Best Gold Trading Brokers in the UK for November 2024

Gold is one of the heavily trade commodities in the world alongside oil and natural gas. Aside from the normal uses of gold in a variety of industries such as jewelry, dentistry, and mobile phones, there is another reason why gold is such a popular commodity to trade. This is because gold is considered to be a hedge against inflation and the stock market.

In other words, gold is used by some investors as a store of value. The asset has managed to maintain is value of the years, despite fluctuating market conditions. Investments in gold increase during times of volatility as investors seek to protect their wealth.

Investing in gold could be one way to diversify your investment portfolio. In this article, we take a look at gold trading platforms in the UK that can be used to invest in the precious metal.

What Is a Gold Trading Broker?

Gold trading brokers, also known as gold trading platforms or gold investment platforms, are online platforms that allow individuals to buy, sell, and trade gold. These platforms act as intermediaries between buyers and sellers, providing a convenient and secure way to invest in gold. Gold brokers typically offer a range of services, including real-time pricing information, secure storage options, and access to a variety of gold products.

How Gold trading works for traders and brokers

For traders, gold trading involves buying and selling gold in various forms, such as bars, coins, or exchange-traded funds (ETFs). They capitalize on the price fluctuations of gold to make a profit. Traders closely monitor market trends, geopolitical events, and economic indicators that impact gold prices. Timing is crucial in gold trading, as traders aim to buy low and sell high to maximize their returns.

Brokers play a crucial role in facilitating gold trading. They act as intermediaries between traders and the market, providing them with access to global exchanges where gold is traded. Brokers offer trading platforms and tools that enable traders to execute their gold trades efficiently. They also provide market research, analysis, and real-time data to help traders make informed decisions. Brokers earn income through commissions or spreads on each trade.

Gold trading is influenced by various factors, including supply and demand dynamics, central bank policies, inflation, and the strength of the dollar. Additionally, gold is often seen as a safe-haven asset during times of economic uncertainty or market volatility. Traders and brokers need to stay updated on these factors and use technical and fundamental analysis to forecast gold price movements accurately.

Our Unbiased Reviews of 6 UK Gold Trading Platforms

Below, you will find a detailed review of some gold trading platforms in the UK.

1. XTB – Best Gold trading broker with advanced charting tools

XTB Broker is a leading European forex, commodities and stock trading platform that supports a wide number of assets, including gold. The platform currently has over 400,000 users worldwide and has been in the market for over 15 years.

In total, XTB offers 2100+ instruments to trade. This makes it an appealing option for anyone looking to diversify their portfolio and expand into various areas of the market. Furthermore, XTB boasts low fees and spreads. However, the platform does charge overnight fees for those who hold positions after the market closes.

XTB has a variety of education resources available for members to use. This includes a number of tutorials and a comprehensive trading academy. As well as this, users can access in-depth market analysis to guide their trading on XTB.

What’s more, XTB offers a demo account which provides a way to try out the platform without putting any money at risk. XTB offers two different trading platforms: XStation 5 and XStation Mobile. The second option is suitable for trading on the go.

The XStation platform has fantastic execution speeds and an award-winning user interface. There is no minimum deposit to use XTB so it is possible to start trading gold with as little as $1.

Visit XTB

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

2. AvaTrade – Trade gold with leverage in the UK

AvaTrade is another trading platform that can be used for gold trading, and it is suitable for experienced traders. One of the biggest standout factors for AvaTrade is the diversity it offers in terms of the different trading platforms, which include the MT4 trading platform, MT5, AvaOptions, and AvaTradeGo.

It offers a leverage of up to 5x for retail traders, and of up to 200x for professional leveraged gold trading accounts. This is among the highest leverages offered by any broker in the industry.

AvaTrade is also a platform choice for automated trading strategies because it offers fast execution times, very low spreads (0.28), and the ability to trade gold in increments of 0.01. They also do not charge any commissions. Their minimum deposit is 100 GBP, which you can fund with a debit or a credit card. They are a regulated platform in several jurisdictions, including by the FCA in the UK.

