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Precious Metals Trading

Traders who actively participate in the global investment business would understand how the market is full of extreme volatility and rapid changes within seconds. Numerous factors affect market movements, from the world economy to social and political issues. Therefore, sometimes, it is quite exhausting for traders to meticulously pay attention to every detail, every single time, to make sure that their investments proceed in the right direction. For that reason, most experienced traders do not stay in just one type of investment. Stocks and Forex might be excellent profitable investment choices, but there is no better option in barricading your investment than precious metals trading.

Investing your money in stocks and currencies might bring you higher revenues in short terms; however, in the long run, your exposure to risk will be quite higher. That is why most traders, even those who manage to successfully secure a high amount of profits in currency trading, at one time or another, would experience a substantial amount of loss, especially during inflation. This is where precious metals trading comes in handy.

Before the invention of currencies, the world economy mostly depended on precious metals like silver and gold as their medium of exchange. Even though today nations use their own currency for exchanging goods, the price of precious metals does not descend in value, and instead, it increases annually. With this in mind, if you are looking for a barricade for your investment to hedge against price inflation, or if you are planning on investing in the long term, then you’d better trade in precious metals.
Precious Metals Trading Brokers

What is Precious Metals Trading?

Trading in precious metals means “exchanging your money to buy the actual metal products”. For example, when you go to a jewelry store and buy a gold necklace, you trade your money for gold and vice versa. You will be able to obtain profits if you manage to sell your precious metals at a price higher than the amount when you bought the metals. This is the basic principle of traditional precious metals trading.

Trading precious metals doesn’t always work well in its traditional way, because you can’t keep piling up silver and gold in their physical forms. Once you reach a higher level, for instance, the equivalent of millions of dollars in gold and silver, then it’ll be very risky to have that amount of physical products at hand.

If that is the case, you can turn to online trading in precious metals via Forex brokers. Instead of purchasing precious metals in their physical forms, online brokers usually offer precious metals trading in the form of Forex metals, spot metals, and CFDs trading.

Precious Metals Trading Brokers

Securing your investment is of utmost importance if you are dealing with the volatile global trading markets. Investing in precious metals such as silver and gold, will provide you with the protection you need, especially in the case of price inflation.

One of the most important factors in a successful investment is choosing the right Forex brokers. The best precious metals trading brokers are the ones that give you the best and trustworthy services to conduct your trading operations.

The following brokerage companies are prominent in their capabilities in offering excellent trading services for precious metals trading.
XM Malaysia
XM Malaysia
For spot gold trading, XM provides its clients with a minimum spread of 0.25 pips using the XM Ultra-Low Standard (GOLD#) and XM Ultra-Low Micro accounts (GOLDm#). The value of 1 lot equals to 1 oz. of gold for the XM Ultra-Low Micro account, and 100 oz. for the XM Ultra-Low Standard account.

At XM, Spot silver trading is available with the lowest spread of 0.022 pips using the XM Ultra-Low Standard (SILVER#) and XM Ultra-Low Micro accounts (SILVERm#). The value of 1 lot equals to 50 oz. of silver for XM Ultra-Low Micro account, and 5,000 oz. for the XM Ultra-Low Standard account.


FBS Malaysia
FBS Malaysia
Gold spot trading at FBS is available with a minimum floating spread of 10 pips using FBS Standard and Cent accounts. If you prefer trading with a fixed spread, you can always turn to the FBS Micro account, which offers precious metals trading at a fixed spread as low as 4 pips for every lot size traded.

At FBS, silver trading is offered in a minimum floating spread of 2 pips using the FBS Standard account and 3 pips using the FBS Cent account. At the same time, traders who prefer trading in fixed spreads are presented with a minimum spreads of 6 pips via FBS Micro account.


FXTM Malaysia
ForexTime Malaysia
Trading gold at FXTM is offered with a minimum spread as low as 9 pips for XAU/USD using the FXTM ECN account, 30 pips for XAU/EUR using the FXTM ECN and FXTM ECN Zero MT4 accounts, and 76 pips for XAU/GBP via FXTM Standard account.

Silver trading at FXTM is offered with a minimum spread of 0.4 pips for XAG/USD using FXTM ECN, FXTM ECN Zero, FXTM PRO, and FXTM Standard MT5 accounts and 7 pips for XAG/EUR using FXTM Standard account.


