Invest in gold: Top brokers in Canada for 2025

How to Invest in gold

Investing in physical gold

Investing in physical gold means buying actual gold bars or coins and storing them securely. You are the direct owner, which can give peace of mind during times of economic volatility. However, physical gold requires secure storage (e.g., safe deposit box or insured home safe), possible insurance, and incurs no ongoing income. Liquidity can be lower than paper-based alternatives, and premiums or dealer spreads may reduce the returns.

Example of a Gold Investment Scenario

Example: If you buy a 1 oz gold bar in Canada at $3,400 (aligned with market prices as of 2025), you may pay a dealer premium of $50 (1.5%). If you store it in a bank safe deposit box costing $120/year, over five years your storage costs total $600. If gold rises to $4,000/oz by 2030, your capital gain is $550, less storage and premium.

Investing via ETFs and sector company stocks

Gold ETFs allow you to invest in gold without having to buy or store physical bullion. The most popular types hold allocated gold or track its price through futures, offering high liquidity and ease of trading on the TSX or other exchanges. You can also buy shares in gold mining companies, which provide indirect exposure—these tend to be more volatile but may pay dividends. Both methods carry market risk, but ETFs track gold closely, while mining stocks include company performance risk.

Example: Gold Investment Scenarios (ETF vs. Miner)

Example: An investor buys $10,000 of a gold ETF (tracking spot price) on a Canadian brokerage. Over two years, if gold appreciates from $3,400 to $3,700/oz (+9%), their holding grows by roughly $900, minus ETF management fees (typically 0.40-0.60%/year). Alternatively, a $5,000 purchase of a major gold miner could earn a 2% annual dividend in addition to price gains or losses.

Investing in gold with derivatives

Experienced investors can access gold through derivative products like futures contracts or Contracts for Difference (CFDs). These tools allow trading on margin, so a small amount of capital controls a larger gold position, amplifying both potential gains and losses. Futures and CFDs also allow short-selling (profiting from falling prices). Due to leverage and market complexity, derivatives are best suited for traders who understand risk management and are able to monitor positions closely.

Futures Contract Trading Example with Margin

Example: A trader enters a futures contract to buy 10 oz of gold at $3,400/oz with only a 10% margin ($3,400). If gold rises to $3,500/oz, the profit is $1,000 (10 oz x $100). If gold drops to $3,300/oz, the loss is just as amplified. Additional brokerage or rollover fees apply, and losses can exceed the original margin deposit.

How to Choose the Best Broker to Invest in gold

Choosing the right broker to invest in gold depends on how you want to access the market and your specific investment goals. Some investors are interested in physical ownership, others seek the convenience and liquidity of gold ETFs or mining company stocks, and more experienced traders may prefer derivatives for leveraged exposure. Each method carries unique requirements, costs, and steps—so the most suitable broker will differ based on your approach. Understanding these distinctions is key to selecting an intermediary that matches your needs, offers the necessary security, and ensures access to your chosen investment vehicle.

Best broker for physical purchase

A broker specializing in physical gold purchase should provide secure sourcing of bars and coins, reliable delivery, and safe storage solutions. Look for brokers with transparent pricing, recognized accreditations, and flexible options for both home delivery and allocated vault storage, as well as buy-back or resale programs.

• Membership or accreditation with industry associations (e.g., LBMA)
• Transparent fee structure, including shipping, insurance, and storage costs
• Choice between home delivery and insured allocated storage in Canada
• Clear buy-back or liquidity arrangements
• Physical guarantee or authenticity certification

Expert Advice for Buying Physical Gold

Before buying physical gold, make sure your broker is regulated, fully insures stored bullion, and publishes customer service ratings. Compare transaction and storage fees carefully, as differences can significantly impact your total returns.

Best broker to invest in ETFs and sector company stocks

A broker for gold ETFs and mining company shares should prioritise competitive commissions, strong platform reliability, and access to Canadian and international exchanges. The best choice allows efficient trading, low costs, and secure custody of your investments, enabling you to build a diversified gold-related portfolio.

• Commission and ETF transaction fees
• Platform access to TSX, NYSE, and international exchanges
• Account types available (TFSA, RRSP, non-registered, etc.)
• Quality of trading interface and research tools
• Security of account holdings (including SIPC or CIPF protection)

Expert advice

Always verify that the broker is registered with Canadian regulatory authorities, offers responsive customer support, and keeps trading commissions and management fees competitive to protect your portfolio’s long-term performance.

Best broker to trade gold with derivatives

For those seeking leveraged exposure via gold futures, options, or CFDs, the broker must offer robust risk management tools, tight spreads, and professional-grade trading platforms. Ensure the broker provides transparent margin requirements, real-time pricing, and educational resources for derivative markets.

• Authorization to offer futures/options or CFDs in Canada
• Transparent margin and leverage requirements
• Access to reliable trading platforms and real-time risk management
• Availability of demo accounts for practice
• Range and competitiveness of offered contracts

Expert Advice on Trading Gold Derivatives

Expert advice: When trading gold derivatives, confirm the broker’s regulatory status, the clarity of their fee disclosures, and the quality of their 24/7 support. Margin trading increases both potential rewards and risks—only trade with a partner you trust.

The reasons to invest in gold

Gold has long been regarded as a cornerstone of investment portfolios, offering both stability and significant growth potential during uncertain economic times. Its track record as a store of value, combined with unique attributes like liquidity and global acceptance, make it especially appealing for Canadian investors. From central banks to individuals, gold remains a trusted choice for those seeking protection against inflation, currency fluctuations, and geopolitical turmoil.