Avatrade fees:

There is no guarantee that you will make any profits with this provider. Your money is at risk.

3. Trade Nation – Gold trading platform with fixed spreads

Trade Nation, formerly Core Spreads, has gained popularity among gold traders since its establishment in 2014. The broker’s popularity can be attributed to its competitive fees and general affordability.

Trade Nation caters to the pockets of part-time and professional traders by minimizing their trading costs and giving them access to over 600 instruments and tools to enhance their profitability. The broker’s goal is to improve the trading experience of its users through its user-friendly interface and range of tools, so the platform’s profitability comes second.

A deeper dive into Trade Nation’s fees revealed that the platform operates on fixed spreads and zero commission options. The fixed spreads policy suggests that the broker’s spreads do not change despite market fluctuations; thus, traders can enter any Gold trade knowing the total trading expenses from the outset.

At Trade Nation, gold traders can choose between MT4 and TN Trader platforms. On MT4, traders can access the XAU/USD CFD with a maximum leverage of 1:500 and choose between the commission-free spread of 1.2 pips or the commission-based alternative spread of 0.4 pips. Gold traders get maximum leverage of 1:200 on the TN Trader Platform.

Security and licensing are vital issues in the financial market, but with Trade Nation, you have nothing to worry about. Trade Nation is regulated by the Financial Conduct Authority (FCA), the Australian Securities and Investment Commission (ASIC), and the Securities Commission of the Bahamas (SCB). Hence, the broker upholds strong industry standards and protocols.

As a platform open to both novice and experienced traders, Trade Nation emphasizes educating its clients. With its carefully curated articles on financial market trends, the broker ensures that traders can access market insights and make swift gold trading decisions.

If you are particular about trading gold and are unsure where to begin, Trade Nation is one pocket-friendly platform you could consider. It will be worth your time!

Trade Nation Fees:

77% of retail investor accounts lose money when trading CFDs with this provider.

4. Admiral markets – A gold trading platform with multiple educational instruments

Established in 2001, Admiral Markets has earned a reputation as a classic and affordable online broker. The firm has a range of trading instruments like major, minor, and exotic forex pairs, CFDs on popular stocks, indices, precious metals like gold, energy, and agricultural commodities, and CFDs on cryptocurrencies.

As per the platform’s trading accounts, its range of instruments is accessible on Admiral Markets WebTrader, MetaTrader 4 (MT4), and MetaTrader 5 (MT5) trading platforms. The broker also has a number of trading accounts. These include the trade.MT4, the standard account that operates commission-free with variable spreads starting at 0.5 pips. The Zero.MT4 offers incredibly low spreads starting at 0 pips and charges a commission fee of £3 per lot.

The Invest.MT5 is tailored for professional traders; thus, it requires a minimum investment of £1,000. Lastly, Admiral Prime, designed for active traders, has a spread of 0 pips and a commission fee of £1.8 per lot.

Admiral Markets is concerned about the safety and security of its clients; thus, it employs SSL encryption and ensures the segregation of client funds from operational funds. The firm is also a Cyprus Investor Compensation Fund (ICF) member. But that’s not all. Admiral Markets is licensed by the Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC), and the Australian Securities and Investments Commission (ASIC).

The broker’s dedication to trader education is evident through its live webinars, in-person seminars, video tutorials, and extensive free trading guides and eBooks. With resources covering various aspects of trading, Admiral Markets is a valuable partner for traders looking to enhance their skills and knowledge.

Admiral Markets Fees:

74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

5. Pepperstone – Multi-trading gold platform

Pepperstone is a forex and CFD broker established in 2010. The broker is regulated by the Australian Securities and Investments Commission (ASIC), the Financial Conduct Authority (FCA), the Dubai Financial Services Authority (DFSA), the Securities Commission of The Bahamas (SCB), the Cyprus Securities and Exchange Commission (CySEC), and the Labuan Financial Services Authority (LFSA).