Alpari Malaysia
Alpari Malaysia
At Alpari, traders can benefit from floating spreads as low as 22 pips for Gold trading by using the Alpari PRO ECN trading account via the MT4 trading platform, along with Alpari ECN trading account via the MT5 trading platform.

At Alpari, for silver (XAG/USD) trading, the average spread offered is 1.8 pips using Alpari PRO ECN trading account via the MT4 trading platform, along with Alpari ECN trading account via the MT5 trading platform.


HotForex Malaysia
HotForex Malaysia
HotForex provides gold trading in XAU/EUR and XAU/USD with a minimum contract size of 0.01 lot for 100 ounces of gold per lot. The minimum margin required for gold trading at HotForex is 0.5%, and the average spread offered is 0.49 pips for XAU/EUR and 0.19 for XAU/USD.

Trading silver at HotForex is offered in XAG/EUR with an average spread of 0.036 pips and a minimum contract size of 0.01 lot. One lot for silver trading at HotForex equals to 1,000 ounces of silver, and the minimum margin requirement for this type of metal is 1%. HotForex also offers silver trading with USD equivalent (XAG/USD) with an average spread of 0.03 pips. The minimum contract size is also 0.01 lot with the same lot measurement and the same minimum margin requirement.


Gold - XAU/USD (The GOLDen Treasure)

Gold is the “God Almighty” of all metals. Since the dawn of trading, gold has shown the highest value as a medium of exchange and a universal measurement of wealth. You can ask anyone from any part of the world, and they would all unanimously say that the more gold you have, the richer you are.

It is equally important to understand that the process of mining and refining this priceless metal is arduous and expensive. Even though gold has exceptionally high demands due to its malleable nature, its resources are limited in the world. With this in mind, we now know the reason why the price of gold is remarkably high.

Gold trading is available in various ways, from traditional buying and selling gold bars and coins, to sophisticated online gold trading. If you don’t want to bother yourself with taking care of the precious metal in its physical form, you can trade gold online as easily as trading Forex with the assistance of trustworthy and prominent Forex brokers.

The easiest method to trade gold online is by opening an account with a trusted Forex broker and choose to trade in gold (XAU) instead of traditional currencies. It works the same way as the usual Forex trading; you take advantage of the price difference, or spread, against its quoted currency pair.

Additionally, gold is usually paired with USD (XAU/USD) as the metal price works in the opposite direction of the American Dollars. Some brokers also offer gold pairings with other major currencies like GBP (XAU/GBP) or EUR (XAU/EUR).

You can also try trading gold via commodity trading using spot gold or CFD trading, in which you trade the actual precious metal and enjoy the profits without having to deal with the ownership hassles. However, this method requires you to have more capital because the usual minimum purchase requirement is 1 oz. of gold, which is worth over 1,000 USD.

Silver - XAG/USD (The SILVER Charm)

Even though its price is not as high as gold, silver has its own charm with its extensive industrial values. There is a reason why silver is also known as the “poor man’s gold.” Silver has more production supplies all around the globe, over 30,000 metric tons per annum. Also, it is in high demand, especially for industrial purposes, because of its physical strength, malleability, and conductivity characteristics. That is why economic growth affects the price of silver more than that of gold.

The silver price, however, is not as stable as gold and faces more price fluctuations, from which traders can benefit. That is why silver is favored by active professional traders because silver trading works as an investment in both the short term – due to its price fluctuations, and the long term – because of its potential increase in value in the future.

You can start trading silver by choosing XAG, which is the investment symbol for Silver. You will mostly find silver paired with the American dollar (XAG/USD), but there are brokers that pair silver with GBP (XAG/GBP) or Euro (XAG/EUR).

Traders who have more capital are recommended to try commodity trading using spot silver or CFDs offered by most Forex brokers. In this case, the usual trading size for a standard lot is 5,000 oz. and 1,000 oz. for one mini lot.

Advantages of Trading Precious Metals

Trading in precious metals is proven to be an effective way to barricade yourself against the high volatility of global investment markets. Stocks and currency trading are indeed appealing with their high revenue potential, but you need to remember that trading in currencies and stocks exposes you to a higher level of risk. And even higher during inflation, which can result in a substantial amount of losses.

Unlike other types of investments and trades, precious metals like silver and gold have their own unique movement of values, which will provide you with various advantages as follows:

1. Stable & Tangible Assets

Silver and gold are not merely conceptual numbers or papers like other investment products; they are actual metals. They exist in the real world, and you can actually see, feel, and touch them. Moreover, due to their malleable characteristics, these metals are used for numerous purposes, such as industrial, electronics, and even jewelry. Therefore, even when the investment demands for these metals are low, demands from other markets are more than enough to maintain the stability of their value.

