Best Brokers for Gold Trading Online

Forex brokers are online companies that allow us to access the currency market and other financial markets, including precious metals, stocks, commodities, indices, and others, through electronic trading platforms. Brokers act as intermediaries between operators and markets. Today there are a large number of brokers with many differences in the services they provide, therefore, we must choose a broker that offers us the best trading conditions and additional quality services.

It is important that when choosing from our broker, we invest the time that is necessary since otherwise, we may regret our choice in the future. We must always remember that the one we choose is a company to whom we will entrust our money.

7 Best Brokers to Gold Trading Online

    • Online Since 2011
    • Regulated by FSA (Saint Vincent and the Grenadines) and CySEC
    • Spread From 0.4 Pips
    • 5 Digit (5 Decimal Pricing)
    • Leverage Up to 1:500
    • MetaTrader 4 Platform
    • Free Swap & Commission
    Open Account
  • XM
    • Online Since 2009
    • Regulated by ASIC, CySEC, FCA (UK), IFSC
    • Spread From 1 Pips
    • 5 Digit (5 Decimal Pricing)
    • Leverage Up to 1:888
    • MetaTrader 4 & MT5 Platform
    • Free Swap & Commission
    Open Account
  • FBS
    • Online Since 2009
    • Regulated by CySEC, IFSC (International Financial Services Commision) Belize
    • Spread From 0 Pips
    • 5 Digit (5 Decimal Pricing)
    • Leverage Up to 1:3000
    • MetaTrader 4 & MT5 Platform
    • Free Swap & Commission
    Open Account
  • Exness
    • Online Since 2008
    • Regulated by CySEC, FCA UK, FSP, BaFin, CRFIN
    • Spread From 0 Pip
    • 5 Digit (5 Decimal Pricing)
    • Leverage Up to 1:2000
    • MetaTrader 4 & MT5 Platform
    • Free Swap & Commission
    Open Account

Next, we will show how to choose the best gold trading brokers:

  • Investigate the reputation of the broker

best gold (XAU/USD) trading brokers

An impeccable reputation is mandatory. There is no way to have 100% satisfied clients in any type of product or service, but even so, before choosing any broker, we must verify the reputation of the Forex broker that you are considering.

This can be done simply by searching the Internet, searching for posts and comments on specialized forums, blogs, and websites, and analyzing the overall tone of the posts. We can also search for information and opinions on social networks, such as Facebook or Twitter. Ideally, the broker in question should not have any problems related to withdrawing funds, opening a trading account, and the like.

  • Regulation

Regulation is one of the most important points to keep in mind when choosing a broker. A regulated broker is anyone who complies with the norms, rules, and certificates established by one or more private or state financial regulatory bodies.

It is important that the broker that we are going to choose is regulated by a reliable body and that it offers you guarantees since its objective is to supervise and regulate the registered companies to avoid crimes and, ultimately, protect investors.

An unregulated broker can put the security of your investment at risk, so we must be very careful.

The strictest and safest regulations that forex or commodity trading broker may have are the FCA in UK, ASIC in Australia and the NFA and CFTC for the USA.

  • Verify the trading platform used by the broker

A very important aspect to take into account when choosing a Forex broker is the trading platform it offers us. All online brokers allow the user to operate in the market easily through a trading platform, an application serves as a connection between the operator and the broker.

This platform is the work station where the investor will carry out practically all his market analysis work, and at the same time, it will be how he will carry out the operations. In most cases, brokers offer free demo accounts through which the client can test the trading platform it offers and its main advantages and disadvantages without risking real money. Before choosing a broker, it is important to test your trading platform before opening a trading account and depositing money into it.

When we test the trading platform it is very important:

– Check that the platform is equipped with an account summary where the client can verify the account balance, the history of the operations, the open positions, the available margin, and the general profit/loss statement.

– Verify if the platform offers real-time quotes for currency pairs and other instruments traded on the market.

– Check if the platform has a complete package of analysis tools that include charts. In most cases, trading platforms come with an integrated market analysis package, especially technical analysis indicators that can be applied to real-time charts. In some cases, brokers usually charge for the use of these analysis tools, however, due to competition most of these companies offer them for free. A platform that is easy to use and has a good package of this type, is surely the best option for the client.

  • Account types and minimum requirements to open an account and start trading

Before opening a trading account, the operator needs to analyze how much capital is available to open the account. This may decisively affect our choice when choosing a broker to start trading since each company has a minimum deposit to open an account. In this aspect, the trader can find all kinds, since there are brokers that do not require a minimum deposit, while others require a minimum of $ 10,000 or more.