Pepperstone offers its trading services to both retail and institutional clients with over 1200 assets available. The broker excels in providing a selection of CFDs across markets with over 1,000 CFDs on shares. The broker also features over 100 exchange-traded funds (ETFs) across 35 countries’ markets.

Pepperstone is committed to supporting traders in their gold trading journey and thus partners with multiple banks to create no partial execution or requote on trades with 99.99% fill rates. To trade gold on Pepperstone, traders enjoy competitive spreads of as low as 0.05 points and no commissions.

To cater to traders with different levels of experience and skills, Pepperstone offers its services through leading trading platforms like MetaTrader 4, MetaTrader 5, TradingView, and cTrader. These platforms are user-friendly and equipped with unique features to enhance trading efficiency.

Pepperstone is concerned about its clients’ security; thus, it takes proactive measures to ensure the safety of their investments. These measures include Account Verification, Two-Factor Authentication (2FA), Segregated Data Centers, Anti-Money Laundering (AML) Policy, Third-Party Audit, Secure Website, and Dispute Resolution.

Pepperstone Fees:

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.3% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

Gold Trading Platforms UK Comparison

We have summarized the fees in a table below to compare the different gold trading platforms in the UK..

Gold History

Gold is an extremely important economic asset and a crucial part of the monetary system. It is a rare metal, which contributes to the scarcity and subsequently the high price of the metal. Investors retreat to gold in times of high inflation, economic or political crises, or any period of time where the stock market is too volatile.

There are a variety of ways in which you can trade gold, the simplest of them being purchasing physical gold. This can be done in the form of coins, bars, or gold jewelry. There are also a variety of other methods that you can use to buy and sell gold, such as purchasing futures contracts, gold funds, ETFs, or CFDs via gold trading exchanges.

If you’re not looking to buy physical gold and instead trade on it in the financial markets, then you need to understand the different types of markets that are available. According to the source, the three most important gold trading centres are the London OTC market, the US futures market and the Shanghai Gold Exchange (SGE). The given markets comprise 90% of global trading volumes and are complemented by smaller centres in secondary markets around the world.

The two main markets are the spot market and the futures market, both of which function through a variety of gold trading exchanges. The primary difference between the two is that the spot market shows you the current price of the asset, as in the price at which you can immediately buy and sell the asset. This price is derived from the interbank spot market and the different over-the-counter global markets. This spot price is the benchmark for gold trading and plays an integral role in the gold industry.

On the other hand, gold futures have expiry dates, which could be anywhere from a few months to a couple of years. The normal expiry period for a gold futures contract is 12 months. Owning a futures contract entitles you to buy or sell a particular asset at a fixed price in the future. The price of futures contracts is higher than the spot prices because there are a lot of costs involved in carrying a futures contract, such as storage, insurance, and interest rate financing.

For example, if you buy a futures contract for gold at $1800 an ounce with an expiry of 12 months, this means that after a year you will be able to buy an ounce of gold at $1840 irrespective of the spot price at the time. This will be beneficial if the spot price at the time is greater than $1840. At the same time, you could also sell the futures contract in the secondary market at any point before the expiry at a profit.

Gold CFDs

However, one way to trade gold electronically on gold trading exchanges is to do so via CFDs which track the gold spot price. They work the same as trading on other commodities. When you buy a unit of a gold CFD, you do not actually own the underlying asset. However, the price of the CFD will move exactly in sync with the spot price of gold, meaning that you can sell the CFD at any time at the spot price of gold.

There are several advantages to trading gold. For starters, it acts as a hedge against inflation. For example, according to the source, inflation in the UK unexpectedly remains at 6.7% amid rising fuel prices.The rates of gold have little to no correlation with the financial markets, making them an ideal hedge to protect against the downsides in the market.  At the same time, gold is a liquid asset as compared to some of the other rare metals.

This means that you can always find a buyer or seller for gold in the markets. This liquidity makes it the ideal rare metal to trade. Lastly, trading gold also has a variety of tax benefits for UK residents. If you trade gold on a spread betting account, then your profits are exempt from capital gains tax.

