Invest in gold: Top brokers and dealers in 2025

How to Invest in gold

Investing in physical gold

Investing in physical gold involves purchasing gold bars or coins from authorised dealers or mints, making you the direct owner of a tangible and universally recognised asset. Secure storage is essential—many choose professionally insured vaults or bank deposit boxes, which incur annual fees. While physical gold is renowned for its stability and protection against inflation, you must also consider insurance, secure transportation, and sometimes lower liquidity compared to paper assets.

Example of gold bar investment costs and returns

Example: You buy a 1 oz gold bar in the UK at £2,700 in 2025, paying a dealer premium of £60. You store it in a high-street bank safe deposit box costing £120 per year. If gold rises to £3,200 per ounce after four years, you could sell the bar for a gross gain of £500, less around £480 in total storage fees and premium.

Investing via ETFs and sector company stocks

Gold ETFs allow you to gain exposure to the price of gold without having to purchase or store the physical metal. These funds are listed on the London Stock Exchange and can be bought or sold in seconds. Sector stocks, like mining companies, offer leveraged exposure to gold prices and may pay dividends, but are subject to both gold price and company-specific risks. ETFs generally charge an annual management fee and track the gold price fairly closely, while mining shares can be more volatile, reflecting operational performance as well as commodity moves.

Example: Gold ETF vs. Mining Company Investment

An investor buys £10,000 of a UK-listed gold ETF, which charges a 0.40% annual fee. If gold rises by 10% from £2,700 to £2,970 in a year, the ETF value should increase by roughly £1,000 (minus fees). Alternatively, £5,000 invested in a leading UK mining company can rise or fall more dramatically with gold price swings, but dividends of 1–3% per year may be received.

Investing in gold with derivatives

Derivative products such as gold futures and Contracts for Difference (CFDs) allow for leveraged trading, so you can control a large position with relatively little capital. Derivatives let you profit from both rising and falling prices, but also involve greater risk—a small market move can lead to large gains or losses. These products are typically best for sophisticated, active investors who can manage positions closely and are comfortable with the risks.

Example: Trading Gold CFDs with Margin

Example: A trader uses £5,000 margin to open a long position on 5 oz of gold via CFDs at £2,700/oz. If gold climbs to £2,800, the profit is £500 (5 x £100). If gold falls to £2,600, the loss is £500 plus any broker fees. If the market moves sharply, losses can exceed the margin, requiring additional funds to keep the position open.

How to choose the best broker to invest in gold?

Selecting the right broker to invest in gold depends on the investment vehicle you plan to use and your financial objectives. Some investors prefer direct ownership of physical gold, while others may opt for the convenience and liquidity of ETFs or mining stocks, or seek leveraged exposure through derivatives such as CFDs or futures. Each method comes with its own set of requirements for regulation, fees, and support—so choosing a broker that suits both your preferred style and risk appetite is essential for a successful gold investment experience.

Best broker for physical purchase

When purchasing physical gold (bars or coins), your broker acts as a dealer facilitating the acquisition and, in many cases, offering secure storage options. The best brokers in this space are transparent about sourcing, provide product certification, and offer insured storage either in the UK or at reputable international vaults.

• FCA-regulation and market reputation
• Membership in industry associations (such as LBMA)
• Transparent pricing, with clear premiums and disclosed storage fees
• Reliable options for home delivery or secure vault storage
• Authenticity certificate and buy-back guarantee

Expert Advice

Always confirm the broker is regulated by the Financial Conduct Authority, has fully insured storage facilities, and lists transparent, competitive fees. Responsive, UK-based customer support is especially important for valuable physical assets.

Best broker to invest in ETFs and sector company stocks

For those wishing to buy gold ETFs or shares in mining companies, an online stockbroker provides direct access to global stock markets, including the LSE and overseas exchanges. An ideal broker should offer a robust, easy-to-use trading platform, low dealing commissions, and a wide range of account types, such as ISAs and SIPPs to optimise your tax position.

