Historically, gold has been regarded as a reliable safe-haven asset, appreciated for its consistent stability during periods of economic instability. Finding the best gold trading broker is an important task. At present, gold offers a distinctive opportunity for traders to protect against inflation, pursue diversification within a portfolio, or speculate on price fluctuations.
With its high liquidity and persistent demand, gold continues to be one of the most favored options among both individual and institutional traders. The common techniques employed for trading gold online encompass three main strategies: Gold CFDs, Gold ETFs, and the sale of the XAU/USD pair. Each of these methods offers distinct advantages, ranging from the ability to capitalize on minor price fluctuations in CFDs to making long-term investments in ETFs.
Notably, the XAU/USD pair, which reflects the price of Gold in US Dollars (USD), is among the most actively traded forex pairs and is recognized for its volatility and steady market engagement.
Only a regulated gold trading broker can guarantee a seamless experience in gold trading. The top gold brokers are those that provide competitive spreads, advanced trading platforms, and the opportunity to trade a diverse range of gold instruments, including CFDs, ETFs, and futures. This article will evaluate the best brokers for gold trading and examine their features, platforms, and trading conditions.
Most Popular Markets to Trade in Gold
A prudent selection of “gold” assets can serve not only as a means of generating profit but also as an additional safeguard against potential losses. Each market type is defined by its advantages and disadvantages.
Below is a brief overview of the most commonly sought-after gold investment assets:
- CFDs on gold: Favored for speculative purposes, they require a lower minimum investment (typically starting at $100), offer high liquidity, and leverage up to 1:30, although they come with limited assets and a dynamic spread.
- Gold futures: These are contracts at a fixed price for future purchases, suitable for hedging, yet they are not the best choice for long-term investments and have restricted speculative durations.
- ETFs: A reliable, cost-effective option for long-term investment exposure, though they present limited investment options and incur management fees.
- Stocks: They offer the potential for rapid profits and dividends, aiding in portfolio diversification, but they are subject to volatility and carry the risk associated with individual companies.
- Spot Gold: This involves the ownership of physical gold, providing quick liquidity and being advantageous for long-term investment and hedging, but it necessitates storage and may require immediate tax payments in certain jurisdictions.
Top Gold Trading Brokers
1. FP Markets
Minimum Deposit: $50
Minimum Trade Size: 1.00
Methods of Trading: ETFs, CFDs
Regulatory Bodies: CySEC (Cyprus), ASIC (Australia)
Charges: You don’t have to pay any commission for Standard Accounts, and the average spread on XAU/USD is 0.2 pips. For Raw Accounts, there’s a fee of $3 for each side, with a minimum spread of 0.07 pips on XAU/USD.
Additional Commodities: Silver, Crude Oil, Natural Gas, Wheat, Rice, Coffee, Livestock & Meat, among others
Founded in 2005, FP Markets is a retail brokerage that provides its clients with the opportunity to trade CFDs across a variety of assets spanning multiple market categories. It is one of the best gold trading brokers. Should you seek a trustworthy broker to partner with for trading gold, silver, or other commodities, you will find advantages in opening an account with FP Markets.
In addition to providing accounts for both retail and professional traders, the brand also enables its clients to select from two account models that offer competitive pricing and a diverse array of trading instruments.
The Standard account at FP Markets attracts clients with its absence of commission fees per trade, featuring competitive spreads that average approximately 0.2 pips on XAU/USD. In contrast, clients opting for the Raw account model will be subject to a minimal commission of $3 for each side, in addition to a tight spread starting at 0.07 pips on XAU/USD.
To initiate either account type and commence trading, a deposit of merely $50 into your account is required. Individuals looking to invest in gold will have the chance to trade the metal’s spot price against both the US dollar and the Australian dollar.
2. Fusion Markets
Minimum Deposit: $0
Minimum Trade Size: 0.01 for metals and other commodities
Methods of Trading: CFDs
Regulatory Bodies: ASIC (Australia), VFSC (Vanuatu)
Fees: Standard Account has no commission and an average spread of 1.89 pips for XAU/USD; Zero Account incurs a $4.50 commission with a 0.99 pips average spread.
