IB UK Spot Gold and Spot Silver

IB UK Spot Gold and Spot Silver


Access the London bullion market, the center for the international over-the-counter (OTC) market for gold and silver.


IB Spot Gold (symbol XAUUSD) and IB Spot Silver (symbol XAGUSD) are available to most customers who are not residents of the U.S. or certain other countries.1

Benefits

IB Spot Gold and IB Spot Silver are simple, efficient, flexible and low-cost ways to gain long and short exposure to the gold and silver markets.

  • Low, Transparent Commissions and Financing Rates - IB offers best execution based on competitive market quotes provided by its liquidity providers, plus a transparent commission. The starting commission rate is only 0.15 basis points or 0.0015%. Overnight financing rates for short positions start at only the benchmark rate + 1%, with lower rates available for larger balances. IB passes through prices from its liquidity providers without widening the spread. The true transaction cost for trading IB Spot Gold and IB Spot Silver is reflected in our low commissions.
  • Efficient Pricing in Accessible Quantities - While the London bullion market is a wholesale market, IB clients have access to the corresponding efficient pricing, as quoted by IB's liquidity providers, without having to trade in wholesale quantities.
  • Trade IB Spot Gold and IB Spot Silver Side-by-Side with Gold Futures - Trade IB Spot Gold and IB Spot Silver side by side from the same TWS quote monitor as gold and silver futures and other asset classes such as stocks, options, bonds, CFDs and forex.
  • Quoting IB Spot Gold and IB Spot Silver - IB Spot Gold and IB Spot Silver are traded in units of 1 troy ounce fine gold and fine silver, respectively, and is quoted vs USD.
  • Leveraged Exposure - IB Spot Gold and IB Spot Silver can both be traded on margin.




Spot Gold and Spot Silver Facts

A Troy Ounce is the traditional unit of weight used for precious metals. The term derives from the French town of Troyes, where this unit was first used in the Middle Ages. One troy ounce is equal to 1.0971428 ounces avoirdupois. In the bullion market, all references to ounces mean troy ounces.

The Loco London Spot Price is the basis for virtually all transactions in gold and silver in London. It is a quotation made by dealers based on US dollars per fine ounce for gold and silver. IB's liquidity providers provide quotes based on this price, including a spread. Settlement and delivery for gold and silver are two good business days in London after the day of the transaction (T+2).

IB Spot Gold and IB Spot Silver are considered "unallocated", which represents the most popular and straightforward way of trading gold and silver. Credit balances are backed by the general stock of the bullion dealer who has the gold or silver, and debit balances represent the indebtedness of the client to the bullion dealer. In other words, a position in gold or silver is not an entitlement to specific bars of gold or silver, although the latter can be arranged on request by contacting IB Customer Service. There is an Unallocated Carrying Fee of 10 basis points charged for storage. IB Spot Gold and IB Spot Silver are traded through your margin account, and you can therefore enter long as well as short leveraged positions.




Risk Warnings

  • IB Spot Gold and IB Spot Silver trading is not suitable for all investors. Due to the leveraged nature of Spot Gold and Spot Silver trading, your losses may exceed your initial investment.
  • Spot Gold and Spot Silver are not MiFID-regulated instruments and therefore not regulated by the FSA, the UK regulator.
  • For trades in Spot Gold and Spot Silver, you are not covered by the Financial Services Compensation Scheme (FSCS) in the event that IBUK is unable to meet its financial obligations and you may not be able to refer any cases to the UK Financial Ombudsman Scheme
  • IB Spot Gold and IB Spot Silver trading are being offered by Interactive Brokers (U.K.) Limited, which is authorized and regulated by the Financial Services Authority ("FSA"), register number 208159.
Disclosures
  1. IB Spot Gold and IB Spot Silver trading is available to customers who are not legal residents of the U.S., Canada, Australia, Hong Kong or Japan.

Eligible customers must apply for Metals trading permissions via the Trading Permissions page in Account Management.

Metals are maintained in a segregated IB UK L account in Account Management. To trade gold, you must deposit or transfer cash into your IB UK L account using the Fund Transfers page in Account Management.