The XAUUSD spread is the difference between the Bid (sell) price and the Ask (buy) price of gold quoted in US dollars. It represents the cost of entering a trade and is one of the primary trading costs for CFD traders. For example, if the Bid price is $2,650.00 and the Ask price is $2,650.50, the spread is 0.50 (or 50 cents).
Eightcap, a globally recognised forex and CFD broker, offers XAUUSD trading on both Standard and Raw account types. The broker is regulated by the UK Financial Conduct Authority (FCA) under FRN 920058, the Australian Securities and Investments Commission (ASIC) under AFSL 391441, and the Cyprus Securities and Exchange Commission (CySEC) under Licence 424/22.
The spread is typically quoted in pips (percentage in points) or points (the last decimal place). For XAUUSD, a spread of 0.50 means the difference between Bid and Ask is 50 cents on a 1.0 lot trade (100 ounces of gold).
Eightcap offers two primary account types for XAUUSD trading: Standard and Raw. The table below compares the typical spreads and cost structures for each account type.
| Account Type | Typical Spread (XAUUSD) | Commission | All-in Cost (per 1.0 lot) | Best For |
|---|---|---|---|---|
| Standard Account | From 1.0 – 1.5 points | None (0%) | ~ $10 – $15 per lot | Beginners, swing traders, lower-frequency traders |
| Raw Account | From 0.0 – 0.3 points | $3.50 per side per lot | ~ $3.50 – $6.50 per lot (spread + commission) | Scalpers, day traders, high-volume traders |
According to Eightcap's official pricing, the Raw account spread for XAUUSD can be as low as 0.0 points during favourable market conditions, but it typically averages around 0.2–0.3 points. The Standard account spread averages 1.0–1.5 points, making it simpler but more expensive for active trading.
Understanding the full cost of trading XAUUSD with Eightcap involves more than just the spread. Below is a detailed breakdown of the costs associated with trading gold CFDs.
The spread cost for XAUUSD is calculated as:
Spread Cost = Spread (in points) × Lot Size (in ounces) × Pip Value
On the Raw account, Eightcap charges a commission of $3.50 per side per standard lot. This means a round-turn trade (opening and closing a position) costs $7.00 in commissions. The commission is applied to XAUUSD, forex, and other CFD instruments.
If you hold a XAUUSD position overnight, swap fees (or rollover interest) may apply. Swap rates can be positive (you earn interest) or negative (you pay interest), depending on the interest rate differential between the currencies involved and the broker's policy. For gold CFDs, swap rates are typically based on the interbank market and can vary.
| Cost Component | Standard Account | Raw Account |
|---|---|---|
| Spread (per 1.0 lot) | $10 – $15 (1.0–1.5 points) | $0 – $3 (0.0–0.3 points) |
| Commission (round-turn) | $0 | $7.00 ($3.50 × 2) |
| Total Direct Cost (per 1.0 lot) | $10 – $15 | $7 – $10 |
| Swap (overnight fee) | Varies (check platform) | Varies (check platform) |
The following scenarios illustrate how the spread and associated costs impact XAUUSD trades on Eightcap's Standard and Raw accounts.
Scenario 1 – Standard Account Trade: Emma opens a 1.0 lot buy position on XAUUSD using her Standard account. The current spread is 1.2 points ($12.00 per lot). She holds the position for 2 hours and closes it when the price moves 15 points in her favour.
Gross profit: 15 points × $1.00 × 1.0 lot = $150.00
Spread cost: $12.00
Net profit: $150.00 – $12.00 = $138.00
Emma's net profit is reduced by the spread cost, but the Standard account's zero-commission structure simplifies the cost calculation.
Scenario 2 – Raw Account Trade: James opens a 1.0 lot buy position on XAUUSD using his Raw account. The current spread is 0.2 points ($2.00 per lot). He holds the position for a few minutes and closes it when the price moves 15 points in his favour.
