Are gold (XAU/USD) CFD spreads low at TMGM?

If you want to add gold CFDs (contract for difference) to your portfolio, it's a smart idea to check spread costs at your broker – it's a crucial part of your bottom line.

TMGM charges low spreads for Gold Spot/US Dollar (XAU/USD) CFDs. But before you get too excited about low gold CFD fees, also check financing rates and commissions at TMGM.

Trade XAU/USD at low spreads with TMGM

Trade XAU/USD at low spreads with TMGM

Krisztián Gátonyi

Forex • Market Analysis • Stock Market

I have 15 years of experience in proprietary trading, mainly in the interbank currency market as a foreign exchange risk manager. I'm actively involved in reviewing the 100+ brokers listed on our site. I personally open accounts with real money, execute trades, test customer services. I hold an MSc in International Business from the University of Middlesex. My purpose is to help people find the best investment provider.

Learn about our methodology

Krisztián Gátonyi

Forex • Market Analysis • Stock Market

We tested TMGM's services with our own money. After looking closely at their platform and prices, here's what we think you need to know about trading gold on their platform:

• The XAU/USD CFD spread is 0.09 at TMGM, below the market average of 0.25
• Check financing rates (the cost of keeping your position overnight) to get the full picture
• Compare TMGM with the lowest gold CFD spread brokers in the world

When trading gold CFDs, the spread will be your most important cost item (in most cases anyway; more on this later). Every time you trade gold (XAU/USD) CFDs, you'll have to pay this spread cost; so it makes sense to find the brokers that offer the tightest spreads for gold trading.

At TMGM, the XAU/USD spread is 0.09. Among the 100+ brokers we cover, the lowest XAU/USD spread is 0.02, while the highest is 1; and the average spread comes to 0.25.

Want to see where the market is headed? You can check the current price of spot gold in the chart below.

There are two more things you should consider. First, the bigger your gold trade (that is, the larger your position), the wider the spread gets. This is especially true when the market's not super active. Which brings us to our second point: spreads tend to get higher when trading's quiet, typically outside peak market hours.

Are you new to CFD trading or looking to broaden your knowledge? Check out this detailed tutorial put together by our CFD trading experts.

Want to hold your leveraged gold CFD position overnight? Remember you're trading on borrowed money – so just like with a credit card, there's a daily interest fee called the financing rate (or swap rate).

Unless you trade intraday, you'll likely end up paying a swap rate on your trade. And of course the longer you keep your position open, the heftier this fee will get.

Here's a quick example: let's say you buy 1 lot of XAU/USD at $2,000 per ounce. Calculating with a typical 20:1 margin and a 5.5% annual financing rate, you'd need to pay almost $30 each day you hold the position.

Additionally, watch out for commissions. Most gold CFD brokers skip commissions, but it's worth checking the fee structure – a few brokers do charge per trade.

Finally, there will be fees that are not directly related to your XAU/USD trade, also known as non-trading fees. Think deposit/withdrawal costs, account maintenances charges, the inactivity fee and other conditions like minimum deposit requirements.

All this key info (and more) on TMGM is packed into the table below.

Brokerage fees and service highlights at TMGM

Ready to trade gold smarter? We've tracked down brokers offering ultra-competitive XAU/USD spreads without compromising on reliability or service quality.

Head over to our curated list of the lowest gold CFD spread brokers and start paying less for your trades.