| Updated: October 10, 2024If you are looking to invest in gold and other commodities, you must first find a suitable platform that offers competitive spreads, low commissions, and enough analytical tools. This is easier said than done, especially considering the number of online brokers that have emerged in recent years. Below you can find the best 6 gold trading brokers that we selected based on several ranking factors including: TrustPilot score, regulation, fees for buying and selling gold as CFD, trade execution speed, deposit methods and withdrawal speed.
Fusion Markets74-89% of retail CFD accounts lose money
FP Markets73.85% of retail investor accounts lose money
Pepperstone75.5% of retail investor accounts lose money
AvaTrade76% of retail investor accounts lose money
AxiThe vast majority of retail client accounts lose money
FXTMMaybe you are new to commodity trading and have no idea what factors should guide you when choosing a broker. Fear not, BestBrokers is here to clear the mist with a comprehensive list of trusted gold trading platforms to consider. We bring to your attention the most reliable brokers for gold trading so that you have a fair go at success with your commodity investments.
Reviewing and rating trading sites is what we do best. Our team consists of proficient writers, editors, and traders who know what makes a good online brokerage. You don’t have enough time to go through our exhaustive reviews in full? No worries, below you can find a full list of the best brokers for gold trading on the market, along with impartial ratings to use for comparison.
Best Gold Brokers
- 1. FP MarketsMin Deposit$50Min Trade Size650+ CFDsWays to TradeETFs, CFDsRegulatory AuthoritiesCySEC (Cyprus), ASIC (Australia)FeesNo commission and average spread of 0.2 pips on XAU/USD on Standard Accounts; $3 per side and average spread of 0.07 pips on XAU/USD on Raw AccountsOther CommoditiesSilver, Crude Oil, Natural Gas, Wheat, Rice, Coffee, Livestock & Meat, and others10 per quarter for non-AU traders; 20 per quarter and notional volume of AU$1,000,000 per 4 quarters in the last 1 year 73.85% of retail CFD accounts lose money
Established in 2005, FP Markets is a retail broker offering its customers the chance to trade CFDs on numerous assets that fall under several market categories. If you are looking for a reputable broker to join and start trading gold, silver, or other commodities, you can definitely benefit from opening an account with FP Markets.
In addition to offering accounts to both retail and professional traders, the brand also allows its clients to choose from two account models that feature competitive prices and a wide range of trading instruments. The Standard account of FP Markets entices with its lack of commission charged per trade, with competitive spreads that average around 0.2 pips on XAU/USD. Meanwhile, those who opt for the Raw account model will pay a small commission of $3 per side and a tight average spread of 0.07 pips on XAU/USD.
To activate either account type and start trading, you will need only $50 deposited to your balance. Investors interested in trading gold will be able to trade the metal’s spot price against the US dollar and the Australian dollar. Members of FP Markets will also be able to trade silver, crude oil, natural gas, rice, coffee, and a variety of other hard and soft commodities.
- Min Deposit$0Min Trade Size0.01 for metals and other commoditiesWays to TradeCFDsRegulatory AuthoritiesASIC (Australia), VFSC (Vanuatu)FeesNo commission for Standard Account, avg spread XAU/USD 1.79 pips; $4.50 round turn commission for Zero Account, avg spread XAU/USD 0.89 pipsOther CommoditiesSilver, zinc, copper, platinum, aluminum, nickel, lead, palladium, WTI oil, Brent oil, natural gas, soybeans, raw sugar, white sugar, cocoa, robusta coffee, coffee arabica, orange juice, cotton, corn, wheatGleneagle 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.
Fusion Markets is an Aussie-facing forex and commodity broker whose vision is to deliver simpler, faster, and cost-effective access to the global markets. This ASIC-regulated trading entity offers commission rates that are approximately 36% lower than those of its nearest competitors. Clients are not restricted by minimum account sizes and have access to copy trading services whereby they can mirror the positions of high-performing Fusion customers.
