Gold
• 24/7 customer support

2. Invest in natural gas ETFs

Exchange-traded funds (ETFs) are a way of investing your money in a wider selection of assets rather than trusting just a few firms. You invest in a basket of assets instead of owning individual stocks. This helps to insulate yourself against some of the daily fluctuations of the market. Most ETFs are simple and accessible, and trading them works in a similar way to regular stocks.

If you are new to the world of investing, then ETFs may be the best choice for you; natural gas is an incredibly popular commodity with a range of companies and ETFs to choose from. Here are some of the most popular:

Popular natural gas ETFs

• iShares U.S. Oil & Gas Exploration & Production ETF (IEO) tracks an index of about 50 oil and gas explorers and producers
• SPDR S&P Oil & Gas Exploration & Production ETF (XOP) tracks an index of oil and gas explorers and producers
• VanEckVectors Unconventional Oil & Gas ETF (FRAK) tracks an index of nearly 40 companies involved in fracking or other methods of extracting coal seam gas, shale gas and more
• First Trust Natural Gas ETF (FCG) tracks more than 30 natural gas explorers and producers
• United States Natural Gas Fund (UNG) tracks the commodity price
• VelocityShares 3x Long Natural Gas (UGAZ) is a leveraged ETF for short-term trading that aims to triple the daily movements of the natural gas price
• VelocityShares 3x Inverse Natural Gas (DGAZ) is an inverse leveraged ETF for short-term trading that aims to triple the daily movements in the opposite direction of the natural gas price

Pros

• ETFs give you widespread access to the natural gas industry at a competitive price.
• ETFs are less risky to invest in than individual stocks.

Cons

• There is less control over your investment due to the diverse range of assets in an ETF.

3. Buy MLP stocks or invest in MLP ETFs

Master limited partnerships (MLPs) offer tax advantages in that profits are only taxed when they are distributed to the general and limited partners of the company. Many MLPs are attractive to long-term investors because their business structure is designed in a way that requires them to return profits to investors quarterly through high dividend payments.

There are risks that come with MLPs, however; those include variations in demand, market volatility and the fluctuations of prices, new legislation, environmental disasters or hazards, and political and social shifts. You can buy MLP stocks through online brokerages.

MLP natural gas ETFs

• Alerian MLP ETF (AMLP) tracks an index of about 25 infrastructure MLP stocks
• JPMorgan Alerian MLP Index ETN (AMJ) tracks a more general oil and gas MLP index

MLP natural gas company stocks

• Energy Transfer (ET)
• Enterprise Products Partners (EPD)
• MPLX (MPLX)
• Cheniere Energy Partners (CQP)

Pros

• Some of the dividend payments offered can bring strong returns on your investment.
• MLPs are easy to access through brokerage accounts and financial advisors.

Cons

• As with shares, businesses with an interest in the manufacturing process can influence market value, meaning stock prices may not be in line with commodity prices.
• Demand and market risk can have an impact on MLPs, and companies may choose to withdraw their dividends.

4. Buy natural gas futures

Futures are a more advanced and risky investment that’s subject to both the fluctuations of the market and the knowledge of the buyer. Futures are a high-risk, high-reward system. Newcomers may want to gain some experience in the field before purchasing futures. To trade futures, you’ll need one of the handful of popular brokerage accounts that support futures as not all mainstream brokerages do.

Futures, as the name suggests, are a way of buying natural gas directly at a later date and an agreed-upon price. They’re a staple for big natural gas producers or utilities that buy vast amounts of natural gas, though seasoned investors and speculators can also trade them; depending on market movements, you may end up making a solid return on your investment or just as easily losing money.
Pros

• With a good knowledge of the market and some good fortune, natural gas futures could bring you large returns on your investment.
• A very direct way of owning a commodity.

Cons

• The market is unpredictable and constantly fluctuating, and futures are vulnerable to these movements. Investing at the wrong time could lead to losses.
• If you don’t act on futures within the specified period, they expire and are worth nothing.