Additional Commodities: Silver, zinc, copper, platinum, aluminium, nickel, lead, palladium, WTI crude oil, Brent crude oil, natural gas, soybeans, raw sugar, refined sugar, cocoa, robusta coffee, arabica coffee, orange juice, cotton, corn, and wheat.
Fusion Markets is an Australian-focused forex and commodity brokerage that aims to provide easier, quicker, and more affordable access to global markets. This gold trading platform, overseen by ASIC, provides commission rates that are approximately 36% lower than those of its nearest competitors. Clients are not bound by minimum account requirements and can utilize copy trading services, allowing them to replicate the trades of successful Fusion clients.
The broker, which is supportive of Australian traders, provides a commendable range of trading instruments, including over 90 fiat currency pairs, equity indices, and stock CFDs. Additionally, there is a pleasing assortment of both hard and soft commodities available for trading.
Clients can diversify their investment portfolios by adding precious metals, energy resources, and agricultural commodities. They can trade these through Contracts for Difference (CFDs) using leverage. This regulated broker to trade gold provides No Dealing Desk (NDD) execution for transactions involving commodities.
There are two kinds of accounts available – Zero and Classic. For Zero accounts, spreads commence at zero pips, accompanied by round-turn commissions of $4.50 for each standard lot of precious metals. The typical spread for XAU/USD is approximately 0.095, although it may differ for other precious metals.
Australian retail clients engaging in margin trading can utilize a maximum leverage of 1:20 for gold positions and 1:10 for other commodities. Traders and clients who register through the VFSC-regulated platform of Fusion Markets are allowed to utilize leverage of as much as 1:500 for trading precious metals.
3. ActivTrades
Minimum Deposit: $0
Minimum trade amount: 0.01 lots for spot gold.
Methods of Trading: CFDs on spot gold
Regulatory Authorities: FCA in the UK, CMVM in Portugal, CVM in Brazil, SCB in the Bahamas, and FSC in Mauritius.
Charges: No commissions, target spreads of 0.25 points
As a pioneer in the realm of online forex trading, ActivTrades adheres to the utmost regulatory standards, guaranteeing a smooth trading experience within a secure and transparent setting. ActivTrades has been providing services to clients for over two decades.
As a reliable gold trading broker, ActivTrades also offers numerous opportunities for portfolio diversification, featuring a product range that includes over 1,100 financial markets.
Clients can access the gold market through contracts for difference and should expect no concealed commissions, as ActivTrades primarily generates revenue from spreads and swap fees associated with overnight positions.
The average spread for spot gold CFDs is 0.25 points. You can trade between 0.01 and 50 lots in this market. If you are in Mauritius, you can use leverage of up to 1:1000 for gold trading. Clients in the UK and Europe can use a maximum leverage of 1:20 to increase their exposure to the gold market.
Clients can experience the broker’s top gold trading platform through complimentary demo accounts, which remain active for 30 days, with the possibility of opening additional accounts once the initial ones expire.
Traders who are sufficiently experienced to begin trading with real funds immediately have the option to select from individual and swap-free accounts. Professional accounts are only accessible to traders located in the UK and the EU. Moreover, there is no minimum deposit requirement as well.
4. Axi
Minimum Deposit Requirements: There’s no minimum for Standard accounts, while Elite accounts require an initial deposit of $25,000.
Minimum Trade Size: 0.01
Methods of Trading: Bullion spot, CFDs
Regulatory Bodies: The trading landscape is regulated by several key authorities, including the FCA in the United Kingdom, ASIC in Australia, and the FSA in Saint Vincent and the Grenadines.
Fees: For Standard accounts, there are no commission charges, while indicative spreads for XAU/USD bullion CFDs start at 0.16 pips. Pro accounts incur a $7 commission per standard contract on bullion CFD trades, with an average spread of 0.08 pips.
Other Commodities: In addition to bullion, the market also offers a variety of commodities such as silver, copper, platinum, crude oil, Brent oil, soybeans, natural gas, coffee, and cocoa.
Axi is a globally recognized online gold trading broker that has received numerous awards for the quality of its trading services. Founded in 2007 by two individuals, it has evolved into a preferred trading platform for over 60,000 online traders across more than a hundred countries. Axi adheres to the regulations set forth by ASIC, FSA, and FCA, providing a fair, transparent, and secure environment for all traders.
