Which broker is best for trading precious metals?
Verdict
- Pepperstone is our top pick for trading precious metals from the UK: spot gold from 0.08 on its Razor account, a published average of 0.12, and the choice of spread betting or CFDs under FCA regulation.
- On UK retail accounts gold carries up to 1:20 leverage; other metals fall under Pepperstone's 1:10 cap for commodities other than gold.
- Spread betting suits most UK metals traders who want no commission and, on Pepperstone's wording, profits exempt from CGT; Razor suits high-volume traders who prefer raw pricing plus commission.
- Capital.com, also FCA-authorised, is the choice if you want guaranteed stops on gold, which Pepperstone does not offer.
For gold and other precious metals, our first choice for a UK trader is Pepperstone, mainly because its gold pricing is published account by account and it lets you trade metals as spread bets or CFDs. This page covers which Pepperstone account to use for metals, the margin you need, and the one area where Capital.com does better.
Why Pepperstone leads for gold traders
Gold is where most metals volume goes, and Pepperstone is specific about what it costs. Its UK costs page gives a minimum spot-gold spread of 0.08 on Razor, 0.19 on Standard and 0.1 on spread bets, and its pricing data lists a Razor average of 0.12 against 0.19 on Standard. Razor adds commission (from £2.25 per lot per side on a GBP account); Standard and spread betting do not. The account is held with Pepperstone Limited, authorised and regulated by the FCA (684312), so eligible clients are covered by the FSCS up to £85,000 and retail balances get negative balance protection.
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Which Pepperstone account to use for metals
A rule of thumb from the table: if you trade a few times a week and want gains outside CGT, a spread bet is the simplest wrapper. If you trade gold heavily and want to set losses against other gains, Razor's lower spread is the reason to accept a commission.
| Spread betting | Standard CFD | Razor CFD | |
|---|---|---|---|
| How you pay | Spread only, stake in GBP per point | Spread only, no commission | Raw spread plus commission |
| Spot gold spread | Min 0.1 | Min 0.19 (average 0.19) | Min 0.08 (average 0.12) |
| UK tax per Pepperstone | Exempt from CGT, depending on circumstances | CGT payable; losses can be offset | CGT payable; losses can be offset |
| MT4 and TradingView | Yes | No | Yes |
Margin on a gold position, worked through
Pepperstone caps retail leverage on gold at 1:20, meaning you put up 5% of the position's value as margin. Other precious metals sit under its 1:10 cap for commodities other than gold, so 10% margin. Examples using that arithmetic:
- A gold position worth £20,000 needs £1,000 of margin at 1:20.
- The same £20,000 in another precious metal needs £2,000 at 1:10.
- Professional clients can use up to 1:500 on gold and 1:50 on other metals, but they lose negative balance protection, so a sharp move can leave them owing money.
Where Pepperstone falls short for metals traders
Two gaps. First, there is no guaranteed stop-loss: Pepperstone's UK terms say it can't guarantee that a stop executes at your level, and gold can gap when markets reopen. Capital.com (FCA 793714) offers guaranteed stops and also runs spread betting and CFD accounts, with the same 20:1 retail cap on gold. Second, Pepperstone's gold perpetual CFD, which trades around the clock, is limited to professional clients in the UK. If you trade metals mainly on weekends or need a hard loss limit, Capital.com is the stronger option; for spreads published by account and the widest platform choice, Pepperstone remains our pick.
Sources
Taken from the brokers' own published terms.
What is Pepperstone's gold spread?
Pepperstone publishes a minimum of 0.08 on Razor (plus commission), 0.19 on Standard and 0.1 on spread bets, with averages of 0.12 on Razor and 0.19 on Standard.
Is spread betting on gold tax-free in the UK?
Pepperstone says spread betting profits are exempt from capital gains tax in the UK, but tax treatment depends on your circumstances and the law can change.
Can I trade gold 24/7 with Pepperstone in the UK?
Its around-the-clock gold perpetual CFD is offered to professional clients only in the UK. Retail clients trade spot gold during normal market hours.
Spread bets and CFDs are leveraged and complex, and you can lose money quickly. 73.6% of retail investor accounts lose money when trading spread bets and CFDs with Pepperstone, according to its UK site. This page is general information, not investment advice; check each broker's current terms.