Silver is a highly valuable metal that finds application in jewelry, tableware, and in a number of industries like medicine and electronics. Besides, it has been used as a currency and an investment option for centuries. Although today the precious metal is mainly used for industrial purposes, silver is a top-traded commodity and the second most invested precious metal after gold.
In like manner to gold, silver is also considered a safe haven during periods of market turmoil or as a hedge against inflation, which is the reason why it enjoys heightened interest from traders. Additionally, it is an attractive investment for traders who want to diversify their portfolios.
There are several instruments traders can use to make the most out of the increases or decreases in the silver prices, including spot prices, shares, futures, and ETFs. As with all other financial instruments, it is best for traders to fully understand what silver trading is all about and what factors might influence its price.
How Silver Trading Works for Traders and Brokers
Silver is the second most traded precious metal, and the reason why traders and investors prefer silver and gold over the other precious metals is that they retain their value while the value of the other asset classes decreases. During periods of economic uncertainty and volatility, many people tend to turn to silver as a long-term investment and, above all, an inflationary hedge, which turns it into the perfect refuge.
Another reason why traders prefer silver over gold is that it is a much more affordable asset. As for the potential returns of silver trading, the more the silver price moves in the opposite direction than the one you predicted, the greater your losses will be, and vice versa, the further the market moves in the direction you picked, the greater your profit will be.
Owing to the properties silver has, there is a heightened industrial demand for the precious metal. No matter what the current condition of the business cycle is, many of the silver applications remain impervious to the economic decline.
What traders should know is that just like gold, silver also has an inverse relationship with the US dollar. Thus, the changes in the US dollar’s price will result in an increase or decrease in the silver price.
There are two ways in which you can gain exposure to the price of silver, and these include trading and investing. In order to get ownership of the underlying, you need to invest in that asset. Trading silver, on the other hand, is truly speculative, and there are a number of silver markets one can trade on.
Much like with gold, the traditional way to trade silver is also by buying coins or bars. Yet, throughout the years, this way of trading silver lost momentum because of the increase in the insurance and storage costs.
Silver futures are contracts according to which the precious metal should be at a predetermined price in the future, and both parties involved in the contract are required to uphold their end of it. Trading futures is quite sophisticated since the silver price can be affected by interest rates and storage costs.
Silver options are also derivatives instruments that make it possible to speculate on commodities using leverage. Under these contracts, the holder is not required to trade silver on a set date and for a set price. Silver options are divided into two classes, and they can be calls and puts. While put options allow traders to sell silver, calls give them the right to buy.
The spot price is the price at which the asset is currently traded, and if traders decide to buy it at that price, the asset in question will be exchanged and delivered on the spot. It is worth mentioning, however, that this way of trading silver makes it possible for traders to get exposure to the market without actually owning bullion.
ETFs and silver stocks, on the other hand, are the way to go if traders are looking to get indirect exposure to the changes in the price of silver. ETFs are financial instruments many traders might see as the perfect proxy for speculating on silver, but they should keep in mind that the risks, costs, and the funds’ manager are among the things they need to research in advance.
Although there are various silver-based instruments that can be used to trade and invest, trading silver with CFDs derivative instruments is what many traders prefer. CFDs are contracts that are made between the broker and the trader that are drawn up in order to attempt to benefit from the difference between the opening and closing trade. There are a number of benefits of trading silver with CFDs, and first and foremost, traders will not be required to pay for storage.
Another reason why traders tend to prefer CFDs over the other options is that they allow them to trade with the precious metal in both directions, which is to say that they can attempt to make the most out of the upward and downward movements in the price. Last but not least, oftentimes, trading silver with CFDs is commission-free. The value of the CFD is based on the difference between its current price and the price at the time when it was purchased.
Silver Trading Brokers
Once traders have learned how to take a position on silver, they can proceed with the search for a broker that lives up to their requirements. There are a number of things you should pay attention to before you start trading silver, and these include the trading conditions and costs, regulation and security, the variety of trading options, the funding options, account types, and the broker’s availability for trading on the go, to name a few.
