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 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 (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.
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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.”