Zero Spread Gold Brokers - Are there any?

Gold has a rich history that spans thousands of years, making it one of the most significant assets in human civilisation. In the modern online trading landscape, gold's significance is multifaceted. It serves as a hedge against inflation, currency fluctuations, and economic uncertainty. When trading gold, managing costs is paramount. 

Brokers typically charge a spread as a cost for executing trades. However, some brokers offer zero-spread accounts, particularly in forex trading, where traders pay a commission instead of a spread. This provides transparency and predictability in trading costs. 

But are there any zero spread gold brokers in the market? Let’s explore the idea of zero-spread gold brokers, their potential benefits, and drawbacks.

What Is a Zero Spread Gold Broker?

A zero-spread gold broker is a brokerage that offers gold trading with spreads that start from 0.0 pips. This means traders can enter and exit gold positions without paying the traditional spread cost, making it particularly appealing to scalpers, day traders, and high-frequency traders.

In forex trading, zero-spread accounts are relatively common, but gold trading presents unique challenges. Gold is a highly liquid asset with its price influenced by global economic factors, geopolitical events, and market volatility. These factors can make it difficult for brokers to sustain true zero spreads consistently. So, are there any zero-spread gold brokers?

Are There Any True Zero Spread Gold Brokers?

While true zero-spread gold brokers are extremely rare, we did find one broker that offers spreads as low as 0.0 pips on gold for a specific account type. Let’s take a closer look at this broker.

Exness

Exness is probably the only broker that offers spreads from 0.0 pips on gold trading through its Zero Account. On this account, Exness offers spreads from 0.0 pips on the top 30 instruments, including gold. Notably, trading gold against the US Dollar (XAUUSD) features an average spread of 0.0 pips plus a commission of $5.5 per side per lot.

It’s important to remember that the spreads on this account are floating depending on market conditions. While they start from 0.0 pips, it's important to check the spreads at the time you wish to place an order. On a positive note, however, Exness does not charge swap fees on gold positions across all its accounts. This makes Exness a top broker for gold traders who want to leave their positions open for extended periods of time. 

To open an Exness Zero Account, traders need to make a minimum deposit of at least $200*. This account offers the unique 1:unlimited leverage feature, which allows investors to control large positions with small capital. Additionally, there are no restrictions on the number of positions traders can open simultaneously on this account.

Remember that CFDs on forex available at Exness are leveraged products and can result in the loss of your entire capital.
Please ensure you fully understand the risks involved.

Please note, that Exness does not accept retail traders from the European Economic Area, UK or the USA. But traders from most other parts of the world are welcome.

Exness Zero Spread Account

Is Exness a Credible Broker?

When choosing a broker, credibility is just as important as trading conditions. Exness is a well-regulated broker, operating under the oversight of several financial authorities. These include the FCA in the UK, the CySEC in Cyprus, the CMA in Kenya, the JSC in Jordan, and the FSCA in South Africa, among others. 

Remember that regulations alone are never enough. However, having supervision from several reputable authorities means that a broker has to follow strict financial and investor protection standards, which is a good sign.

Moreover, Exness also enjoys a strong reputation among traders. It has a 4.6-star rating out of five on Trustpilot based on over 13,400 reviews. This suggests a high level of satisfaction among its customers. Its status as one of the largest brokers in the world by trading volume further underscores its popularity among traders.

Pros and Cons of Zero Spread Gold Trading on Exness

Pros

• Reduced Trading Costs - Eliminating the spread can significantly lower trading expenses, especially for high-volume traders.
• Cost Transparency - Understanding the exact cost per trade makes it easier to calculate profitability and manage one’s account. Exness’ zero account reveals the cost in commission that will be charged upfront.
• Ideal for Active Traders - Zero spreads are particularly beneficial for scalpers, day traders, and high-frequency traders who rely on small, frequent trades.
• No Swap Fees - Exness does not charge swap fees on gold positions, making it suitable for long-term trading strategies.

Cons

• Commissions - To compensate for the lack of spread revenue, Exness charges a commission on trades. Some traders may not find this idea for their trading strategies.
• Market Conditions Still Apply - Even with a zero-spread account, spreads can widen during periods of high volatility or low liquidity. This is a market reality and not solely dependent on the broker.
• Higher Minimum Deposit - The zero account on Exness requires a higher minimum deposit compared to the standard accounts.

Why Aren’t There Many Zero-Spread Gold Brokers?

Maintaining zero spreads in gold trading is challenging for several reasons. First, gold prices are highly sensitive to global economic and geopolitical events, leading to frequent price fluctuations. This volatility makes it difficult for brokers to sustain zero spreads consistently. Second, while gold is a liquid asset, liquidity levels can vary depending on market conditions. During periods of low liquidity, spreads tend to widen, even on zero-spread accounts.

Finally, brokers incur operational costs and need to generate revenue. Offering zero spreads requires alternative revenue models, such as charging commissions, which may not appeal to all brokers or traders.

For this article, we could only find one broker that offers spreads from 0.0 pips on gold. It’s important to consider the broker’s general credibility before choosing to invest with them. Ensure they meet your personal needs and preferences. 

Moreover, you may also want to compare what the broker offers against some competing brokers. While there may not be other zero spread gold brokers, there are several brokers with low spreads on gold (XAUUSD) that you may like. Just make sure the broker you choose is reliable and has a transparent fee structure. Moreover, low spreads and no commissions on gold may be more favourable for some trading strategies.

It is also worth noting that Exness does not accept retail traders from the UK and EEA countries. As such, traders in these regions must consider other alternative brokers to invest with.

Final Verdict

While the concept of zero-spread gold trading is appealing, true zero-spread gold brokers are rare. In our research, we could only pinpoint one top broker that offers zero spreads on gold trading. Exness also stands out for eliminating swap fees on gold trades across all its accounts. This combination makes it an attractive option for cost-conscious traders, particularly those who engage in high-frequency or long-term trading strategies. 

When choosing a broker, it’s essential to consider factors such as commissions, regulatory oversight, and overall reputation. If zero spreads on gold are not a priority, traders can also consider low-spread gold brokers with transparent fee structures. Remember, always conduct thorough research and consider your trading strategy before selecting a broker.