Gold is a highly traded commodity. This precious metal is commonly regarded as a tremendous source of wealth, and it is also recognized as a dependable safe-haven asset. People are compelled to invest in precious metals, such as gold, due to market insecurity, primarily geopolitical and economic factors.
Since the 2008 crisis, many individuals have gravitated to gold to hedge against market volatility. The trouble with gold is that it requires much room to store, and gold is dense. Consequently, more and more individuals are trading it as a CFD. This involves gambling on the asset’s price fluctuation instead of owning the actual investment. Numerous brokers provide it on their platforms, with MetaTrader 4 being the most common.
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How Gold Investing Functions
Gold has a lengthy history for investors and merchants being one of the earliest market commodities to be traded. The precious metal also frequently sells in large, sweeping patterns, making it excellent for long- and medium-term trend-following trading methods and for investors seeking capital appreciation by keeping a hard asset.
Short-term tactics such as day trading and scalping are also possible on the gold market. However, their performance might rely on market conditions, as they perform best in turbulent markets. However, traders employing these highly dynamic tactics tend to pay more in charges and dealing spreads than investors who seek to purchase gold on falls and may store it for years.
Your choice of gold broker may also depend on whether you want a long-term investing approach or a short-term trading strategy. Moreover, for people who desire to invest in gold over the long term and utilize it as a hard currency if circumstances get difficult, gaining safe physical custody of the metal once it has been acquired might be a viable alternative.
Typically, while investing in real gold, one waits for a downturn in the gold market before purchasing the metal. Then, you accept delivery and store the gold in a highly secure location. If the market rebounds to a level you believe it will retrace, you may sell part of your gold and wait for another downturn to repurchase it.
History and Prospects for Gold
As a store of value and an invincible hedge against inflation, gold has enjoyed a remarkable run as one of the most popular hard currencies. Even if individuals lose trust in the value of government-issued fiat or paper currencies, they will likely continue to use gold in transactions.
In addition, the value of precious metals such as gold tends to increase dramatically during tumultuous geopolitical events, such as war breakouts, big elections, military coups, and natural disasters. Even U.S. interest rate fluctuations, changes in central bank reserves, and gold production-related events may impact gold prices worldwide.
When unanticipated, unpleasant events may significantly raise the precious metals market, remarkably the price of gold, as investors flee to safety. Moreover, because precious metals such as gold have traditionally been seen as safe havens in times of economic hardship and social turmoil, investors can acquire them to serve as a widely recognized form of hard money in an economic collapse.
Fundamental and technical analysis are your best bets for predicting the future direction of gold prices. Those interested in investing in gold may also analyze market mood indicators as a crucial predictor of the market’s future direction. The Commodity Futures Trading Commission (CFTC) publishes a popular mood survey known as the Commitment of Traders (COT) report.
The CFTC’s COT report, released every Friday at 3 p.m., categorizes the long and short open interest in gold futures and options by the kind of trader holding the position. Excessive available interest imbalances are indicative of a potential market reversal.
How to Choose the Best Online Gold Trading Broker
When it comes to online gold trading, it is just as vital to choose the ideal gold broker as it is to build your tactics. This is because the broker should be able to provide you with the necessary tools and assistance to conduct online trading operations. Therefore, the following are the most important aspects to consider while selecting the best gold trading broker:
Regulation is the first and most crucial factor you must consider. You must determine whether or not the broker supplying the platform for online gold trading is regulated. You are required to trade through a regulated broker. This preserves the security of your hard-earned assets, as authorities require that client monies and business funds be kept in separate accounts.
The regulatory authorities monitor the broker’s financial stability and honesty. Commodity Futures Trading Commission (CFTC) and National Futures Association (NFA) in the United States, Financial Conduct Authority (FCA) in the United Kingdom, and Cyprus Securities and Exchange Commission are the primary regulatory agencies (CySEC).
The most significant gold trading broker will always provide numerous trading platforms that allow you to trade regardless of your expertise. These brokers have demo accounts, which will significantly assist you if you are a novice trader. Before using the speedier and more sophisticated trading platforms, you may also obtain helpful experience to stabilize your footing. Multiple platforms also provide great flexibility, allowing you to select the one that best meets your needs and risk tolerance.
Technology and Business Instruments
The top gold brokers will always give you the technical assistance and trading instruments you need to have a successful trading experience. If you are a person who is constantly on the move, the broker should provide you with apps that are compatible with your mobile device. This will allow you to access the trading platform on your Android or Apple smartphone, tablet, etc., regardless of your location. The media developed for mobile devices should be identical to those set for personal or desktop P.C.s.
