Interactive Brokers launches US Spot Gold trading

Karthik Subramanian

Interactive Brokers Group, a global brokerage firm, has announced the launch of spot trading in US Gold which would give an opportunity for the traders in US to trade gold at as less a quantity as one ounce at a time.

Apart from this, the traders would also be able to request for physical delivery settlement of their Comex gold and silver futures from their Interactive Broker (IB) accounts. IB is known for bringing a huge range of instruments across more than 100 markets for its users to trade in and this launch of US Spot Gold would be liked by its users as it gives them a chance to hold gold in their accounts.

Gold has always been considered as a hedge against risk and inflation and with the pandemic ruling many parts of the world for close to 2 years now, investors and traders are looking for a safe haven to park their funds in. Gold provides such an alternative to them and hence, this introduction of Gold Spot trading at Interactive brokers would be a boost for them.

“Interactive Brokers’ advantage has always been our low cost, advanced technology, and breadth of product worldwide for sophisticated individual traders and institutional investors,” said Steve Sanders, EVP of Marketing and Product Development at Interactive Brokers. “The addition of spot gold and physical metals delivery continues our mission to equip our clients with the products and tools they need to succeed in all market conditions.”

Interactive Brokers would be charging anywhere between 0.7 bps to 1.5 bps for each trade depending on the volume with the minimum charge being $2. IB also says that the traders would be able to trade this commodity instrument similar to how they trade stocks, bonds, options and futures in their platform.

With the ability to request for physical delivery also being added into the TradeStation platform of Interactive Brokers, it is expected that the trading volumes in US Spot Gold would get a boost as more investors are likely to prefer this option to hedge against any kind of risk that they see.

It may also be noted that IB recently hired Michael Mcclain as its Director of Client Operations for North America in a push for more sales and volumes and added business from this region.

Gold prices have been rising over the last few weeks after falling at the start of the year. It is expected that the gold prices would continue to challenge the highs that were seen last year as more and more investors look to gold as a safe haven investment and this is likely to keep the demand and the prices high.

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