Setting up an account at Axi is quick and uncomplicated, with prospective clients able to select from three different account types: Standard, Pro, and Elite. The broker provides competitive spreads and rapid order execution for more than 70 forex pairs, 50 stocks, 30 indices, and prominent cryptocurrencies.
Those looking to tap into the lucrative gold market can explore trading through bullion spot CFDs. Trading gold with the trusted broker is distinguished by its dependable and swift execution. Gold contracts are available starting at 0.01. Customers have the option to utilize leverage, although the specific limits vary by jurisdiction.
Moreover, whether a customer is classified as retail or professional is significant. Holders of live accounts can withdraw their profits from successful commodity trades using various secure methods, such as bank transfers, e-wallets, online banking, and cryptocurrencies.
5. Blackbull Markets
Minimum Deposit Requirements: $0 for standard accounts; $2,000 for ECN Prime accounts; and $20,000 for ECN Institutional accounts.
Minimum Trade Size: 0.01 lots
Approached to Trading: Gold Spot Contracts for Difference, Future Contracts for Difference.
Regulatory Bodies: FMA (New Zealand); FSA (Seychelles)
Charges: Standard Account – spreads from 0.8 pips, no commission; ECN Prime Account – spreads from 0.1 pips, US$6 per lot; ECN Institutional Account – spreads from 0.0, US$4 per lot.
Additional Commodities: Crude Oil, Platinum, Silver, Aluminium, Palladium, Copper, Lead, Zinc
Founded in 2014, BlackBull Markets is one of the lowest commission forex brokers, recognized for providing narrow spreads, minimal fees, and numerous opportunities for global traders. BlackBull is overseen by both the Financial Markets Authority (FMA) and the Financial Services Authority of Seychelles (FSA), guaranteeing security while also delivering high leverage and access to a diverse array of markets.
For individuals interested in trading gold, BlackBull Markets is a top gold trading broker that provides attractive pricing with minimal spreads and leverage options reaching up to 1:500. With a dedicated emphasis on delivering excellent trading conditions, the broker guarantees that retail traders can trade spot gold and various other precious metals via CFDs.
Typically, the spreads for the Standard account begin at 0.8 pips, and there are no commissions, striking a favorable balance between cost and execution speed.
One of the best brokers to trade gold also offers sophisticated trading platforms such as MetaTrader 4 and MetaTrader 5, which include all the essential tools and features needed for effective gold trading. Besides gold, BlackBull Markets provides other commodities like silver, oil, and natural gas, giving traders a wide variety of markets to investigate.
6. AvaTrade
Minimum Deposit: $100
Minimum Trade Size: 1.00
Trading Methods: CFDs, Gold ETFs
Regulatory Authorities: FCA (UK), CySEC (European Economic Area), FSA (Japan), CBI (Ireland), ISA (Israel), FRSA (Abu Dhabi), FSC (British Virgin Islands), ASIC (Australia), FSCA (South Africa).
Charges: Average spreads of 0.34 pts. and 0.28 pts. (for Pro accounts)
Extra Goods: Silver, copper, platinum, palladium, crude oil, Brent oil, natural gas, heating oil, gasoline, corn, wheat, coffee, soybeans, sugar, cotton, cocoa.
AvaTrade is a reputable forex broker globally that has been offering top-notch gold trading services for over fifteen years. It functions across six continents under the supervision of top-tier regulators such as the FCA, ASIC, and CySEC. Online traders who become part of this prestigious brokerage encounter an outstanding selection of assets accessible through CFDs, which include fiat currencies, bonds, treasuries, indices, and stocks.
If you’re looking to trade gold seamlessly, you can use contracts for difference (CFDs). This lets you boost your positions with leverage up to 1:20 for retail accounts and 1:200 for professional accounts.
Registered users can access ETFs such as VanEck Vectors Gold Miners, which typically has a spread of 0.13% and a minimum trade size of 10.