Compare more platforms to invest in natural gas stocks and ETFs

{"userFilters":[{"config":{"MULTISELECT":true,"VALUES":"Brokerage,IRA,Education (529),Custodial,Other,Joint brokerage,Trust,Margin, Junior Roth IRA, Stock picking, Financial advisor,Kids investing,Alternative investing,Options,Market analysis,Self-directed IRA"},"dataSelector":{"recordType":"product","fieldCode":"DETAILS.ACCOUNT_TYPE"},"dataType":"TEXT","label":"Account type","order":null},{"config":{"MULTISELECT":true,"VALUES":"Stocks,Bonds,Options,Mutual funds,ETFs,Cryptocurrency,Real estate,Currencies,Gold\/Commodities,Art,CDs,Futures,Forex,Other,Alternatives,Savings,Investments,Retirement,Treasury Bills,Wine,Whiskey, Event contracts,Collectibles,Private credit, Venture capital,Annuities,Insurance, High-yield cash account, N\/A, Precious metals, Investment funds, Private equity, Tax liens\/deeds, Money market funds, Financial advisor marketplace"},"dataSelector":{"recordType":"product","fieldCode":"DETAILS.ASSET_TYPES"},"dataType":"TEXT","label":"Asset types","order":null},{"config":{"MULTISELECT":true,"VALUES":"Roth, Traditional, SEP, Spousal, Rollover, Beneficiary Traditional, Beneficiary Roth, Gold Traditional IRA, Gold Roth IRA, Custodial, SIMPLE, Self-directed, Inherited, Junior Roth IRA, Self-Directed IRA, Checkbook IRA, Solo 401(k), SEP IRA"},"dataSelector":{"recordType":"product","fieldCode":"DETAILS.IRA_ACCOUNT_TYPE"},"dataType":"TEXT","label":"Retirement account types","order":null},{"config":{},"dataSelector":{"recordType":"product","fieldCode":"FEES.FEE_TRADE_STOCK"},"dataType":"MONEY","label":"Stock trade fee","order":null},{"config":{},"dataSelector":{"recordType":"product","fieldCode":"REQUIREMENTS.MIN_DEPOSIT"},"dataType":"MONEY","label":"Minimum deposit to open","order":null},{"config":{},"dataSelector":{"recordType":"product","fieldCode":"REQUIREMENTS.MIN_TREASURY_BILLS_DEPOSIT"},"dataType":"MONEY","label":"Minimum Treasury Bills investment","order":null}],"niche":{"currencySymbol":"$","decimalPoint":".","decimalPlaces":"2","thousandsSeparator":",","filterBoundsMap":{"product.DETAILS.ACCOUNT_TYPE":null,"product.DETAILS.ASSET_TYPES":null,"product.DETAILS.IRA_ACCOUNT_TYPE":null,"product.FEES.FEE_TRADE_STOCK":{"minimum":"0","maximum":"4.95"},"product.REQUIREMENTS.MIN_DEPOSIT":{"minimum":"0","maximum":"1000000"},"product.REQUIREMENTS.MIN_TREASURY_BILLS_DEPOSIT":{"minimum":"100","maximum":"1000"}}},"prefilled":false,"experimental":false}

