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Gold Trading ~ Trade Gold Online (XAU/USD)

Gold trading Forex brokers
Remember the ancient times when currencies have not yet been invented? The economy of world nations depended on precious metals such as silver and gold as their medium of exchange, and the one that possesses the highest value among all metals is gold. Several centuries have passed, and countries have been developing and using their own currency. But still, the value of this particular yellow metal keeps increasing to this day.

Gold is one of the original forms of currencies that possess excellent stability in the world economy. This yellow metal has survived through many different economy crises, and even though there were times when people seemed to lose interest, it still bounced back.

What is more, gold is immensely malleable and resistant against corrosion and rusting, plus it can be used for numerous purposes such as industrial, health, and jewelry. The process of excavating gold from mines is costly and time-consuming. That is why gold has such a high price in international markets and is perceived as a global symbol of wealth and prosperity. You can ask anyone in the world, and they would agree that the more gold a person owns, the richer they are.

What is Online Gold Trading?

Gold trading is one of the oldest forms of trades. It is also the easiest because basically, you trade your money to buy a certain amount of this precious metal. The simplest form of gold trading practice can be found in our daily lives. For example, when you go to the jewelry store and buy a pair of gold earrings, you trade your money to buy gold. On the other hand, if you sell your gold jewelry to obtain some cash, you trade your gold for some cash. That is gold trading in its most traditional sense.

The traditional way of trading gold is simpler and easier indeed. However, it only works up to a certain level. Why? Imagine owning and saving, say 10 million USD worth of that precious yellow metal in your apartment. You will be facing a whole different level of risk exposure. For that reason, there are currently better and safer ways of trading gold: through the Forex market.

In the Forex market, gold is symbolized with its international code: XAU. It is usually traded against the United States
’ dollar since the United States is the country that possesses the most significant gold resources in the world. The Gold-USD pair symbol in the foreign exchange market is XAU/USD, which tells the traders how many USD (the quote currency) they will need in order to purchase one ounce of Gold (the base currency).

Gold Trading Forex Brokers

You can start trading gold online immediately once you have registered and opened a Gold trading account on a broker’s website. Even though there are numerous trading brokers in the market, only a few can adequately accommodate traders with exceptional gold trading services and facilities.  Therefore, it is highly recommended that you select a prominent and trustworthy broker to assist you in your trading operations. Here, you can find top rated Gold trading Forex brokers:
XM Malaysia
XM Malaysia
Trading Gold at XM is available in precious metal trading with a minimum spread as low as 0.2 pip for XM Ultra-Low Standard Account, and 0.3 pips for XM Standard, XM Micro, and XM Ultra-Low Micro accounts. The offered leverage is flexible up to 1:888, and the minimum contract size is 0.01 from 1 oz. per lot for micro accounts and 100 oz. per lot for standard accounts.

XM is one of the world’s most secure Forex brokers with multiple licenses obtained from regulatory bodies such as the FCA of the UK, ASIC of Australia, IFSC of Belize, and CySEC of Cyprus. The broker has also won numerous prestigious awards during its 10 years of development, including Best FX Broker Europe 2018 by World Finance Magazine, and Best FX Provider 2019 by City of London Wealth Management Awards.


FXTM Malaysia
ForexTime Malaysia
Gold trading at FXTM is offered with a minimum spread as low as 5 pips for XAU/USD pair via FXTM ECN account, 76 pips for XAU/GBP pair via FXTM standard account, and 30 pips for XAU/EUR pair via FXTM ECN and ECN Zero MT4 accounts. FXTM also provides its clients with fixed leverage of 1:20, without charging any gold storage and insurance fees on their deposits.

FXTM (ForexTime), one of the world’s most prominent brokers, is regulated by multiple major regulatory bodies such as the CySEC of Cyprus, FCA of the UK, FSA of Mauritius and IFSC of Belize. Founded in 2011, the company is famous for its wide variety of trading instruments, including over 60 currency pairs, CFDs, spot metals and indices, and over 180 Share CFDs and Stocks.