Gold is not the sole choice for commodity traders who sign up with AvaTrade. Opening an account at AvaTrade (a recognized platform to trade gold) necessitates a reasonable investment, as the minimum deposit is set at $100. Traders have the option to fund their live accounts using credit cards, digital wallets, and online banking.
7. Pepperstone
Minimum Deposit: $200
Minimum Trade Size: 0.01
Trading Options: Spot gold, CFDs, ETFs
Regulatory Authorities: FCA (UK), CySEC (Cyprus), ASIC (Australia), BaFin (Germany), SCB (Bahamas), DFSA (Dubai), CMA (Kenya)
Fees: Minimum spread of 0.5 points, average spread of 0.15 points. For XAU/USD, there is no commission applicable for Standard Accounts; the average spread is 0.15 points, with a minimum spread of 0.05 points on XAU/USD. For Razor Accounts, a commission of $3.50 is charged per side.
Additional Commodities: Silver, premium 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 crude, gasoline, natural gas
Founded in 2010, Pepperstone provides outstanding gold trading services with consistently competitive spreads. This multi-regulated firm has offices in key financial centers such as London, Dubai, and Melbourne. Clients of Pepperstone can take advantage of a variety of fee-free funding options, numerous investor protections, and exceptional order execution that averages 30 milliseconds.
The esteemed company has gained the confidence of over 300,000 satisfied clients globally and has an average daily trading volume of $12.5 billion. At Pepperstone, traders have the opportunity to obtain over 1,200 financial instruments spanning all asset classes, which include indices, forex pairs, cryptocurrencies, and commodities.
Retail customers have the opportunity to trade gold via contracts for difference, with maximum leverage ratios set at 1:20 by ASIC, DFSA, and FCA regulations. Those who sign up for the SCB-regulated version of Pepperstone are permitted to utilize a maximum leverage of 1:200.
Furthermore, this trusted gold trading platform provides clients with access to the gold market through ETF CFDs, which include exchange-traded funds such as VanEck Vectors Gold Miners, Perth Mint Gold, and the SPDR Gold Trust.
Gold traders can enhance their portfolios by diversifying into a wide array of other hard and soft commodities, such as silver, high-grade copper, platinum, natural gas, crude oil, sugar, and coffee.
How to Choose a Reliable Gold Trading Broker?
Selecting an unreliable broker can transform gold trading from a rewarding and profitable endeavor into a significant source of frustration. To ensure a seamless and pleasant trading experience, consider these guidelines for selecting the best gold trading broker:
1. Safe and Reliable
When significant funds are at stake, it is crucial to verify that your broker is secure, credible, and trustworthy. Numerous individuals have fallen victim to unscrupulous brokers throughout the years, and it is essential to avoid becoming a target of a predatory broker.
In the United Kingdom, brokers are overseen by the Financial Conduct Authority and the Prudential Regulation Authority. Regardless of whether you reside in the UK or elsewhere, ensure that your gold trading broker is affiliated with the appropriate local regulatory organizations.
2. Competitive Transaction Expenses
Transaction expenses are an essential aspect of gold trading. These expenses usually come up as a commission or through the forex spread. It is important to receive value for your expenditure, but also to be cautious of brokers who present transaction costs that appear “too advantageous to be genuine.”
There is frequently a trade-off between transaction expenses and the broker’s quality, and it is your responsibility to identify a balance between minimal transaction costs and safety while choosing the perfect broker to trade gold.
3. Convenience of Depositing and Withdrawing Funds
Reputable gold trading brokers aim to facilitate the process of depositing and withdrawing your funds, ensuring that you can return for additional transactions. Avoid selecting a broker that complicates the withdrawal of your earnings. Both the deposit and withdrawal procedures should be efficient and seamless when dealing with a reputable broker.
4. Quality Trading Platform
Your trading platform is the hub of all trading activities. Select a broker that provides a user-friendly and intuitive trading platform. It is crucial to consider mobile compatibility, stability, and security. The recognized gold trading platform must provide all the necessary information at your fingertips, including news feeds and charting tools.
5. Customer Support
Your broker is tasked with enabling trades and ensuring that your experience in gold trading is as seamless and straightforward as possible. If your broker becomes unresponsive after you have engaged their services or proves challenging to contact, it is advisable to seek a replacement. Your broker ought to be supportive, well-informed, and dedicated to delivering excellent service for the duration of your professional engagement.
