Best Forex Brokers for Trading Gold

Best Forex Brokers for Trading Gold

In this post, you’ll find the best forex brokers for trading gold or XAU/USD. You can also see how I chose these top 10 forex brokers from more than 100 brokers and what metrics I considered to do so.

Before all that let’s get straight to the point and introduce our broker.

These are the top 10 forex brokers for gold trading

  • Multibank Group
  • FP Markets
  • Tickmill
  • PFD
  • Rakuten Securities
  • Just2trade
  • IC Markets
  • Axitrader
  • Pepperstone
  • Go Markets

Methodology: How I Found Best Forex Brokers for Gold Trading?

There are several factors that you can consider when you want to choose a forex broker for a particular purpose such as gold trading but some metrics are common between broker selections in general.

The one that I always consider first is regulation and then cost of trades such as spreads and commissions.

For selecting our best forex brokers for trading on gold, we use a third party website, myfxbook, where there are more than 100 forex brokers are registered and there are 10000+ registered accounts of those brokers’ clients.

Using that website not only provides a wide range of brokers which makes the study more reliable, but it also gives us unbiased and real data from the real accounts of forex brokers so we can be confident that our metrics especially brokers’ spreads are not selective.

However, there are some mistakes in calculating commission on the software of that website but since I’ve used the website several times, I’m aware of that so I can fix that.

For example, gold is quoted in different digits in different brokers so the widget that sorts out brokers based on spreads isn’t working properly in this case.

It also adds the commission to the wrong digits. In other words, it takes the wrong digit as one pip.

For instance, the broker shows the spread of gold as points like 12.23 which means 1.223 pips (each pip is 10 points)

The software adds for example $7 commission, which is 0.7 as spread, to the 12.23 and shows the spread 12.30 or 1.23 while the real spread is 19.23 or 1.93 pips (1.23 + 0.7).

Anyway, I always double-checked with the brokers’ websites and since I picked the brokers from well-regulated ones, they publish their spreads on their websites and the results are almost the same as I find on myfxbook.

Moreover, I always open a demo account with the brokers so that I can see the spreads showing on the platforms such as MT4 and also I can test the execution speed of the brokers — you’ll hear more about that later on this post.

I also chose the brokers from well-regulated ones because you’ll have the least problems in different trading fields such as price manipulation, slippage, or withdrawal.

You can check here to see more information about brokers’ selection based on regulation.

Forex Brokers with the Lowest spread on Gold

As I mentioned in the methodology section, for finding the brokers with the tightest spread on gold we used myfxbook website and sorted them out based on the lowest spread on the gold section.

I also picked them from well-regulated ones because brokers that are regulated by top tier regulatory bodies have the least problems.

The best forex brokers for gold trading based on spreads and commission

best forex brokers with the lowest spread on gold

Execution of Best Forex Brokers for Trading gold

As I mentioned early on, I tested both market and limit order execution speed of the brokers using two expert advisors.

The MT4 platform of the brokers listed here all have a very good execution speed. Actually, other than being the best forex brokers for gold trading, they are the best forex brokers in terms of execution speed too.

You can see the complete study on execution speed here.

If you use automatic trading and have a scalping EA or trade on the news, execution speed can be a determining factor.

Trading Gold CFD

Gold has always been considered a safe asset. Every time something bad happen to the economy whether it’s wild inflation or recession and uncertainty, people start saving their assets by purchasing gold.

Buying gold physically is not the only option for trading gold. You can buy that over the counter (OTC) where you don’t own gold but you can buy and sell that and make a profit out of its fluctuation — like what you do in forex trading.

Moreover, when you trade CFD of gold, you don’t need a lot of money to do so.

Imagine you decide to buy one ounce of gold physically and through exchange trading. Well, you need something like $1500 to buy that — $1520 today.

On the other hand, when you trade CFD gold, you can use leverage as high as 1:500 or even more with the minimum lot size of 0.01 which means you can trade 100 ounces, instead of one ounce, with just $5.

How Much Do You Need to Trade Gold CFD?

Nowadays, you don’t need to be filthy rich to buy 1000000 oz gold. You can borrow the money from your broker and do that.

To know how much money you need to open a position on gold you need to know the required margin for gold. You can calculate the required margin by this formula:

Required Margin = (lot size * Contract size * Market Price) / Leverage

Let’s say your broker offers a 1:500 leverage, a leverage that our selected brokers for gold trading offer, and you use 0.01 as lot size. Considering that contract size for gold is 100 ounces and each ounce is $1500 you required margin is:

(0.01*100*1500)/500= $3

So even with 4 or 5 bucks, you can trade gold.

Just be careful when using leverage because it can be doubled- edge sword if you use it without understanding the risks involved.

You’re using more than your money to trade so when you win, you win more and when you lose; you lose a big portion of your money.

If you want more about why leverage is a doubled-edge sword you can read this part.