• FCA-authorisation and protection under the FSCS
• Commission rates and annual management fees
• Range of eligible accounts (ISA, SIPP, general investment account)
• Platform usability and research tools
• Access to a wide list of gold ETFs and mining stocks

Expert Advice: Choosing a Broker

Opt for a broker with FCA regulation and strong customer ratings. Take care to compare transaction costs and annual charges, as these can erode your long-term returns, especially if you trade frequently or invest small amounts.

Best broker to trade gold with derivatives

Derivatives like gold CFDs, futures, or options require a broker that specialises in leveraged products, offering competitive spreads, fast order execution, and comprehensive risk management tools. As trading derivatives involves higher risk, regulated trading environments and robust educational resources become even more important.

• FCA-regulated status and segregated client accounts
• Transparent margin requirements and overnight financing costs
• Access to advanced trading platforms, charting, and risk controls
• Availability of demo accounts for practice
• Range of gold contracts and markets offered

Expert Advice for Traders

Expert advice: Use only FCA-regulated brokers for derivatives trading, and ensure you fully understand leverage risks. Consistent, knowledgeable customer support and clear, upfront disclosure of all fees are vital for active gold traders.

The reasons to invest in gold

Gold continues to be one of the most attractive investment options for UK investors, thanks to its strong track record as a store of value and its ability to offer protection in times of economic uncertainty. As market conditions shift and global dynamics change, gold stands out as a reliable safeguard for wealth, backed by continued central bank demand and increased investor interest. Its unique position as a physical asset that is recognised worldwide means gold provides not only security, but also flexibility in portfolio allocation.

• Gold is a classic safe-haven asset, sought after during geopolitical crises and periods of financial turbulence.
• It acts as an effective hedge against inflation and currency debasement, helping to maintain purchasing power.
• Gold offers diversification, with a low correlation to equities and bonds, which can reduce overall portfolio risk.
• The asset is globally liquid, allowing investors to buy and sell quickly on major markets around the world.
• Ongoing demand from central banks and private investors supports stability and long-term price appreciation.
• Gold carries no counterparty risk with physical ownership, distinguishing it from many other financial instruments.
• Its time-tested role as a store of value spans centuries and multiple economic cycles.

Gold's long-term performance and resilience confirm its strength in helping UK investors preserve and grow their capital despite changing economic conditions.

The fees associated with investing in gold

Understanding the fees associated with investing in gold is essential for UK investors who want to choose the right product, compare alternatives, and avoid hidden costs that could erode returns. Each method—physical gold, gold ETFs or sector stocks, and derivative products—carries its own distinct set of costs. Knowing these upfront allows you to make informed decisions and maximise your investment potential.

Buy/Sell Commissions

Buy/sell commissions are the transaction costs you incur when you purchase or sell gold. With physical gold, this commission is often embedded as a dealer markup over the spot price. For ETFs and sector stocks, UK brokers typically charge a per-trade commission, although competitive pricing and discounts may be available. Derivative trades such as gold futures or CFDs will include either a per-contract fee or a round-turn commission.

Real Example

Sophie buys a 1oz gold bar at a London dealer for £3,100. The spot price is £3,060, so the commission (markup) is £40. If she sells the bar back later, the dealer charges a £25 commission. Total commission paid: £65.

For ETFs, Henry invests £4,000 in a gold ETF and pays a £9.95 buy commission and again for selling: £19.90 total.

Trading a gold futures contract, Raj is charged £6 per contract per side, so £12 for the full round-turn.

Brokerage Fees

Brokerage fees refer to ongoing charges for account maintenance, professional storage, or investment management. If you store physical gold in a professional vault, expect annual storage fees (typically over £100 for small holdings). Gold ETFs charge a management expense ratio (MER), automatically deducted from assets. For sector stocks and most UK brokers, standard account maintenance fees are rare but some brokers charge inactivity or premium account monthly fees. In the case of derivatives, specialised platforms may levy monthly costs depending on your account type.

