How to Buy Gold in the UK in 2025

1. Gold CFDs

What is CFD trading?

A contract for difference, or CFD, tracks the price of a financial instrument. You can buy CFDs on shares, currencies, commodities and gold. Buy a gold CFD if you expect the price of gold to rise, or go short if you expect it to fall.

• Pros
• Speed: You can buy and sell gold CFDs in the UK in a matter of seconds through online trading platforms like FP Markets or AvaTrade.
• Lowest cost: CFD trading fees are among the lowest available, and most brokers charge no commission. For example, FP Markets only charges a $0.20 spread per ounce of gold through its Standard account. Additionally, you do not need to worry about storage or insurance costs, as you would with physical gold.
• Use leverage: You can trade CFDs without leverage, but it is always available. With FP Markets, you can open a position up to 500 times your personal investment by borrowing the difference from your broker. As leverage magnifies both gains and losses, it must be used responsibly.
• Go long or short: With CFDs, you can trade the market in both directions - go long if you expect the price of gold to rise, or short if you expect it to fall. This flexibility suits both day traders and long-term investors.

• Cons
• No physical ownership: As CFDs are financial instruments, you do not own any physical gold. However, this can also be an advantage, as there are no storage or insurance concerns.
• Counterparty risk: You could lose your investment if your broker were to become insolvent. We recommend fpmarkets.com, as they are FCA-regulated and have been in business for over 20 years.

How is CFD trading taxed in the UK?

CFDs are tax-efficient investment vehicles, as they are not subject to stamp duty.

• Stamp duty: Stamp duty applies to assets such as property or shares, but not to CFDs, since you are merely getting exposure to the price of gold rather than taking ownership.

• Capital gains tax: You will pay capital gains tax (CGT) on any profits exceeding your annual CGT allowance. Losses can be offset against gains on your self-assessment tax return.

2. Gold ETFs

What is an ETF?

An Exchange Traded Fund (ETF) tracks the price of one or more underlying assets. To gain exposure to the gold price, you can buy shares in gold ETFs such as GLD (the largest by volume) or PHYS (a popular alternative). These ETFs hold physical gold bars in storage on your behalf.

• Pros
• Speed: You can buy gold ETFs in the UK easily through online brokers such as Freetrade, Hargreaves Lansdown or Interactive Investor.
• Indirect physical ownership: Buying shares in a gold ETF gives you an indirect claim on the ETF’s underlying gold bars - a middle ground between trading price movements through CFDs and owning physical gold.

• Cons
• Trading fees: Online brokers may charge a fee per trade and/or a subscription fee. You may also incur foreign exchange charges if you buy US dollar-denominated gold ETFs, often exceeding 0.99% of your investment.
• Management fees: ETFs charge annual management fees to cover their running costs (for example, 0.40% per annum for GLD⁽¹⁾), deducted from the fund’s assets daily.
• Counterparty risk: You could struggle to recover the value of your investment if the provider of the ETF, or any of its agents, were to go into bankruptcy.

How are shares or ETFs taxed in the UK?

Their tax treatment is similar to that of CFDs.

• Stamp duty: You will pay 0.50% stamp duty when buying UK-listed shares. However, neither UK ETFs nor foreign-listed stocks or ETFs attract stamp duty.

• Capital gains tax: You are liable to pay CGT on gains exceeding your personal allowance.

3. Buy physical gold

How to buy physical gold in the UK

Finally, you can buy physical gold bars, coins or even jewellery. Gold bars tend to be the most cost-effective option, although there are important tax considerations to bear in mind.

• Pros
• Physical ownership: Owning gold physically allows you to hold wealth outside the financial system, free from counterparty and credit risk. Your gold is truly your own.

• Cons
• High fees: You often pay steep premiums when buying and selling physical gold. For example, the Royal Mint charges a 6.3% premium over spot for its best-value coins and 2.6% over spot for 1kg gold cast bars. Thus, you could lose 5.2% if you bought and instantly resold a gold bar.
• Resale: You must consider how you will resell your gold. Bullion dealers may require authentication of your gold, which could add costs and delays. You may ultimately incur fees running between 2% and 4%.
• Storage and insurance: You must decide whether to store your gold at home or in a secure facility, and whether to insure it. Insurance premiums typically range from 1% to 2% per annum.

How is gold taxed in the UK?

Different rules apply depending on what you purchase:

• Gold coins: Certain gold coins - including the Sovereign and the Britannia - are legal tender in the UK and therefore exempt from CGT.

• Gold bars: Gold bars (and coins not produced by the Royal Mint) are subject to CGT.

Conclusion

If you are looking for the fastest and most cost-effective way to invest in gold, trading CFDs could be the perfect solution. With a trusted broker like fpmarkets.com, you can open an account in just minutes and start trading gold in British Pounds (XAUGBP) today, whether you're looking to capitalise on short-term price movements or build long-term wealth.

Prefer something you can hold in your hands? Physical gold - in the form of coins or bars - remains a timeless store of value, offering true ownership and peace of mind.

Tax information in this article is provided for general guidance only. Please consult a qualified tax advisor for personalised advice.

Whichever path you choose, now is the time to take your first step towards securing your financial future with gold.