Invest in gold: Best brokers in India for 2025

How to invest in gold?

Investing in physical gold

Investing directly in physical gold means purchasing gold bars, coins, or jewellery from a certified dealer or bank. Buyers receive tangible assets that they must store securely—commonly in a home safe, a bank locker, or a professional vault. Physical gold ownership appeals to those who value direct control and an effective hedge against inflation, though investors should consider additional costs for storage and insurance.

Example of a Physical Gold Investment

Example: If you buy a 50-gram gold bar at ₹6,000 per gram (total ₹3,00,000 in May 2025) and store it in a private bank locker costing ₹2,000 per year, your gold's value will fluctuate with international prices, while your ownership and storage costs are fixed. If gold rises to ₹7,000 per gram (+16.7%) in the following year, the investment is worth ₹3,50,000, though you still bear the locker and insurance costs.

Investing via ETFs and sector company stocks

ETFs and stocks offer an accessible, liquid way to gain exposure to gold without holding it physically. Gold ETFs track gold prices and are traded just like regular shares, making it easy to buy and sell at low cost. Sector stocks (such as gold mining companies) are more volatile but may offer dividends. These investment vehicles have no need for personal storage and suit investors who prefer speed, flexibility, and diversified portfolios. Downsides include management fees for ETFs and business-specific risks for mining stocks.

Example of Gold Investment Returns

Example: You invest ₹1,00,000 in a gold ETF when the gold price is ₹6,000 per gram. If prices rise 10% over a year, your ETF value may rise to approximately ₹1,10,000 minus an annual fee (say, 0.5%). If investing in a gold mining stock, your returns may be higher or lower than gold prices, depending on the company's financials and operational performance.

Investing in gold with derivatives

Derivatives such as gold futures, options, or CFDs allow for highly flexible trading, including leveraged positions and the ability to speculate on both rising and falling gold prices. This method is intended for seasoned traders who understand market risks and margin requirements. While derivatives can amplify profits, they also expose investors to greater potential losses—sometimes beyond the initial capital.

High Risk in Futures Trading: An Example

Example: A trader opens a gold futures contract for 100 grams at ₹6,000 per gram, with margin requirement of 10% (₹60,000). If gold price moves to ₹6,300 (+5%), the gain is ₹30,000 on the margin, a 50% profit; but a 5% drop results in a ₹30,000 loss. No physical gold is involved, but risks are substantial.

How to choose the best broker to invest in gold

Selecting the right broker to invest in gold largely depends on your chosen investment method and your specific financial goals. Whether you seek direct ownership of physical gold, exposure via ETFs or sector stocks, or wish to trade gold through derivatives, each route comes with its own requirements and precautions. Understanding these criteria will help you identify a trusted and cost-effective brokerage partner for your chosen approach.

Best broker for physical purchase

A suitable broker for physical gold acts as a secure intermediary for buying and, if needed, storing gold bars or coins. In India, this often involves either a reputable bullion dealer, a large authorised bank, or an online gold platform offering delivery and vaulting options.

• 🟢 Reputation and track record of the dealer or intermediary
• 🟢 Options for verified purity and hallmarking (BIS hallmarked gold is preferable)
• 🟢 Transparent pricing (clear indication of mark-up over spot price and buy-back policy)
• 🟢 Secure storage and insured delivery services
• 🟢 Flexibility for both purchase and resale
• 🟢 Physical location or reliable logistics for home delivery (if applicable)

Expert advice

Always check for proper regulatory status (e.g. SEBI, BIS authorisation), evaluate customer reviews, and compare total costs (including delivery, making charges, and storage) before committing to any physical gold broker.

Best broker to invest in ETFs and sector company stocks

For those seeking exposure to gold without direct ownership, brokers that provide access to gold ETFs, gold mutual funds, and gold mining company shares are ideal. These brokers should offer user-friendly trading platforms and seamless access to Indian stock exchanges (NSE, BSE).