The Aussie-friendly broker supports a decent range of trading instruments, including over 90 fiat currency pairs, equity indices, and stock CFDs. There is also a nice variety of hard and soft commodities to trade with.
Clients can diversify their portfolios with precious metals, energies, and agricultural products, all available for trading through leveraged CFDs. Fusion Markets offers No Dealing Desk (NDD) execution for commodity trades.
Two account types are available – Zero and Classic. Spreads at Zero accounts start at zero pips, with round-turn commissions of $4.50 per standard lot for precious metals. The average spread for XAU/USD revolves around 0.095 but varies across the other precious metals.
Aussie retail customers who trade on margin have access to maximum leverage of 1:20 for gold positions and 1:10 for the other commodities. Professional traders and clients who register through the VFSC-regulated version of Fusion Markets can use leverage of up to 1:500 for precious metals.
- 3. AvaTradeMin Deposit$100Min Trade Size1.00Ways to TradeCFDs, Gold ETFsRegulatory AuthoritiesFCA (United Kingdom), CySEC (EEA), FSA (Japan), CBI (Ireland), ISA (Israel), FRSA (Abu Dhabi), FSC (British Virgin Islands), ASIC (Australia), FSCA (South Africa)FeesAverage spreads of 0.34 pts. and 0.28 pts. (for Pro accounts)Other CommoditiesSilver, copper, platinum, palladium, crude oil, Brent oil, natural gas, heating oil, gasoline, corn, wheat, coffee, soybeans, sugar, cotton, cocoaCFDs 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.
AvaTrade is an established online broker that has been offering premium trading services for over fifteen years. It operates across six continents under the watchful eyes of tier-one regulators like the FCA, ASIC, and CySEC. Online traders who join this eminent brokerage face an excellent range of assets available through CFDs, including fiat currencies, bonds, treasuries, indices, and stocks.
Customers looking to trade gold can do so through contracts for difference (CFDs), which allow them to amplify their positions with maximum leverage of 1:20 for retail and 1:200 for professional accounts. Spreads for gold average 0.34, with a 5% margin for retail customers. Additionally, registered clients have access to ETFs like VanEck Vectors Gold Miners where the typical spread is 0.13%, with a minimum trade size of 10.
Gold is hardly the only option for commodity traders who join AvaTrade. The broker offers other precious and half-precious metals like copper, palladium, silver, and platinum. Energies and agricultural commodities are available as well, with wheat, sugar, natural gas, and crude oil being some of the examples. Account opening at AvaTrade requires a modest outlay as the minimum deposit amount is $100. Traders can fund their live balance with cards, digital wallets, and online banking.
- 4. PepperstoneMin Deposit$200Min Trade Size0.01Ways to TradeSpot gold, CFDs, ETFsRegulatory AuthoritiesFCA (United Kingdom), CySEC (Cyprus), ASIC (Australia), BaFin (Germany), SCB (the Bahamas), DFSA (Dubai), CMA (Kenya)Feesmin spread of 0.65 pts., avg spread of 0.75 pts. On XAU/USD, no commission for Standard Account; 0.15 pts. avg spread, 0.05 pts. min spread on XAU/USD, commission of $3.50 per side for Razor AccountsOther CommoditiesSilver, high-grade copper, palladium, platinum, cocoa, corn, coffee, lean hogs, cotton, live cattle, lumber, sugar, oats, orange juice, rough rice, soybeans, soybean oil, soybean meal, wheat, crude oil, Brent oil, gasoline, natural gasCFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.2% 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.
Established in 2010, Pepperstone offers exceptional trading services at consistently competitive spreads. This is a multi-regulated company with registered offices in major financial hubs like London, Dubai, and Melbourne. Pepperstone clients can benefit from a nice range of fee-free funding methods, various investor protections, and outstanding order execution averaging 30 milliseconds.