With an appropriate gold trading platform, trading in gold can prove to be a highly lucrative endeavor. These suggestions are intended to assist you in selecting the most suitable gold trading broker to meet your requirements.
Gold Trading Platforms
When evaluating a commodity broker, we always examine the quality of the trading software they use. We consider factors such as user-friendliness, design, compatibility, technical analysis tools, and resources for research and education.
The third-party gold trading platforms mentioned below have consistently proven their reliability over time and remain favored by commodity traders and brokers worldwide.
MetaTrader 4 (MT4) primarily caters to forex traders, yet it also facilitates trading in hard and soft commodities through CFDs, which encompass precious metals and energy resources. Although MT4 cannot be directly downloaded on Mac devices, it can be installed on computers running Windows 7 or later.
MetaTrader 5 (MT5) enables you to invest in a wide array of financial instruments, including commodities, stocks, currency pairs, bonds, and indices. This is the enhanced version of MT4, offering a broader set of features such as sophisticated charting tools, additional order types, level II pricing, automated trading, and Depth of Market.
MetaTrader WebTrader is ideal for those who prefer not to install extra software. It enables trading directly from a compatible web browser. Most importantly, WebTrader is not biased towards any particular operating system. It functions seamlessly on iOS, Android, Windows, Mac, and Linux devices.
cTrader features a sleek and appealing interface, making it ideal for beginner commodity traders. It can be used as a standalone software compatible with Windows 7 or later, and there is also a web-based version available. Users can take advantage of functionalities such as algorithmic trading, dynamic leverage, and copy trading.
How to Start Gold Trading?
- Select a broker: Choose a trustworthy broker to trade gold that provides gold trading through CFDs, ETFs, or the XAU/USD pair. Important features to consider are narrow spreads, sophisticated platforms, and regulatory supervision.
- Establish a trading account: Complete the application form for account registration and confirm your identity. Additionally, many brokers now provide demo accounts for practicing without the need to trade with actual funds.
- Funding your account: Transfer capital into your account using your chosen payment method. Verify the minimum deposit criteria and confirm that the broker accommodates your local currency.
- Choose your trading asset: Determine if you wish to trade Gold CFDs, Gold ETFs, or Forex pairs such as XAU/USD, following your trading objectives and risk appetite.
- Develop a strategy: Evaluate market trends to organize your trades, set risk management protocols, and identify entry and exit points.
- Implement your trades: Utilize your broker’s platform to execute trades, oversee positions, and efficiently manage your portfolio.
FAQs
Q. How do I select the best gold trading broker?
A. While considering the selection of gold trading brokers, things to consider include compliance with regulators, characteristics in the trading platform, fees and commissions, customer support quality, and the broker’s reputation. It is a must to select a broker following your own exclusive trading goals, risk tolerance, and trading style.
Q. What do the best gold brokers provide?
A. The most excellent gold trader offers tight spreads, high leverage, and competitive trading tools.
Q. How do I short gold when I am trading with an online broker?
A. If you think the price of gold will go down, you can short it using derivative instruments like CFD (Contract for Difference). With this derivative, you can also gain access to leverage so that you can make your position larger and gain more exposure. Shorting gold is as easy as opening a sell order.
Q. Can I trade gold with any forex broker?
A. Not every forex broker provides gold trading. It’s important to verify the asset list of the broker before joining.
Q. What is the minimum deposit required to start trading gold on the XAU/USD market?
A. The minimum you might need to deposit depends on the firm you choose, from as little as $10 to $1000. It is suggested to check with your chosen broker for gold trading about their specific requirements before you get underway.
Q. Can the same platform be used to trade other instruments besides gold?
A. Most platforms provide a wide range of trading options beyond just gold. You can also trade currencies, stocks, indices, and various commodities.
Conclusion
In general, the best gold trading brokers provide a variety of instruments, competitive pricing, and strong features designed to meet the needs of traders. Whether it is through sophisticated platforms, cutting-edge risk management tools, or extensive educational resources, these brokers enable traders to take advantage of the dynamic gold market with assurance and ease.