Real Example

Geoff stores gold worth £7,500 in a UK depository for 1.6% per year = £120 storage charge.

Jamie holds £10,000 in a gold ETF with a 0.30% MER, so pays £30 in fees spread over the year.

A CFD broker may charge Sophie £10/month if she holds a professional/active trading account or is inactive for 3 months in a row.

Spreads

A spread is the built-in cost between the purchase and sale price (bid/ask) offered by dealers, brokers, or exchanges. With physical gold, this spread might be £30–£40/oz; for ETFs, spreads are tight due to high liquidity; for derivatives, CFD brokers or futures may quote the cost in pips or as a percent of the notional trade value.

Real Example

Marcus buys a 1oz gold coin for £3,120; the same dealer offers £3,085 to repurchase it. The spread is £35.

For a gold ETF, Rachael buys at £25.10 and the quoted sell price is £25.06: spread is £0.04 (0.16%).

Nick trades CFD gold contracts and faces a spread of 22 pips (£2.20 per full lot).

Other Fees

These can include insurance for physical gold (usually 1–2% of value per year), delivery/shipping charges, or FX costs if buying gold or gold ETFs in US dollars. For ETFs, stamp duty is not charged but applies to gold mining shares on the London Stock Exchange (0.5%). CFD and futures trading may incur costs for overnight funding (rollover/swap), platform use, and real-time data access.

Real Example

Clare sends her gold to a secure vault provider for £20 shipping and pays 1.5% insurance annually (£60 on £4,000).

Buying a US-listed gold ETF, John incurs a 0.7% FX conversion fee (£14 for a £2,000 trade).

Anne maintains an open CFD position for 5 days and pays £3 in overnight funding plus a £6 exchange data monthly fee.

The tax on income from trading gold in the United Kingdom

Investing in gold in GB is subject to different tax rules depending on your chosen investment method. The taxation of physical gold, gold ETFs/ETCs, mining stocks, derivatives, and digital accounts differs under HMRC regulations. Understanding the relevant tax regime will help you avoid surprises at tax time and ensure you meet all legal obligations.

• Physical gold: UK legal tender coins (like Britannia and Sovereign coins) are exempt from capital gains tax. All other physical gold (bars and foreign coins) are subject to CGT on any gain above the annual exemption.
• Gold ETFs / ETCs: If held outside an ISA or SIPP, selling units triggers capital gains tax on profits above the CGT allowance (£3,000 for 2024/25). Within ISAs and SIPPs, any capital gain is tax-free.
• Gold mining stocks: Gains from selling shares are subject to CGT, and dividends are taxed at rates based on your total dividend income. The first £1,000 of dividends per year is tax-free.
• Gold derivatives: Profits from spread betting are usually tax-free for private (non-professional) investors. Profits from CFDs and futures are taxed as income or capital gains, depending on the nature and frequency of trading.
• Digital gold accounts: Treated as physical gold, so capital gains tax applies as above when you sell or withdraw at a profit above the exemption threshold.

In the UK, you may need to report capital gains from gold investments if your total gains (from all assets) exceed the annual CGT exemption. Report this on your annual self-assessment tax return. Income from dividends or regular trading activity must also be declared and taxed accordingly. If you use ISAs or SIPPs for holding gold-related assets, you benefit from tax advantages and may not need to declare gains. Keep accurate records of all your transactions and seek expert advice if you are a frequent trader or if holding gold as a business asset, as professional trader status and corporate tax may then apply.

10 tips for choosing the right broker to speculate on gold

Selecting the right broker is one of the most important steps to successfully speculate on gold using derivatives such as CFDs or futures. A reliable, well-regulated broker not only ensures security and fair pricing but also impacts your trading costs, access to markets, and overall trading experience. Use the criteria below to guide your broker selection and trade gold derivatives with greater confidence.

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.