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BEST GOLD CFD TRADING BROKERS

Forex BrokerMax LeverageMin. DepositSpreadFull ReviewsTrade Now
500:1$200From 0.0 PipsRead the full review
500:1$200From 0.0 PipsRead the full review
500:1$200From 0.0 PipsRead the full review
3000:1$1From 0.0 PipsRead the full review
500:1$0From 0.1 PipsRead the full review
400:1$100From 1.8 PipsRead the full review
300:1$200From 0.0 PipsRead the full review
Forex BrokerMax LeverageMin. DepositSpreadFull ReviewsTrade Now
500:1$200From 0.0 PipsRead the full review
500:1$200From 0.0 PipsRead the full review
500:1$200From 0.0 PipsRead the full review
3000:1$1From 0.0 PipsRead the full review
500:1$0From 0.1 PipsRead the full review
400:1$100From 1.8 PipsRead the full review
300:1$200From 0.0 PipsRead the full review

What is Gold CFD trading?


Traders can profit from the price movements of commodities, such as the precious metal gold, without actually having to own any gold. A very common and popular way to do this is through derivatives trading, also known as CFD (contract for difference) trading. This way, a trader doesn’t actually buy any physical gold but rather enters into a temporary order to buy or sell a pre-stated theoretical amount of gold. Profits and losses are determined by changes in the gold price while the contract is active. All gold CFDs have a specified contract duration. The most popular CFD symbol for trading gold is XAU/USD as gold is traded against the greenback.


What are the benefits of trading gold with contracts for difference?


Trading CFDs has become very popular amongst traders and there a couple of exclusive benefits over other investments when trading gold as a CFD. For example, unlike copper, there is no expiration on the contract, so investments can be held as long as the trader wishes. Unlike stocks, gold offers perceived stability for many traders, especially in economically unstable times. While stocks are looked at as investments that pay off with the growth of the companies, gold is a safe haven in times of political turmoil.

Another benefit of trading gold CFDs is that CFDs can be leveraged. Using leverage is a popular way to increase one’s stake to gain bigger profits. On the other hand, using leverage in CFD trading or spread betting can lead to high risk exposure, where losses can also be increasingly high.

Also trading gold as a CFD costs only a fraction of the amount that we would need to buy physical gold.

One of the most significant advantages of trading gold CFDs is that it is an extremely liquid market. Buy or sell orders are executed in a few seconds. Especially as a day trader, you can profit from fluctuations within the day. Besides, there are very small or sometimes no commissions at all when it comes to gold CFD trading.

Depending on the broker, you pay a small commission and typical a low spread for it (distance between the purchase price and selling price). If the broker finances himself through the spread, this is slightly higher.

The bottom line, however, is that costs remain very low, and these savings add up over the year. The more you trade, the higher the advantage of switching to a CFD broker.

Depending on the broker and your location, there are different levers that one gets offered. In principle, gold CFDs can be traded from a volume of 0.1 lot per contract for difference.

How can I trade gold?


Nowadays, precious metals are traded particularly actively on the stock exchange. The main venue is the Comex, the commodity exchange in New York. The abbreviation stands for New York Commodities Exchange. In 2008, the stock exchange was taken over by the CME Group. It is headquartered in Chicago and is one of the largest options exchanges and the largest futures exchange in the world.

Unlike other commodities, the international gold market is a globe-spanning market with continuous 24-hour operation, thus investors can trade gold around the world market at any time. The London stock exchange, as an example, operates Monday to Friday from 8.00 am to 5.00 pm GMT.

After carefully selecting a broker that offers gold CFD trading and opening a trading account, traders can start trading gold from within any trading platform. As is the case with any other complex instrument in financial markets, investors can enter long or short positions when trading gold.

Another way to trade gold is with gold futuresGold futures are contracts that indicate how much gold will be delivered in the future at a predetermined price. These gold futures contracts are often used by investors to manage price risks.

Further alternatives 
How else could you trade gold? Well, you can buy warrants or other derivatives. However, the execution usually takes longer - and this also reduces the chance of getting the best price. Besides, you often pay a significantly higher spread to the issuer. And on top of that, there's a fee for the broker you trade with.

The physical trade is even more cumbersome. When you buy gold in a store, the price has already changed since you saw it at home on your PC. Also, the gold dealer around the corner has a shop rent to pay and fewer customers than an online broker. This means that the costs have to be distributed among fewer customers.

The price of physical gold is, therefore, always higher - simply because of the cost of producing coins or bars.

No question - owning physical gold and silver is not a bad idea and serves to maintain purchasing power, especially in times like these when central banks are creating money like never before in history.

Bottom line is, that those who want to be able to trade gold anytime with low costs, additional leverage and from wherever they want, are in good hands with CFDs. This is also since you can generate profits even if prices fall. This way, traders can also hedge their physical gold in the basement or vault with CFDs that bet on falling prices. (This is also possible with derivatives, but as explained above, you can act faster and more flexible with CFDs.)

Who are the best brokers that allow gold CFD trading on their trading platforms?


As always, a trader should make sure that the forex broker of choice is properly licensed and regulated. The best brokers are typically those that are registered with strong regulators and industry watchdogs such as the FCA (Financial Conduct Authority) in the United Kingdom, the ASIC (Australian Securities and Investments Commission) of Australia, or the CySEC (Cyprus Securities and Exchange Commission) of Cyprus.

One top forex broker we found offering currency exchange (FX), indices, and commodities trading is IFGM. This Australia based broker allows for a maximum leverage of up to 500:1, has a minimum deposit requirement of just $200, and low margin requirements on gold trading of just 1%. They are licensed and regulated by ASIC, allow trading on the popular MT4 trading platform, and offer low spreads and very competitive commissions. IFGM offer three types of retail investor account options. For example, their MetaTrader4 Pro Account shows the raw interbank spread received from liquidity providers, and a commission fee of just 0.003% is applied on the volume of the trade. No additional fees are charged for trading any Forex or CFD products with this account option.

Find The Best Gold CFD Trading Forex Brokers for your needs


To help you find the Forex broker that is best suited to your needs, take a look at our comparison table and ranking of best gold CFD trading Forex brokers above. If you require more in-depth information or are looking for more brokers to choose from, check out our detailed individual broker reviews and additional comparison tables.