The renowned firm has earned the trust of over 300,000 satisfied customers worldwide and boasts a daily trading volume of $12.5 billion on average. At Pepperstone, traders will find more than 1,200 financial instruments across all asset classes, including indices, forex pairs, cryptocurrencies, and commodities.
Retail customers can trade gold at spot prices or through contracts for difference, with maximum leverage ratios of 1:20 under ASIC, DFSA, and FCA regulations. Those who register through the SCB-regulated version of Pepperstone can use maximum leverage of 1:200.
Additionally, Pepperstone allows clients to access the gold market through ETF CFDs, offering exchange-traded funds like VanEck Vectors Gold Miners, Perth Mint Gold, and the SPDR Gold Trust. Gold traders can diversify their portfolios with a broad range of other hard and soft commodities, including silver, high-grade copper, platinum, natural gas, crude oil, sugar, and coffee.
- 5. AxiMin Deposit$0 for Standard accounts; $25,000 for Elite accountsMin Trade Size0.01Ways to TradeBullion spot CFDs, futures CFDsRegulatory AuthoritiesFCA (United Kingdom), ASIC (Australia), FSA (Saint Vincent and the Grenadines)FeesNo commissions on Standard accounts; indicative spreads of 0.18 pips for XAU/USD bullion CFDs and 0.70 pips for futures CFDs; $7 commissions per standard contract for bullion trades via Pro accountsOther CommoditiesSilver, copper, platinum, crude oil, Brent oil, soybeans, natural gas, coffee, cocoaCFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73.9% 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.
Axi is an award-winning online broker that has gained global recognition for the excellence of its trading services. It started as a two-person company in 2007, but subsequently became the go-to trading spot for over 60,000 online traders from more than a hundred countries. Axi operates under the regulations of ASIC, FSA, and FCA, ensuring a fair, transparent, and safe environment for all traders.
Account set-up is fast and straightforward at Axi and potential clients have a choice from three accounts types – Standard, Pro, and Elite. The broker offers market-leading spreads and lightning-fast order execution for over 70 forex pairs, 50 stocks, 30 indices, and major cryptocurrencies. A decent range of commodities is also on offer, including gold, silver, platinum, natural gas, oil, and coffee.
Those looking to access the lucrative gold market can do so through bullion spot CFDs and futures CFDs. Gold trading at Axi stands out with reliable and fast execution. Gold contracts start at 0.01. Customers can implement leverage but the exact caps are jurisdiction-specific. Whether one is a retail client or a professional also matters. Live account holders can withdraw their gains from successful commodity trades via a range of safe methods, including bank transfers, e-wallets, online banking, and cryptocurrencies.
- 6. FXTMMin Deposit$10 for Micro accounts, $500 for Advantage and Advantage Plus accounts, and $25,000 for professional accountsMin Trade Size0.01Ways to TradeSpot gold, CFDsRegulatory AuthoritiesCySEC (EEA), FSCA (South Africa), FCA (United Kingdom), SFC (Mauritius)FeesMinimum XAU/USD spreads of 11 pips (Standard accounts), 20 pips (Micro and Advantage Plus accounts), and 0 pips (Advantage accounts)Other CommoditiesSilver, WTI crude oil, natural gas, Brent oil, and moreCFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80% 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.
FXTM has made enormous strides since its inception in 2011 to establish itself as a top-tier online broker that brings the financial markets closer to the global audiences. The company has offices in South America, Asia, Europe, and Africa and serves more than three million customers across 180 jurisdictions.
The brokerage specializes in the provision of leveraged trading, presenting clients with the opportunity to gain on the rising and declining prices of fiat currencies, stocks, equity indices, and commodities. Apart from gold, FXTM enables traders to invest in other hard commodities such as silver, natural gas, Brent crude oil, and West Texas Intermediate (WTI) crude oil.
