The account this site links to

Watching a price move against holding the metal that moves

The account is with FxPro, an international broker. This site is not the broker and takes no money from the reader. The account lets you watch a gold price move and take a position on that movement, but it does not let you hold metal. No gold is delivered to your home, and none is stored in a vault on your behalf.

That is the central difference between this account and buying jewellery or a coin. When you buy physical gold, you own a thing. When you open a contract for difference with this broker, you own a position that rises or falls with the price. The position can be closed for a gain or a loss, but it never turns into metal.

What is settled in an account when nothing is delivered

A contract for difference is settled in the account’s currency. That means when you close the position, the difference between the opening price and the closing price is paid to you or taken from you, in money. There is no claim on any metal, and no metal changes hands.

Because nothing is delivered, the costs are different from buying physical gold. There is no making charge, no storage fee and no risk of theft. But there is also no wedding necklace at the end. The account is for price exposure only, and the settlement is always in currency, never in grams.

What to look at before opening one

Opening an account requires identification and takes a day or two. A practice account exists and costs nothing. Before you commit real money, use the practice account to see how the platform works and how the price moves. Check the broker’s fees, the spread and the margin requirements.

Do not assume that a rise in the benchmark means a profit in the account. The contract tracks its own price, not the Indian benchmark, and the currency of settlement may be different. Read the broker’s terms carefully, and never put in money you cannot afford to lose.

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.