Gross profit: 15 points × $1.00 × 1.0 lot = $150.00
Spread cost: $2.00
Commission (round-turn): $7.00
Total cost: $9.00
Net profit: $150.00 – $9.00 = $141.00
James's net profit is higher than Emma's because the Raw account's tighter spread more than offsets the commission cost for this trade.
Scenario 3 – Holding Overnight: Maria opens a 0.5 lot buy position on XAUUSD on the Raw account. The swap rate for gold is negative 1.5 points per day (approx. -$1.50 per 0.5 lot). She holds the position for 5 days.
Swap cost: -$1.50 × 5 = -$7.50
Spread cost: 0.2 × $1.00 × 0.5 lot = $1.00
Commission (round-turn): $3.50 per side × 0.5 lot = $3.50 (total $7.00)
Maria's total cost for this trade is $1.00 (spread) + $7.00 (commission) + $7.50 (swap) = $15.50. This highlights the importance of considering swap costs for longer-term positions.
These examples demonstrate that the Raw account is generally more cost-effective for active traders, while the Standard account may be simpler for beginners or those who trade less frequently.
The XAUUSD spread on Eightcap is not static. Several factors can cause the spread to widen or narrow, impacting your trading costs.
Trading XAUUSD with Eightcap involves significant risk due to leverage and market volatility. Below is a practical checklist of risk controls to implement when trading gold CFDs.
Tip: Eightcap provides negative balance protection to retail clients, ensuring you cannot lose more than your account balance. This is a valuable safety net, but it does not eliminate the need for disciplined risk management.
Place stop-loss orders at key technical levels (e.g., below recent support or above resistance). Avoid setting stops too tight, as gold can experience brief spikes that trigger stops before reversing.
Calculate your position size based on your account equity and risk tolerance. For example, if you have a $1,000 account and risk 2% per trade, your maximum loss per trade is $20. Adjust your lot size accordingly.
On the Standard account, the typical spread is 1.0–1.5 points. On the Raw account, the spread typically ranges from 0.0–0.3 points, with a commission of $3.50 per side per lot.
No commission is charged on the Standard account. The Raw account charges a commission of $3.50 per side per standard lot (round-turn $7.00).
For active traders and scalpers, the Raw account is generally more cost-effective due to tighter spreads. For beginners or lower-frequency traders, the Standard account offers simplicity with no commissions.
The spread is the difference between the Bid and Ask prices. For example, if the Bid is 2,650.00 and the Ask is 2,650.50, the spread is 0.50 points (or 50 cents).
Yes. The spread can widen during periods of low liquidity, high volatility, or around major news events. Spreads are typically tighter during the London-New York session overlap.
Yes. Swap fees (overnight financing charges) apply to positions held overnight. Swap rates for XAUUSD are variable and can be checked in your MT4/MT5 platform.
Yes. Eightcap is regulated by the FCA (UK), ASIC (Australia), CySEC (Cyprus), and the SCB (Bahamas). Always verify the entity that holds your account and its regulatory status.
Yes. Eightcap offers demo accounts on both Standard and Raw account structures, allowing you to test your XAUUSD trading strategy without financial risk.
Forex and CFD trading, including XAUUSD (gold) CFDs, carry a high level of risk and may not be suitable for all investors. According to ESMA and ASIC data, a significant proportion of retail investor accounts lose money when trading CFDs. Eightcap reports that approximately 70–75% of retail investor accounts lose money trading CFDs with the firm.
Key risks associated with XAUUSD trading:
This guide is for educational and informational purposes only. It does not constitute financial, legal, or trading advice. Always verify current terms, fees, leverage limits, and regulatory status directly with the official Eightcap website or the relevant regulator before making any trading or investment decision. Consider seeking independent financial advice before trading XAUUSD or other CFDs.
References: FCA Financial Services Register, ASIC Professional Register, CySEC Public Register, and Eightcap's official risk disclosure documents.