In addition, trading platforms should include the necessary tools for trading, such as news feeds, technical analysis capabilities, pip calculators, margin calculators, etc., to take quick action. Some brokers provide a dashboard that displays the status of pending orders so that you can trade with the fewest amount of clicks possible. High-quality trading platforms allow you to take advantage of changes as they arise and personalize your settings so that you don’t experience any difficulties while making an order.
The services given by the gold broker are also an essential factor to consider. There are several brokers, including full-service online forex brokers, who facilitate international trading and provide the most significant degree of client care and cheap brokers. The second type may be less expensive than the former, but they may not offer the necessary degree of assistance. Therefore, you must select the appropriate gold trading broker depending on your needs.
When choosing the best gold trading broker, it is also essential to consider the minimum deposit required to begin trading, trade size, leverage, and margin requirements. The currency options available for operating your account, the methods available for transferring funds into your trading account, and the ease with which you can withdraw funds from your account.
The investment alternatives provided by the online gold broker are one of the most important factors to examine. The best gold brokers would provide several investment choices for the precious metal. You should be able to invest directly in gold, exchange-traded funds, mutual funds, etc. This is highly significant since options enable you to diversify your portfolio and enhance investment returns.
Online gold trading brokers generate money by charging fees on trades or offering spreads. It would help if you compared the rates offered by the online gold trading brokers you’ve selected based on other parameters. Multiple websites enable you to compare the fees imposed by various gold dealers. This is crucial since comparison will help you determine whether the broker’s services are suitable to your situation and whether you can receive equivalent services at a lower price or commission rate.
However, costs should not be your only consideration when selecting an online gold broker. You must include the charge component while calculating your expenditures vs. advantages. Examine the services provided by the broker and determine which ones you’d want, then calculate your expenses appropriately. Ensure that the broker will supply all the necessary services without charging high costs.
These are the most crucial factors to consider when selecting the best gold broker for online trading. You must devote sufficient time and do an exhaustive study to optimize your trading of precious metals.
10 Best Online Gold Trading Brokers
1. TOP1 Markets
TOP1 Markets offers online trading services for foreign exchange, commodities, stocks, indices, and other products. Using our platform, investors may trade any commonplace products on the global financial market using a range of leverage. We provide mobile trading applications and web-based trading terminals with meager transaction fees, complimentary investing education seminars, and an industry-leading customer support environment. Investors may trade from price movements by selling several assets, such as Forex, commodities, stocks, and indexes.
TOP1 Markets provides a whole variety of trading and investment services to overseas investors in over ten countries, including Malaysia, Taiwan, Vietnam, Thailand, Indonesia, India, South Korea, and Spain.
Adventures of TOP1 Markets
Connect To Global Market
With rapid order execution, TOP1 Markets links you with the global market.
Diverse Account Types
TOP1 Markets’ account choices include ECN, high leverage, and Islamic accounts.
Investor Fund Protection
TOP1 Markets maintains separate accounts for customer funds and conducts periodic external audits by an international accounting firm that offers negative balance protection to eliminate trading hazards.
English, Mandarin Simplified, Mandarin Traditional, Thai, Vietnamese, Spanish, Malay, Korean, Indonesian, Tamil, and Hindi.
2. MultiBank Group
MultiBank Group (MultiBank) was established in 2005 in California, United States. It is worldwide regulated by authorities such as the German Federal Financial Supervisory Authority (BaFin), the Australian Securities and Investments Commission (ASIC), and the Cayman Islands Monetary Authority (CIMA), among others. This evaluation focuses on the services provided by the website.
Clients may trade on over 20,000 markets, including Forex, Indices, Shares, Commodities, and Cryptocurrencies, using the popular trading platforms MetaTrader 4 and MetaTrader 5, accessible through Windows, Mac, Web, and Mobile platforms.
The broker provides clients with ECN Pro, MultiBank Pro, STANDARD accounts, and demo and Islamic trading accounts. ECN Pro spreads are competitive and may start from $0 with fees, and multiBank Pro and Standard versions are free of transaction fees.
In addition to being the best gold broker, Pepperstone provides three gold assets in a secure trading environment. Traders may diversify their gold holdings using the XAU/USD, a minimum spread of 5.0 pips and an average spread of 15.05 pips, the XAU/EUR, and the XAU/AUD. The minimum markups for the XAU/USD pair are equal, averaging 29.0 and 43.0 pips. Pepperstone also offers 27 unique indicators and add-ons for the MT4/MT5 trading platforms, making it one of the brokers with the most significant offerings. Traders may additionally utilize the cTrader trading platform.
XTB is a CFD platform covering Forex, indices, commodities, stock CFDs, ETF CFDs, and cryptocurrencies, and it has won several awards. For foreign exchange, XTB offers 48 currency pairings with minimal margins. Customers of XTB can trade on either the xStation five or the MT4 platform. This broker provides up to 200:1 leverage on margin accounts. CFDs on stocks and ETFs are subject to a 0.08 percent charge per lot across both account types.
