Metals Trading

Metals Trading
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Trade Metals CFDs with FP Markets

Click here for our full list of Metals & typical spreads

Click here

for our full list of Metals & typical spreads

FP Markets allows trading the spot price for metals including Gold or Silver against the US Dollar or Australian Dollar as a currency pair on 30:1 leverage.

Trading in metals is popular in the United Kingdom as the London Metal Exchange (LME) is the world centre for industrial metals trading. Unlike the exchange which is largely dominated by options and futures contracts, FP Markets allows you to trade metals against major currencies, similar to the way that currency pairs are traded in foreign exchange.

Choose from one of our many trading Account Types and start trading Metals or other instruments including Forex , Shares, Commodities, Indices and Cryptocurrencies today.

What are the benefits of trading Metals?

  • Maximum trading opportunities with the ability to go short or long, irrespective of volatility levels

  • Powerful trading platforms, MetaTrader 4 (MT4), MetaTrader 5 (MT5) and Iress, with real-time gold and silver news and charts. Trade anytime, anywhere, across multiple devices

  • Rich educational resources and trading tools to refine your trading strategies

  • Risk Management - Useful for trading strategies such as portfolio diversification and hedging

  • Benefit from low margin, low-cost trading, without compromising execution

What is the Best Platform to Trade Metals?

MetaTrader 4. The world’s most popular trading platform.

Discover the benefits of trading Metals on one of the most powerful trading platforms available, MetaTrader 4 (MT4)is on one of the most powerful trading platforms available. MetaTrader 4 is available on the following platforms: Windows, WebTrader, Mac, iOS and Android.

Spreads from 0.0 pips & leverage up to 500:1 on FP Markets Pro Accounts

Customisable interface and alerts

Traders Toolbox - suite of 12 online trading tools


One-click trading


MarketWatch


Live price streaming on Live accounts and Demo accounts with 128-bit encryption ensuring secure trading

Expert Advisors (EAs)


Customisable alerts

Compatible with iOS, Android and Mac devices

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Are there more platform options?

We recommend MT4 for Metals but a range of products can also

be traded on MT5 and Iress platforms.

6 Reasons to Choose
FP Markets

An Australian regulated Forex broker

An Australian regulated Forex broker

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Globally Regulated

Segregated client funds
& regulation in Australia

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Tighter Spreads

Market leading spreads from
0.0 pips, 24/5

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Faster Execution

Low latency
execution under 40ms*

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Advanced Platforms

MT4, MT5 & WebTrader
with superior client portal

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24/5 Multilingual
Customer Support

Award winning support &
& personal account managers

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Established in 2005

15+ years
trading experience

customize charts

What is Metals Trading?

Metals are an important commodity asset class and metals trading is closely linked to the outlook for overall global markets. Commodities are broken up into two categories - soft commodities and hard commodities. Metals fall under the latter as they are typically a natural resource that is mined or extracted.

Precious metals including gold, silver and platinum are classified as bullion. Not only are they rare, their historical use as a basis for money has maintained their importance in global markets. Their inherent value means that they are used for portfolio diversification and to hedge against inflation.

Factors affecting precious metal prices include supply and demand, interest rates, economic uncertainty and industrial output. Precious metals, particularly gold, are traditionally viewed as a safe haven by market participants in times of volatility. Through careful analysis, CFD traders predict the potential direction of metals prices and attempt to capture gains based on price fluctuations in the short-term or long-term. The market is open 24 hours a day, 5 days a week.

An Example of Leveraged CFD Trading

Suppose you want to trade CFDs, where the underlying asset is the XAUUSD a Metal, also known as Gold vs US Dollar. Let us suppose that the XAUUSD is trading at:

example image

You decide to buy 100 oz of XAUUSD (1Lot of XAUUSD) because you think that the XAUUSD price will rise in the future. Your margin rate is 0.2% (Account Leverage 30:1) . This means that you need to deposit 0.2% of the total position value into your margin account.

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Now, in the next hour, if the price moves to 1702.36/1702.80, you have a winning trade. You could close your position by selling at the current price of 1702.36 USD.

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In this case, the price of gold moved in your favour. But, had the price declined instead, moving against your prediction, you could have made a loss. This continuous evaluation of price movements and resultant profit/loss happens daily. Accordingly, it leads to a net return (positive/negative) on your initial margin. In the loss scenario where your free equity, (account balance+ Profit/Loss) falls below the margin requirements (200), the broker will issue a margin call. If you fail to deposit the money, and the market moves further against you, when your free equity reaches the 50% of your initial margin the contract will be closed at the current market price, known as “stop out.”