12 of 12 results

Finder Score	Available asset types	Stock trade fee	Minimum deposit	Cash sweep APY	bullet point infobox
Promoted Finder score 9 Excellent SoFi Active Invest	Finder score 9 Excellent	Stocks, Options, Mutual funds, ETFs, Alternatives	$0	$0	0.01%	Get up to $1,000 in stock when you open and fund a new account. T&Cs apply.	Trade stocks, ETFs, and options with zero commissions, invest in IPOs or automate your portfolio, with exclusive perks available through SoFi Plus.	Important information INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE Other fees, such as exchange fees, may apply. Please view our fee disclosure to view a full listing of fees. Investing in alternative investments and/or strategies may not be suitable for all investors and involves unique risks, including the risk of loss. An investor should consider their individual circumstances and any investment information, such as a prospectus, prior to investing. Interval Funds are illiquid instruments, the ability to trade on your timeline may be restricted. Brokerage and Active investing products offered through SoFi Securities LLC, Member FINRA (www.finra.org) /SIPC(www.sipc.org). There are limitations with fractional shares to consider before investing. During market hours fractional share orders are transmitted immediately in the order received. There may be system delays from receipt of your order until execution and market conditions may adversely impact execution prices. Outside of market hours orders are received on a not held basis and will be aggregated for each security then executed in the morning trade window of the next business day at market open. Share will be delivered at an average price received for executing the securities through a single batched order. Fractional shares may not be transferred to another firm. Fractional shares will be sold when a transfer or closure request is initiated. Please consider that selling securities is a taxable event. Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire investment Before trading options please review the Characteristics and Risks of Standardized Options Advisory services are offered by SoFi Wealth LLC, an SEC-registered investment adviser. Utilizing a margin loan is generally considered more appropriate for experienced investors as there are additional costs and risks associated. It is possible to lose more than your initial investment when using margin. Please see https://www.sofi.com/wealth/assets/documents/brokerage-margin-disclosure-statement.pdf for detailed disclosure information SoFi Plus members can schedule an unlimited number of appointments with a financial planner during periods in which the SoFi Plus member meets the eligibility criteria set forth in section 10(a) of the SoFi Plus Terms and Conditions. SoFi members who are not members of SoFi Plus can schedule one (1) appointment with a financial planner. The ability to schedule appointments is subject to financial planner availability. SoFi reserves the right to change or terminate this benefit at any time with or without notice. Advisory services are offered by SoFi Wealth LLC, an SEC-registered investment adviser. Information about SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov. Probability of Member receiving $1,000 is a probability of 0.026%; If you don’t make a selection in 45 days, you’ll no longer qualify for the promo. Customer must fund their account with a minimum of $50.00 to qualify. Probability percentage is subject to decrease Robo Advisor: Automated investing is offered through SoFi Wealth LLC, an SEC-registered investment adviser. 0.25% fee is based on your account value. The wrap program fee may cost more or less than purchasing brokerage, custodial, and record keeping services separately. Terms and conditions apply*. For 401k rollovers, existing SoFi IRA members must complete 401k rollovers via this link For SoFi members without a SoFi IRA, a SoFi IRA must first be opened, and 401k rollover must be completed utilizing Capitalize via this link. SoFi and Capitalize will charge no additional fees to process a 401(k) rollover to a SoFi IRA. SoFi is not liable for any costs incurred from the existing 401k provider for rollover. Please check with your 401k provider for any fees or costs associated with the rollover. For IRA contributions, only deposits made via ACH and cash transfer from SoFi Bank accounts are eligible for the match. Click here for the 1% Match terms and conditions.	Go to site More info	loading
Promoted Finder score 8.2 Great Zacks Trade	Finder score 8.2 Great	Stocks, Bonds, Options, Mutual funds, ETFs, CDs	$0.01	$250	2.83%	Leverage powerful trading tools and low margin rates to trade stocks, options, ETFs, mutual funds and bonds.	Go to site More info	loading