FBS Malaysia
FBS Malaysia
FBS offers gold trading service in XAU/USD gold spot trading with a minimum spread of 10 pips for FBS Standard and FBS Cent accounts, 4 pips for FBS Micro account, and 0 pip for FBS Zero Spread account, with leverage as high as 1:1000 for FBS Cent and 1:3000 for FBS Standard, Micro, and Zero Spread accounts. Gold trading at FBS is also offered with various contract sizes depending on the trader’s trading account.

FBS, one of the largest international Forex brokers, is well-known for its wide variety of bonuses and promotional programs. Founded in 2009, FBS is licensed and regulated by the IFSC of Belize and CySEC of Cyprus. The brokerage company has now served over 12 million traders and 370,000 partners from more than 190 countries.


Alpari Malaysia
Alpari Malaysia
At Alpari broker, traders can trade gold with a minimum spread of 18 pips for XAU/USD pair via Alpari ECN, ECN MT5, and Alpari PRO accounts, 47 pips for XAU/GBP pair via Alpari Standard account, and 33 pips for XAU/EUR pair via Alpari ECN and PRO accounts. Whereas the maximum leverage offered is 1:500 for Alpari Standard, Micro, and ECN Accounts for Gold trading.

As a part of the global financial company, the Alpari Group, Alpari has become a reputable brokerage company with a long successful history since 1998. The company is regulated by the FSA of St. Vincent and the Grenadines and is known for its most popular investment product: the PAMM account.


RoboForex Malaysia
RoboForex Malaysia
Trading gold at RoboForex is offered in XAU/USD gold spot trading with a trading size of 100 oz. per lot, available via MT4/5 and R Trader platforms. Spreads for trading gold at RoboForex vary in each type of trading account, with the minimum spread as low as 4 pips for the RoboForex Prime account. RoboForex also charges low to no commission for gold trading activities depending on the account type.

As a brokerage company that won the 2018 Safest Broker Award at the London Investor Show, RoboForex truly takes certain measures to ensure the safety and security of its clients’ funds. Therefore, aside from being licensed and regulated by the IFSC of Belize, RoboForex also managed to be a member of Category A of the Financial Commission, as well as confirming its compliance with the Financial Commission through an independent institution called Verify My Trade (VMT).


HotForex Malaysia
HotForex Malaysia
Gold trading at HotForex broker is available in XAU/USD and XAU/EUR gold spot trading service via MetaTrader 4 and 5 trading platforms, with a USD-based account and leverage as high as 1:100. The offered spreads are floating with an average of 0.49 pips for XAU/EUR and 0.19 for XAU/USD, with a minimum contract size of 0.01 lot from 100 oz. per lot.

HotForex is a world-class brokerage company founded in 2010 by the HF Market Group. HOT in HotForex stands for Honesty – Openness – Transparency, which shows the company’s primary value in prioritizing the clients’ needs. HotForex is also one of the most extraordinary brokerage companies that has managed to obtain a license from 7 different major regulatory bodies namely the FCA of the UK, DFSA of Dubai, CySEC of Cyprus, FSC of Mauritius, IBC of SVG, FSCA of South Africa, and FSA of Seychelles.


Benefits of Gold Trading

Statistics show that gold investments have led to tremendous positive results over the past century. Even those who showed no interest in gold during the 90s, immediately went back to gold trading once the global economic crisis stroke in 2008, causing the gold price to shot up twice its value. Ever since then, the price of gold has been snowballing over 1,000 USD.

For that reason, trading in gold has always been a good investment with various following benefits for the traders:

1. International Market Liquidity

If you participate in gold trading, you will have access to the high liquidity of the international markets. As we all know, gold is a malleable metal that can be used for almost anything, so there is a high global demand for gold. Not to mention how appealing the value of gold is to professional investors. These investors will add to the number of gold demand in the international markets, thereby creating higher liquidity in the gold market.