Customers who set up metal trading accounts get to enjoy tight spreads and flawless order execution. FXTM offers several account types to suit all kinds of traders. Gold and commodity trading is possible via the MT4, MT5, and WebTrader platforms. EU clients have access to profit and pip calculators, a currency converter, and leverage of 1:20 for gold (1:10 for other commodities).
Customers who qualify for professional trading accounts can leverage their positions at significantly higher ratios. The minimum deposit requirements start at $10 for Micro accounts and go all the way up to $25,000 for Pro accounts.
Comprehensive Comparison of the Top 6 Gold Trading Brokers
| Gold Broker | Spot Gold Trading | Gold CFDs | Commission | Max Leverage | Min Tradable Amount | Account Minimum | Other Ways to Trade | Trust Pilot Rating |
|---|---|---|---|---|---|---|---|---|
| 1. Fusion Markets | Yes | Yes | $2.25 per side on Zero Accounts | 1:20 (ASIC)1:500 (VFSC) | 0.01 lot ($0.10 per pip) | $0 | N/A | 4.9 ⭐ |
| 2. FP Markets | Yes | Yes | $3 per side on Raw Accounts | 1:20 | 0.01 lot | $50 | N/A | 4.8 ⭐ |
| 3. Pepperstone | Yes | Yes | None for Gold CFDs | 1:20 (Retail)1:500 (Professional) | 0.01 lot | $0 | ETFs, Forwards | 4.7 ⭐ |
| 4. AvaTrade | Yes | Yes | None for Gold CFDs | 1:20 (Retail)1:200 (Professional) | 1.0 lot (100 t oz) | $100 | Options, Futures, Bitcoin Gold, ETFs | 4.5 ⭐ |
| 5. Axi | Yes | Yes | None on Standard Accounts, $7 Roundtrip on Pro Accounts | 1:20 (Retail)1:100 (Professional) | 0.01 lot | $0 for Standard Accounts | Futures | 4.0 ⭐ |
| 6. FXTM | Yes | Yes | $25 per Million Notional on Advantage Accounts | 1:20 | 0.01 lot | $500 for Advantage and Advantage Plus Accounts | N/A | 3.5 ⭐ |
Our Approach and Rating Methodology
We trade with every broker we review
BestBrokers.com stands out in the crowded field of review sites with its first-hand approach. We set up live accounts at all brokers for self-directed investors we review, so that we can properly evaluate the pros and cons of each site we recommend. Every review we publish is based on our personal experience with the brokerages, detailing both their strong points and disadvantages.
We always consider the feedback of fellow traders
We combine our extensive experience with traders’ feedback to deliver a truly unbiased perspective of what you can expect from each recommended gold broker. Our team consistently works to perfect its methodology and revisits its criteria to stay on top of the constantly evolving online trading industry.
We base our ranking on many different criteria
Apart from adding new broker reviews to our list, we strive to keep the old ones up to date so that our readers always have access to accurate information. We assess the brokers based on multiple criteria, including regulation, software, financial instruments range, account types, support, costs, and payments.
Each individual area receives a score before we assign a final rating based on our findings and overall experience with a broker. The team revisits the brokerages to ensure they maintain their quality of service. If not, the ratings are updated to reflect the changes in pricing and platform features.
Our Checklist for Gold Brokers Assessment
Reviewing online brokers is not a one-dimensional task, which is why we assess several criteria during our evaluation process. The brokers get scores based on their performance in each key area on our checklist before we give them a final rating. Our team utilizes a five-star rating system, rounding the scores to the nearest half-star.
Licensing and Regulatory Background
We only recommend gold brokers with a solid regulatory background because we prioritize the safety of our readers and their funds. Our reviewers favor trading sites with licenses from top-tier financial watchdogs like the CySEC, ASIC, FCA, CFTC, and FINMA, among others.
Account Types
A gold broker receives high marks in this area if it caters to traders with a diverse enough range of account types. We look for professional and retail accounts that can adequately meet the needs of different users based on their capital size and trading objectives. Our team also considers the account minimums, or the lowest amount required to set up an account and start trading.
