Interactive Brokers Launches Trading Services with US Spot Gold

The Interactive Brokers Group (Nasdaq: IBKR) launched trading services with US Gold on Monday. With the new commodities instrument, the clients of the brokerage firm can trade US spot gold in amounts as small as one ounce.

Additionally, the broker will allow physical delivery Settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term of COMEX Gold, Micro Gold, Silver and Micro Silver Futures: the feature that will be enabled on May 17. The settlement will be done as a registered warrant or automated certificate of Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term (ACE) for each full size or Micro contract.

Hedge against Inflation

Bullion, especially gold, has always been a preferred asset for conservative investors. It is seen as an effective hedge against inflation and other market uncertainties. The price of gold rallied aggressively in recent years, mostly after the harsh impact of the ongoing pandemic on the global stock markets.

In addition, the announcement revealed that the broker will allow its United States-based clients to trade spot gold from Monday. It can be traded like any other trading instruments offered by the brokerage and from the same account.

Interactive Brokers will charge a commission from 0.7 bps to 1.5 bps of gold trade value with a minimum commission of $2. Moreover, it assured tight spreads for the bullion.

Commenting on the development, Interactive Brokers’ EVP of marketing and product development, Steve Sanders, said: “Interactive Brokers’ advantage has always been our low cost, advanced technology and breadth of product worldwide for sophisticated individual traders and institutional investors.”

“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.”