Elev8 broker breaks down the real cost of spreads in CFD…
By Kar Yong Ang, financial market analyst at Elev8 broker
AI summary of the source article
CFD broker Elev8 analyzed the compounding cost of spreads in trading, highlighting that silver spreads average 4.5 times higher than gold. For active gold traders, spread differences can drive monthly costs from $6,000 to $16,000 per lot.
Why it matters
Elev8 analyst Kar Yong Ang stated that 'a wider XAUUSD spread increases the price movement needed to break even. If the movement captured is smaller than the spread, the trade loses money even when the trader correctly anticipates the market’s direction.'
Key facts
- World Gold Council data showed average spot-market spreads of 0.02% for gold and 0.09% for silver between February 2025 and February 2026.
- On a 1-lot gold position traded 10 times daily over 20 days, a $0.15 spread costs $6,000 a month, compared to $16,000 at a $0.40 spread.
- A 30-pip spread absorbs 15% of a 200-pip move and 60% of a 50-pip move before other costs.
Source excerpt · FinanceFeeds
Key Facts World Gold Council data show average spot-market spreads of 0.02% for gold (XAUUSD) and 0.09% for silver (XAGUSD) between February 2025 and February 2026, making silver spreads 4.5 times higher for the same trade value. Trading costs fall into four main categories: spreads, commissions, swaps and taxes; the spread is built into the quoted buy and sell prices. A 30-pip spread absorbs 15%…