Lowest Spread Forex Broker For Gold Comparison (2024)

Professional traders are using the lowest spread forex brokers for gold to save up to $10,000 in trading costs per year and to gain an edge in their trading. To trade gold (XAUUSD) successfully, you should do the same.

However, there is hundreds of online gold trading brokers to trade XAUUSD. These brokers are called forex gold brokers because they are offering spot gold (XAUUSD) and forex trading. If you are looking for a broker to trade gold future (GC), please click here

So, how should a gold trader decide who’s the best broker for XAUUSD(gold)?

Good news. I and my paid members have tried many gold trading brokers and gold trading platforms in the last 15 years, so you don’t have to. Click Here for Lowest Spread Gold Brokers Comparison Table in 2024

We have found that the lowest spread gold broker will do the following for you:

Avoid Big Losses during volatile gold price movements.

Please view the image below of a trader who suffered significant losses of $1,900 of 2 orders when his broker provided inaccurate price data and closed his orders at 2048.78, while other traders using reliable ECN brokers avoided losses and made small profit for closing their orders at 2032.73. The incident taught him the importance of choosing a trustworthy broker and highlighted the advantages of using a reputable ECN service.

So the best gold broker should be an ECN gold broker that connects you directly to the inter-bank market and works with many liquidation providers.

  • Get real buy or sell prices on the market (this is important) to have a good price feed
  • Have good liquidation to offer you the lowest gold spread.
  • Send your orders directly to the inter-bank market for trade execution.

Save up to $10,000 per year for lowest gold spread

Gold spread is the difference between the bid and ask prices of gold. For example, 2380/2308.2 :The spread is 20 cents or 20 pips.

A lowest spread gold broker offers you the smallest gap between the bid and ask prices to lower your trading costs. To have the lowest spread for gold, your ECN broker should work with many good and trusted liquidation providers.

Therefore, the lowest spread forex broker for gold is an ECN broker that works with many trusted liquidation providers.

You may spend up to 10,000 USD a year for gold spread if you select a wrong gold broker.

For example: a 20 cents (20 pips) spread gold broker will charge you 20 USD for opening a 1 lot Buy or SELL order and another 20 USD for closing/taking profit that order, so you will pay a total 40 USD per order.

Gold Spread and Trading Cost

Number of OrdersTotal CostTrading Fee
1 Order per Day$40 x 1$40 per Day
22 Orders per Month$40 x 22$880 per Month
22 x (12 months) Orders per Year$40 x 22 x 12$10,560 per Year
Some gold brokers offer you up to 30-35 cents (pips) for gold trading, you should choose a broker with less than or equal 20 cents (20 pips) to save your trading cost.
A Lowest Spread Forex Broker For Gold saves you $10,000 annually

Fixed vs Varied Gold Spread

Gold spreads can vary depending on market conditions and the liquidation providers of a broker. The gold spread tends to be wider after news events such as: NFP release, FOMC Meeting Minutes, Central Bank Interest Rate Decision, Presidential Election, Inflation reports, War or Tension between countries.

The best ECN broker with many trusted liquidation providers will support you in volatile market conditions by offering you the slowest gold spread to avoid significant losses.

The best gold broker will offer you two types of accounts: fixed and varied gold spread accounts. The fixed account has a 30-40 cents gold spread, which is higher than the varied spread account. The varied gold spread account is the type selected by many professional gold traders.

Trade Execution

Trade execution is important to your trading strategy and psychology, some gold brokers use bad execution practices to stop out your long/short order which make you lose confidence in your trading strategy and lower your trading profit.

Besides offering the lowest gold spread, the best ECN gold broker doesn’t act as a counter-party to your trades to ensure fair trade execution and offers you access to many liquidation providers to quickly fulfill your orders at the desired price.

For example: You make an order of Gold Buy 2380, Stop 2375, Target profit 2395. After your purchase, gold drops to 2375.28 and then goes up to 2395.

lowest spread forex gold broker with good execution

You will incur a loss of $500 because your buy is stopped out at 2375 if you are trading with a broker with poor trade execution. However, you will have a win of $1,500 profit at a lowest spread gold broker

Protecting Your Trading Capital and Financial Regulations.

A good gold broker also protects your trading capital by depositing your money into a different accounts from the broker operating accounts which is called segregation of client funds.

A broker with segregation of client funds will protect your money from being misused by the broker employees or directors. If this broker is bankrupt, you will able to withdraw all your money.

A good ECN gold broker will have a license from financial regulators such as CFTC, ASIC, FCA, Swiss FINMA, etc. These financial regulatory auditors will check whether a broker follows the strict standards such as segregation of client funds, fair and transparent trade execution, and enough operating capital.

Leverage

Many ECN brokers have different office locations so that they can offer you leverage ranging from 1:20 to 1:500 to choose from for gold trading. With a 1:500 leverage, you can trade 0.1 lot or 10 ounces of gold for your $200 capital instead of needing $25,000 in your trading account.

lowest spread gold broker leverage vs risk

Using large leverage increases your risk of making big losses if you do not know how to use risk management correctly. The more leverage you use, the higher the commission and swap you have to pay for each trade.

Trading Platform MT5, MT5, CTrader

Many ECN brokers offer you the following trading platforms, such as MT4, MT5, and cTrader. We have tested and found that to have the lowest spread for gold, you should select MT4 as a trading platform.

Customer Support

Many good brokers have real human supporters to answer your questions or concerns instantly, such as live chat and phone. Before opening your gold trading account, you should ask some questions on their live chat to test their responsiveness.

Lowest Spread Gold Brokers Comparison Table

ECN Broker NameCountry & LicensesGold SpreadMinimum CapitalWeb
ICMarketsAustralia, ASIC20 cents (20 pips) *200 USDClick Here To Visit
LMAXUK, FCA20 cents (20 pips) *10,000 USDClick Here To Visit
DukascopySwitzerland, Swiss FINA20 cents (20 pips)200 USDClick Here To Visit
ForexUSA, CFTC20 cents (20 pips)200 USDClick Here To Visit
(*) gold spread will lower than 20 cents (20 pips), it depends on market conditions