Trading Costs
The BestBrokers reviewers gather information about the trading costs for different asset classes, gold and commodities included. They dig deep to uncover potential hidden fees, considering both trading and non-trading expenses like commissions, rollover, withdrawal charges, and dormancy fees.
Trading Platforms
Meeting your bottom line would be impossible if you use a poorly designed platform with slow order execution. We test the trading software of the brokers we review to ensure they deliver a satisfactory user experience. The reviewers consider factors like speed of order execution, customization, order types, and range of features.
Mobile Compatibility
A good trading site is always cross-compatible, boasting intuitive native and web apps that run effortlessly on a broad range of hand-held devices. A brokerage that underperforms in this respect will inevitably suffer a score reduction.
Financial Instruments
We also score the trading sites based on the versatility of financial instruments and asset classes on offer. The broader the selection, the higher the score they get. In the context of commodities, we look for options like metals, energies, and agricultural products.
Trade Execution
Gold brokers committed to delivering high-quality and speedy order execution get the top scores in this category. Lightning-fast execution translates into less negative slippage during high-volatility periods, which in turn leads to higher long-term returns for traders.
Payment Methods
Our team members deposit and withdraw real money from live accounts they have set up to assess how the entire payment process works at the brokerages. This helps us adequately weigh aspects like processing timeframes, payment-associated costs, and banking methods range.
Customer Support
The reviewers get in touch with the support staff via each available communication channel (email, telephone, and live chat) to evaluate their professionalism and customer care level. We base the scores for this area on multiple interactions with the support representatives.
Research and Educational Materials
An extensive and well-structured education section always sits well with us and adds to the brokers’ rating for this area. All good trading sites cater to the needs of less experienced traders with a range of tools and instructional materials like commodity guides, market sentiments, videos, webinars, and podcasts.
Safety and Money Guarantees
The BestBrokers.com team carefully maps the investor protection landscape at each site to ensure traders have a recourse if the brokers collapse financially. We only recommend brokers that offer negative balance protection, funds segregation, and investor compensations. Brokerages that work with tier-1 financial institutions to store their clients’ assets and capital receive extra points.
How to Set Up a Gold Trading Account
When reviewing a gold broker, we pay close attention to the ease of the registration process itself. Our team members consider the verification procedures which should be as quick and hassle-free as possible. Below, we give you a walkthrough of the account creation process at our top-ranking gold brokers. You will be able to start investing in gold in under ten minutes.
- Enter your personal information and contact details to get started, including your name, as it appears on your ID card, email, and phone number. Some brokers give you the option to take a shortcut and register via your Facebook or Google account.
- Set up your user profile by filling in your birth date and permanent address, including your city’s zip code.
- Complete the questionnaire so that the broker can assess your trading experience. If you go for a margin account, they will ask you about the number of times you have traded with leverage and the average volume of your leveraged trades. You will also have to answer a few more questions to give them an idea about your knowledge of derivatives.
- Choose your preferred account type and trading platform, based on your individual objective and trading goals. MetaTrader 5 (MT5) and MetaTrader 4 (MT4) are among the most common options.
- Complete the sign-up with information about your current employment status, source of funds, annual income, and the estimated value of your investments. Agree to the terms of service, but only on condition you have read them in advance.
- Verify your account by uploading copies of the requested documents. These include your passport, driver’s license, or ID card (front and back), a bank statement, or a recent utility bill. Due to regulation, many online brokers require you to verify yourself before you can deposit or trade with them.
- Navigate to the payments section and select your preferred deposit method to top up your balance. Deposits are instant with all brokers we have shortlisted for you. Congratulations, now you are ready to conquer the commodity market!
Other Commodities to Trade apart from Gold
Our recommended online brokers allow you to trade with a range of other commodities, which is a great way to diversify your portfolio. These fall into two main categories, hard and soft.