Of course, this is not the only thing to take into account, since each broker has a determined minimum size per operation. If the minimum size per trade is very high and the trader deposits little money in the trading account, he will have very little margin to manage the risk of his operations.

However, brokers have mini accounts, which can be opened with a minimum of $ 100 to $ 500 depending on the broker and have a minimum operation size of one mini lot, which is equivalent to 0.1 standard lots. Also, brokers usually offer micro accounts that can be opened with less than $ 100 and can be operated through micro-lots equivalent to 0.01 lot. They are ideal accounts to start trading in the market with real money but risking little capital. And in some cases, brokers allow so-called odd lots, which allow you to choose fractions to the operator’s liking in such a way that you create your trade size to your liking.

Most Forex Brokers that offer gold, allow us to make operations as small as 10 ounces of gold and even 1 ounce in some brokers.

  • Consider trading costs when choosing a Forex broker

When an operator analyzes a broker, he must especially take into account the operating costs since the higher these are, the lower the benefit that we will obtain. Therefore, the costs that we must take into account are the following:

  • The spreads
  • The commissions
  • The rollover or swap

The spread is the amount that the broker adds to the price of the instrument and comes to be the profit that this obtains for each transaction that the operator performs. For its part, a commission is a fixed amount that the broker charges the client for making a transaction and depends on the size of it and the instrument with which it is being traded. A broker who adds a spread to the quotes usually does not charge commissions and vice versa, this depends on the type of broker. Generally, the spread and commissions for the gold are quite high.

The rollover is defined as a fee that the broker charges to maintain an open position overnight, this can be both negative and positive, and depending on the case it can benefit the trader. Some brokers do not charge the rollover, however, the operator must inform himself in advance if the broker charges or not rollover and if so, what are the rates that apply. Rollovers originate from the difference between the interest rate of the base currency of the pair and the interest rate of the listed currency. The greater the difference between the two types, the greater the rollover.

  • Leverage and margin requirements by the broker

At this point, the operator must be careful, since a margin requirement can be very positive if our operations are carried out as we want, but otherwise, it can cause us large losses in which case we wish we had a higher margin requirement. Therefore the issue of leverage and margin should not be taken lightly and the trader should carefully analyze what is best for him. Generally, in most brokers, the margin requirement ranges from 1% onwards. The most recommended is to use a medium level margin requirement that allows adequate risk management.

Regarding leverage, many traders err in believing that the higher the level of leverage offered, the better it will be for him. However, in this case, the leverage must also be used with care, since very large leverage can produce too high losses. Normally, brokers offer a leverage of 1: 100 for standard accounts and 1: 200 for mini accounts, which is more than enough for any trader looking to make good profits in the market. Regarding those leverage levels of up to 1: 500 offered by some brokers, they can produce a lot of money in a short time or leave the operator’s account without funds.

Also Read: The Pros and Cons of High Leverage in Forex Trading

The most recommended for a novice trader is to use the traditional leverage of 1: 100. Therefore, when choosing a Forex broker, it is important to see if it gives us the leverage we require.

  • Speed ​​of executions and stability of servers

Financial markets like Forex are characterized by periods of rapid movement with high volatility. For this reason, it is important to have a broker account with servers that do not crash, are highly stable, and allow the trading platform to perform fast and efficient executions of orders. In this way, it must be guaranteed that the trader can open a position in the market at the price he wants, avoiding what is known as slippage and requotes, which cause the trader to come in late and sometimes at an unwanted price, leaving him in a position. compromised or even orders are not even executed.

To ensure this, the client is also required to have a high-speed Internet connection that ensures the rapid sending and receiving of information both to and from the broker.

The quality and speed of executions can determine the success or failure of a trading strategy, especially scalping. When choosing a trusted forex broker, we will have to verify how good their executions are, and especially if they are fast.

  • Quality of customer service

A quality broker must have good customer service that works 24 hours a day, at least Monday through Friday. Brokers typically allow their clients to contact their support staff via email, phone, and live chat on the company’s website. The customer service of any broker must be able to resolve any doubts that the customer has regarding the services provided by it. Likewise, you must respond promptly, and not leave the client waiting days or weeks for a response.

We can say that when choosing a Forex broker, customer service must be one of the most important factors. You never know when we may have a major question or when a problem may arise with our operations.

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