- 1. AvaTradeMin Deposit$/€/£100Fees
CommissionsNo commissionSpread0.029Leverage EU10:1Leverage non-EU400:1CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
- No account fees
- No deposit and withdrawal fees
- $50 inactivity fee
AvaTrade is among the most chosen brokers for silver trading and for precious metals trading in general. It has been an industry leader since 2006 and is now considered one of the safest silver trading brokers as it has seals of approval from seven regulators.
The broker does not only shine when it comes to integrity and fairness, and the broker is committed to encouraging its users to invest and trade with the peace of mind that they will do this in an innovative environment. AvaTrade’s user-oriented perspective and the desire to create an environment that will work best for traders from all levels has attracted more than 300,000 users around the globe.
The adaptable trading platforms the broker offers are undoubtedly what most grabs the attention of traders, and it is up to them to decide if they want to go for the widely used MetaTrade4 and Metatrader5 or want to go for AvaTradeGo, which became the best Forex trading app in 2022. AvaOptions, on the other hand, boasts a fully customizable interface, a range of risk management tools, competitive spot and stop prices, as well as a free demo account.
The cutting-edge technology AvaTrade uses is not the only feature that makes the broker stand out from the crowd as traders can keep on improving their skills, thanks to the tons of information they will find under the Education section. While using the services of AvaTrade, traders can be sure that they will always have someone to talk to when they have questions, and the customer support representatives are available via email, live chat, or over the phone.
- 2. IQ OptionMin Deposit$50 or $10Fees
CommissionsA commission is only charged when opening long cryptocurrency positionsSpread0.028%Leverage EU10:1Leverage non-EUN/ACFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
- Inactivity fee of €10 or the currency equivalent
- No deposit and withdrawal fees
IQ Option is a trading platform that has been on the radar of traders since 2014. The fact that the number of active users continues to grow from year to year, so is the number of executed trades per day, which shows the heightened interest in the services of the broker. It is an award-winning broker that is noticed and praised by a number of industry experts.
IQ Option offers a number of instruments for its users to decide between, and trading stocks, cryptocurrencies, forex, commodities, including silver, and EFTs are only some of the options they have. If they do not know where to start with their trading experience, IQ Option’s users can make the most out of a refillable free practice account.
While looking for a broker that offers silver trading, you should not only focus on the company’s trading environment but look into its licenses that prove its compliance with the legal requirements in the jurisdictions the broker operates in. Traders can be confident that IQ option is a reliable and trustworthy silver trading broker as the company operates under seals of approval issued by the CySEC, FCA, Consob, CNB, AFM, Regafi, and CNMV.
IQ Option’s users can be sure that they will have all their trading needs satisfied even when they are out and about, thanks to the fast-performing and fully-fledged apps they can take advantage of. No matter the device traders will use to access IQ Option, they will benefit from a multi-chart layout, historical quotes, and technical analysis, among others.
- 3. AxiMin Deposit
FeesNo deposit and withdrawal feesCommissions
- No minimum deposit for standard and pro accounts
- $25,000 minimum deposit for elite accounts
SpreadFrom 0.4 pips for standard accounts and from 0.00 pips for pro and elite accountsLeverage EU10:1Leverage non-EU500:1Spread betting and trading both carry a high level of risk to your capital with the possibility of losing more than your initial investment. These products may not be suitable for all investors, and are not available to individuals under the age of 18. Please ensure that you are fully aware of the risks involved and refer to our Risk Warning. If necessary, seek independent financial advice. The Customer Agreement and Execution Policy available at www.axi.com/uk are important and should be reviewed prior to deciding whether to acquire, hold or dispose of Axi’s products.
- None for standard accounts
- $7 for pro accounts
- $3,50 for elite accounts
Launched in 2007, Axi is now a trading company more than 60,000 users have put their trust in. The company was established in Australia, and gradually became a global business as the broker introduced its offices in London, Dubai and expanded its operations to Germany, Latin America, and the Middle East.
The broker is known for its fast-execution times, tight spreads, award-winning customer support department, and advanced trading tools. As for the markets to trade, Axi users can trade gold and silver, Forex, commodities, shares, cryptocurrencies, and indices, among others.
Axi presents its users with an unique trading experience as the broker offers the well-known MT4 platform and combines it with several exclusive tool. They can monitor and modify their trades, get real-time pricing, and access all major markets with ease, no matter the device they are using.