Gold Trading Strategies

There are several strategies that are used by traders in order to trade gold in the markets. While the strategy you choose will depend on your risk appetite, how much returns you wish to get, and your general preferences as a trader, there are a few tried and tested strategies that you should be aware of. Three popular gold trading strategies that you might find useful as a starting point for formulating your own strategies have been discussed below.

Use the Gold/Silver Ratio

One common trading strategy for gold traders is to use the gold/silver ratio to determine when you should buy or sell both gold and silver. The gold/silver ratio, as the name suggests, indicates how many ounces of silver you need to buy one ounce of gold. Since the prices of both these securities are correlated, this number can serve as a guide.

For example, if the gold/silver ratio suddenly falls, then this means that the price of gold has dropped. Because gold and silver are correlated, this would imply that the prices of silver will fall soon too, so it might be an idea to short silver CFDs. At the same time, you could also decide to buy gold CFDs since the price of gold has fallen and will likely increase again in the near future. Regardless of whether or not you use the gold/silver ratio as an indicator of trading opportunities, it is an extremely important ratio that you should know of.

Look at other precious metals

Usually, precious metals are bought as a hedge against inflation and the financial markets. Therefore, it stands to reason that all precious metals will move in the same direction at any given time. Some commonly traded precious metals include gold, silver, platinum, and palladium.

Occasionally, one of the precious metals is not in sync with the others, and this represents a trading opportunity because, in the long run, the metals are always in sync. Therefore, it is an idea to add all 4 of these precious metals to your watchlist and keep looking for instances where they are not in sync as this will allow you to profit.

Trade on Macroeconomic News

The third commonly used strategy is to trade on macroeconomic news. Gold prices are more reactive to major market news and economic happenings than other assets are, because of the nature of gold as a safe haven. For example, due to uncertainties caused by the pandemic, the prices of gold shot up by as much as 25%. As a general rule, if there is something wrong in the financial markets or the larger economy, gold prices tend to go up.

Therefore, a successful trading strategy is to be on the lookout for such major macroeconomic news and trade on this. For example, this would include interest rate announcements and releases of important economic data by central banks. One strategy is to subscribe to an economic calendar that provides you with all this information so that you are well-equipped to take advantage of the volatility in the markets.

Some important data that you should be following as a part of this strategy include GDP numbers for the major countries such as the US, Europe, UK, China, Japan, and Australia; Consumer Price Index releases for these countries, as it is a major indicator of inflation in the country; Non-farm payroll numbers since they indicate the level of non-seasonal employment in the economy; Employment data; and other major economic policy announcements.

How To Choose The Best Broker for Trading Gold in the UK

When deciding on which gold trading platform to use in the UK, it is helpful to understand what features to look out for. Below, we will discuss the key features and the criteria we used to select the platforms presented above.

Type of Broker

The first thing we look at when choosing a broker is what kind of broker it is. There are two main types of brokers: market makers and ECN brokers. The main difference between the two is how they execute the orderr. When you place an order, a market maker takes on the other side of your position themselves and then minimizes their risk by closing off this position in the market. On the other hand, ECN brokers only connect you to other market participants and liquidity providers, and then you can grade directly with them.

Both of these kinds of brokers have their own set of advantages and disadvantages. While market makers do not usually charge commissions, they do charge looser spreads since that is their primary source of revenue. ECN brokers usually have zero spreads but charge a fixed commission on each trade, which can be quite pricey for some traders.

In general, market makers are more suitable for beginner and intermediate traders, while experienced traders prefer ECN brokers because they provide access to Level 2 Order Books, enabling traders to gauge the momentum of the market more accurately.

Execution Speed

An important factor we have taken into consideration, especially if your trading strategies are short term, is the execution speed of the broker you use. This refers to the time it takes for the broker to execute your order after you have placed it. If your trading strategy is, for example, you will rarely be holding positions for over a few minutes, so it is important for you to have high execution speeds so that you are able to take advantage of small price movements.