Gold Volatility and Average Daily Range

Gold is one of the high volatile assets for trading. According to the study I did, XAUUSD has moved 155 pips (1550 points) per day on average in 2019 so seeing gold move 200 pips per day is not odd.

As a result, the take profit and stop loss should be wider because it has enough potential to reach further targets.

It’s also a good option for scalpers with a little wider targets such as 10 pips.

It can hit a 10-pip target easily plus the spread for gold is not too many. As you can see in the comparison table at the end of this post, you can get less than 1.5 pips spread on average from the best forex brokers for trading gold.

Gold is also considered a suitable instrument for swing trading because when it’s in the trend status, you can rip a lot of money as the result of its wide average daily range.

It moves a lot per day so a usual trend in gold can give you something around 150 to 200 pips on average per day which is ideal if you are even a longer-term trader let alone a day trader.

Gold Correlation

As you probably know when two instruments like forex pairs or CFDs move in the same direction, they have positive correlation and when they move in the opposite direction, they have negative correlation.

For example most of the time when USDCHF is bullish, EURUSD is bearish or vice versa. When two instruments mimic each other’s movement exactly, either in the same direction or opposite, they have a 100% correlation.

XAUUSD or gold has some positive and negative correlation with some assets.

Among currency pairs, EURUSD and AUDUSD have shown the most positive correlation with gold in 2019 with something around 67% maximum positive correlations for AUDUSD and 78% for EURUSD, however, in some months they had negative correlation as well.

Correlation between XAUUSD (gold) and AUDUSD
XAUUSD char that AUDUSD chart is added to and shows positive correlation between them
the percentage of correlation between xauusd (gold) and audusd
A chart showing the percentage of correlation between XAUUSD and AUDUSD
Correlation between XAUUSD (gold) and EURUSD
XAUUSD char that EURUSD chart is added to and shows positive correlation between them
the percentage of correlation between xauusd (gold) and eurusd
A chart showing the percentage of correlation between XAUUSD and EURUSD

On the other hand, USDCAD has had the most negative correlation with gold in 2019 with a maximum correlation of -70%.

Correlation between XAUUSD (gold) and USDCAD
XAUUSD char that USDCAD chart is added to and shows negative correlation between them
the percentage of correlation between xauusd (gold) and USDCAD
A chart showing the percentage of correlation between XAUUSD and USDCAD

You can use correlation when you see a setup in the pair you want to trade but it’s not clear enough or your favorite one.

When you are not confident enough, you may be able to get a confirmation by looking at the pairs that have positive and negative correlations with the pair you want to trade.

Best Forex Brokers for Gold Trading

Broker
General Info
Regulation
Average Spread

Platform and
Execution Speed
Payment Methods

Banned Countries


Visit Website
Account Name: RAW Spread (MT4-MT5)

Min deposit: AUD $100

Min Lot Size: 0.01

MAX Leverage: 1:500
ASIC

Score: B+
1.3 PipsMT4, MT5
for
Desktop, Web,
Mobile

IRESS

MT4 Order Exection Speed:

Market Order: 95ms
Limit Order: 80ms

Score: A+
Credit/Debit Card, bank wire,
Neteller, Skrill, Fasapay,
PayPal, Paytrust88, Ngan Luong,
Online Pay,
Broker to broker
U.S, Japan, New Zealand,
Syria, North Korea,
Iran


Visit Website
Account Name: Forex ECN /MT5 Global

Min deposit: $100

Min Lot Size: 0.01

MAX Leverage: 1:500
CySEC

Score: B
1.5 PipsMT4, MT5
for
Desktop, Web,
Mobile
CQG, ROX

MT4 Order Exection Speed:

Market Order: 500ms
Limit Order: 100ms

Score: B+
Wire transfer, Union Pay,
Mastercard, Visa, Skrill ,
Biicoin, Webmoney
N/A


Visit Website
Account Name: Ecn Pro/MultiBank Pro

Min deposit: $5000/$1000

Min Lot Size: 0.01

MAX Leverage: 1:500
ASIC, BaFin, FMA,
CNMV, FSC, SIMA,
RAK

Score: A+
1.04 PipsMT4
for
Desktop, Web,
Mobile

MT4 Order Exection Speed:

Market Order: 150ms
Limit Order: 120ms

Score: A+
Bank Wire, VISA,
MasterCard, Neteller, Skrill,
PayTrust, Perfect Money,
Help2Pay , Payment Asia
N/A


Visit Website
Account Name: Pro

Min deposit: $100

Min Lot Size: 0.01

MAX Leverage: 1:500
FCA, CySEC, FSA

Score: A
1.5 PipsMT4
for
Desktop, Web,
Mobile

MT4 Order Exection Speed:

Market Order: 160ms
Limit Order: 150ms

Score: A
Bank Wire, VISA, MasterCard,
FasaPay, Globe Pay, Dotpay,
Paysafe, Sofort, Neteller,
Ngan Luong, Qiwi, Skrill,
SticPay, UnionPay
U.S, and probably
some high-risk
countries like
North Korea, Syria,
Iran, and etc


