The gold broker rush. Best gold trading brokers for gold-hungry investors
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Featuring views and opinions written by market professionals, not staff journalists.
Widespread economic concerns have seen central banks buying up stacks of gold bullion, nearly 1,079 tonnes of the precious metal during 2022, the most since records began back in 1950.
It’s not only central banks that have been filling up their coffers with gold, the wealthy are also rushing to increase their stockpiles with physical assets as the global financial market grows continuously volatile on the back of stubbornly high inflation and aggressive monetary tightening.
Gold prices have been relatively flat in recent days, however, talks of lifting the U.S. debt ceiling have gone cold at the same time, leaving investors to scramble and park their cash in a haven as they prepare for the U.S. economy to slip into a recession.
Back in January, Treasury Secretary Janet Yellen warned that the U.S. could run out of cash by June 1, which has now been pushed to June 15.
With the government scrambling to keep the lights on and pay their bills, many investors, even entry-level enthusiasts, are searching for more palpable investment opportunities that could carry them during a sudden market slowdown.
Investors outside the U.S. have been having a hard time getting onto the gold train as the dollar scaled to its highest since March this year, making the precious metal less attractive to foreign buyers.
As investors are starting to take stock of their portfolios, amid a flurry of economic jitters, could gold once again have its moment in the sun, and be the hedge investors have been looking for? It’s time to take a look at the best gold-trading brokers as market conditions sink against the backdrop of growing volatility.
Starting with perhaps the most well-known kid on the block, eToro allows investors to trade gold online through Exchange Traded Funds (ETFs), while also offering SPDR ETFs and SPDR Gold Shares, with the latter seeing increasing popularity over recent years.
eToro has grown in popularity as it offers users some of the most dynamic low-spreads on the market, with a broad range of diversified assets.
Perhaps the most notable attraction of eToro is the fact that it is user-friendly, has zero commission, and has a strong regulating infrastructure that ensures investors are exposed to investments best suited for their portfolios. Gold CFDs are commission free, and the platform allows one to short-sell gold investments if prices start climbing.
Although the only broker is more suited for novice investors and gold traders, and offers no monthly fees for gold investments, meaning that traders can keep their gold purchases on eToro as long as possible.
The Australian-founded online broker provides major spread betting and CFDs on the broader market, as they are heavily focused on assets such as forex and index trading. However, in more recent years, the broker has been building a reputation for providing investors with diversified trading options, including 32 different commodities.
Peppertsone has perhaps become widely known for its competitive pricing and the wide pool of MT4 markets. The platform comes with a pre-built MT4 indicator, which enables investors to establish a more dynamic MT4 trading strategy for the long term.
One of its other attractive features is that it provides CFDs or spread betting on different commodities, including gold. This enables investors to execute fast and accurate trades, and the platform provides transparent delivery, ownership, and rollovers of any commodity purchases.
A drawback, however, is the fact that Pepperstone does not allow commodities futures or options trading. The platform also does not allow third-party commodity trading platforms.
For investors that are looking for a different course of direction, Weibull provides them with options on gold and silver futures, or commodity ETFs. Although considered to be more geared toward experienced or seasoned professionals, Weibull does provide proprietary tools for less-experienced traders and investors.
The platform has been designed to allow investors options in large-scale commodity companies that operate in the mining or refining of gold and silver.
Additionally, Webull has an elaborate selection of U.S.-listed stocks and ETF options, including American Depositary Receipts (ADRs) that are available to every trader.
A sizable portion of their ADRs support foreign companies, and the user-friendly interface allows for multi-device usability. Additionally, Webull has a robust range of tools that for investors and traders, which gives them more flexibility that provides them with more due diligence in one accessible location.
While FXTM might only offer eight different commodity picks, it does however give users wider access to 16 index CFDs, 1,266 equity CFDs, and more than 450 U.S.-listed stocks. Additionally, the 63 currency pairs have also been a big attraction for forex traders in more recent times.
Although FXTM is not the biggest and most widely used online brokerage platform for gold and commodity trading, its proprietary platform, FXTM Invest, gives investors more leverage to strategically develop an investment model that suits their long-term investment goals.
The listed managers that use the commodity services on FXTM have posted positive performance, which according to the platform have remained audited and verified.
On the specification side of things, FXTM has upgraded MT4 and MT5 trading platforms, requires low minimum deposits for its proprietary copy trading, and provides traders with quality market-based research materials they can use as part of their strategy execution.
All-in-all FXTM remains one of the more suitable choices for gold-hungry investors that are eager to tap into emerging markets, but also looking for an online broker that provides them with the right tools and transparency guidance.
AvaTrade has a robust selection of assets to choose from, with 55 currency pairs, 27 commodities, 31 index CFDs, 16 cryptocurrency pairs, 58 ETFs, and 614 assets, two bond CFD options among others.
With such a mouthful, AvaTrade has risen to popularity in recent years following the success of its highly educational platform - Sharp Trader - which has sorta become the go-to place for newcomers and seasoned professionals that require quality resources and market-centered research.
The online broker is well-regulated by the Irish authorities, with oversight from the central bank. Additionally, AvaTrade has a long list of cross-asset diversification opportunities and includes minimum standard spreads of 0.9 pips.
The platform provides a competitive selection of tools, and trading options, which makes it one of the more suitable choices for mid-level experienced investors and commodity traders.
To finish off
It’s a sticky time on the market for nearly every investor, and as many of them are scrambling to park their cash in recession-proof investments, gold is starting to look increasingly attractive against the backdrop of broader economic decline.
While there are several popular online brokers investors and traders can choose from, users are required to thoroughly do their homework beforehand to ensure they select a brokerage platform that offers them the tools and resources they require to build their commodity strategy.