Promoted Finder score 9.4 Excellent Robinhood	Finder score 9.4 Excellent	Stocks, Options, ETFs, Cryptocurrency, Futures, Event contracts, High-yield cash account	$0	$0	3.75%	Get a free stock when you successfully sign up and link your bank account. T&Cs apply.	Trade stocks, options, crypto and more, with advanced trading tools, fractional shares and exclusive perks for Gold members.	Go to site More info	loading
Finder score 9.4 Excellent Webull	Finder score 9.4 Excellent	Stocks, Bonds, Options, ETFs, Futures, Money market funds	$0	$0	3.85%	Deposit or transfer $100,000+ to earn a 4% Match Bonus, or $2,000+ to earn a 3% Match Bonus. Plus: Get a $100 transfer fee reimbursement on your first brokerage transfer of $2,000 or more. T&Cs apply.	Trade stocks, ETFs and equity options commission-free, with access to futures, advanced charting tools, a robo-advisor and event trading powered by Kalshi.	Go to site More info	loading
Finder score 9.2 Excellent Interactive Brokers GlobalTrader	Finder score 9.2 Excellent	Stocks, Options, Mutual funds, ETFs, Cryptocurrency	$0	$0	3.83% Lite 4.83% Pro	Trade in a simulated trading environment and access a wide range of tradable assets.	Go to site More info	loading
Finder score 8.2 Great eToro	Finder score 8.2 Great	Stocks, Options, ETFs, Cryptocurrency, Investments	$0	$0	3.75%	No commission stock, ETF and options trades, with 3.9% interest on your options account balance and no options contract fees. See full disclosure.	Important information eToro securities trading offered by eToro USA Securities, Inc. (‘the BD”), member of FINRA and SIPC. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Finder is not an affiliate and may be compensated if you access certain products or services offered by the BD.	Go to site More info	loading
Finder score 9 Excellent Public.com	Finder score 9 Excellent	Stocks, Bonds, Options, ETFs, Cryptocurrency, Investments, Retirement, Treasury Bills, High-yield cash account	$0	$0	3.8%	Get up to $10,000 and transfer fees covered when you move your portfolio to Public. T&Cs apply.	Build a diversified portfolio of stocks, bonds, options, ETFs and crypto, with a high-yield cash account and options contract rebates.	Important information *Yield as of 04/09/2025. Learn more.	Go to site More info	loading
Finder score 8 Great Acorns	Finder score 8 Great	Stocks, ETFs	$0	$0	N/A	Get a $20 bonus when you set up an account and make your first recurring investment (min. $5). T&Cs apply.	Automate investing with recurring contributions starting at $5 and invest spare change from everyday purchases.	Go to site More info	loading
Finder score 7.4 Great Stash	Finder score 7.4 Great	Stocks, ETFs	$0	$0	0.1%	Get $5 when you sign up and deposit $5. T&Cs apply.	Bank, automate your portfolio or invest in individual stocks and ETFs for as low as $3 per month.	Important information Investment advisory services offered by Stash Investment LLC, a SEC registered investment advisor. Investing involves risk and investments may lose value. Holdings and performance are hypothetical. *Offer is subject to T&Cs	Go to site More info	loading
Finder score 9 Excellent Wealthfront	Finder score 9 Excellent	Stocks, ETFs, High-yield cash account	$0	$500	3.75%	Get a $50 bonus when you sign up and fund a taxable automated investing account with at least $500. T&Cs apply.	Automate your stock and bond portfolio or trade individual stocks for as little as $1 apiece. Plus, earn 3.50% APY on your cash.	Go to site More info	loading
Finder score 7.2 Great J.P. Morgan Personal Advisors	Finder score 7.2 Great	Mutual funds, ETFs	$0	$25,000	N/A	Financial planning, advice and portfolio management. T&Cs apply.	Get ongoing access to an advisory team with personalized financial planning and expert-built portfolios. Provider terms & conditions apply	Important information INVESTMENT PRODUCTS ARE: NOT A DEPOSIT • NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE.	More info	loading
Finder score 8.2 Great M1 Finance	Finder score 8.2 Great	Stocks, ETFs, Cryptocurrency	$0	$100	4.00%	Build a custom portfolio of stocks and ETFs with automatic rebalancing. Plus, earn 4.00% APY with a high-yield cash account.	Important information M1 Finance, LLC does not charge commission, trading, or management fees for self-directed brokerage accounts. You may still be charged other fees such as M1’s platform fee, regulatory fees, account closure fees, or ADR fees. For a complete list of fees M1 may charge visit M1 Fee Schedule. M1 is not a bank. M1 Spend is a wholly-owned operating subsidiary of M1 Holdings Inc.. M1 High –Yield Savings Accounts are furnished by B2 Bank, NA, Member FDIC. Obtaining stated APY (annual percentage yield) with the M1 High-Yield Savings Account does not require a minimum account balance. Stated APY is accrued on account balance. APY is solely determined by M1 Spend LLC and its partner banks, and will include account fees that will reduce earnings. Rates are subject to change without notice. M1 High-Yield Savings Account is a separate offering from, and not linked to, the M1 High-Yield Cash Account offered by M1 Finance, LLC. M1 is not a bank.	More info	loading