Visit Website
Account Name: PFD Pro

Min deposit: $1

Min Lot Size: 0.01

MAX Leverage: 1:100
FMA

Score: B+
1.5 PipsMT4
for
Desktop, Web,
Mobile

MT4 Order Exection Speed:

Market Order: 110ms
Limit Order: 100ms

Score: A+
Visa and Master Cards, bank wire,
Skrill, and Neteller
U.S, China (main land),
Iran, North Korea,
and some high-risk countries


Visit Website
Account Name: Raw Spread

Min deposit: $200

Min Lot Size: 0.01

MAX Leverage: 1:500
ASIC

Score: B+
1.65 PipsMT4, MT5
for
Desktop, Web,
Mobile

cTrader

MT4 Order Exection Speed:

Market Order: 180ms
Limit Order: 130ms

Score: A
Credit and debit cards, Paypal,
Neteller, Skrill, Union Pay,
Wire transfer, Bpay, Fastpay,
Broker to Broker, Poli,
Thai Internet Banking, Rapidpay,
Klarna, Bitcoin wallet,
Vietnamese Internet Banking
U.S, Canada, Israel,
North Korea, Iran


Visit Website
Account Name: MT4 Pro

Min deposit: $1

Min Lot Size: 0.01

MAX Leverage: 1:100 for gold, 1:400 for forex
ASIC, FCA

Score: A+
1.65 PipsMT4
for
Desktop, Web,
Mobile

MT4 NEXGEN (MT4 with extra features)

MT4 Order Exection Speed:

Market Order: 130ms
Limit Order: 100ms

Score: A+
Bank Wire, Debit and Credit Cards,
BPAY, Neteller, Global Collect,
Skrill, UnionPay
U.S, Japan, Israel,
Central African Republic,
Congo, Eritrea,
Ethiopia, Guinea-Bissau,
Haiti, Iran, Iraq,
Kyrgyzstan, Liberia,
Libya, North Korea,
Sahrawi Republic,
Sierra Leone, Somalia,
South Sudan, Sudan
, Syria, Yemen, Zimbabwe


Visit Website
Account Name: 1:100/1:400

Min deposit: $50

Min Lot Size: 0.01

MAX Leverage: 1:100/1:400
ASIC

Score: B+
1.5 PipsMT4
for
Desktop
Mobile

MT4 Order Exection Speed:

Market Order: 150
Limit Order: 150

Score: A
Bank Wire, Neteller, Skrill,
Union Pay, Instant Transfer
for southeast Asia
U.S, China, Taiwan
Canada, and New
Zealand — and some
high-risk countries


Visit Website
Account Name: Go Plus

Min deposit: AUD $500

Min Lot Size: 0.01

MAX Leverage: 1:500
ASIC

Score: B+
1.75 PipsMT4, MT5
for
Desktop, Web,
Mobile

MT4 Order Exection Speed:

Market Order: 140ms
Limit Order: 130ms

Score: A+
Bank Wire, VISA, MasterCard,
BPAY, FasaPay, Neteller,
Poli, Skrill
U.S, Israel, Belgium, Canada,
Japan, New Zealand, Turkey, Vietnam,
Afghanistan, Azerbaijan, Botswana,
Bosnia and Herzegovina, Burundi,
Central African Rep, Congo,
Cote D’Ivoire, Ethiopia, Eritrea, Egypt,
Gaza Strip, Ghana, Guinea Bissau, Haiti,
Iran, Iraq, Lebanon, Libya, Myanmar,
Nicaragua, North Korea (DPRK), Pakistan,
Serbia, Sierra Leone, Somalia, Sri Lanka,
Sudan, South Sudan, Syria, The Bahamas,
Trinidad and Tobago, Tunisia,
West Bank, Venezuela, Yemen
and Zimbabwe


Visit Website
Account Name: Razor

Min deposit: AUD $200


Min Lot Size: 0.01

MAX Leverage: 1:500
FCA, ASIC

Score: A+
1.7 Pips MT4, MT5
for
Desktop, Web,
Mobile

cTrader

MT4 Order Exection Speed:

Market Order: 85ms
Limit Order: 100ms

Score: A+
Bank Wire, VISA, MasterCard,
BPay, PayPal, Neteller, Skrill,
Union Pay, POLi
the US and some
other countries
(changing from
time to time)

david

I hope you enjoyed this post. My name is David and I've been in Forex Market since 2006. I created this site to convey my experience and try to help forex traders to make better decisions. Share this post if you liked it and let me know what you think about it in the comment section.

This Post Has One Comment

  1. tony stein

    I can understand this better. I found fx leaders to have a broker connected to them. Might need to re-evaluate my options.
    Thanks for this post!

Leave a Reply