Account type matters more than the broker's name: how much spread costs a gold EA
- For a rules-based gold EA, spread is the biggest cost inside the system. You pay it on every trade, win or lose, and it grows with position size.
- Measured on MindCore, every $1 of average spread removes about 11% of profit compared with a $0.30 spread account.
- Raw / Zero / ECN accounts usually quote gold at $0.10–0.30. Ordinary Standard or Cent accounts sit around $1.50–3.50, which can cost 13–35% of profit.
- Choose the account type first, then the broker.
How gold spread turns into money
Spread is the gap between the buy and sell price. Every trade starts in the red by exactly that amount.
One lot of gold (XAUUSD) is 100 ounces, and the price is quoted to two decimals, so:
At 0.01 lot (1 ounce) = $0.30 per trade
At 1 lot (100 ounces) = $30 per trade
It sounds small, but an EA keeps trading all year. The cost adds up on every trade, whether that trade wins or loses.
The three account types you will see
| Account type | Typical gold spread | Effect on profit (vs $0.30) | Suitable for an EA? |
|---|---|---|---|
| Raw / Zero / ECN (plus commission) | $0.10 – $0.30 | 0 to −2% | Best |
| Pro / low-spread Standard | $0.50 – $1.00 | −2 to −8% | Acceptable |
| Ordinary Standard / Cent | $1.50 – $3.50 | −13 to −35% | Not recommended |
Spread figures are typical values for comparison. Real spreads move with market conditions, news and session opens and closes, and differ between brokers and account types.
The key point: the same broker usually offers several account types. Many people who say "this broker has wide spreads" simply opened the wrong account type.
Do not forget commission on Raw accounts
Raw and ECN accounts have tight spreads but charge a separate commission per lot. The real cost combines both:
Example: $0.15 spread + $7 round-turn per lot (= $0.07 per ounce) = $0.22 per ounce
The commission in the example only shows the method; check the actual rate on your broker's account-type page. In most cases a Raw account is still cheaper than a Standard account once commission is included.
Why cost matters more for an EA than for manual trading
- An EA does not wait for a tight spread. When its conditions are met it trades, unlike a person watching the screen.
- Cost scales with the number of trades. MindCore trades about 30 times a month, so a small difference per trade becomes a large one over a year.
- EAs with a small profit per trade break first. If the average profit per trade is close to the cost, a slightly wider spread turns it into a loss. See a real example in How to read an EA backtest report.
The 10-year results we publish use a spread of 260 points ($2.60), several times wider than a typical Raw account, so the published numbers lean towards caution rather than looking good.
Check your own account's real spread in 2 minutes
- In MT4/MT5 open the Market Watch window
- Right-click and show the Spread column
- Find gold (it may be called XAUUSD, GOLD or have a suffix, depending on the broker)
- Note it at three times: the European session, the US session, and the thin early-morning hours in Asia
- Divide by 100 to get dollars per ounce, e.g. 25 points = $0.25
If most of your readings are above $1.00, consider changing account type before running any EA.
Other costs to know
- Slippage: the filled price differs from the requested price, mostly around big news. We measured how news moves gold in Which news really moves gold.
- Swap: the overnight holding fee, which varies by broker and by direction.
- Latency: a home PC or a VPS far from the broker's server gets prices later. More on the VPS and latency page.
Checklist before opening an account for a gold EA
| Item | What to choose |
|---|---|
| Account type | Raw / Zero / ECN or another low-spread account |
| Measured gold spread | $0.30 or less (about $0.40 or less including commission) |
| Platform | MT4 or MT5 (on MT5, a Hedging account is recommended) |
| Account currency | USD gives the most accurate position sizing |
| Capital | See position sizes by balance in What lot size for a $500 account |
The brokers and account types we have tested with MindCore are listed on the recommended accounts page.
Notes
- "$1 of spread removes about 11% of profit" was measured on MindCore using historical data. EAs that trade more often or earn less per trade are hit harder.
- This article does not recommend any particular broker. Choose one that is licensed and whose conditions you can verify yourself.
This article is for education only and is not investment advice. Trading gold and CFDs carries a high risk and you may lose all your capital. Past results do not guarantee future results.