The hard commodities group comprises natural resources that require mining or another form of extraction from the earth. The soft commodities category includes agricultural products that require growing rather than mining. The two main types can be further divided into four subgroups as follows:
- Energy commodities are an important subgroup since they have the greatest impact on our day-to-day lives. Their prices influence everything, from the cost of the food we consume to the prices of the clothes we wear. The subgroup comprises products like gasoline, natural gas, crude oil, coal, and uranium.
- Metal commodities are those used in the jewelery, manufacturing, and construction industries. Many people also rely on them for investment diversification. The group comprises precious metals such as gold, silver, copper, palladium, and platinum. You can also trade in base metals like iron, nickel, aluminum, and zinc, among others.
- Agricultural commodities comprise staple products used predominantly as a source of food, although some of them have applications in the clothing industry and the manufacturing sector. The examples include sugar, corn, soybeans, coffee, wheat, cocoa, cotton, wool, hogs, and more.
- Environmental commodities are a relatively new category that includes intangible energy credits, whose value is derived from the governmental efforts to decrease greenhouse gasses and promote clean energy sources. This new subgroup includes energy savings, renewable energy, and carbon emission certificates.
Spot Gold, Holding Gold, and CFD Gold Trading
When you trade spot gold, you are practically buying and selling this precious metal on the spot, i.e. at the current live price in exchange for a given currency. You can also invest in physical gold if you wish. The main advantage of purchasing physical gold and holding it is that you essentially own a metal whose value has withstood the test of time, serving as a sound hedge against inflation.
Holding gold comes with additional storage and insurance expenses – You should bear in mind that holding physical gold can be quite costly over the long haul. You will have to pay extra for storage or insurance due to the higher risk of thefts and burglaries. The alternative is to go for a gold certificate of ownership which resembles a banknote and acts as proof that you own a given amount of gold.
CFDs ensure greater exposure to the gold and commodity markets – You can gain greater exposure to the gold market by purchasing derivatives like the so-called contracts for difference (CFDs). This financial instrument allows you to speculate on the price movements of the underlying asset without buying or actually owning it.It enables you to trade on margin and gain access to leverage, which means you can open large positions with smaller deposits by borrowing money from your broker. When trading with CFDs, you can open short as well as long positions. In turn, this enables you to generate profit both from declining and rising markets.
Just keep in mind this instrument is associated with a significant level of risk, because it can magnify both your profits and losses. The regulated gold brokers on our list all publish standardized risk warnings to caution retail traders about the dangers of CFD trading.
Other Ways to Trade Gold
Spot gold and contracts for difference are hardly the only ways to trade the gold markets. The online brokers we have hand-picked for you offer a range of other derivative products like gold options and futures. Exchange-traded funds (ETFs) are also broadly available.
Gold Futures – Futures are more complex derivative contracts that bind the involved parties to buy or sell a given underlying asset (in this case gold) at a prearranged time and price in the future. The current market prices are not taken into account when the future contract expires. Futures allow for greater flexibility and leverage than spot commodity trading. Many experienced investors implement them as a form of price-risk management.
Gold Options – Gold options belong to the broad category of derivatives that grant their holders the right to purchase or sell underlying assets at a predetermined price and time in the future, but without binding them to do so. Retail traders can buy gold options for nominal amounts and leverage them. We advise you to approach leveraged options with caution. Similarly to gold CFDs, you can suffer greater anticipated losses if your prediction of the price fluctuations is incorrect.
Gold ETFs – The term exchange-traded funds (ETFs) stands for a basket of tradable assets you can buy or sell at stock exchange platforms. Handled by professional fund managers, ETFs require you to pay administrative and management charges. They give you the opportunity to purchase gold, hold it, and then sell it at the right moment, profiting from the price margin.Types of Gold Trading Orders
The ability to differentiate between the most common order types for commodity trading is vital if you want to become a profitable trader. When sending an order, you give your broker directions on how you want them to place and execute a given trade. Here are some of the most widespread types of order for gold trading.
