Best Gold Trading Forex Brokers 2023
Starting from 550 BC, gold has currency value in the world monetary system. Gold used to be circulated as currency in most parts of the world before the inception of paper money. Although gold is not used as currency anymore, still its value has not decreased. Nowadays, people trade gold online to make some money from it. However, if you want to trade gold, you must need gold trading brokers. The best gold trading platforms will give you the opportunity to trade the gold with other currencies, usually against the USD. So, the gold trading platform is also known as the XAUUSD broker. To achieve the most benefits, there is no alternative to trade via the best broker for gold trading.
This article will provide you a detailed idea about gold trading and the ways to find the best forex broker for trading gold.
Usually, gold has a long history of cultural, emotional, and financial value. Almost all over the world, gold signifies a sign of wealth. In different cultural and socioeconomic situations, gold represents a financial value too. Over the years, gold's value has been relatively stable, and value has increased.
Why Do Gold Prices Move?
Like all the trading/ exchange markets, gold prices move due to supply and demand. So, if the supply increases and the market become saturated, and the gold demand doesn't increase, the price will fall. Alternatively, if the demand increases but doesn't have many supplies, the price will increase. However, there are some key factors that work as a catalyst that impact gold's price.
Best Gold Trading Forex Brokers List
Uncertain Political and Economic Situation
When it comes to determining the asset value, Gold is considered one of the safest assets. So, it is used as a hedge when there is any inflation. Gold is known as a safe haven in terms of an asset due to its traditional store value as well as stability. Gold comes in handy during inflation as traders can store their wealth by buying gold. So, the investors can sell out the stored gold when the situation gets normal as gold's value never drops.
Gold's supply is not infinite; hence, new gold mining and discoveries lead to a move in the gold price. However, gold mining still supplies 75% of total gold demand. So, if there are any new discoveries of gold will drive the price for the short term. Apart from this, recycling old jewelry is also another good source of gold supply.
Usually, jewelry, tech, and investment companies have the most demand for gold. The continuous demand for gold signifies that the market is more or less stable. However, as a trader, you should also bear in mind that the economic uncertainties reduce the jewelry demand, but the online traders will keep the flow, and the price will not change extremely.
We all know that gold is priced in terms of US dollars, so any fluctuation in the dollar supply will impact gold prices. For instance, if the dollar price falls, anyone aiming to buy gold in another currency will have an advantage.
Gold Trading vs Forex
While forex market has the largest financial market in the world, gold is one of the most popular trading instruments. Further, the forex market is very volatile but the gold market is highly stable. Although the forex market comes with an extreme amount of opportunity, it possesses a high risk too. However, gold doesn't have many risks like forex, and trading gold with the best XAUUSD broker is almost risk-free. Furthermore, you can even hold the gold for a long time too and take advantage in the future if the present value is not satisfactory.
How to Trade via Gold Trading Brokers?
You can start trading gold in just four simple steps. First of all, you are required to sign up with the best broker for scalping gold. We have explained how to find the best gold trading brokers later in this article. Once you found your desired broker, you need to choose the available gold market you are willing to trade. After that, you will be on the third step, in which you need to open your position. Next, monitor the trade and do the technical and fundamental until you are ready to sell/ release the position.
How to Choose the Best Gold Broker?
Like all other asset classes, gold is normally priced in US dollars. However, sometimes the asset faces a reverse relationship with the US dollars. It is because of the diversification of the world economies, which is called commodities. If there is any high volatility in the financial market, many traders go for gold trading as a safe investment.
Many traders add gold to their portfolios as an irrelevant trading strategy. It is because gold provides highly diversified trading activity and many traders like to engage in gold trading. Nevertheless, gold is one of the most liquid assets in the world, which brings excellent trading opportunities. Therefore, if anyone is looking for a long-term trading investment opportunity, gold is the answer, and they can go for the forex brokers that trade gold.
Global debt is increasing, and gold sees a rise, which will most likely remain the same in this decade and so on. Furthermore, the multiple ways of trading gold give it a new dimension. Not only the retail traders but the professional traders, banks, institutional traders all are involved in gold trading. However, professional, institutional, and banks usually go for the physical gold trading while the retail traders gain money through the derivatives with the CFDs. But all the traders need trustworthy gold trading brokers. That is why our well-acquainted research team has conducted thorough research to find out the way to get the best gold broker.
