From being used in jewellery and investment to being at a premium in the technology sector, gold is an asset many investors regard as a safe haven. Gold is a precious metal that plays a crucial role in the world economy, and because of its high liquidity, it is among the commodities that enjoy great interest from traders.
Gold trading is all about speculating on the price of the global market in an attempt to make a profit. This can be done via exchange-traded funds, spot prices, futures, and options. Successfully trading with gold involves correctly predicting the direction in which the market will move in rather than going out of your way to buy low and sell high.
How Gold Trading Works for Traders and Brokers
Trading gold and other metals has a lot in common with forex currency trading, and it is all about buying or selling a number of units of a specific commodity against the US dollar. Gold, and metals in general, provide a low or negative correlation to other asset classes, and for this reason, traders tend to add them to their portfolios whenever they are looking to cut down the risk.
There are several reasons why such a significant share of the traders are keen on trading and investing in gold, and first and foremost, they go for it because it is a great way to hedge against inflation. The precious metal is so preferred also because it allows traders to diversify their portfolios.
Gold markets are exceptionally volatile, but having proper knowledge of the factors that can have an impact on the prices of the precious metal undoubtedly helps mitigate the risk.
- Inflation and interest rates
- Physical demand
- Investment demand
- Mining output
- US dollar value – gold prices move in the opposite direction of the dollar
Because of the considerable price fluctuation, gold trading requires careful consideration. Back in 1971, the gold standard for the US dollar was removed. As a result, gold’s prices go up and down, influenced by various macroeconomic factors.
It is easy to see why the market remains liquid as gold is rare enough to guarantee that the market will not be flooded, which will drive down its price. At the same time, it is widely available to maintain the liquidity of the market.
Gold is easily the most traded commodity on a global scale, and depending on their portfolio composition and investing strategy, investors are given a choice of several ways in which they can invest or trade with it. It is up to traders to decide whether they prefer to focus on physical gold, shares in a mutual or exchange-traded fund, or whether they would rather use derivatives.
When gold futures are concerned, traders go for such opportunities when they think that the gold’s price will become higher in the future. Because of this, investors will strike a deal with the seller about the price they need to pay now. Thus, traders will be allowed to sell the trading instrument they have bought earlier at a higher price than the one they agreed upon as soon as the contract expires.
Alternatively, if investors want to avoid buying physical gold, they can go for CFDs. The CFD or contract for difference makes it possible for traders to make the most out of gold’s price movements without possessing that underlying asset after they strike a deal with the seller. It is important to note, however, that the value of the CFD does not take into account gold’s underlying value. What changes between the trade entry and the exit is the price.
Gold exchange-traded funds or gold ETFs are another option traders have, and once again, they will not be required to buy the physical underlying asset. In simple terms, it works in a way, which is exceptionally close to the way stock trading works.
Investing in the stocks of the mining companies is yet another option you will have when you want to trade gold. When investing in gold stocks, traders will not focus on an asset that is linked directly to the precious metal’s price.
Trading options are an alternative to buying or selling gold or futures contracts, and they can be either puts or calls. When puts are concerned, they allow traders to sell gold at a specified price on the expiration date, while calls make it possible for traders to buy gold at a specific price, at the time when the contract expires.
Brokers make their money mainly through spreads that are wrapped around the market prices. Thus, traders should know that the price of the offered trade will always be factored into the buy and sell prices. Brokers collect some of their income through fees, and such might be charged for account inactivity, for example.
Top 10 Gold Trading Brokers
Gold is a highly tradable precious metal, and it occupies the role of money proxy and the oldest currency. Gold trading offers vast investment opportunities and high liquidity, but because of its unpredictable nature, traders should have a thorough understanding of the investment commodity. While gold is appearing on the portfolios of more and more brokers, traders must examine the alternatives to trade and the trading conditions before they create an account. When choosing a good gold broker, traders should have the full confidence that they are dealing with a reputable broker that offers an account type that measures up to their trading needs and requirements.
