FxPro: a trading account, not a vault

An account quoted in dollars beside a purchase made in rupees

FxPro quotes gold as a contract for difference. The account is settled in the currency you choose, which can be dollars or rupees. If you choose rupees, the broker converts your balance at its own rate, and that rate is not the same as the one this site uses for the premium. The two are different animals: one is a benchmark gap, the other is a retail conversion.

A contract for difference is a derivative. You do not own gold, and you have no claim on any metal. The price you see is the international price, plus the broker's spread and any overnight charges. Those charges are not part of the premium this site measures. Before opening an account, a reader should confirm in the platform itself what currency the account uses, what the conversion rate is, and what charges apply.

What disappears from the cost of a trade when no metal moves

When you buy physical gold in India, you pay import duty, a domestic premium, making charges and tax. When you trade a contract for difference with FxPro, none of those apply. No metal crosses a border, so there is no duty. No shop is involved, so there is no making charge. The price you pay is the international price, plus the broker's costs.

That does not make the contract cheaper. The broker's spread and any overnight charges can add up, and the price of the contract moves with the international market, not with the Indian benchmark. A reader who wants exposure to the international gold price in dollars may find the contract useful. A reader who wants to own metal should not confuse the two.

What a reader should confirm in the platform itself

Opening an account with FxPro requires identification and takes a day or two. A practice account exists and costs nothing. Before opening a live account, a reader should confirm in the platform what the spreads are, what the overnight charges are, and what the margin requirements are. Those are not published on this site, and they change.

A contract for difference is settled in cash. You never take delivery of gold. If you want to hold metal, this account is not for you. If you want to trade the price of gold without owning it, the account is a way to do that. But you should know what you are trading, and you should not treat it as a way to buy gold cheaply.

FxPro is regulated by the FCA (United Kingdom) and CySEC (Cyprus). It is not registered with SEBI and is not regulated in India. Indian residents should note that remittances made under the Liberalised Remittance Scheme may not be used for margin trading, and nothing on this site is investment advice.