• Gold acts as a safe haven during market volatility and geopolitical crises, helping to protect wealth.
• It hedges against inflation and currency debasement, preserving purchasing power over time.
• Gold provides portfolio diversification due to its low correlation with stocks and bonds.
• The asset is highly liquid: gold can be easily bought or sold anywhere in the world.
• Global demand from institutions, central banks, and private investors supports its long-term growth.
• Gold offers no counterparty risk, as physical holdings are not dependent on financial institutions.
• Its track record as a store of value extends over thousands of years and across economic cycles.

Gold’s consistent performance and resilience demonstrate its enduring ability to preserve and grow capital across changing economic environments.

The fees associated with investing in gold

Understanding the fees associated with investing in gold is crucial before making any financial commitment. Costs can vary significantly depending on whether you buy physical gold, invest via ETFs or sector stocks, or use derivative products like CFDs. Knowing all fee types in advance helps you to compare options, avoid surprises, and optimize your potential returns.

Buy/Sell Commissions

Buy/sell commissions apply whenever you purchase or sell gold, regardless of method. With physical gold, this fee is usually built into the dealer's markup above spot (commonly listed separately in Canada). For ETFs and gold-related stocks, commissions are charged per trade by your brokerage, but most Canadian platforms now offer low-cost options. In derivatives, you often pay a flat fee per contract round-trip or per side.

Real Example

Emily buys a 1 oz gold bar for $3,430 with a dealer's commission of $40 over spot. To sell it, she pays another $35 commission on resale. Total buy/sell commission paid: $75.

Alex buys $10,000 of a gold ETF, paying a $7 trade commission each time: $14 round trip.

For futures, Jamie trades a single gold futures contract with a $6.50 per side commission: $13 total round-turn.

Brokerage Fees

Brokerage fees are recurring costs charged by intermediaries for providing storage, account services, or fund management. For physical gold stored in a professional vault, annual storage fees are typical (ranging from $100 for small accounts to several thousand). ETFs charge a management expense ratio (MER), taken daily but reflected as a percentage annually. Most Canadian brokers do not charge ongoing fees just for holding stocks/ETFs, but some charge inactivity fees or for special services. Derivative platforms may charge monthly account or data fees.

Real Example

If you store gold at a Canadian depository for $125/year, this is your annual brokerage fee.

For a gold ETF with a 0.40% MER, holding $5,000 over a year would mean $20 in fees deducted.

A CFD broker may charge $0 for active accounts, but if you are inactive three months, a $15/month inactivity fee may apply.

Spreads

A spread is the cost built into the price difference between buying and selling. For physical gold, this means the gap between a dealer’s buy and sell price—often $30–$60/oz depending on market and quantity. For ETFs, it’s a small bid/ask spread (0.10%–0.30%), especially in highly liquid products. CFD and futures spreads may be quoted as a percentage or pips, e.g., 0.4% of trade value or 25 pips per trade.

Real Example

You buy a gold coin for $3,430 and can only sell it back immediately for $3,395: spread = $35.
On a Canadian gold ETF, you buy at $21.04 and can sell at $21.00: spread is $0.04 per unit (0.19%).
A CFD gold contract trades with an average spread of 40 pips ($4) per lot.

Other Fees

Other fees can have a significant impact. For physical gold, insurance (1–2% of value), shipping ($15–$30), or currency conversion (if buying from abroad) are key. ETFs may charge FX fees (usually ~1% if you trade in USD on a CAD account). For derivatives, costs often include overnight holding charges (“swaps”), margin interest, exchange data fees, and withdrawal processing fees.

Real Example

Linda insures her $8,000 gold holding at 1.5% = $120/year and pays $25 for shipping.

Buying a US-listed gold ETF from Canada, Mike pays a 1% FX fee swapping $5,000 CAD to USD = $50.

Karen rolls over her CFD position for three nights at $4/night = $12 plus $7 data fee monthly.

The Tax on Income from Trading gold in Canada

Investing in gold in Canada is subject to specific tax rules that vary depending on the investment method you choose. Whether you hold physical gold, invest through ETFs or mining stocks, or trade gold derivatives, each approach has its own tax treatment under Canadian law. Understanding these rules will help you prepare for your reporting obligations and manage your tax liabilities effectively.

• Physical gold: Gains from selling bullion or coins are generally treated as capital gains, with only 50% of the profit included in your taxable income. Certain products (“specified bullion”) of 99.5% purity may be tax-exempt if held as financial instruments.
• Gold ETFs/ETCs: Capital gains realized when selling shares are taxable. Any interest or non-eligible dividends received are taxed as ordinary income at your marginal rate.
• Gold mining stocks: Capital gains on sale are taxed, while dividends from Canadian-resource companies may qualify for the dividend tax credit, reducing your effective tax rate.
• Gold derivatives: Profits are usually treated as business income if trading is frequent and for profit, meaning 100% is taxable. Occasional trades may be taxed as capital gains instead.
• Digital gold accounts: Price gains are taxed as capital gains; any interest paid by the account provider is taxed as income at your full marginal tax rate.

In Canada, reporting requirements for gold investments depend on your trading activity, the instrument used, and your residency status. Capital gains from the sale of gold or related investments must be reported on your annual income tax return, using Schedule 3 for capital gains. Interest, dividends, or business income must be reported in the appropriate sections of your return. Professional or frequent traders may be considered to carry on a business, requiring them to report all profits as regular income. Ensure you retain detailed records of all transactions, holding periods, and associated expenses for accurate reporting and compliance.

10 tips for choosing the right broker to speculate on gold

Choosing a reliable and well-suited broker is crucial for successfully speculating on gold with derivative products like CFDs or futures. The right broker impacts your costs, risk, security, and the trading experience itself. Make your selection carefully by considering the following ten key criteria to ensure effective and safe gold trading.

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.