- 1. AvaTradeMin Deposit$/£/€100Fees
CommissionsZero commissionSpread0.29Leverage EU20:1Leverage non-EU200:1CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
- Inactivity fee $/£/€50
- Administration fee $/£/€100
- Deposits and withdrawals are fee-free
AvaTrade has been pioneering the online trading world since 2006, and today it is a go-to platform for traders interested in dealing with precious metals, gold included. Integrity is more than a keyword for the broker, and AvaTrade is subject to stringent compliance requirements across six continents.
The award-winning broker is guided by a customer-first approach, and it is hardly a coincidence that the broker executes well over 2 million trades per month and has more than 300,000 registered users from different jurisdictions. AvaTrader is among the brokers that are looking to create an environment for every trader, including those who want to engage in gold trading no matter the time or the place using the innovative AvaTradeGO app.
AvaTrading’s scope is indeed wide, and along with gold trading and commodities trading in general, the platform is also friendly to Forex traders, as well as those that are interested in trading stocks, cryptocurrencies, indices, and commodities. In order to get started, traders will be required to add at least $/£/€100 to the balance of their accounts, and they can do so via wire transfer, e-wallets, credit, or debit cards. Withdrawals are also completed without much ado, and traders will have their funds released within up to two days.
It has a 24-hour multilingual help desk, and if you have any questions, you can forward them using the live chat, over the phone, or using the contact form.
- Min DepositThere are no requirements on the deposit minimumFees
Commissions$2,25 per lot commissionSpread
- No deposit fees
- No minimum account size
Leverage EUN/ALeverage non-EU500:1Gleneagle Asset Management Limited (ABN 29 103 162 278) trading as Fusion Markets, is the issuer of the Fusion Markets Products described in this communication. Trading in Fusion Markets Products involves the potential for profit as well as the risk of loss which may vastly exceed the amount of your initial deposit and is not suitable for all investors. You should read all of these Financial Product Service Terms, the Product Disclosure Statement (PDS) and the Financial Services Guide (available on our website) carefully, consider your own financial situation, needs and objectives for investing in these Fusion Markets Products and obtain independent financial advice.
- Minimum spread 0.00
- Average spread 0.095
Fusion Markets is a broker that is dedicated to providing access to the world’s markets in a faster, easier, and less expensive way. It was founded in 2017 as an Australia-first broker, and today, it gives its users a choice of over 250 financial products. Fusion Markets gives its clients a broad selection of trading instruments to decide between, like precious metals, including gold, cryptocurrencies, equity indices, and energy CFDs, among others.
Fusion Markets is a broker Australian traders can fully rely on as it is regulated by the Vanuatu Financial Services Commission and Australian Securities and Investment Commission. This broker is guided by a customer-first approach and believes that its users must have the freedom to start trading gold or go for any other instrument they prefer with as little as they like. As a result, there is no minimum account size.
Fusion Markets claims that it offers low-cost trading for everyone, no matter the time or the place, and to deliver on its promise, the broker has introduced dedicated apps its users can download from the App Store or Google Play.
Fusion Markets has also waived the fees on deposits executed through Neteller, PayPal, Visa, Mastercard, and Skrill. Along with these, traders can pick and choose from multiple other payment processors, including Jeton, AstroPay, bank transfers, Perfect Money, and eZeeWallet, among others.
Live account holders will have an easy time finding their way around the platform and the markets as they will get assistance from their own trading specialists.
- 3. easyMarketsMin Deposit$25FeesNo account feesCommissionsNo commissionSpread
Leverage EU20:1Leverage non-EU200:1Trade Responsibly: CFDs and Options are complex instruments and come with a high risk of losing money rapidly due to leverage. 61% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs and Options work and whether you can afford to take the high risk of losing your money. Please refer to our full Risk Disclaimer. Easy Forex Trading Ltd (CySEC – License Number 079/07).
- web/app account - fixed spread from 40
- MT4 account - fixed spread from 35
- MT5 account -fixed spread from 20
Introduced back in 2001, easyMarkets is among the brokers that have gained much traction among traders who mainly focus on gold. The award-winning broker has significantly expanded its operations since that time, and although initially, the platform was all about Forex trading, today, it offers contracts for precious metals, commodities, cryptocurrencies, indices, and shares.