• 🟢 Membership or registration with SEBI and recognised Indian exchanges
• 🟢 Competitive brokerage fees and transparent platform charges
• 🟢 Access to a wide range of gold-focused ETFs and sectoral shares
• 🟢 Easy-to-use online interface and reliable mobile apps
• 🟢 Efficient settlement and robust reporting tools
• 🟢 Support for SIP (systematic investment plan) in gold mutual funds
• 🟢 Comprehensive educational resources and research support

Expert advice

Before opening an account, verify the broker’s SEBI registration number, test the responsiveness of their customer support, and always review their fee schedule and available research features to ensure your needs are met.

Best broker to trade gold with derivatives

Trading gold with derivatives such as futures or CFDs requires a specialised broker authorised for commodities trading on major Indian exchanges (like MCX) or global brokers for CFD access. The right broker should offer powerful trading tools, margin flexibility, and competitive transaction costs.

• 🟢 MCX membership or relevant global regulatory authorisation (for CFDs)
• 🟢 Clear disclosure of leverage, margin requirements, and risk warnings
• 🟢 Low spreads and transaction charges appropriate for active traders
• 🟢 Fast, reliable order execution and robust technical analysis tools
• 🟢 Effective risk management functions (stop-loss, margin calls, etc.)
• 🟢 Comprehensive educational resources for understanding gold derivatives
• 🟢 Availability of customer support during trading hours

Expert advice:

Only use brokers regulated by SEBI (for MCX trading) or reputable international authorities (for CFDs). Regularly assess the broker’s financial transparency, quality of customer service, and all charges related to trading—including hidden costs and overnight funding rates.

Why invest in gold?

Gold has remained one of the most trusted investment assets for centuries, earning a reputation as a safe haven during market turbulence and economic uncertainty. Its enduring appeal stems from its stability, universal acceptance, and ability to preserve wealth across generations. In today’s global environment of inflationary pressures and market volatility, gold offers Indian investors a reliable tool to protect and diversify their portfolios.

• Safe haven: Gold historically performs well during financial crises, shielding portfolios from stock market turmoil and currency depreciation.
• Effective inflation hedge: Gold retains purchasing power over time, often appreciating during periods of rising costs and inflation.
• Portfolio diversification: Gold’s low or negative correlation with stocks and bonds helps reduce overall investment risk.
• High liquidity: Gold can be quickly converted to cash in most markets worldwide without significant loss of value.
• Universal demand: Across India and the world, gold remains consistently valued for jewelry, investment, and central bank reserves.
• Store of value: Gold preserves wealth over the long term, especially in uncertain or unstable economic environments.

Gold’s steady price appreciation and protective qualities make it an essential asset for preserving and growing capital over the long term.

The fees associated with investing in gold

Understanding the various fees involved in investing in gold is essential for Indian investors. Fees can greatly affect your returns, whether you’re buying physical gold, trading gold ETFs or sector stocks, or speculating with derivatives like CFDs. Knowing what you’ll pay—from commissions to storage costs—helps you compare investment methods, avoid surprises, and make better-informed decisions.

Buy/Sell Commissions

When you invest in physical gold such as coins or bars, most jewelers or bullion dealers charge a commission or premium over the daily gold rate. This fee can be seen as a making charge or a transaction fee. For ETFs and sector stocks, a small brokerage commission may be charged by your brokerage when you buy or sell, though it is often lower than for physical gold. For derivatives, commissions per contract are common but are usually far lower as a percentage of the total trade.

Real Example

You buy a 10g gold bar at a bullion shop in Mumbai at ₹63,000. The shop charges a ₹500 commission, totaling ₹63,500. If you were to buy a gold ETF worth ₹1,00,000, a broker might charge 0.25% commission (₹250) on the trade. A CFD broker may charge only 0.05% (₹50) for a ₹1,00,000 notional position.

