How to Trade Gold in the USA: Futures, ETFs, CFTC Rules and Why XAUUSD CFDs Aren't Available

The short answer

US residents generally can’t trade XAUUSD the way traders in London, Dubai or Singapore do.

• CFDs are not permitted for US retail traders.
• Leveraged off-exchange spot gold for retail customers is heavily restricted under US commodity law.

Instead, US traders use regulated alternatives:

The price you see on a XAUUSD chart and the COMEX gold futures price move together closely. The skills you learn from what moves gold prices apply to both.

Why US residents can’t use XAUUSD CFDs

Under the Commodity Exchange Act, as amended by the Dodd-Frank Act, leveraged or margined commodity transactions with retail customers generally have to be traded on a regulated exchange. There are narrow exceptions, such as when actual delivery of the metal takes place within a short period.

In practice, that means:

• CFD providers don’t accept US residents. CFDs are off-exchange contracts.
• US retail forex dealers focus on currency pairs. Leveraged spot gold isn’t something you should expect to find from a US-regulated retail forex firm.
• Offshore brokers that accept US clients for gold CFDs are generally operating outside US rules, and you’d have little protection if something goes wrong.

This is a simplified summary. The rules are detailed, so check the CFTC and NFA websites for the current position.

Your regulators

How to verify a futures broker

1. Go to NFA BASIC (Background Affiliation Status Information Center).
2. Search the firm’s name or NFA ID.
3. Check it’s registered as a Futures Commission Merchant (FCM) or an Introducing Broker (IB) working with an FCM, and that it’s an NFA member.
4. Look at the regulatory actions and arbitration history.
5. Check the CFTC RED List (Registration Deficient list) and the CFTC’s fraud advisories under Learn and Protect.

How to verify a stock broker for gold ETFs

Search the firm on FINRA BrokerCheck and check SIPC membership.

COMEX gold futures explained

Gold futures trade on COMEX, part of CME Group. They’re the main way US traders get leveraged gold exposure.

CME Group has also listed a 1-ounce gold futures contract, which is roughly the size of 0.01 lots of XAUUSD. Not every broker supports it, and liquidity can differ from GC and MGC. Check CME Group’s gold contract specifications for current details.

Things that work differently from spot XAUUSD:

• Margin is set by the exchange and your broker, not as a fixed leverage ratio. It changes when volatility changes. Check current margins with your broker.
• Contracts expire. You trade a specific month and roll to the next before expiry. Most traders close or roll well before delivery.
• The futures price is usually above spot, reflecting interest rates and storage (called the basis or carry).
• No fractional contracts. You can trade 1 MGC or 2 MGC, but not 1.3.
• Pattern day trader rules apply to stock margin accounts, not futures accounts.

Gold ETFs and other unleveraged options

Gold ETFs trade like stocks. Some hold physical gold in vaults; others use futures. Read the prospectus to understand what you own and the annual expense ratio.

Leveraged and inverse gold ETFs also exist. They reset daily and can behave very differently from gold over longer periods. They’re built for short holding periods and need careful study.

Physical gold is bought from dealers. Check the dealer’s reputation, the buy and sell spread, and where your metal will be stored.

A general note on US tax

This is a general overview, not tax advice:

• Regulated futures contracts (including COMEX gold) generally fall under Section 1256, which blends long-term and short-term capital gains rates and marks open positions to market at year-end.
• Physical gold and many physically backed gold ETFs may be treated as collectibles by the IRS, which can mean a different long-term capital gains rate from stocks.
• Gold mining stocks are generally taxed like other stocks.
• State taxes may also apply.

Best gold trading hours in New York time

Gold futures on CME Globex trade Sunday 6:00 pm to Friday 5:00 pm Eastern Time, with a daily break from 5:00 to 6:00 pm ET. Because these hours are set in New York time, they don’t move when the clocks change.