Traders will benefit from a number of unique features that can work to their advantage when trading gold, including easyTrade, dealCancellation, freeze rate, and vanilla options. As far as easyTrade is concerned, this feature makes it possible to trade with unlimited potential, limited risk, and no margin requirements. The freeze rate is a feature, thanks to which traders can freeze the prices they see, while dealCancellation allows them to undo losing trades.
While trading gold, you can have the full confidence that the broker is reliable and secure, and easyMarkets is fully compliant with the ESMA regulations. In addition to this, the broker has the approval of the CySEC.
The easyMarkets apps your trading experience further, and they can be used on devices running on iOS and Android. The intuitive and innovative apps allow you to trade gold anytime and anywhere and get full access to all features available to desktop users. The apps allow traders to monitor their accounts in real time, place pending orders, open and close positions, make deposits and withdrawals, and take advantage of analytical tools like charts and technical indicators.
- 4. City IndexMin Deposit$150FeesNo deposit or withdrawal feesCommissionsDoes not charge a commission on spread bet markets, FX markets, and CFDs, with the exception of equity CFDsSpreadFrom -0,3 pointsLeverage EU20:1Leverage non-EU20:1CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
City Index is one of the best-known providers of forex trading, CFD, and financial spread betting that was founded in 1983 in the UK. The broker has been a trusted partner for almost 40 years, and today, City Index offers its users a choice from more than 13,500 markets across a wide range of products. Considering that 99.99% of the trades at City Index are successfully executed, it comes as no surprise that the number of account holders is already well beyond 1 million.
City Index is not only dedicated to offering technology traders can trust but also wants to ensure that the financial markets should be accessible to all traders. To achieve this, the broker has lowered the cost of trading, and you will benefit from gold spreads from only 0,5pts.
When they are looking to fund their accounts, traders can use their Visa, Mastercard, or Maestro-branded credit or debit card, opt for bank transfers, or PayPal, and there will be no extra charges, no matter which payment processor they will pick.
The multiple-award-winning broker offers some unique trading tools like performance analytics and smart signals traders can turn to their good account no matter the device they prefer to use to trade. The on-the-go traders will gain full access to the markets City Index offers, including more than 20 commodities markets like gold, wheat, and crude oil, among others.
City Index is indeed a broker with a proven track record, and it is authorized and regulated in several jurisdictions worldwide, including the Financial Conduct Authority. In addition to this, the funds of traders are protected under the Financial Services Compensation Scheme.
- 5. AdmiralsMin Deposit$/£/€100FeesMonthly maintenance fee €2.00CommissionsThe commission on metals and CFD currency pairs depends on the monthly volume of the account holdersSpreadTypical spread 0.20Leverage EU20:1Leverage non-EU500:1CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Admirals gives its users the opportunity to invest in over 8,000 markets, and some of the instruments traders will find include cryptocurrencies, commodities, shares, and EFTs, among others. Since its foundation in 2001, Admirals has considerably expanded its presence on the trading scene, and today, it has regulatory authorization to offer its services in a number of jurisdictions.
One reason why traders might pick Admirals to trade gold is that it is a tightly regulated broker that is licensed by several of the world’s top regulators, including the Financial Conduct Authority, Cyprus Securities and Exchange Commission, Estonian Financial Supervision Authority, Jordan Securities Commission, and the Australian Financial Services Licence.
In order to ensure that while trading gold or using any of the other instruments, traders will be offered an enhanced experience, Admirals has introduced several tools like StereoTrader, a Virtual Private Server service, and Parallels for MAC, among others.
Admirals users are allowed to set up their accounts in a number of currencies, including EUR, GBP, USD, CHF, BGN, CZK, HRK, HUF, PLN, and RON. There are many different payment methods traders can make use of when they need to add funds to their accounts in order to get started with gold trading, and loading their accounts with cash is possible through bank transfers, Visa, Mastercard, Klarna, and Skrill. Bank transfers are what traders might prefer as payments are fee-free and there are no minimums and maximums on the amount they can deposit or withdraw.
