How do UK broker spreads compare on gold and oil?
Verdict
- On gold, Pepperstone publishes the tightest figures we could verify for UK traders: a Razor average of 0.12 (UK minimum 0.08), 0.19 on Standard and a 0.1 minimum on spread bets.
- On oil there is nothing to line up: neither Pepperstone nor any other UK firm in our verified data publishes a WTI or Brent spread, so the live quote is the only fair comparison.
- CMC Markets quotes gold from 0.2 points and ActivTrades a target spread from 0.25 USD; both are best-case figures, so set them against Pepperstone's minimums, not its averages.
- Retail leverage is the other cost difference: 1:20 on gold but 1:10 on oil at both Pepperstone and Capital.com UK, so oil ties up twice the margin per pound of exposure.
Gold is easy to compare because several UK firms put a number on it; oil is not, because none in our data does. Below are the gold figures each firm states and what kind of figure each one is, followed by a quick method for comparing oil spreads yourself.
Gold: Pepperstone's three UK prices
Pepperstone Limited, authorised by the FCA (684312), quotes spot gold in three formats. Razor passes on raw pricing from 0.08, with a published average of 0.12, and charges commission from £2.25 per lot per side in a GBP account ($3.50 per side for XAU/USD on cTrader). Standard has no commission and a 0.19 spread. A spread bet starts at 0.1, also commission-free, with your stake set in pounds per point. Gold is priced in dollars per ounce, so on a 10-ounce position the spread alone costs $1.20 on Razor's average and $1.90 on Standard, with Razor's commission added on top. We put Pepperstone first because it is the only firm here that publishes an average as well as a floor.
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Gold spreads at UK firms, side by side
Read the third column before the second. An average describes what traders typically paid; a 'from' figure describes the best moment of the trading day.
| Firm and account | Gold spread | Type of figure | Commission |
|---|---|---|---|
| Pepperstone Razor | 0.12 (UK floor 0.08) | Average, plus UK minimum | From £2.25 per lot per side (GBP) |
| Pepperstone Standard | 0.19 | Average | None |
| Pepperstone spread bet | 0.1 | Minimum | None |
| CMC Markets standard | 0.2 points | From | None stated |
| ActivTrades Individual CFD | 0.25 USD | Target 'from' spread | None stated |
| eToro CFD | 0.025% | From, as a share of price | None stated |
| Capital.com | Live quote only | Not published | None stated |
Oil: why there is no number to compare
Pepperstone's UK costs page lists minimum spreads for currencies, gold and indices, but not for crude. Energy markets sit within its 40 commodities, so you can trade them, yet the price you pay has to be read off the platform. The other firms in our verified data are no better: none publishes a WTI or Brent figure. That does not make oil expensive; it makes headline comparisons meaningless. A fair test takes a few minutes:
- Open the same oil market at two firms (demo accounts are fine for pricing) and note the spread at the same minute.
- Repeat during the busy London and New York overlap and again late in the US session, when liquidity thins.
- Check around scheduled news, when spreads on energy markets tend to widen.
- Compare like for like: a spot or cash market against a spot or cash market, not against a dated future.
Margin: the cost gap that is published
Pepperstone caps UK retail leverage at 1:20 on gold and 1:10 on commodities other than gold. Capital.com UK publishes the same split (20:1 gold, 10:1 other commodities). On £4,000 of exposure, that means £200 of margin for gold and £400 for oil. Professional clients at Pepperstone can reach 1:500 on gold and 1:200 on energies, but give up negative balance protection. Pepperstone's perpetual WTI and Brent contracts are open to UK professional clients only.
When Capital.com is the better choice for commodities
Gold and oil both gap when markets reopen or a supply headline lands. Pepperstone's UK terms say it cannot guarantee that stop-loss orders fill at your level. Capital.com (FCA 793714) sells guaranteed stop-loss orders and takes deposits from 20 GBP. It doesn't publish fixed gold or oil spreads, so compare its live quote before you choose.
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Sources
Pricing and leverage as published by each firm.
Is gold cheaper to trade at Pepperstone as a spread bet or a CFD?
The spread bet floor is 0.1 with no commission; Razor starts lower at 0.08 but adds commission; Standard averages 0.19. Spread bets held past 10 pm UK time pay an overnight fee, so holding time matters as much as the spread.
Can UK retail clients trade oil at Pepperstone?
Yes, as spread bets or CFDs within its commodity range, at up to 1:10 leverage. Its perpetual WTI and Brent CFDs are for professional clients only in the UK.
Is a 'from' spread the same as an average spread?
No. A 'from' figure is the tightest the firm quotes; an average is what it charged over time. Compare a firm's minimum with Pepperstone's minimum and its average with Pepperstone's average.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73.6% of retail investor accounts lose money when trading spread bets and CFDs with Pepperstone Limited. Consider whether you understand how they work and whether you can afford to take the high risk of losing your money. This page is not investment advice; spreads change, so check each firm's live prices.