Choosing the best online gold trading sites will take you through the way to earn more money. Following are the top measures to choose the best gold trading platform.
We listed this as the first step while narrowing down the criteria list. Regulators enforce the rules to ensure the trader's safety. They also make sure that the broker keeps the investors fund separated from the corporate fund. So, the broker cannot use the investor's fund for internal use. Regulatory body also defines a trustworthy broker. So, in the very first step, it is necessary to check the broker's regulation, whether you select the offshore or local broker.
Now, you may ask why is it necessary for gold brokers to be regulated?
Regulated brokers usually help you to remain worry-free and reduce the underlying risk. On the other hand, an unregulated broker may lead to poor service and become responsible for your financial harm.
Furthermore, regulated brokers are needed to stop fraudulent activity. Usually, most of the unregulated brokers are active in fraudulent activity using the client's fund. So, the regulatory authorities refrained the brokers from doing so.
Best Platform to Trade Gold
Usually, MT4 is the most reliable best gold trading platform, and almost all the brokers offer MetaTrader 4. It totally supports automated trading along with the copy trading feature. So, you can follow other traders and copy their strategies and gain money out of the copying the expert traders.
While choosing the best broker for gold trading, make sure your intended broker offers the MT4, the best online gold trading platform.
While the MT4 is the best platform to trade gold, you may also consider other platforms too.
Tools and Technology
Involvement of the latest technology ensures quality pricing as well as the ease of the order execution process. Furthermore, newly invented tech for the trading community ensures the limited slippage with the improved pricing.
So, as a part of the latest tech, the best gold trading brokers should offer VPS hosting. Usually, the VPS is free if the trader meets certain criteria set by the broker.
Furthermore, a trader should choose the broker that offers a comparative trading tool, which may include the third-party plugin, analytics, add ons, market forecasting, quality research, and more. If you find a gold forex broker that invests more in developing the tools, you can choose that without a doubt. This kind of broker tends to ensure the client's satisfaction.
So, it is recommended to avoid the gold trading platform that provides the bare minimum for the clients.
Nevertheless, the improved tech and tools work on helping gaining profit for the traders.
Fees and Commissions
Fees and commissions are considered as the direct trading cost that impacts the trading strategy and profitability. So, our team recommends finding the best broker for gold trading that offers tight spreads for gold as well as other offered assets. So, you should go for the gold low spread broker to get benefits from the low spread.
Besides, traders should also know the complete trading cost imposed by the gold trading brokers. In this case, choosing a transparent broker is recommended. The broker should provide all the necessary fees and commissions needed for a trade. As a result, you will know what fees are coming on your way.
Deposit and Withdrawal
While doing research on the best XAUUSD broker, we have found that all the brokers offer credit or debit cards for the payment method. Apart from this, you should also be considered to have access to other transaction methods too. Most importantly, you will need to find the gold trading forex brokers that offer the fastest deposit and withdrawal.
The fast transaction with low fees is beneficial to continue everyday banking services. Furthermore, it also helps the client to file taxes each year.
When it comes to the offered services, traders may choose from online, full service, or discount brokers. So, we will recommend a broker with lowest spread on gold and eventually assist the building client's portfolio.
When you find a broker trading gold with bonus offerings, you should forward with caution because most of the bonus offers have hidden terms and conditions. Therefore, you need to be careful about receiving the bonus offerings. Although, bonuses and other offerings can boost the trading activity significantly. Choosing the low spread broker for gold can be the solution.
The best broker for XAUUSD always explains their service details on their website to manage a seamless operation. However, most of the time, traders don't need to contact customer support, but you have to select a broker with the best customer service as you may need to contact the support sometime.
Hence, a fast response from customer support is necessary. Usually, brokers offer 24/5 customer service, while a few brokers may offer 24/7. However, all the brokers provide support during business hours for sure.
Gold Investment Options
Most gold trading brokers offer different investment opportunities for their clients. Best online gold trading sites allow traders to diversify their portfolios by offering multiple investment options. It is important to have numerous investment opportunities because they can help you to maximize the earnings from multiple investments. Following are the most popular gold investment options offered by the broker trading gold.