The London open is 08:00 GMT in winter and 07:00 GMT in summer, which is 3:00 am ET in both seasons. During the short “mismatch” weeks, when the US and UK change clocks on different dates (late October to early November, and mid to late March), the London open lands at 4:00 am ET and the Asian session shifts by an hour too.

For most US traders, the best window is the 8:30 am data release through late morning. See the New York session strategy, and learn how to handle NFP and Fed days. West Coast traders can study the London session and the Asian range breakout in the evening.

Use the Gold Market Hours tool for live session times.

Position sizing with futures

You’re already in dollars, so there’s no currency conversion. The challenge is that futures don’t come in fractions.

The formula for XAUUSD lots is:

Lots = Risk in $ ÷ (Stop distance in $ × 100)

For futures, replace 100 with the contract’s ounces:

Contracts = Risk in $ ÷ (Stop distance in $ × ounces per contract)

Example:

• Account: $10,000
• Risk per trade: 1% = $100
• Stop distance: $8 of gold price

With a $20 stop, one MGC risks $200, which is 2% of this account. Then you’d need a tighter stop, a bigger account or a smaller contract. Never increase risk just to fit a contract.

The position size calculator works in XAUUSD lots. Divide by 0.10 to get MGC contracts (0.10 lots = 1 MGC). Read XAUUSD risk management for more.

Futures or ETFs: which fits you?

Many US traders analyze the XAUUSD chart for price action and execute on micro futures. Just remember the futures price usually sits slightly above spot.

Gold in American markets

The US has one of the world’s most important gold markets. COMEX is the leading gold futures exchange, and US-listed gold ETFs are among the largest in the world. The US Mint produces American Gold Eagle and Gold Buffalo coins. US data, especially jobs, inflation and Fed decisions, is one of the biggest drivers of the gold price globally.

Scams and red flags in the US

The CFTC regularly warns about precious metals fraud. Watch for:

• Offshore CFD brokers that accept US clients or tell you to hide your location.
• Firms not registered on NFA BASIC, or on the CFTC RED List.
• Leveraged “physical” gold schemes that promise delivery that never happens.
• High-pressure gold IRA or coin sales with large undisclosed markups.
• Signal groups and “mentors” on social media promising guaranteed returns.
• Romance and “pig butchering” scams where a new online contact introduces a gold trading app.
• Fake prop firms with unclear payout rules. See our prop firm gold trading guide.
• Withdrawal fees or “taxes” demanded before you can access your money.

Report suspected fraud to the CFTC, NFA or SEC.

Getting started safely: a checklist

• [ ] Learn the basics: what XAUUSD is and how it relates to COMEX gold.
• [ ] Decide on your product: futures, micro futures, ETFs or physical.
• [ ] Verify the broker on NFA BASIC (futures) or FINRA BrokerCheck (ETFs).
• [ ] Read the contract specs on CME Group and check current margins with your broker.
• [ ] Learn how expiry and rollover work before trading a live contract.
• [ ] Practice on a futures simulator or demo for several weeks.
• [ ] Write a trading plan with your session and risk rules.
• [ ] Check that one contract fits your risk limit at your normal stop distance.
• [ ] Study risk management for volatile gold markets.
• [ ] Talk to a licensed tax adviser about how your chosen product is taxed.
• [ ] Start with one micro contract and keep a trading journal.

Keep learning

• XAUUSD trading strategies
• Order types and execution
• Trading math and expectancy
• Live XAUUSD price and gold news

Want to learn with other gold traders? Our community reviews the New York session together, with the first month free. See membership.

Sources and further reading

• Commodity Futures Trading Commission
• National Futures Association BASIC
• CME Group: Gold futures contract specifications
• FINRA BrokerCheck
• Internal Revenue Service

Educational content only, not financial or tax advice. US rules are detailed and change; check the CFTC, NFA, SEC and a licensed tax adviser before trading. Trading leveraged products carries a high risk of loss.

Frequently asked questions