Which Broker To Use For Trading Gold
Selecting which broker to use for trading gold can be tricky. We have online forex, cfd, futures, options brokers and brokers that are mix of all above.
Most brokers typically offer gold trading where you mostly trade gold as a forex pair or trading gold spot price.
Futures only brokers only allow you to trade gold futures contracts that trade at CME Comex commodity exchange in Chicago.
Best mix would be to use for gold trading a broker that lets you trade gold spot and futures markets.
This way you have more choices which gold market online to trade.
If such brokers also offer you to trade gold options or options on the gold futures markets, then this sounds like a broker you want to open a trading account at.
Are All Gold Trading Brokers The Same
Well, gold trading brokers definitely are not the same.
Variety and competition for clients is rough. This is why each broker tries to apply a different strategy to attract gold traders to trade with them.
What To Look For When Picking A Gold Broker
Most important things you have to look at when picking a gold broker to trade financial markets online are…
Is broker regulated by a financial regulator?
Financial regulator plays big role in deciding if you want to pick a regulated broker or not. Non regulated brokers are more likely to run with your money.
While regulated brokers are required by law to have clients money in a separate bank account.
Also most brokers have their clients fund insured in case they become insolvent, then clients funds are reimbursed up to a certain amount like $100,000.
Customer support speed and availability
If brokers do not have a live chat then this doesn’t look good.
Financial markets like forex trade 24h a day for 5 days so you need to be able to speak with support if something goes bad.
Some brokers do not even have phone support – just email.
Don’t bother with such brokers.
Pick a broker that has a live chat, phone support and fast email response.
Available methods to deposit and withdrawal
This one is not a deal breaker but the more options brokers offer you to deposit and withdraw, the better.
More important in the deposit and withdrawal department is SPEED of deposit and withdrawals.
Top brokers use methods that allow clients mostly instant deposits and withdrawal that is approved and processed within 24 hours.
If the broker you plan on opening an account tells you they take up to 5 business days to process your withdrawal, simply RUN from such a broker and never look back.
Amount of Instruments Offered To Trade
If you mostly plan to trade online gold and few forex pairs, then most brokers will be just fine.
But if your desired broker offers plenty of instruments, then even better.
How Much Fees Does Broker Charge
Now this one is maybe most important if you open lots of trades, especially if you are an intraday scalper hunting for 2 to 10 pips or ticks.
If you are looking into 3 brokers that offer pretty much the same instruments to trade, are regulated, have great customer support, then you should focus on their fees.
Most brokers earn by charging a spread between buy and sell ask they offer you before you open a trade.
Of course most will try to trick you like show same price for buy or sell, hence they indicate to not charge any fee or spread to be 0.
Have to burst your bubble that no broker would let you trade for free.
Even if they show spread as 0, then in small print you can read that they charge fixed commission for open and close a trade.
When you trade online just remember that nothing is for free.
Brokers will always find a way to make money by letting you trade on their trading platform.
This is of course their way of making money and staying in business.
It’s on you as a trader to compare how much it costs you to open and close the same trade at different brokers.
Again, cheapest broker not always means that broker is the best for you. Because maybe such broker is not regulated, not have live chat or phone support…which could smell scam broker alert.
You know that saying…if something sounds too good to be true, then better stay away.
Leverage And Margin Requirements Offered By A Broker
This is another vital factor to consider since it will directly influence your profit potential, reward to risk ratio and if you can even open a trade.
If the margin requirement is too high, then maybe you can’t even open a trade. Reason is that you don’t have that much money on your trading account.
Leverage can work both for you or against you.
You can develop gold trading systems that work amazing if you use high leverage.
Or you prefer a gold trading strategy that gives small but consistent profits applying a small leverage.
No matter what type of a trader are you, you like to at least have the option to use high leverage.
Margin requirements influence how much money you should have in your trading account.
Read carefully at what drawdown your broker would activate a margin call and automatically close your losing trade.
You definitely want to trade with a broker that warns you before your trade gets in a dangerous area of getting close to a margin call. This way you have enough time to deposit more or close trade on your own.
Check Reputation Of A Broker
Fancy looking website of a broker shouldn’t fool you.
Check independant websites like TrustPilot and read reviews by actual traders that are using that broker and their platform.
You could also join a few public forums for traders and read forum threads there.
Or open thread yourself asking – is this broker good and trustworthy.
Or simply do a Google search with the following search terms:
- is broker X trustworthy,
- broker X reviews,
- broker X scam or not.
As you can see picking the right broker is not that simple.
Every important decision takes a certain time to do proper research and reach a conclusion.
You can also read our Forex Brokers Reviews category to read about forex brokers we tested.
Maybe a broker that works for me is not right fit for you if we are different types of traders.
I am a fundamental trader that picks my trades based on analysing options and am comfortable holding my trade open for weeks.
But you may be an intraday scalper hunting for 2 to 10 pips fast in and out of trades in less than 10 minutes.
Do your own due diligence.
Final decision should always be yours!