2. Safeguard against inflation

As it is commonly known, inflation is a big scary monster for active traders because it can cause a tremendous amount of loss in their investments. Still, you do not need to worry because trading in precious metals will help you safeguard your investments against inflation.

For instance, investing in gold is an effective hedge against the USD inflation. That is because the price of gold increases significantly when the price of USD inflates and decreases in value. In other words, gold becomes more expensive when the price of USD declines.

That is why if you participate in precious metals trading investment, you will not suffer huge losses during USD inflation because your investment in precious metals will protect you and compensate for the falling value of USD through the metals skyrocketing prices.

3. Safe Investment

If you are an experienced day trader who trades aggressively in the investment market, there may be times when you feel stressed and overwhelmed because, as we all know, global investment markets are unpredictable and highly volatile. If that is the case, you might want to take a step back and choose the “safer” path by investing some of your capital in precious metals.

Compared to other trading instruments, trading in precious metals may not give you the best result right away. Nevertheless, precious metals are always the best choice if you are looking for a long-term investment with high returns.

What’s more, it is a proven fact that the price of silver and gold increases as time goes by. Throughout history, the price of precious metals always managed to bounce back even after a significant drop. Also, in the worst-case scenario, when the world is falling or at war, precious metals will be the only medium of exchange that can still maintain their values.

Trading in precious metals is considered a “safe Investment”; there is no way that these priceless metals will become worthless. Therefore, it will be the best choice if you are looking for a more stable investment.

4. Global Acceptance

With the invention of numerous different currencies, it is extremely difficult to find a trading instrument that is globally accepted around the world. Precious metals are an extraordinary exception.

Silver and gold were the significant medium of exchanges before the invention of currencies, and even today, they are considered high-value trading materials. That is why silver and gold are accepted everywhere in the world, and you can trade them wherever you want, especially if you own the metal in its physical form. Their universal acceptance will be an advantage because when their price drops in one country, it doesn’t immediately decline in value. You can always choose to sell the metals in different parts of the world.

5. High International Market Liquidity

First of all, liquidity means the ability to convert investment products into cash. If you participate in precious metal trading, you will have access to the high liquidity of international markets. Silver and gold are accepted all over the world. They are also malleable, which makes them extremely useful for a wide variety of purposes. Hence, the worldwide demands for these precious metals are extraordinarily high.

Besides, due to their various investment benefits, the promising future of trading in precious metals appeals tremendously to a huge number of professional investors. These potential investors will also add to the number of precious metals demands in the investment market. All these plentiful demands create a distinctive market for precious metals that possesses one of the highest liquidity among other investment markets. They will be able to give you money the fastest way possible in times of need.

6. Investment Portfolio Diversification

It is common knowledge for professional traders not to put all their eggs in one basket. Most experienced traders would trade in different trading instruments to minimize risk exposure, increase investment stability, and maximize their returns. In this case, trading in precious metals will be the best option to diversify your trading portfolio.

By trading in precious metals, traders will have the chance to minimize their losses and even gain some profits in times of market instability. Moreover, precious metals also work as a buffer against economic uncertainty. Therefore, in the case when your other investment fails under extreme market volatility, your investment in precious metals will stand tall and barricade your asset.

7. Resistant to Price Manipulation

Precious metals like silver and gold are mined from deposits all around the world. The process of extracting these metals and refining them into usable materials is long and expensive. Therefore, the global amount of these precious metals is limited despite their extremely high demands.
As a result, precious metals are less likely to be manipulated in price compared to other trading instruments like Forex or stocks.

8. Low Transaction Costs

If you participate in precious metals trading online, there are several costs that you can avoid, like exchange fees, regulatory fees, transport fees or insurance fees. Moreover, some brokerage companies offer low to no service fees when it comes to trading in precious metals. That is why these low transaction costs in online precious metals trading will allow you to focus on gaining more profits in your daily trading operations.

All things considered, it is reassuring to face the high volatility of the global investment market with the help of precious metals trading. You can start small and test the water by engaging in precious metals trading using traditional methods. On the other hand, if you are confident with your trading skills and experience, you can immediately go to your broker’s website and invest some of your capital in these precious metals and let your investment portfolio grow. Happy trading!