Brokerage Fees

Brokerage fees are the standard charges levied by brokers for executing trades on stock exchanges or derivative platforms. In physical gold, this fee is uncommon unless you buy online; for ETFs and sector stocks, you’ll usually pay a brokerage fee as a percentage of the transaction amount. Derivative products on gold also attract brokerage, but the rates are typically uniform or capped per contract.

Real Example

If you invest ₹2,00,000 in a gold mining stock via an online brokerage with a 0.2% fee, the brokerage charged will be ₹400. For CFD trading, you might pay a set ₹50 fee per gold contract traded, regardless of its notional value.

Spreads

The spread is the difference between the buy (bid) and sell (ask) price. For physical gold, this is the shop’s margin—often ₹50–₹200 per 10g bar, depending on market conditions. ETF/unit spreads are typically narrower, reflecting the high liquidity of these instruments. Derivative products like CFDs generally quote pricing as "pips,” with the cost determined by market liquidity and broker terms.

Real Example

You purchase a gold ETF at ₹50.00 per unit but could only immediately sell at ₹49.90—a spread of ₹0.10 per unit, or 0.2%. If you buy a gold CFD with a 30 pip spread, with 1 pip = ₹2, your cost on entry is ₹60 for one lot (30 x ₹2).

Other Fees

These include storage and insurance for physical gold, annual management fees for gold ETFs, and overnight holding costs (swap/rollover) for derivatives. Currency conversion charges may also apply if you invest in products denominated in foreign currency.

Real Example of Gold Investment Costs

Real Example: You store ₹5,00,000 worth of gold in a secure vault charging ₹300 per year, plus insurance at 0.15% annually (₹750). For a gold ETF, a management fee of 0.8% on ₹1,00,000 means ₹800 is deducted annually. A CFD trader holding a position overnight pays 0.07% daily—₹70 per ₹1,00,000 position, amounting to ₹2,100 if held for 30 days.

The Tax on Income from Trading gold in India

Investing in gold in India is subject to different tax rules depending on the method of investment you choose. Whether you buy physical gold, invest through ETFs or stocks, use derivatives, or opt for digital gold, understanding the tax regime and rates for each is essential for accurate financial planning.

• Physical gold: Profits on sale after holding for more than 36 months are long-term capital gains (LTCG) and taxed at 20% with indexation; if sold within 36 months, gains are short-term (STCG) and added to your income and taxed as per your tax slab.
• Gold ETFs and gold mutual funds: Taxed similarly to physical gold; LTCG on units held for over 36 months is 20% with indexation, STCG for less than 36 months is as per your tax slab.
• Listed sector company stocks: Shares held for less than 12 months incur 15% STCG; if held over 12 months, LTCG is taxed at 10% for gains exceeding ₹1 lakh per year, provided Securities Transaction Tax (STT) was paid.
• Derivatives (gold futures/options/CFDs): Profits and losses from trading are treated as business income or speculation and added to your taxable income, taxed as per your slab rate; no indexation benefit is available.
• Digital gold: Treated like physical gold for tax purposes; LTCG (over 36 months) taxed at 20% with indexation, STCG (within 36 months) per your tax slab.

Any gains from gold investments must be reported in the appropriate section of your income tax return, such as capital gains or business income depending on the investment type. Profits on physical gold, ETFs, digital gold, and mutual funds are reported under capital gains, while income from active derivatives trading falls under business income. Maintain proper records of purchase, sale, and associated charges for accurate reporting, and consult an advisor for complex scenarios or if you are considered a professional trader or running a business. Non-disclosure, under-reporting, or misclassification can attract penalties under Indian tax law.

10 Tips for Choosing the Right Broker to Speculate on gold

Choosing the right broker is a crucial step for anyone looking to speculate on gold using derivatives like CFDs or futures. A well-chosen broker can make the difference between a secure, efficient trading experience and major pitfalls such as high costs, poor execution, or regulatory risks. Here are ten essential tips to help you evaluate and select a broker that fits your needs in the dynamic and sometimes volatile gold derivatives market.

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.