Benefits Of Trading Gold With CFD Brokers

Last Updated September 15th 2022
3 Min Read

The most popular investment is gold, and it always has been. Did you realize, though, that you don't need to purchase any gold to profit from gold investments? If you haven't been paying attention, you should start now because trading gold as a CFD offers several advantages and very lucrative returns.

How Safe Are CFD Brokers For Trading Gold?

Let's break down this information in order to answer the question that has likely been on your mind from the get-go. In addition to facilitating currency trades, modern forex brokers often connect their clients to other markets via CFDs. Forex companies typically provide access to XAU/USD trading if you're interested in trading gold (not the physical but the virtual kind).

With that said, let's explore the perks of trading gold using brokerage firms.

Available To All Users Without Restriction

One thing to remember is that if you want to profit from gold, you must wait until a specific store's office hours are open before you can trade your actual gold there. Having to own gold to profit from a price change is a risk you won't have to take when trading gold CFDs.

This is great news for anyone who wishes to buy or sell gold from any location. You can start trading gold CFDs with as little as $100 and a computer, laptop, or smartphone with internet access.


Trading gold through CFD brokers has several advantages over traditional gold trading in that you won't have to worry about the fees associated with warehousing or transporting the actual item. Buying and selling gold online eliminates the need for a middleman, which would otherwise be necessary when dealing with actual gold.

Greater Adaptability

You can sell your gold CFD position anytime throughout the trading session. Gold contracts for difference (CFDs) are very liquid, so that you can profit from price fluctuations in either direction. Assuming you think gold will go up in price, a "long position" can be opened (buy). If, on the other hand, you believe the gold price will drop, you can "short" gold (sell).

Since CFDs are leveraged financial products, trading gold through CFD brokers offer more leeway. The complete amount of your trade size is not required as a deposit. If you employ leverage, you must ensure you have the margin needed to open a deal, which is often between 10 and 100 times less than the actual amount.


The estimated gold trading volume is around $70 billion per day, more than most currency pairs except some major currency pairs. High trading volume results in high liquidity for gold CFDs. With high liquidity, gold CFDs are cheaper to trade than other financial instruments, and the commissions charged are usually very small. In addition, selling CFD contracts is easy due to the high liquidity, unlike in physical gold transactions.

Bottom Line

Now that you are well conversant with the benefits, you should consider gold CFD trading with AvaTrade. Why? AvaTrade provides you with access to a variety of resources, including educational materials, powerful charting packages, and other advantages. They also provide automated trading solutions and various trading platforms for traders of different skill levels.

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