The short answer
Trading XAUUSD has up to three costs:
- Spread: the gap between the buy and sell price, paid every time you open a trade.
- Commission: a fixed fee per lot on some account types.
- Swap (overnight financing): a daily charge, or occasionally a credit, for holding a leveraged position overnight.
On a standard 100-ounce lot, every $0.10 of spread costs $10, and swaps can quietly cost more than the spread on trades held for days or weeks. Knowing these numbers is what makes a trading plan realistic.
Cost 1: the spread
Your platform shows two prices:
- Bid: the price you can sell at.
- Ask: the price you can buy at.
The difference is the spread. If you buy and the price doesn’t move, you can only close at the lower bid, so you start every trade down by the spread.
Worked example: spread in dollars (hypothetical quote)
Gold is quoted 4,120.00 / 4,120.30, so the spread is $0.30 per ounce.
| Position size | Ounces | Spread cost |
|---|---|---|
| 0.01 lot | 1 oz | $0.30 |
| 0.10 lot | 10 oz | $3 |
| 1.00 lot | 100 oz | $30 |
Most XAUUSD contracts use 100 ounces per standard lot, the same size as a COMEX gold futures contract, but always check your own contract specification. Our guide to XAUUSD pip value explains why “a pip” means different things on different platforms, and the gold pip calculator converts any move into dollars.
When spreads widen
Spreads are not fixed. They tend to widen:
- At the Sunday open and around the daily break (5:00–6:00 pm New York time).
- In the seconds around US CPI, jobs data and Fed decisions.
- On holidays and very quiet sessions.
- During sudden geopolitical headlines.
A spread that is normally $0.30 can be several times wider in those moments. Our lesson on order types and execution explains how slippage adds to this.
Cost 2: commission
Some accounts quote a tighter spread and charge a separate commission, usually per lot and per side (opening and closing). To compare accounts, add everything up.
Worked example: comparing two account types (hypothetical numbers)
| Account A (spread only) | Account B (spread + commission) | |
|---|---|---|
| Typical spread | $0.35 per oz | $0.12 per oz |
| Spread cost on 1 lot | $35 | $12 |
| Commission, round trip | none | $7 per lot |
| Total cost per 1-lot trade | $35 | $19 |
In this example Account B is cheaper per trade. With different numbers the answer flips, so always do the sum with your own figures. The more often you trade, the more this difference matters.
Cost 3: the swap (overnight financing)
When you trade XAUUSD with leverage, you control a large position with a small deposit. The provider charges a daily financing amount for that leverage if you hold past the daily cut-off, usually around 5:00 pm New York time.
How swaps are usually calculated
Methods differ, but most follow the same idea:
Daily swap ≈ position value × (benchmark rate ± provider fee) ÷ 360 or 365
- The benchmark reflects interest rates on the currencies and metal involved. With US rates high in 2026 (the Fed funds target is 3.75–4.00%), financing a long gold position is relatively expensive.
- The fee is the provider’s markup.
- Most platforms simply show the result in points per lot or dollars per lot in the contract specification.
Worked example: holding a trade for two weeks (hypothetical rate)
Assume a long position of 0.50 lot (50 oz) with gold at $4,120, so the position value is $206,000. Assume a total annual financing cost of 6%.
- Daily swap ≈ $206,000 × 6% ÷ 360 ≈ $34 per night
- Two weeks (ten trading nights, including two triple-swap days): about 14 nights charged ≈ $476
Compare that with a one-off spread of perhaps $15 on the same position. For swing traders, swap is often the biggest cost. That’s why our gold swing trading strategy lesson includes swap in every trade plan.
Triple-swap day
The market is closed at the weekend, but positions are still open and still financed. Many providers handle this by charging three days of swap on one weekday, often Wednesday. Check your platform’s contract specification for the exact day.
Swap rates change when interest rates change. After a Fed hike, the cost of holding leveraged gold positions can rise. Re-check your swap rates after every Fed decision.
Can a swap ever be a credit?
