Gold has always been every investor’s safety net. And it is a part of multiple portfolios as this asset helps traders diversify on a larger scale. The value of gold continues to shine and rise high in the markets. It is very liquid in nature and has great scope for bringing long-term profits. Hence, it is a preferred choice of many traders. Picking the right gold broker is necessary to safely secure & grow your capital. In this article, we discuss a few things that you need to keep in mind while selecting gold trading brokers.
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Regulation
A regulated gold broker must follow certain rules and regulations set by a regulatory body, which helps to protect you as a consumer. This includes ensuring that the broker is transparent in their business practices and is financially stable. Working with a regulated broker also gives you a way to file a complaint or seek compensation if you feel that you have been treated unfairly.
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Gold Trading Platforms
Many traders trade gold on the MT4 trading platform – a versatile platform that comes with in-built tools and features that assist in trading. Traders get to choose from various tools and techniques to enhance their trading process. It is best to choose a gold broker that has this platform.
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Gold Trading Accounts
Brokers that offer gold trading services typically offer three different accounts –
Micro Account
This account is the best option for new traders with a low deposit amount.
Gold Account
This is a standard account that most brokers recommend.
Platinum Account
Platinum accounts are for advanced traders or those traders who frequently engage in gold trading. This account is used mostly by VIP clients who are in the higher scale budget-wise.
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Investment Options
Traders can either buy physical bars or coins which are then stored safely in vaults. Although it comes at a fee, it is highly recommended and is a great way to safeguard a long term investment. Traders who wish to do ETF trading have no ownership of the gold per say, but they get hedging options.
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Funding And Withdrawal
Payments should be hassle free which is why it is best to choose a broker that offers different payment methods. Online payments are much easier and quicker and have low transaction costs. In case of withdrawals, choose a broker that initiates instant payment release.
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Commission
Commissions are the fees that gold brokers charge for their services. These fees can vary significantly from one broker to another, so it’s important to carefully consider the commissions being charged when choosing a gold broker. Some brokers charge a flat fee for each trade, while others charge a percentage of the value of the trade.
It’s a good idea to compare the commissions of several different brokers to make sure you are getting the best deal. In addition to the commission, you should also consider any other fees that the broker charges, such as storage or delivery fees.
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Customer Service
This is something where you can’t compromise. A broker with impeccable customer service is a must for smoother trading. Ensure that your broker is available in the need of your time – whether it’s via phone call, email, online chat, etc. From small queries to technical glitches, traders can face many problems. If the broker doesn’t provide instant support, then you need to reconsider your options.
Even after decades, gold is still one of the best assets in the world. Trading gold is feasible and profitable if you have a gold broker that provides the best services. Above discussed are some important criteria that you must add in your checklist while choosing a gold broker.