Wednesday February 17, 2021 - 15:23:29 GMT
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Reasons To Trade Gold With A Forex Broker
There's gold in them thar hills! Well, that's the saying anyway. In reality, you don't need to explore mountain ranges and head into gold mines to get your hands on this precious commodity, as you can do much of what you need to do online.
You can buy and sell physical gold, be that gold bullion, gold bullion coins, or gold biscuits. You can trade shares of gold mining companies. And you have several other investment options, including:
- Gold certificates
- Gold futures
- Gold CFDs
One of the most convenient ways to trade in gold is to use the services of a Forex broker, especially if you're new to trading.
You have a number of options when choosing a broker that incorporates gold within its trading platforms, so it's worth shopping around to find a broker that suits your particular needs. For your information, one website has cited these gold brokers as being the best in 2021, but commit to further research if you want to explore further options. We can also help you make the right choice, so get in touch with us if you have questions and need help.
There are reasons why you might consider the services of a Forex broker when trading in this commodity, and these include the following.
#1: You can diversify your portfolio
From a single trading account, you are able to trade in a wide range of currencies and precious metals. As well as gold, these metals can include silver, platinum, and palladium. If you are already familiar with trading in currency pairs, you can do the same when it comes to gold. There are two main types: XAUER (gold against Euro) and XAUUSD (gold against the US dollar). After opening a live account, you can choose which instruments to trade in. Many investors will choose to trade in gold to protect their existing portfolio against market volatility and high inflation rates.
#2: You can profit from rising and falling markets
Trading gold with a Forex broker is easier and safer than investing in physical gold. You don't need to own it for starters, and you can easily sell it online if you choose to. After keeping an eye on a gold price chart, you can take full advantage of any fluctuations and profit by going long or short on gold. If you suspect the gold you own will rise in value in the future, you can keep hold of it and sell it at a higher price. And if the value is declining, you can buy gold at a lower price, with the hope that you will one day be able to sell it for more when the value rises again. You can do all this from your Forex account, so all you need to do is place your order online and follow your investment.
#3: You can profit from leverage
Forex brokers allow you to use leverage (borrow money and make a low initial investment) when trading in gold. The size of the leverage will depend on the broker you choose and the type of account you open. Many brokers will offer a leverage of 1:200 and even higher. When using leverage you have more buying power and have the potential to make more profits, although as there are risks involved, there is also the possibility of losses too. For more information, check out Investopedia's article on how leverage works in the Forex market.
#4: Trading platforms give you the opportunity to analyze the market
Wen trading in any capacity, it pays to make wise choices. To help investors, many Forex trading platforms provide technical analysis tools and various charts to help them make informed trading decisions. Smart investors will know what to look out for and will make choices that give them the opportunity to limit their losses and maximize their profits. To find these tools, simply log into your Forex broker's trading platform and select the appropriate tab. For those using the MT4 platform, for example, this would be the 'Code Base' tab at the bottom of the platform page.
These are just some of the reasons why you might want to trade gold with a Forex broker, but there are others, so continue your research around our site and elsewhere online. When you're finally ready to trade gold, open a demo or a real account with a Forex broker to get started. Get in touch with us if you would like further advice.
We wish you every success.
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