If the price
of XAUUSD		 To You could Gain or Lose
for a Long Position		 Resulting in a Return
of the Initial Margin
Rises by 10% 1870.71/1871.31 USD 17,012.00 299.33%
Rises by 5% 1785.67/1786.25 USD 8,506.00 199.22%
Declines by 10% 1530.58/1531.07 -USD 17,012.00 -100.50%
Declines by 5% 1615.61/1616.13 -USD 8,506.00 -0.10%

Metal Spreads

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Symbol Product Standard A/c Raw ECN A/c
Avg Min Avg
XAUUSD Gold vs US Dollar 0.34 0 0.16
XAUAUD Gold vs Australian Dollar 0.75 0.06 0.59
XAUEUR Gold vs Euro 0.45 0.27 0.19
XAGUSD Silver vs US Dollar 0.024 0 0.014
XAGAUD Silver vs Australian Dollar 0.06 0.026 0.05

Why Trade Precious Metals with
FP Markets?

Precious metals are among the Top Commodities To Trade Metals are classified as a hard commodity as they are mined from the earth or extracted from natural resources. Through Contracts For Difference (CFDs), you can gain exposure to metals markets in a unique way that provides a wide range of advantages.

Margin Trading: As CFDs are a leveraged product, you can open large positions by depositing only the margin required. As metals such as gold have high levels of liquidity, commodities trading offers higher levels of leverage than many other tradable instruments.


Go 'Long' or 'Short': One of the main attractions of CFDs is the ability to speculate in both rising and falling prices. The ability to open short positions and benefit from falling prices is a unique aspect of CFD trading and one that creates additional trading opportunities.


Risk Management: Advanced trading platforms such as MetaTrader 4 and MetaTrader 5 offer excellent risk management tools. Their features include a large range of charting tools but also a multitude of order types and alerts to ensure that you are made aware of any changes to market conditions.


Factors Affecting
Precious Metal
Prices

Supply and Demand: Applicable across all products and services, the same also applies to precious metals. A shortage in metals or the increased demand for their use can affect prices. Let's take industrial metals such as copper or aluminium. A technological advancement may create an alternative for their use and decrease their value.

Macroeconomic Variables: Data relating to interest rates and GDP affect a significant amount of metals. One of the reasons is because metals are seen as a safe-haven, and an alternative investment to the cash rate provided by financial institutions.

Market Conditions: FP Markets provides metals trading against many major currencies including the US dollar, similar to foreign exchange. Metals tend to be susceptible to the US dollar and have historically traded in the opposite direction to the greenback. This is why they are often used as part of a hedging strategy in times of economic uncertainty.

Inflation: Anything that dilutes the value of a currency helps the performance of metals. Quantitative easing or the printing of additional money causes a rise in inflation with metal prices generally following suit.

Benefits of Trading
Precious Metals

Metals CFDs: As you do not have to not actually own the underlying asset when trading CFDs, there are fewer costs associated with investing in metals this way. There is no need to store the asset and traders can benefit in both rising and falling prices. The prices are comparable to those found on the London Metal Exchange (LME), the world's largest market for ETFs on base metals and other metals.

Portfolio Diversification: With limited correlation to other financial instruments such as stocks and bonds, trading precious metals is a useful way to diversify your portfolio.

Hedging: Precious metals are often used as part of a risk management strategy. Investors often trade metals to hedge against inflation and currency.

Safe-Haven: During times of economic uncertainty, the value of precious metals tends to rise. This has historically been the case during economic slumps and key political events including major elections.

Metals Trading
- FAQs

With respect to Metals CFDs, Gold is the most traded commodity. Platinum, palladium and silver are among the other most traded metals. They can all be traded with FP Markets. Find out more about Investment Strategies For Metals.

Diversify your portfolio and start trading Metals today!


bullet Access 10,000+ financial instruments
bullet Auto open & close positions
Take advantage of rising and falling markets
bullet News & economic calendar
bullet Technical indicators, charts & alerts
bullet Many more trading tools included

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* The average order execution time between the trade being received, processed and confirmed as executed by us is 41 milliseconds. As observed from our bridge provider between 01-09-2021 to 30-09-2021. FP Markets was rated by Investment Trends as the Best for Quality of Trade Execution 2019

** Terms and conditions apply.

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DISCLAIMER: First Prudential Markets Pty Ltd (ABN 16 112 600 281, AFS Licence No. 286354) advises the material on this website is intended for illustrative purposes and general information only. It does not constitute financial advice nor does it take into account your investment objectives, financial situation or particular needs.

You should consider the information in light of your objectives, financial situation and needs before making any decision about whether to acquire or dispose of any financial product. Contracts for Difference (CFDs) are derivatives and can be risky. When trading CFDs you do not own or have any rights to the CFDs underlying assets.

FP Markets recommends that you seek independent advice from an appropriately qualified person as well as review our Product DisclosureStatement (PDS) for each financial product available and also our Target Market Determination (TMD) before deciding to invest in our CFD products. Our PDS and TMD can be reviewed here or on request to our office.

FP Markets is a group of companies which include, First Prudential Markets Ltd (registration number HE 372179), a company authorised and regulated by the Cyprus Securities and Exchange Commission (CySEC License number 371/18, Registered Address: Griva Digeni, 109, Aigeo Court, 2nd floor, 3101, Limassol, Cyprus. FP Markets does not accept applications from U.S, Japan or New Zealand residents or residents from any other country or jurisdiction where such distribution or use would be contrary to those local laws or regulations.

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