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Duration: 4:34

Level: Beginner

This lesson explains the offering and how IBKR enables customers to avoid trading in wholesale quantities. Clients can use a single, integrated account to trade US Spot Gold side by side with other asset classes such as stocks, options, futures, currencies, bonds and funds, all from the same Trader Workstation (TWS) screen. Commissions and fees stated in video are as of Jan 2022.

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Study Notes:

Spot Gold and Spot Silver are efficient, flexible and low-cost ways to obtain long and short exposure to the gold and silver markets. As a client of Interactive Brokers, you can buy and sell small and efficient quantities of gold or silver at a low and transparent commission. Interactive Brokers offers fair prices with narrow bid-ask spreads driven by the highly liquid futures market, plus a transparent tiered commission based on order value.

Available Products

To facilitate trading restrictions and local regulations we provide two products for investors based upon country of residence. US Spot Gold (symbol USGOLD) is available to customers who are residents of the United States.

US Spot Gold is only available to legal residents of the United States.

US Spot Gold is not available to legal residents of Arizona, Montana, New Hampshire, and Rhode Island.

London Spot Gold (symbol XAUUSD) & Silver (symbol XAGUSD) are available to most customers who are not residents of the U.S., Canada, Australia, Hong Kong or Japan, and are also not available to customers of IB Singapore.Trading

Permissions – Client Portal

  • Login to Client Portal and request the appropriate metals trading permissions:
  • Click the User menu (head and shoulders icon in the top right corner) followed by Manage Account.
  • Click the Configuration gear icon next to “Trading Experience & Permissions”.
  • From the Trading Permissions screen, expand the “Metals” section and select “Global” for London Metals or “United States” for US Spot Gold.

Complete the Experience and Trading Knowledge section shown at the top of the section for the product you selected. Once you have finished making your selections, click the CONTINUE button. Review financial information and investment objectives on the following pages and make any necessary changes.

What is the contract size of spot gold and spot silver?

US Spot Gold (symbol USGOLD) and London Spot Gold & Silver (symbols XAUUSD & XAGUSD) are traded in units of 1 troy ounce fine gold and fine silver, respectively, and are quoted vs USD. The minimum order size is 1 ounce, and the minimum price increment is $0.001 (one tenth of a penny).

Entering an Order

On this screen we have already added the relevant symbols. Let’s enter an order to buy one unit or one ounce of gold in TWS.

Click on the Buy button. Enter one in the quantity field. You can see the live bid/ask prices above.

When ready click Submit to generate an order confirmation. On this page you will see the explicit commission to buy or sell and the impact on margin. If ready, click the Transmit button to send your order.

Commissions

IBKR commissions are subject to minimums and volume thresholds. We charge 1.5 basis points subject to a $2.00 minimum per transaction on monthly volumes of up to $500,000 for gold and silver. On a purchase of $15,000 worth of gold, the commission would be $2.25 and it would cost $15 to purchase gold worth $100,000. Commissions decline on larger monthly trade volumes.

Minimum commission of USD 2.00 per trade, and monthly storage fees of .15 per ounce are applicable to USGOLD. Commissions and fees stated in video are as of Jan 2022.

Physical delivery is available for US clients. The minimum denomination for delivery is one ounce and can be increased in one-ounce increments.

You can request a physical gold delivery of US Spot Gold (symbol USGOLD) via a ticket in the Client Portal Message Center.

Login to Client Portal and click the User menu (head and shoulders icon in the top right corner).

Select Products as the category and Physical Gold Delivery as the topic. The request should include the number of ounces and the form of delivery. IBKR will then confirm the cost and fees and, once approved by the client, instruct FideliTrade to deliver. Please note that delivery is only supported to the account holder’s address of record.

Unallocated US Spot Gold (symbol: USGOLD) can be converted into one of the following products:

Gold Bullion Bar (.999) – 1 kg
Gold Bullion Bar ISO Accredited (.9999) – 1 oz
Gold Bullion Bar ISO Accredited (.9999) – 10 oz
Gold American Eagle – 1 oz
Gold American Buffalo – 1 oz
Gold Canadian Maple Leaf – 1 oz

Please note that delivery is only available within the US and service/delivery fees apply.

Trading in precious metals is available for many clients at IBKR and can be done so in efficient size at low and transparent commissions.

Additional Links – as of Jan 2022:

Browse FAQs
London UK website
Knowledge Base
KB on Physical Delivery
About Physical Delivery
Commissions


Disclosure: Interactive Brokers

The analysis in this material is provided for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IBKR to buy, sell or hold such investments. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

Supporting documentation for any claims and statistical information will be provided upon request.

Any stock, options or futures symbols displayed are for illustrative purposes only and are not intended to portray recommendations.

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