Market Order
Market orders are perhaps the easiest type to understand. When sending a market order, you direct your broker to execute your trade immediately at the current available price.
Limit Order
Traders send limit orders when they want their trades executed at a specific price or better. With limit buy orders, you wish the order to be filled at or below the current market price. The opposite applies to limit sell orders where you instruct the broker to open your position at or above the current market price.
Stop Order
The stop order mandates the purchase or sale of an asset at the market price provided that said asset has traded at or through a certain price, known as a stop price. When the asset reaches the preferred stop price, it turns into a regular market order and the broker fills it at the next available market price.
Fill or Kill Order
Investors send fill or kill orders (FOK) when they wish their trades to be executed immediately at a particular price. If the broker fails to match the offer three consecutive times, they cancel, or “kill”, the order.
Market on Close Order
With this type of order, you specify the time of execution rather than choosing a specific price. The broker fills the order at whatever price is available when the market closes or shortly after. Seasoned traders typically use MOC when they have reasons to believe the prices will move the next day.
Good till Canceled Order
Astute hedgers and commodity investors implement good till canceled (GTC) orders when they are inclined to wait longer to get their desired prices. A GTC order remains open either until the trader cancels it or until it fills automatically.
Good till Date Order
Good till date (GTD) orders share some similarities with the GTC type. The chief difference is that here you specify the execution date in advance and your order automatically cancels if the broker fails to fill it by the designated time.
Gold Trading Platforms
While assessing a commodity broker, we inevitably check the quality of the trading software it utilizes. We consider aspects like ease of use, design, compatibility, technical analysis tools, research and education resources. The third-party platforms listed below have stood the test of time and are still widely preferred by commodity traders and brokers worldwide.
MetaTrader 4 (MT4) is geared predominantly toward the needs of forex traders but it also supports hard and soft commodity trading via CFDs, including precious metals and energies. MT4 is unavailable for direct download on Mac devices but you can install it on your computer provided that it runs on Windows 7 and above.
MetaTrader 5 (MT5) allows you to invest in thousands of financial instruments such as commodities, shares, currency pairs, bonds, and indices. This is the upgraded version of MT4, which comes with a greater range of features, including advanced charting tools, more order types, level II pricing, auto trading, and Depth of Market.
MetaTrader WebTrader is a good fit for people who are reluctant to deal with the installation of additional software. It enables you to trade directly from a compatible browser. Best of all, WebTrader has no preference toward specific operating systems. It works equally well on iOS, Android, Windows, Mac, and Linux-based devices.
cTrader boasts a clean and attractive interface, which renders it suitable for novice commodity traders. The platform supports CFD trading across multiple asset classes, commodities included. It is available as a standalone software compatible with Windows 7 or higher but there is also a browser-based version. Users will benefit from features like algorithmic trading, dynamic leverage, and copy trading.
Gold Trading Fees and Other Costs
Trading costs are worthwhile checking beforehand because they can gradually eat up your capital and negatively affect your bottom line, if too high. These are the most common fees and costs associated with gold and commodity trading.
- Spreads represent the difference between the bid and ask prices. Bid prices are always greater than the ask prices. The actual market prices are generally somewhere between the two. There are two types of spreads, fixed and floating.
- Commissions are sometimes used as an alternative to the spreads when you trade commodities via speculative instruments like the CFDs. For instance, if you open a $1,000 gold CFD with a 0.3% commission, the overall cost will amount to $3. You will have to pay the same commission when you close your position.
- Overnight holding fees mostly apply to leveraged positions traders have not liquidated by the end of the day’s trading session. The charges may be positive or negative based on the direction of your position.
- Payment fees may be in place when you deposit or withdraw from your trading balance with specific banking methods. Most brokers we have shortlisted cover the costs of transacting to and from your account.