Admirals keeps its users covered when they need assistance, and getting support is possible in 16 languages and over the phone, via email, and using a live chat.
- 6. XM GroupMin Deposit$5FeesNo feesCommissionsOnly XM Zero accounts have a commissionSpreadAverage spreads 0.35Leverage EU20:1Leverage non-EU1000:1CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73.03% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please consider our Risk Disclosure.
XM is a licensed and fully regulated broker, which adheres to enhanced regulatory standards and operates under licenses granted by the CySEC, ASIC, FSC, and the DFSA. It is a globally renowned broker that has more than 5 million customers from 190 countries. XM was established in 2009 and has developed into a large and fully-fledged international investment firm, which prides itself on over 16 full-feature trading platforms.
It is easy to see why more and more traders pick XM as the broker offers a wide range of trading instruments. Based on their preferences, XM’s users can trade forex and CFDs on metals, including gold, indices, stocks, energies, and commodities, without creating multiple accounts.
XM offers three types of accounts, and traders can go for Micro, Standard, or Zero accounts. Still, the broker is guided by a customer-first approach and is ready to introduce custom-tailored accounts that measure up to the requirements of all their users.
Obviously, XM is committed to offering ease and convenience every step of the way. Creating an account takes no time at all, so is managing it, trading, loading it with cash, and withdrawing your funds.
Thanks to the new XM apps, you can take your trading on the go, no matter if your device runs on iOS or Android. After you download and install the app that is available at the App Store, or go for the one that is within reach at Google Play, you can opt for gold trading, benefit from instant order execution, use more than 90 trading indicators, and make the most out of market analysis, news, and researches.
- 7. XTBMin DepositNo minimum depositFees
CommissionsNo commission for standard account types; a commission is charged on pro account types and when executing Equity CFD and ETF tradesSpreadMinimum spread 0.25Leverage EU20:1Leverage non-EU500:1CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
- €10 inactivity fee
- No fees for deposits executed via bank transfer, debit, or credit cards
XTB is an exchange-listed Forex trading and CFD broker with more than 15 years of experience under its belt. It gives access to more than 2,100 financial markets like commodities, shares, indices, cryptocurrencies, stock CFDs, and ETF CFDs, among others. XTB strives to provide its customers with a premium-quality trading experience, and the innovative and award-winning xStation 5 platform the broker relies on is suitable for seasoned traders and total novices alike.
XTB users will have the opportunity to hold all the world’s financial markets in the palm of their hands, thanks to the xStation mobile app. It offers traders a choice of dark and light modes, allows them to manage their risk before they place a trade using the built-in trading calculator or directly from the chart, and gain access to market sentiments in the blink of an eye. The web trade platform is not to be overlooked either because it gives access to a number of advanced tools seasoned traders are sure to appreciate.
The client’s satisfaction is at the center of the broker’s focus, and XTB’s simple and intuitive design guarantees that traders will manage their investments with ease and in next to no time.
Traders should not worry about the broker’s trustworthiness and reliability as XTB is licensed and regulated by some of the world’s most stringent regulatory authorities, including the KNF, FCA, and the CySEC.
- 8. CMC MarketsMin DepositNo minimum deposit requiredFeesNo fees for deposits and withdrawalsCommissions
SpreadMinimum spread 0.30Leverage EU20:1Leverage non-EU200:1Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
- 2% per share for US shares
- For non-US shares, the commission is a percentage of the value of the order
- Minimum commission charge $10
CMC Markets is a UK-based financial company that is preferred because of its reliability and the great diversity of instruments it offers. The broker has introduced a complete package for seasoned traders and total novices alike, and based on the type of their account, traders will benefit from fast and automated execution, competitive spreads, advanced risk management, tax-free spread betting options, advanced trading tools, and no minimum deposit, among others.
