XAU/USD Lowest Spread Brokers
As a gold trader, one of the most important factors to consider when choosing your broker is the spread. Your broker’s spread is how the company makes money every time you place a trade on financial instruments including XAU/USD. The spread is the difference between your broker’s sell and buy rates. The spread charged can fluctuate – depending on the current market's conditions.
To reduce the costs of placing a trade, you should choose to use a broker with a low-spread charge per transaction. There are two kinds of spreads that brokers charge in the financial markets – fixed spread and floating spread. A fixed spread occurs when the amount your broker charges for trading a financial instrument stays the same no matter the level of market volatility. The floating spread is when the amount your broker charges fluctuates with changing market volatility.
Since increased market volatility leads to increased spread which also increases the cost of placing a trade, it is best for you to use a broker with the lowest spread per trade transaction no matter the volatility of the market. XAU/USD is one of the most traded commodity pairs because of its inverse relationship with the US dollar plus the fact that gold is considered to be a safe and very reliable asset. This is why we will be looking at some of the best low-spread brokers for gold trading you can choose to use.
At each broker listed on this page, XAU/USD is traded as CFDs, with the single exception of Forex.com for US traders where it is traded as spot markets.
Quick Comparison Table
A great number of brokers support trading on Gold. We couldn't possibly list all brokers, but we do feature some of the most renowned brands with a solid reputation and good regulatory standing. Here is a quick spread comparison table for XAUUSD that each broker listed in the article has. Some brokers do not list both minimum and average spreads, which is why there are two columns on the spread details.
|Average XAUUSD Spread on Standard Account (in points)
|Minimum XAUUSD Spread on Standard Account (in points)
Founded in 2001, Forex.com is a well-known metal, forex, and CFDs broker with low spreads for gold trading starting from 0.53 points. The company features two popular trading platforms MT4 and MT5 and one analytical platform TradingView. There is also the option to trade other financial instruments like forex currency pairs. Forex.com spread fees are considerably lower than its competitors and have 24/7 customer service. In the US Forex.com gold and silver are traded as spot markets, similar to currency pairs but unleveraged. In other parts of the world including Europe, Gold is traded as a leveraged margin product.
77.1% of retail investor accounts lose money when trading CFDs with this provider.
Established in 2008, Exness is a low-spread Forex and CFDs broker. This broker offers 2 standard accounts (Min. deposit here is 10 USD) and 3 professional accounts (Min. deposit here is 200 USD+). On the standard account, the average spread for XAUUSD is 20 pips so 0.2 points and on the Pro account, the average spread for Gold is 12.5 pips so 0.125 points. Interestingly for Gold traders, Exness offers an Extended Swap-free availability feature for gold trading (even without a Muslim account) so you won’t be charged any swaps for this instrument. Exness also gives you access to trade over 200 financial CFD instruments including forex, shares, metals, and cryptocurrency in multiple trading platforms such as MetaTrader 4, and MetaTrader 5. Exness is available in a wide range of countries, but in some, it is prohibited. That means, for instance, that they are not available to retail traders from European countries.
Prices and spreads are indicative only. Check your platform for the most up to date data.
Remember that forex and CFDs available at Exness are leveraged products and can result in the loss of your entire capital. Please ensure you fully understand the risks involved.
Founded in 2005 and regulated by the Australian Securities and Investment Commission (ASIC) and by the CySEC in Cyprus FP Markets is a popular choice for trading Gold. Due to its ECN (Electronic Communication Network) execution, FP Markets offers low spreads and fast execution times. Gold can be traded here not only against the USD but also against other major currencies such as the Euro or the Australian Dollar. The spreads on the standard accounts for XAU/USD are 0.21 points and on the raw account, they start from 0 points and average at 0.07 points. On the raw account, a *$3 commission fee per side per lot applies
71.23% of retail CFD accounts lose money
XM is another broker that supports trading gold. This company is internationally well known with regulations in Cyprus by the CySEC, in the UK by the FCA and in Australia by the ASIC. The average spread for XAU/USD starts from 0.15 points and averages at 0.2 points. Apart from gold trading, one can trade here also other commodities and assets such as forex, stocks and indices. All trading is done either on the MT4 or MT5 trading platforms.
72.82% of retail investor accounts lose money when trading CFDs with this provider.
XTB was founded in 2002 and is headquartered in Warsaw Poland, but they have local offices in multiple countries around the world. XTB is regulated by the Cyprus Securities and Exchange Commission in Cyprus, by the FCA in the UK, and by the South African FSCA among others. The company has a minimum spread for XAU/USD 0.3 points with a target spread sitting at 0.35 points. Apart from commodities metals one can find here also assets from other markets such as forex, stocks, indices or cryptocurrencies.
76% of retail investor accounts lose money when trading CFDs with this provider.
Conclusion on XAU/USD Lowest Spread Brokers
As a trader considering XAU/USD trading, you have to consider all factors before you choose a broker to start trading your funds with. These factors include regulatory approval within your country, access to global and reliable trading platforms, like MT4 and MT5, technology and trading tools, customer support, investment opportunities, and of course the spreads.
In this article, we showed you some of the best low-spread brokers for gold trading (XAU/USD) and some basic information about them. Remember that trading the financial market is already risky in itself and choosing the right broker can at least remove the extra risk of losing your trading capital to scam brokers. Don’t forget to choose wisely.