Occasionally, yes. Because the swap reflects interest rates on both sides of the trade plus the provider’s fee, one direction (long or short) can sometimes earn a small daily credit while the other pays. On gold, with the provider’s fee added to both sides, it is common for both directions to pay. Never choose a trade direction just to collect a swap: a single bad day in price can erase months of small credits.
Hidden costs to watch
- Slippage: fills worse than the price you saw, common in fast markets.
- Currency conversion: if your account is in INR, AED, GBP or another currency, profits and losses are converted, and conversion may carry a fee.
- Inactivity or withdrawal fees: read the fee schedule.
- Re-quotes and wider stops on news: not a fee, but they raise your real cost per trade.
How costs change your strategy
| Style | Typical holding time | Biggest cost | What to watch |
|---|---|---|---|
| Scalping | Seconds to minutes | Spread and commission | Trade only when spreads are tight |
| Day trading | Minutes to hours | Spread | Avoid entering in the seconds around big news |
| Swing trading | Days to weeks | Swap | Count nights held, including triple-swap day |
| Position trading | Weeks to months | Swap | Compare with unleveraged alternatives |
A scalper targeting $2 per ounce who pays $0.35 in spread gives up more than 17% of each winning move before anything else happens. That’s why our gold scalping strategy spends so much time on costs.
Your cost checklist (do this once, in 10 minutes)
- Open the contract specification for XAUUSD on your platform. Note ounces per lot, the minimum price step and the swap long and short.
- Watch the spread for a few minutes in the London–New York overlap, then again in the Asian session. Note both.
- Note any commission per lot, per side.
- Find the triple-swap day.
- Work out the total cost of a normal trade for your style, in dollars, and write it in your trading journal.
Leverage multiplies costs as well as profits and losses. In the EU, regulators limit retail CFD leverage on gold to 20:1 for this reason. Lower leverage means smaller positions and smaller swap bills.
Key takeaways
- On a 100-ounce lot, every $0.10 of spread equals $10.
- Compare accounts on total cost: spread plus commission.
- Swaps are daily, often triple on one weekday, and can dominate the cost of multi-day trades.
- Costs decide which styles are realistic for you. Measure them before you trade.
Sources
- CME Group: Gold futures contract specifications (100 troy ounces)
- ESMA product intervention FAQs: CFD leverage limits (gold 20:1)
- Federal Reserve: FOMC statement, September 16, 2026
Educational content only, not financial advice. Trading gold with leverage carries a high risk of loss.
Frequently asked questions
What is the spread on XAUUSD?
The spread is the gap between the buy (ask) and sell (bid) price. If gold is quoted 4,120.00 / 4,120.30, the spread is $0.30 per ounce. On a standard 100-ounce lot that is $30 you pay the moment you open the trade.
What is a swap on gold?
A swap, also called overnight financing or rollover, is a daily charge or credit for holding a leveraged XAUUSD position past the daily cut-off. It reflects interest rates plus the provider’s fee, and on gold it is a cost for most positions.
Why is the gold swap charged three times on one day?
Many providers charge three days of swap on one weekday, often Wednesday, to cover the weekend when positions are still open but the market is closed. Check your platform, because the day and method vary.
Is a commission account cheaper than a spread-only account?
Not automatically. Add the typical spread and the round-trip commission together and compare the total cost per lot. A lower spread plus commission can be cheaper or more expensive depending on the numbers and how often you trade.
When are gold spreads widest?
Spreads usually widen around the daily market break, at the Sunday open, during holidays, and in the seconds around big releases such as US CPI, the jobs report and Fed decisions.
How do I work out my cost per trade?
Multiply the spread in dollars per ounce by the ounces you trade, add any commission, and add the swap for each night you hold. Our gold pip calculator helps you convert price moves into dollars for your lot size.
Sources and further reading
- CME Group — Gold futures overview — Contract specifications and trading hours for COMEX gold
- CFTC — Commitments of Traders — Weekly futures positioning, including gold
- Investor.gov — Stop order — How stop orders work, and their limits in fast markets
External sites are independent of XAUUSD Global. Check dates and data yourself.