Leverage Ratio

The leverage ratio that is provided by the platform is also an important factor to consider while choosing a broker. Often, when trading commodities, you will not use all of your own capital. Many platforms provide high leverage on trading gold, therefore it is important for you to know what leverage your broker will be providing you.

In addition to this, you should also look for other details related to the leverage being provided by your platforms, such as the overnight fees and other charges that they levy in exchange for providing the leverage.

Trading gold on high leverage can be a very advantageous strategy since you have to risk very little. The gold trading price does not fluctuate a lot on any given day, therefore the only feasible way to profit is through a high trading volume.

This involves either investing a high amount of capital, or trading on high leverage. However, this also increases your risk and means that you have a smaller margin of risk while trading. Therefore, this is a trade-off that you have to keep in mind while trading on high leverage.

Trading Tools and Features

The next factor we consider while selecting a broker is the choice of trading tools that the platform offers. Many trading platforms offer the basic tools of charting and technical analysis, which can sometimes be very useful when trading with specific strategies.

In addition to this, platforms like AvaTrade also provide you with a social platform where you can see the views and opinions of other traders. This is a very useful tool since it enables you to understand the market sentiment and use that as a valuable source of information.

It is also important for a platform to offer you macroeconomic news from time to time and keep you updated on news events. This will enable you to use this information and adjust your positions accordingly in preparation for them.

Gold Trading Hours

The last thing that we look at when selecting a trading platform is their trading hours for gold. Unlike stocks, gold is a commodity, which means that it can be traded 24X7. However, there are a few platforms that only allow to trade gold between certain hours of the day.

This will limit your ability to trade and profit from fluctuations in the gold price. In addition to this, some platforms also have an overnight fee for positions you hold past midnight. Therefore, it is important to check what times the platform allows you to trade gold between, and what their fees are.

How to trade gold on XTB?

After reading this article, you should have a better understanding of which gold stocks are most suited to your investing portfolio and long-term objectives. Following that, you may be wondering how to buy gold stocks.

There are several ways to exchange gold, the most basic of which is to purchase actual gold. This can be accomplished through the use of coins, bars, or gold jewelry. There are also alternative ways to buy and sell gold, such as by acquiring futures contracts, gold funds, ETFs, or CFDs through gold trading exchanges. The trading platform you select should offer competitive rates on gold stocks that you want to include in your portfolio. XTB is one of the most suitable platforms where you can buy and trade gold.  To register, follow the steps in this guide.

Step 1: Create an account

Firstly,  on any platform you need to create a user account. To do this on XTB, go to the official  website and fill in the registration form that will immediately appear on the screen.

Step 2: Add an ID Card

Because XTB is a secure and regulated platform, you will need to add a photo ID to verify your account. All your personal data remains confidential according to the terms and conditions of the platform.

Step 3: Access the gold trading dashboard and buy gold

Go to the commodities markets page, select “gold” to access the gold trading dashboard, then select “trade”. To buy gold you must choose the BUY option and enter the amount in or the number of units you want to trade.

Step 4: Enter an amount you want to trade

To start trading you need to deposit the amount of money or quantity of units you want to trade.

Step 5: Set the parameters

Before you start trading, it is essential to conduct a careful review and set parameters for your stop loss, leverage level and profit target. This process is crucial to manage your risks and ensure you have a well-defined plan for your trading in the financial markets.

Step 6: Select ‘open trade’

You can now select the ‘Open Trade’ option to initiate the trade. Ensure that you have reviewed all the trade details and parameters set beforehand to ensure efficient trading.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Conclusion

In conclusion, trading gold CFDs can potentially be profitable and can serve as a hedge against the wider economy too. As such, gold traders tend to focus on macroeconomic events like economic data, turmoil scenarios in the market, political instability, and inflationary pressure. One of the biggest advantages of trading gold is that it acts as a hedge against inflation.

In the given article, we have explored some of the best and most suitable platforms available for UK traders that offer you the opportunity to start trading gold. It is important to keep in mind that when making your choice to take into account several aspects and always check if the platform meets your needs and gives you the necessary tools for trading.

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