Forex Brokers with Spot Metal Trading are FX brokers that allow their traders to trade spot metal CFDs through their platform, like gold and silver.

Spot Metals Trading brokers are becoming an increasingly popular across traders around the world. Precious metals like gold and silver are considered to be safe heaven when things go bad in the financial markets. In times of great market uncertainty, people often tend to turn to the security of precious metals, with gold perceived to be an excellent inflation hedge. In general the price of metals only tends to go up and they are considered by many traders to be immune to inflation and safeguard from market volatility and high risk. Like all other instruments in the Forex market, political and economic events can significantly influence the price of previous metals and cause their values to fluctuate.

 Why Trade With Spot Metals Trading Brokers?

The natural properties of such precious metals give them a high intrinsic value that helped them become one of humankind’s first forms of currency. The trading of spot metals, such as gold, copper and silver, is appealing to active traders because these instruments have high liquidity.

 

Here is a list of Forex Brokers with Spot Metal Trading

 

Broker
Description
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Octafx
OctaFX
Regulation: CySec
Min. Deposit: $/€/£ 5
Leverage: 1:500
Spreads: Low as 0.4 pips

Review


FP Markets
FP Markets

Regulation: ASIC, CySEC
Min. Deposit: $/€/£ 100
Leverage: 1:500
Spreads: Ultra Tight from 0.0 pips

Review


NSBroker
NSBroker
Regulation: MSFA, BaFin, FCA,
Min. Deposit: $250
Leverage: 1:100
Spreads: Low as 1.2 pips

Review
XM
XM
Regulation: CySEC,FCA,ASIC
Min. Deposit: $/€/£ 5
Leverage: 1:500
Spreads: Low as 0.1 pips

Review
Avatrade
Avatrade
Regulation: ASIC,JFSA,FSCA
Min. Deposit: $/€/£ 250
Leverage: 1:400
Spreads: Floating from 1 pip

Review


IC Markets
IC Markets
Regulation: ASIC
Min. Deposit: $/€/£ 200
Leverage: 1:500
Spreads: Low as 0.0 pips

Review


Etoro
Etoro
Regulation: CySEC,FCA,ASIC
Min. Deposit: $/€/£ 200
Leverage: 1:30
Spreads: Variable

Review

XTB
XTB
Regulation: FCA
Min. Deposit: $/€/£ 250
Leverage: 1:30
Spreads: Low as 0.1 pips

Review


IQOption
IQOption


Regulation: CySec
Min. Deposit: $/€/£ 10
Leverage: 1:1000
Spreads: Floating from 1 pip

Review


OlympTrade
OlympTrade
Regulation: IFC
Min. Deposit: $/€/£ 10
Leverage: 1:500
Spreads: Low as 0.0 pips

Review
Globex360
GlobeX360
Regulation: FSCA
Min. Deposit: No min Deposit
Leverage: 1:500
Spreads: Low as 1.6 pips

Review

 

Advantages of Spot Metal Forex Brokers

There are three advantages that come from Spot Metal Forex brokers, since it is believed to be a safe haven for most active traders. The first advantage is the security that surrounds the nature of spot metal trading; most traders tend to lean towards spot metal trading when the financial markets are volatile and unpredictable. They are considered a safe haven that most traders take refuge after they experience financial losses, in order to get back on their feet.

The second advantage is that spot metal Forex brokers help traders to add diversity to their investment portfolio, so that traders will have more than one type of trading instrument. By diversifying their investment portfolio, there is the ability for a trader to jump from one asset to another. They will be able to delve into the trading world, without risking major financial losses from all elements. With multiple types of assets, there is the ability for traders to expand their investments on different trading instruments, without putting “all their eggs in one basket.” This is mostly why traders tend to invest in spot metal FX trading, such as gold and silver, and crude oil.

 

Disadvantages of Spot Metal Trading

There are also drawbacks that come with spot metal trading, since it can be considered an unlikely source of revenue. With spot metal trading, there are three main drawbacks that should draw the attention of traders, before they decide to delve into the industry of precious metals, and invest in them. The first disadvantage is its low rate of return, which means that there are low levels of profit in trading gold and\or silver than that compared to FX trading. The low profit levels are defined by the fact that these precious metals face very insignificant changes in prices throughout long periods of time. Traders would need to trade for a significant amount of time, in order to attain a large amount of profit, or return.

The second disadvantage is the lack of appreciation cycles. With FX trading and cryptocurrency trading, there is a lot of come-and-go with price changes, it could even reach to changes on a daily basis. However, that is not the same with spot metal trading. There is only one situation when the precious metal trading reaches its highest value, and that is when the paper currency has its value depreciated. The third and final drawback to spot metal trading is in the price correction. Both precious metals, gold and silver, manage to experience significant price correction, similar to any other trading instrument in financial markets. However, the drawback lies in the fact that if traders do not hold the metals for a long period of time, then the price correction could lead to a negative reaction.

The advantages and drawbacks should be seriously considered before investing in spot metal trading; it all comes down to the trader and whether spot metal trading brokers are suitable for them.