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What is the Spread of XAUUSD in Exness? A Comprehensive Guide
from Exness
by Exness_Blog
Gold trading, particularly the XAUUSD pair (gold priced against the U.S. dollar), is a cornerstone of the forex and CFD markets, attracting traders globally due to its volatility and safe-haven status. For traders using platforms like Exness, one of the most critical factors influencing profitability is the spread—the difference between the bid and ask prices of an asset. In this in-depth guide, we’ll explore the spread of XAUUSD on Exness, how it varies across account types, the factors affecting it, and why it matters for your trading strategy. Whether you’re a beginner or an experienced trader, this article will help you understand Exness’s XAUUSD spreads and how to optimize your gold trading journey.
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What is a Spread in Forex and CFD Trading?
Before diving into the specifics of XAUUSD spreads on Exness, let’s clarify what a spread is. In forex and CFD trading, the spread is the difference between the bid price (the price at which you can sell) and the ask price (the price at which you can buy). It is typically measured in pips or points and represents the cost of entering a trade, as brokers like Exness often incorporate their fees into the spread.
For XAUUSD, the spread is expressed in cents per ounce or pips, depending on the platform’s terminology. For example, if the bid price for XAUUSD is $2,500.00 and the ask price is $2,500.20, the spread is 20 cents or 2 pips. This cost directly impacts your profitability, especially for high-frequency traders or scalpers who execute multiple trades daily.
Why XAUUSD is a Popular Trading Pair
XAUUSD is one of the most traded instruments in the forex market due to several reasons:
· Safe-Haven Asset: Gold is considered a hedge against inflation, economic uncertainty, and geopolitical instability, making it attractive during volatile market conditions.
· High Liquidity: XAUUSD enjoys high trading volumes, resulting in tighter spreads compared to less liquid assets like exotic currency pairs.
· Volatility: Gold prices can experience significant price swings, offering opportunities for both short-term and long-term traders.
Exness, a globally recognized broker regulated by authorities like the FCA, CySEC, and FSCA, is a popular choice for trading XAUUSD due to its competitive spreads, fast execution, and flexible account types.
Exness XAUUSD Spreads Across Account Types
Exness offers a variety of account types tailored to different trading styles, each with distinct spread structures for XAUUSD. Below is a detailed breakdown of the average spreads for XAUUSD based on Exness’s account offerings:
1. Standard Account
· Average Spread: 16–25 pips (1.6–2.5 cents per ounce)
· Commission: None
· Details: The Standard account is commission-free, making it ideal for beginners or casual traders. While the spreads are wider than professional accounts, they remain competitive for retail trading. This account is best suited for swing traders or those holding XAUUSD positions for hours or days, where entry costs are less critical.
· Best For: New traders or those prioritizing simplicity over ultra-tight spreads.
2. Standard Cent Account
· Average Spread: 16–25 pips (1.6–2.5 cents per ounce)
· Commission: None
· Details: Similar to the Standard account, the Standard Cent account is designed for beginners, allowing trading in micro-lots. The spreads for XAUUSD are comparable to the Standard account, offering a cost-effective option for low-volume traders.
· Best For: Traders testing strategies with smaller capital.
3. Pro Account
· Average Spread: 11.2 pips (1.12 cents per ounce)
· Commission: None
· Details: The Pro account offers lower spreads than the Standard accounts, making it suitable for experienced traders who want tighter spreads without commissions. It’s ideal for day traders or those employing medium-term strategies.
· Best For: Experienced traders seeking a balance between cost and flexibility.
4. Raw Spread Account
· Average Spread: 3.7 pips (0.37 cents per ounce)
· Commission: $3.5 per side per lot ($7 per lot round-trip)
· Details: The Raw Spread account provides ultra-low spreads but charges a fixed commission per trade. This makes it cost-effective for high-frequency traders or scalpers who execute multiple trades daily.
· Best For: Scalpers and high-volume traders who prioritize low spreads.
5. Zero Account
· Average Spread: 0.0 pips (0 cents per ounce) on major instruments for a significant portion of the trading day
· Commission: Starting at $5.5 per side per lot ($11 per lot round-trip)
· Details: The Zero account offers the tightest spreads, often reaching 0.0 pips during high-liquidity periods. Instead of spread costs, traders pay a fixed commission, making this account ideal for high-frequency traders or those trading during volatile market conditions.
· Best For: Scalpers, day traders, and high-volume traders seeking minimal spread costs.
Note: Spreads are floating and based on the previous day’s average. Real-time spreads may vary due to market conditions, and you should check your trading platform for live data.
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Factors Affecting XAUUSD Spreads on Exness
Several factors influence the spread of XAUUSD on Exness, and understanding these can help you optimize your trading:
· Market Volatility: Gold prices are highly sensitive to geopolitical events, economic data releases (e.g., U.S. Non-Farm Payrolls), and central bank policies. During high-volatility periods, spreads may widen significantly.
· Liquidity: XAUUSD spreads are tighter during high-liquidity periods, such as the overlap of the London and New York sessions (13:00–17:00 GMT). During low-liquidity periods, like the Asian session, spreads may widen.
· Account Type: As outlined above, professional accounts (Pro, Raw Spread, Zero) offer tighter spreads than Standard accounts.
· Trading Hours: Gold trading is available 24/5, but spreads can vary depending on market hours. Exness may extend trading hours during major events, impacting spreads.
· News Events: Major economic announcements, such as U.S. Federal Reserve interest rate decisions, can cause spreads to widen temporarily. Exness recommends monitoring its Economic Calendar to anticipate these periods.
