What's the average cost to open and close a gold CFD position?
Verdict
- At Pepperstone, our pick, opening and closing a 100-ounce gold CFD costs about $19 at published averages, on either Razor through cTrader (0.12 spread plus USD 7 commission) or Standard (0.19 spread, no commission).
- IC Markets publishes a lower total for the same trade: 0.09 average spread plus $7 commission, about $16; FP Markets Raw comes to about $18.
- Gold is priced per ounce, so a smaller position costs proportionally less: 10 ounces costs about $1.90 in spread on Pepperstone Standard.
- Overnight financing is added for every night the position stays open past the rollover.
The average round-trip cost of a gold CFD is the published average spread multiplied by the ounces you trade, plus any commission for both sides. On a 100-ounce position at the brokers we cover, that comes to roughly $16 to $25 before overnight fees. Here is the arithmetic, and why Pepperstone is still our pick despite not being the cheapest line in the table.
Pepperstone's gold cost, step by step
Pepperstone publishes average XAU/USD spreads of 0.12 on Razor and 0.19 on Standard. Gold is quoted in US dollars per ounce, so those mean 12 and 19 cents per ounce. For 100 ounces, the spread costs $12 on Razor and $19 on Standard. Razor then adds commission: USD 3.50 per side on cTrader for a USD account, or AUD 4.50 per side on MT5 for an AUD account. On cTrader that makes $12 plus $7, or $19, exactly level with Standard. We still pick Pepperstone for gold because both accounts are published as averages, both run on its app, MT5 and cTrader, and an ASIC-licensed company (AFSL 414530) holds your margin.
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Round-trip cost of 100 ounces at published prices
We assume commission applies per 100 ounces; check your platform's gold contract size, since commission is charged per lot.
| Broker and account | Spread | Commission (both sides) | Total |
|---|---|---|---|
| IC Markets Raw Spread | 0.09 avg = $9 | $7 | About $16 |
| FP Markets Raw | 0.12 avg = $12 | $6 | About $18 |
| Pepperstone Razor (cTrader, USD) | 0.12 avg = $12 | $7 | About $19 |
| Pepperstone Standard | 0.19 avg = $19 | None | About $19 |
| Pepperstone Razor (MT5, AUD) | 0.12 avg = US$12 | AUD 9 | US$12 + AUD 9 |
| FP Markets Standard | 0.25 avg = $25 | None | About $25 |
| CMC Markets Standard | From 0.2 points | None | Not comparable (a minimum, not an average) |
Other costs on a gold position
- Overnight financing for each night held past the rollover, shown in the platform's symbol details.
- Margin: ASIC caps retail gold leverage at 1:20, so the position needs 5% of its value as margin. Margin is not a cost, but it limits size.
- Currency conversion if your account is in AUD and gold is quoted in USD.
- Slippage on stops in fast markets; Pepperstone does not offer guaranteed stops, while Capital.com does.
How to cut the cost of trading gold
- Use the account whose total is lowest for your size; at Pepperstone, Razor and Standard are about level on gold.
- On Razor, choose cTrader (USD 3.50 per side on gold) if you hold a USD account.
- Trade when spreads are near their average rather than at the daily open or around major US data.
- Close short-term trades before the rollover to avoid financing.
Sources
Terms as each broker publishes them on its own site.
Is Razor or Standard cheaper for gold at Pepperstone?
They are about level: Razor's 0.12 spread plus commission against Standard's 0.19 spread with none, on a 100-ounce trade through cTrader.
What leverage applies to gold CFDs in Australia?
Up to 1:20 for retail clients under ASIC rules, at Pepperstone and Capital.com alike.
Does Pepperstone charge commission on gold?
On Razor only: AUD 4.50 per side on MT5 for AUD accounts, USD 3.50 per side on cTrader for USD accounts. Standard has no commission.
Gold CFDs are leveraged and volatile; you can lose money rapidly. Costs here use broker-published averages and can differ from what you pay on a given day. Read the PDS and TMD. Not investment advice.