Accessing the platform, managing your account, analyzing the markets, and trading is possible no matter the time or the place, and across all devices. The web and mobile apps are powerful enough to guarantee a premium-quality trading experience, and no matter the device traders are using, they will gain access to the full range of tools. The award-winning trading apps give you access to more than 11,000 markets, allow you to open, modify, and close trades when you are out and about, and send you notifications to ensure that you will not miss any event.
CMC Markets is celebrated for its next-generation platform technology and personal client service, thanks to which you can trade the way you want. The broker allows for spread betting and CFDs, and its users can trade indices, shares, commodities, and cryptocurrencies. Naturally, gold is also among the instruments CMC Markets offers.
Traders can be sure that the broker’s market practices are fair as CMS Markets is regulated by the Financial Conduct Authority (FCA) and the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin). In addition to this, CMC Markets is listed on the London Stock Exchange.
- 9. IGMin Deposit$250Fees
CommissionsCFD accounts have no commissionsSpreadStarts from 0.3 pointsLeverage EU20:1Leverage non-EU200:1Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Options and turbo warrants are complex financial instruments and your capital is at risk. Losses may be extremely rapid.
- $18 account inactivity fee
- No deposit and withdrawal fees
Established in 1974, IG is now at the forefront of the online trading industry. Initially, the broker was all about spread betting but throughout the years, it moved its focus and now offers barriers and vanilla options, CFDs, and Turbo24 trading. IG gives its users access to a number of tools like trading signals and alerts and a choice from various advanced trading platforms, including MT4.
The technology IG uses and the services it offers have received industry recognition multiple times, and the awards the broker has go to show this beyond doubt.
IG gives its users lightning-fast and flexible access to over 17,000 financial markets, including shares, cryptocurrencies, indices, IPOs, and commodities like gold, silver, and copper, among others. Opening an IG account is fee-free and takes no time at all, and depending on their preferences, traders can go for a demo or a live account.
IG places a premium on the security of its users and their funds, and traders can have full confidence that the broker is trustworthy as it is regulated by the Deutsche Bundesbank, BaFin, and the FCA. The customer support the broker offers is also up to the industry standards, and traders will benefit from around-the-clock support via email, live chat, and over the phone.
- Min Deposit$100FeesNo deposit and withdrawal feesCommissions
SpreadFrom 1.0 pips for standard accounts and from 0.0 pips for direct accountsLeverage EUN/ALeverage non-EU500:1Margin trading involves a high level of risk and is not suitable for all investors. You should carefully consider your objectives, financial situation, needs and level of experience before entering into any margined transactions with Blueberry Markets, and seek independent advice if necessary. Forex and CFDs are highly leveraged products, which means both gains and losses are magnified. You should only trade in these products if you fully understand the risks involved and can afford to incur losses that will not adversely affect your lifestyle.
- No commission for standard accounts
- $7 for direct accounts
Blueberry Markets is a broker that was established in 2016 with the idea to provide traders with tight spreads, a super neat platform, and demonstrated commitment. The broker has ensured that its users will have more than 300 instruments at their fingertips, and, of course, gold is among the commodities they can trade. In addition to precious metals, Blueberry Markets keeps you covered if you want to trade indices, cryptocurrencies, and shares, among others.
As for the types of the available platforms, traders can go for MetaTrader4, which allows for one-click trading, instant order execution, customizable charts, automated trading, and thousands of indicators. MetaTrader5 and Web Trader are also among the options Blueberry Markets offers.
When opening a trading account with Blueberry Markets, you can decide between a standard and a direct account. The broker supports a number of deposit currencies, including AUD, USD, CAD, GBP, NZD, EUR, and SGD. Deposits and withdrawals are also executed quickly and effortlessly, and in addition to payments through credit and debit cards, digital wallets, and bank transfers, Blueberry Markets also works with cryptocurrencies like Bitcoin and Tether.
Blueberry Markets is a multi-jurisdictional regulated trading platform, and it has seals of approval from the Australian Securities and Investments Commission and the Securities Commission of the Bahamas.