We compare product formats & features

How do Fractional Bars compare against trading of physical bullion bars and coins or alternative products such as ETC/ETFs or Tokens? We compare all the options below

Digital Coins Bars

ETC/ETF

(Active)

ETC/ETF

(Pasive)

Tokens

Instrument

The product and description

Bullion Bars

Investment grade

Bullion Coins

Investment grade

Bullion Bars

Investment grade

IOU / Security

'Asset backed'

IOU / Security

'Asset backed'

IOU / Token

'Asset backed'

Asset Backing

What % of the product is backed by physical bullion

100%

100%

100%

<100%

Derivatives can be up to 75%

<100%

Derivatives can be up to 25%

<100%

Derivatives can be used

Transaction Fees

The typical buy/sell fees added to the spot price of the metal

0.50%

5% - 15%

3% - 10%

0% - 0.75%

£5.99 - 0.75%

1.5% - 2.5%

On-going Charges

The typical annual storage or management fees

0.15%

0.65% - 2%

0.65% - 2%

0.65% - 1.25%

0.12% - 0.95%

0.95% - 2%

Ownership

Title ownership of the precious metals e.g. they're owned by you

Yes Yes Yes No No No

Counter-party Risks

What 3rd party risks you're exposed to

  1. Metals Broker
  2. Vault Provider
  1. Metals Broker
  2. Vault Provider
  3. Issuer
  4. Authorised Participant or Market Maker

Delivery Option

The product can be delivered or converted and delivered immediately or at a future date

Yes Yes Yes No No No

The contents of the table are based on a range of sources and providers, details may vary and are for illustrative purposes only