XTB was established in 2002 and had its headquarters in Warsaw. In European markets, it is regulated by the IFSC, FCA, KNF, and CySec. XTB provides a free sample account and a collection of Trading Academy courses for novice and intermediate traders.
Exness was founded in 2008 and is a joint brand name of Nymstar Limited, a Securities Dealer registered in Seychelles that is authorized and regulated by the Financial Services Authority (FSA) of Seychelles, and Vlerizo (Pty) Ltd, a Financial Service Provider that is licensed and regulated by the Financial Sector Conduct Authority (FSCA) in South Africa.
The broker allows clients to trade on more than 200 financial CFD products, including Forex, Shares, Indices, Energies, Metals, and Cryptocurrencies, using its WebTrader platform and the world recognized MetaTrader 4 and MetaTrader 5 platforms for Web, Windows, and Mac.
E*TRADE is a prominent online broker that provides access to more than 200 exchange-traded futures-related products, including gold futures and options. The broker also offers clients access to gold mining companies and gold exchange-traded funds.
The E*TRADE platform is user-friendly and straightforward, and the broker includes a mobile app. Futures contracts incur a $1.50 flat cost, and a $10,000 minimum deposit is required to open a futures trading account.
E*TRADE provides its customers with access to high-quality research from CME Group, the largest futures exchange in the world.
TradeStation enables the trading of over 80 futures products, such as gold futures and options. Its powerful desktop platform allows you to trade stocks, futures, and opportunities from a single interface.
In addition to a range of advanced order kinds and market analyses, it also provides a mobile app. Trading 300 contracts or fewer gold futures costs $1.20 per contract, whereas trading at least 20,000 contracts costs $0.25 each contract.
To trade gold futures and options via TradeStation, a $5,000 minimum deposit is required, and you must be willing to pay the broker’s software usage fees if your account balance is less than $100,000. However, this requirement will be eliminated if you perform at least ten round-trip futures deals, 50 options contracts, or 5,000 shares.
FBS is a trademark of FBS Markets Inc, licensed and regulated by the International Financial Services Commission (IFSC) of Belize and the Financial Sector Conduct Authority of the Republic of South Africa (FSCA). The Cyprus Securities and Exchange Commission has granted Tradestone Limited authorization and oversight and operates FBS in the E.U. and the U.K. (CySEC). Intelligent Financial Markets Pty Ltd operates FBS in Australia, governed by the Australian Securities and Investments Commission (ASIC).
FBS provides the possibility to trade CFDs on Forex and Stocks, Indices, Metals, and Energies on the MetaTrader 4 and MetaTrader 5 trading platforms for PC, Mac, and Web, Android, and iOS devices. Moreover, clients from countries governed by IFSC, FSCA, and CySEC can trade on the FBS Trader app, an all-in-one trading platform. Through the FBS CopyTrade app, clients from countries subject to IFSC and FSCA laws can also use copy trading services.
AvaTrade has one of the most robust educational offerings among gold brokers. SharpTrader, so successful and in-demand that AvaTrade split it out, provides novice traders with over 40 classes and 200 videos. It remains among the most comprehensive and high-quality instructional resources. Support available 24 hours a day, seven days a week, and in 14 languages increases the attraction of AvaTrade for novice traders. It only allows a spread of 34.0 pips for the XAU/USD pair. Top1 Markets, which maintains one of the most regulated trading environments with monitoring from seven regulators, is trusted by over 300,000 customers. Its principal regulator is the Bank of Ireland, making AvaTrade a broker with direct oversight from a central bank.
FXTM, which stands for ForexTime, is a platform that focuses primarily on foreign exchange, and this concentration distinguishes it from most other Forex-focused trading platforms and tools. CFDs are offered on more than 50 currency pairings, including major, minor, and exotic currency pairs. There is maximum leverage of 1000:1.
Spreads are competitive across all platforms, and trading is available 24 hours a day, five days a week. FXTM is headquartered in Cyprus and is authorized by the International Financial Services Commission (IFSC), the Cyprus Securities and Exchange Commission, and other E.U. and non-EU regulators. There is a free demo account accessible.
After determining your gold trading or investing goals, you will have determined if a gold broker makes sense or whether real gold is what you seek.
If you want to utilize a broker, you can trade those that provide the gold-related products you’re most interested in trading, such as spot gold, gold CFDs, gold futures and options, gold mining stocks, and gold ETFs. After identifying the best broker for your requirements, you should test your trading strategy utilizing a sample account paid with virtual currency.
If you choose to invest in real gold, you must acquire it, securely take ownership of it, and then keep it in a secure location. A dealer specializing in selling gold metal and other gold investment products can provide physical gold.