How to Choose a Broker for Gold Trading
Starting to trade in gold can help to diversify your investments portfolio. There are many various options available online in the UK today, which can cause some confusion for both beginners, as well as advanced traders. The points noted in this guide can help you find an online broker for gold trading that meets your needs:
Before determining who will be the best broker for you, be sure to check the integrity of their trading platform. Make sure it is regulated so that you can trade with the knowledge that your personal information is secure. Many beginners are unaware of their brokers regulation, but you will want to have your investments and earnings adequately protected. Here in the UK, we are regulated by the Financial Conduct Authority (FCA).
While selecting a broker, some may just concentrate on stocks. However, you should keep in mind there are many other types of investment alternatives offered. Including Forex (FX) or currencies, CFDs, trading in futures, options or precious metals, to just name a few.
While gold trading, you want to be able to get advice and have your questions answered as they come up. Many brokerages offer local UK phone support. You may find that it is easier for you to get help from a live support department instead of waiting for an email reply. Looking at the different support options available is important before you decide on which gold trading platform you choose.
Leverage and Commission
When gold trading, you need to be aware of the different leverage that each broker offers. Some trading brokers offer leverage which is as high as 1:200. Some gold trading brokers charge commission, and you will want to make sure to check out the fees and commissions of each to make sure that you are not paying more than you are earning.
Depending on if you will be trading from home or while you are out and about, you will want to look at the different platforms offered by each gold trading brokers. There are different platform options such as desktop, and mobile, and each has its features which could suit your needs better.
Fees and Charges
Some gold trading platforms charge you a fee each time you conduct a trade, while others only charge a maintenance fee for your account. It is important to take this into consideration when deciding which gold trading platform to use. The amount of trading you will be conducting will impact the platform you choose to use.
For more information on CFD Trading please see our tutorial: The Basics of CFDs.