Why Exness Stands Out for XAUUSD Trading
Exness is a preferred broker for XAUUSD trading due to several key features:
· Competitive Spreads: Exness offers some of the lowest spreads in the industry, with the Zero account providing spreads as low as 0.0 pips for XAUUSD.
· Swap-Free Trading: Exness offers extended swap-free trading for XAUUSD under specific conditions, meaning no overnight fees for holding positions longer than 24 hours. This is ideal for long-term traders.
· High Leverage: Traders can access leverage up to 1:2000 for XAUUSD, depending on account equity and market conditions. However, leverage is capped at 1:1000 during certain periods, such as 30 minutes before the daily market break.
· Fast Execution: Exness boasts 98% slippage-free execution for pending orders, ensuring reliable trade execution even during volatile market conditions.
· Multiple Platforms: XAUUSD can be traded on MetaTrader 4 (MT4), MetaTrader 5 (MT5), Exness Terminal, and the Exness Trade App, offering flexibility for traders on various devices.
· Transparency: Exness provides real-time spread data on its platforms and publishes average spreads from the previous trading day on its website.
How to Check XAUUSD Spreads on Exness
To view real-time XAUUSD spreads, follow these steps:
Log into Exness Terminal:
· Access your Personal Area (PA) on the Exness website.
· Click “Trade” on any MT5 account, then select Exness Terminal.
· Under “Instruments,” click the three-dot icon and toggle “Spread” to view the current spread for XAUUSD.
Check MetaTrader Platforms:
· Open MT4 or MT5, go to “Market Watch,” and right-click on XAUUSD to view the spread in real time.
Visit the Exness Website:
· The Exness website lists average spreads for the previous trading day under the “Contract Specifications” section. Note that these are estimates, as real-time spreads depend on market conditions.
How XAUUSD Spreads Impact Your Trading Strategy
The spread you pay for XAUUSD can significantly affect your trading profitability, depending on your strategy:
· Scalping: Scalpers, who aim to profit from small price movements, benefit from the Zero or Raw Spread accounts due to their ultra-low or zero spreads. The fixed commission structure allows for predictable costs, which is crucial for high-frequency trading.
· Day Trading: Day traders can opt for the Pro or Raw Spread accounts, which offer a balance between low spreads and no or low commissions. These accounts are ideal for traders executing multiple trades within a day.
· Swing Trading: For swing traders holding positions for days or weeks, the Standard or Standard Cent accounts are sufficient, as wider spreads have less impact on longer-term strategies.
· Long-Term Investing: Traders holding XAUUSD positions for extended periods benefit from Exness’s swap-free feature, which eliminates overnight fees under certain conditions.
Comparing Exness XAUUSD Spreads with Industry Standards
Exness’s XAUUSD spreads are highly competitive compared to the industry average. According to BrokerChooser, the average XAUUSD spread across 100+ brokers is 0.25 (25 pips), with the lowest at 0.02 (2 pips) and the highest at 1.00 (100 pips). Exness’s XAUUSD spread of 0.037 (3.7 pips) on the Raw Spread account and 0.0 pips on the Zero account places it among the industry’s best.
However, traders should also consider financing rates (swap fees) and commissions when evaluating overall costs. Exness’s transparent commission structure and swap-free options make it a cost-effective choice for XAUUSD trading.
Tips for Optimizing XAUUSD Trading on Exness
· Choose the Right Account: Select an account type that aligns with your trading style. For example, scalpers should opt for the Zero or Raw Spread accounts, while beginners may prefer the Standard account.
· Monitor Market Conditions: Use Exness’s Economic Calendar to anticipate news events that could widen spreads. Avoid trading during low-liquidity periods to minimize costs.
· Use the Trading Calculator: Exness’s trading calculator helps you estimate spread costs, margin, and commissions based on your account type and trade size.
· Trade During High-Liquidity Hours: The overlap of the London and New York sessions (13:00–17:00 GMT) offers the tightest spreads due to high trading volumes.
· Test on a Demo Account: Exness offers a risk-free demo account to practice XAUUSD trading and familiarize yourself with spreads and platform features.
Conclusion
The spread of XAUUSD on Exness varies by account type, ranging from 16–25 pips on Standard accounts to as low as 0.0 pips on the Zero account. With competitive spreads, swap-free trading options, high leverage, and fast execution, Exness is a top choice for trading gold. By understanding the factors that affect spreads—such as market volatility, liquidity, and account type—you can optimize your trading strategy to maximize profitability.
Whether you’re scalping, day trading, or holding long-term positions, Exness offers the tools and conditions to trade XAUUSD efficiently. Check real-time spreads on your trading platform, monitor market conditions, and leverage Exness’s trading calculator to plan your trades effectively. Ready to start trading XAUUSD with Exness? Sign up for an account or try a free demo today to explore the platform’s competitive spreads and features.
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FAQs
1. What is the average spread for XAUUSD on Exness?The average spread for XAUUSD on Exness ranges from 16–25 pips on Standard accounts, 11.2 pips on Pro accounts, 3.7 pips on Raw Spread accounts, and 0.0 pips on Zero accounts (with commissions).
2. Does Exness offer swap-free trading for XAUUSD?Yes, Exness provides extended swap-free trading for XAUUSD under specific conditions, eliminating overnight fees for long-term positions.
3. How can I check real-time XAUUSD spreads on Exness?Log into the Exness Terminal or MetaTrader platforms, navigate to the “Instruments” or “Market Watch” section, and toggle the spread display.
4. When are XAUUSD spreads the tightest?Spreads are typically tightest during the London-New York session overlap (13:00–17:00 GMT) due to high liquidity.
5. Is Exness a good broker for XAUUSD trading?Yes, Exness is highly regarded for XAUUSD trading due to its low spreads, swap-free options, high leverage, and fast execution.
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