loading

Load More

Showing 12 of 12 results

What is the Finder Score?

The Finder Score crunches 147 key metrics we collected directly from 18+ brokers and assessed each provider’s performance based on nine different categories, weighing each metric based on the expertise and insights of Finder’s investment experts. We then scored and ranked each provider to determine the best brokerage accounts.

We update our best picks as products change, disappear or emerge in the market. We also regularly review and revise our selections to ensure our best provider lists reflect the most competitive available.

Read the full Finder Score breakdown

*Signup bonus information updated weekly.

When is a good time to invest in natural gas?

Natural gas is one of the cyclical industries where it goes through times of boom and bust. To determine whether it’s a good time to invest in gas, consider the following:

• Inflation. In times of inflation, the price of natural gas is likely to rise.
• Season. The price of natural gas is often impacted by seasonality — in winter, the demand for gas for heating is higher, which is likely to cause a price increase.
• Geopolitics. Wars and sanctions could heavily impact the price of natural gas, especially if a gas-producing country like Russia is involved. This could lower the supply of natural gas and increase its demand, thus increasing its price.
• Green energy policies. Natural gas is a fossil fuel but it produces less pollution and greenhouse gases than other fossil fuels. This could increase the demand for natural gas in countries that want to implement green energy policies.

Is natural gas a safe investment?

The world relies on natural gas for energy that’s cleaner than coal, and its abundance makes it quite a reliable commodity on the stock market. However, the market is never completely safe, and natural gas is no exception:

• Pipeline incidents: A risk for the environment as well as your profits, a burst pipeline can have disastrous effects on both your investments and the ecosystem at large.
• Dividend cuts: Gas companies often distribute dividends which allow investments to generate regular income. If a company cannot make enough money, however, dividends can be cut. This can lead to stock prices plummeting.
• Price volatility: Prices for natural gas have fluctuated violently over the years, usually as a result of shifts in supply. Gas is also seasonal, with people using more during the winter, which also affects prices.

ETFs are a fairly popular investment option in the US, with 19% of investors choosing to ETFs as a vehicle for growing their wealth.

Frequently asked questions

• How much is gas worth?

  Over the past 20 years, natural gas prices have whipsawed regularly between $3 per million BTUs and nearly $20, though prices have steadily dropped to a post-2015 range of slightly below $2 to about $4.50. 2020 began at the bottom of that range.

• How is gas found?

  Natural gas is found in rock formations deep underground. Once an area has been scouted for natural gas, a drill is set up to begin extraction. Often gas is extracted from the same source as crude oil, although through different processes.

More on investing

Stock Trading

Best Stocks for Beginners With Little Money in 2025: Start With $1!

These are the stocks to buy when you don’t have much to spend.

Stock Trading

What happens if a brokerage firm fails?

Here’s what happens to your securities if your brokerage fails, and how your assets are protected by SIPC and FDIC.

Stock Trading

Treasury Bills: What They Are and How to Buy Them

Treasury Bills are fixed-income assets with maturities of less than one year. Here’s what to know before investing.

Written by

Kliment Dukovski

Writer

Kliment Dukovski was a personal finance writer at Finder, specializing in investments and cryptocurrency. He's written more than 700 articles to help readers compare the best trading platforms, understand complex investment terms and find the best credit cards for their needs. His expert commentary has been featured in such digital publications as Fox Business, MSN Money and MediaFeed. He’s also well-versed in money transfers, home loans and more — breaking down these topics into simple concepts anyone can understand. In another life, Kliment ghostwrote guides and articles on foreign exchange, stock market trading and cryptocurrencies. See full bio

Kliment's expertise

Kliment has written 37 Finder guides across topics including:

• Investing
• Day trading
• Stock market technical analysis
• Personal and business credit cards

Co-written by

Shannon Terrell

Editor

Shannon Terrell is a lead writer and spokesperson at NerdWallet and a former editor at Finder, specializing in personal finance. Her writing and analysis on investing and banking has been featured in Bloomberg, Global News, Yahoo Finance, GoBankingRates and Black Enterprise. She holds a bachelor’s degree in communications and English literature from the University of Toronto Mississauga. See full bio

's expertise

has written 74 Finder guides across topics including:

• Share trading
• Robo-advisors
• Merchant services