2. Stable and Tangible Asset

Gold is a real product. It exists in different forms with various functions, but the point is that you can see, feel, and touch the metal. And this malleable metal is being traded in real trading activities for various reasons in many parts of the world like England, America, Germany, parts of Asia and the Middle East.

In that case, we can safely say that trading in a real and tangible product that has an extremely high and stable value is far more promising than investing in assets like currencies and stocks. Intangible assets like currencies and stocks are influenced by factors such as politics and media coverage, whereas the value of gold is not greatly affected by sudden media headlines.

3. Safe Investment

During times of financial crisis, you can always count on your gold investment.

Gold is in high demand for many trading activities since it is real and tangible. There is no way that this priceless metal will become worthless, and that is why people consider gold a safe investment.

4. Hedge against Inflation

Inflation is a big scary monster for traders because it can turn their investments into a significant loss. However, if you participate in gold trading investments, it can protect you as a hedge against price inflation.

For example, gold is famous for its effective hedging capability against USD inflation. Therefore, when there is significant inflation that can cause a reduction in the value of USD, gold will become more expensive. If you participate in gold trading, during USD inflation, your gold investment will protect and compensate you for the falling value of USD through the metal
’s skyrocketing prices.

5. Diversifying Trading Portfolio

As a professional trader, it is always essential to have a diversified trading portfolio to make sure that your investment does not depend only on one type of asset. Gold trading will be a good option in your portfolio diversification because its price value will increase when other paper investments start to weaken.

Although the gold price seems to be more volatile in the short-term, it will provide a promising revenue as a long-term investment for your trading portfolio.

Gold Trading VS Forex Trading

The nature of gold trading is different from that of foreign exchange trading. Therefore, a trader must consider a lot of different factors before choosing between trading gold and Forex:

1. Trading Objective

Choosing between trading gold and Forex will require traders to take a closer look at their trading objectives in the first place: Are you a day trader? Do you trade for a living or you consider it a short-term investment? Do you need short-term or long-term investments?
Day traders who live on their trading operations, usually prefer intense trading activities with higher returns, which is why Forex trading is a better option for them.

On the other hand, traders who engage in trading activities for long-term investments will probably be more interested in gold trading because it shows a more promising revenue in the long run.

2. Appetite for Risks

If you are still in two minds about trading gold or Forex, you might want to take a look at your appetite for risks. It is important because, in terms of risk value, gold trading and Forex trading carry different levels of risk.

Trading currency in the Forex market means exchanging one currency with another, and in this process, the value of currencies is highly dependent on numerous factors such as the origin of the currencies and their relation to the world economy. The value of a single currency can increase or decrease in a matter of seconds. This is one of the many reasons why the risk value in Forex trading is extremely high that brokers are required to put a warning on their websites. If you are the type of traders who enjoy the thrill of experiencing high risks, Forex trading will be more appealing to you.

On the contrary, traders who favor less risky trading experience will be safer to choose gold trading, since the value of gold is more stable. In other words, if you want to trade and acquire more assuring results, then you should try trading gold.

3. Capital Amount

Traders
’ capital amount is also a determining factor in choosing whether to participate in gold or Forex trading.

Trading currency in the Forex market is getting easier nowadays due to its increasing popularity. There are numerous brokerage companies that compete with each other to gain more clients; this leads to less demanding requirements for trading Forex. You can open a live account on a Forex broker
’s website with as much as 5 USD, and start trading immediately.

Unlike Forex, trading gold would require a higher level of capital. Most brokers recommend a capital as high as 5,000 USD to be able to trade gold properly. So if you are experienced and have the amount of money, trading Gold will be preferable for you.

4. Level of Trading Expertise

Professional traders who want to diversify their trading portfolios, or are simply bored and in need of new challenges, will find both gold and Forex trading a perfect choice.

Beginner traders, on the other hand, might want to start small depending on their preferences and circumstances as previously mentioned. It is also advisable that beginners seek proper trading education and start with a demo account before joining any real trading activity.