What does it cost to open and close a gold position?
Verdict
- At Pepperstone, our pick for gold, a round trip on 100 ounces of XAU/USD costs about $19 on either account at published averages: Razor is a 0.12 spread ($12) plus $7 commission; Standard is a 0.19 spread ($19) with no commission.
- Gold spreads are quoted in dollars per ounce, so the cost scales directly with position size: 10 ounces costs a tenth as much in spread.
- Hold past the daily rollover and overnight financing is added; Pepperstone's gold perpetual (GOLD-PERP) instead charges a funding rate plus 0.03% commission per side.
- Singapore residents trade under Pepperstone's Bahamas licence (retail gold leverage up to 1:200); Pepperstone has no MAS licence.
The cost of a gold trade has three parts: the spread you cross when you open and close, any commission, and financing if you hold overnight. Here is each one at Pepperstone, worked through on a typical position, plus the margin you need to open it.
At Pepperstone: about the same on Razor and Standard
Pepperstone publishes average gold spreads of 0.12 on Razor and 0.19 on Standard. Gold is quoted per ounce, so 0.12 means 12 cents an ounce. On Razor you also pay commission: $3.50 per side per lot in a USD account, on MT5, TradingView and cTrader alike (cTrader's lower forex rate does not apply to gold). If your platform's gold lot is 100 ounces, which you should confirm in the contract specification, the two accounts land in the same place for a same-day round trip, as the table shows. Pick on platform rather than price: Razor adds TradingView, Standard keeps one all-in number.
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Cost of a 100-ounce round trip
| Razor | Standard | |
|---|---|---|
| Average spread | 0.12 per ounce = $12 | 0.19 per ounce = $19 |
| Commission | $3.50 per side = $7 | None |
| Total | About $19 | About $19 |
| 10-ounce position | About $1.90 | About $1.90 |
Holding gold overnight
A cash gold CFD held past the daily rollover pays (or occasionally earns) overnight financing, shown in your platform as the swap rate for long and short positions. Over a few days this can outweigh the spread, so check it before you plan a multi-day hold. For Singapore clients, Pepperstone's Bahamas retail margin table also lists GOLD-PERP, a perpetual CFD with no expiry that trades 24/7. Instead of the swap it charges a funding rate set weekly in advance and applied daily at 5 pm New York time, and Pepperstone's Australian costs page lists a 0.03% commission per side on GOLD-PERP. On a $10,000 perpetual position that commission is $3 to open and $3 to close.
Margin you need to open the position
- Retail leverage on gold under the Bahamas licence is up to 1:200, so margin is 0.5% of the position's value.
- A $20,000 gold position therefore ties up $100, and a 0.5% move in gold against you uses all of it.
- Professional clients can reach 1:500 on gold, but lose automatic negative balance protection.
- Pepperstone's Australian and UK retail clients are capped at 1:20 on gold, a reminder of what regulators elsewhere consider prudent.
The licence caveat and the alternative
Pepperstone serves Singapore residents from the Bahamas (SCB, SIA-F217) and has no MAS licence. XS also accepts Singapore residents, but we hold no verified gold spread for it, so we can't price the same trade there. If you want a MAS-licensed provider, ask firms such as IG, CMC Markets or Saxo for their average XAU/USD spread and commission and run the same arithmetic.
Sources
Pepperstone pricing pages.
Is Razor or Standard cheaper for gold at Pepperstone?
At published averages and a 100-ounce lot they come out about equal, roughly $19 per round trip. Check your platform's gold contract size to confirm.
Is cTrader cheaper for gold?
No. cTrader's lower $3.00 commission applies to forex; XAU/USD on cTrader is $3.50 per side.
What does a small gold trade cost?
Spread scales with ounces: 10 ounces at the 0.19 Standard average is about $1.90.
Can I trade gold at the weekend?
Through GOLD-PERP, which Pepperstone says trades 24/7. The cash gold CFD follows the normal weekly schedule.
Gold CFDs are leveraged and gold can move several percent in a day, so you can lose money quickly. Costs shown are worked from broker-published averages and will vary with market conditions. Not investment advice.