- Inactivity fees are charged every month on dormant accounts without any trading activity for a prolonged period (usually 12 months).
Gold Trading Regulation
BestBrokers.com only endorses heavily regulated gold and commodity trading sites. We carefully research the legal background of each broker to ensure it holds at least one license from a top-tier financial watchdog.
Financial regulation is essential because it facilitates the overall stability of the markets, combats fraud, and promotes prudent behavior on behalf of all market participants. Some of the regulatory bodies that oversee our recommended brokers include:
- Australia – the Australian Securities and Investments Commission (ASIC)
- United Kingdom – the Financial Conduct Authority (FCA)
- Switzerland – the Swiss Financial Market Supervisory Authority (FINMA)
- Cyprus and other EEA member states – the Cyprus Securities and Exchange Commission (CySEC)
- Germany – the Federal Financial Supervisory Authority (BaFin)
- United States – the Commodities and Futures Trading Commission (CFTC)
- Malta – the Maltese Financial Services Authority (MFSA)
- South Africa – Financial Services Supervisory Authority (FSCA)
Each country has its own financial regulator with a distinctive framework and requirements. If you opt to trade gold at a broker authorized by the aforementioned regulatory agencies, you can benefit from various investor protections. These include customer fund segregation, negative balance protection, regular audits, investor compensation funds, and unambiguous risk warnings.
Reasons to Trade Gold and Other Commodities
Gold is the most traded of all metals and there is a good reason why (or should we say many good reasons). Respected throughout the world, this shiny metal boasts high levels of liquidity and can handle inflation quite well. We bring to your attention three of the most practical reasons to consider investing in gold and other valuable commodities.
Hedge against Inflation
You can use commodities as a hedge to protect yourself from inflation. Currencies are susceptible to unforeseeable events like war conflicts and natural disasters, which can cause their value and purchasing power to depreciate. This is not the case with gold and other commodities whose value tends to increase during periods of uncertainty.
Less Dramatic Price Changes
Gold has lower volatility as its value tends to fluctuate gradually and at a steady pace. You should not expect any dramatic movements in its prices, which is not the case with other asset classes like cryptocurrencies, for example. It is also less volatile than other commodities like silver, copper, and crude oil.
Portfolio Diversification
Portfolio diversification is among the key laws of successful trading. A great way to bring variety to your portfolio is to look for trading instruments that have an inverted relationship with each other, as is the case with gold, stocks, and leading currencies like the USD. To give an example, stock prices dropped in 2008 while those of gold jumped. Similarly, the USD strengthened against other majors back in 2015, which caused a slump in gold prices.
Common Q&A about Gold Trading
The range of commodities available for online trading varies across the board, depending on where you trade. The trading sites shortlisted by BestBrokers.com offer a diverse selection of commodity contracts. Some of these include contracts for copper, silver, platinum, cotton, orange juice, crude oil, sugar, natural gas, and heating oil, to mention a few.
It all depends on which jurisdiction you reside in. Whether you are a professional or retail trader also matters. Under EU and ASIC regulations, for example, retail clients who trade gold have access to maximum leverage of 1:20. The leverage cap on other commodities is lower at 1:10. Professional commodity traders are exempt from these restrictions.
The spot markets for gold are again broker-specific. Some of the most widespread options you will find at our top-ranked brokers include XAU/USD, XAU/GBP, XAU/EUR, XAU/AUD, XAU/JPY, and XAU/CHF. The ticker for trading spot silver is XAG/USD.
If you are confident the value of gold will depreciate, you can short it by using derivative instruments like the contracts for difference. With this derivative, you can also access leverage to boost the size of your position and gain more exposure. To short gold, you simply initiate a sell order.
Yes, most brokers impose limits on the maximum positions their customers can hold in gold at a given time. These are expressed in troy ounces and vary based on where you trade. Some brokers allow you to hold between 10 and 10,000 troy oz., but we suggest you inquire about this in advance, just to be sure.