Physical Bars and Coins
For long-term investors, purchasing a physical bar as well as coins gives the best approach. It basically allows the gold's ownership and is stored in highly secured vaults. However, the investors will need to pay security money and storage fees. Storage gold at home is highly discouraged.
The investors intending passive investment approach can go for the EFTs through the forex brokers that trade gold. In the EFTs, golds are usually stored in a physically verified vault. But the EFT investors look for exposure to the price movement and its hedging abilities. Nevertheless, in EFT, investors don't own the gold actually, and they can trade regular exchange hours.
Shares on Gold Mining
Sometimes gold mining companies offer shares. So, investing in shares in gold mining is considered an indirect investment. However, it is the riskiest among all the gold investment options. But the profit potential is higher in the gold mining shares.
Investing in mining is more complicated than trading via the different trading platforms. Nevertheless, gold mining investment is suitable for institutional investors, and retail traders should stay away from it.
Gold Trading Accounts
It is highly important to trade via the right gold trading accounts. And for that, you must need the best broker for gold trading. Before you rush to gold trading, it is mandatory to know the gold trading accounts offered by the best broker for XAUUSD. It has been seen that many newbie traders go for the standard account at the beginning of their trading career, which is the completely wrong move. So, you will need to know your capabilities and use the account accordingly.
Micro gold trading accounts are important for the new trader, who is trying to find a way through gold trading. So, if you are new in trading and want to trade gold, you should find a broker with less than a $1000 initial deposit. Besides, you should attain some knowledge of forex trading. Usually, the lot size on a micro account you will find is 1,000 units. It can offer the traders access to the live gold markets. Normally the lowest transaction size is 0.01 lots.
It is the same as the forex standard account. Usually, a gold account offers trading through a $10,000 minimum deposit. So, any account that requires a minimum deposit between $1,000 to $10,000 is called the gold account. The one lot in the gold account represents the 100,000 units. Sometimes brokers reduce the maximum leverage in gold accounts and offer numerous trading features.
VIP or Platinum Account
Some brokers offer platinum or VIP accounts for gold traders. This type of account often requires a $25,000 minimum deposit or more than that. The best thing about the VIP account is that it offers low leverage. It also comes with some non-trading activities such as event invitations, tickets for on-demand venues, and other exclusive benefits for the clients. Usually, the brokers offer an identical trading account for platinum clients.
How Much you Need to Invest in Gold Trading Brokers?
The investment amount totally depends on you and the account you have opened. You will need to invest according to the account's capability.
However, to calculate the exact investment amount, you will need to know the required margin. You may check the following formula to know your required margin.
Required Margin = (lot size * Contract size * Market Price) / Leverage
Let's see an example to find the required margin,
Suppose your broker offers 1:6000 leverage for gold trading. Let's assume you use 0.01 lot size and consider the contract size is 100 ounces, and each ounce is worth $1600. So, the required margin is,
This represents that you may even trade the gold with 4 or 5 bucks.
Can you Face loss from Gold Trading?
As we have mentioned earlier, gold's price remains stable, and you may hardly face loss. But it is true that the price may fluctuate and go below your buying price. In that case, you can hold the gold for the long term and sell it when the price increases again. But above all, you must need the best broker for scalping gold.
How do you know if your Broker is Trusted?
You may check the broker's trustworthiness in two ways. Firstly, you may check the proper regulatory body, which we have explained in this article earlier. Another way is looking for reviews on gold trading brokers online. This will give you the opportunity to check the reviews from real users. Hence, you can measure the gold broker's validity easily.
There is no doubt that investing via different gold trading offerings is safest. Although it might be a slow process for retail traders, trading with the best gold trading brokers will not incur you a loss most of the time. So, there is no alternative to choosing the best broker for gold trading.
This article will work as a bible for you to find the gold trading forex brokers. Furthermore, if you find it time-consuming to choose a broker, you can also select from the best gold trading brokers we have listed here in this article. Also, you may consider these brokers as the lowest gold spread broker. While you choose the broker from our list, don't forget to have a clear understanding of the best online gold trading platform.