Considering that Axi is trusted by traders from such a great number of countries, it makes sense that there is a huge variety of accepted currencies and payment methods to meet the requirements of all of them. In addition to the country-specific funding methods, traders can top up their accounts through their credit or debit card, Neteller, Skrill, POLi, Sofort Banking, Giropay, iDEAL, and bank transfers, among others.
Axi is trusted by traders from all parts of the globe, and they can complete their trades in the utmost transparency as the broker is regulated by the Dubai Financial Services Authority (DFSA), Financial Conduct Authority (FCA), and the Australian Securities & Investments Commission (ASIC).
- 4. NSBrokerMin Deposit$250FeesDeposits are fee-free. Extra fees will be charged only on withdrawals executed through Neteller and SkrillCommissions$8 per lotSpreadFloating from 0.02 pipsLeverage EU10:1Leverage non-EUN/ATrading in Forex and Contracts for Difference (CFDs), which are leveraged products, is highly speculative and involves substantial risk of loss. It is possible to lose all your capital. Your capital is not guaranteed and may go down as well as up. Therefore, Forex and CFDs may not be suitable for all investors. Only invest with money you can afford to lose. So please ensure that you fully understand the risks involved. Seek independent advice if necessary.
NSBroker is yet another worthwhile platform for silver trading. It is EU-authorized and tightly regulated, which should give you the peace of mind that you will trade silver with a trustworthy broker. In spite of the fact that the broker started operating a decade ago, NSBroker is now known as a superior service provider that offers more than 100 trading instruments, high liquidity, and fast order execution.
Precious metals are not the only asset the broker offers, and traders can also trade cryptocurrencies, energy carriers, indices, and stocks. Additionally, if traders give the broker a chance, they will be able to trade on MT5, which is the world’s most accredited and heavily regulated platform. NSBroker has made sure that traders will gain access to all analysis and advanced trading tools no matter the time or the place, thanks to the downloadable apps for Android and iOS-running devices.
NSBroker also offers an Electronic Communication Network Technology, which ensures they will invariably trade under the best conditions. In order to guarantee the protection of all its users, the broker has introduced the Negative Protection feature, thanks to which they cannot spend money they do not have in the balance of their accounts.
NSBroker is a top-performer also when it comes to the customer care the broker offers to its users, and whenever they have questions about precious metal trading, they can forward them over the phone, using the live chat, or via email.
- 5. Markets.comMin Deposit$100Fees
CommissionsNoSpread0.030 per unitLeverage EU10:1Leverage non-EU150:1CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
- Inactivity fee of $10 per month
- No deposit and withdrawal fees
Markets.com was created in 2008 in order to offer seamless trading and investment opportunities. Gradually, it became a global company with the experience to bring traders worldwide to financial markets. Joining the broker’s community will also mean that traders will be offered speedy execution time and low spreads. Markets.com wants to remain transparent about pricing and fees in order to ensure that traders will be perfectly aware of how much a trade will cost them before they execute it.
The multi-asset platform gives traders the opportunity to invest and trade more than 8,000 instruments. There is something for every trader as they can trade cryptocurrencies, stocks, EFTs, bonds, commodities, silver included, and indices. Those who decide to go for silver trading at Markets.com will be presented with some powerful tools to rely on, including fundamental, technical, and sentimental.
Markets.com knows that the platforms it uses are the gateway to the world of finances for traders, and for this reason has made sure that traders will be offered best-in-class trading technology. MetaTrader4 is an easy-to-use trading platform, and in addition to it, traders will also be presented with its upgraded and more advanced version MetaTrader5.
Payments to and from Markets.com are executed in a breeze and take almost no time, and the banking methods traders can decide between include Neteller, PayPal, Skrill, Visa, Mastercard, and fast bank transfer.
- 6. City IndexMin DepositThere is no minimum deposit, but the broker advises transferring at least $/£100 to your accountFeesThere is an inactivity fee of £12, €15, or $15CommissionsCity Index does not charge a commission on spread bet markets, Forex markets, and CDFs. The only exceptions are equity CDFsSpread0.026Leverage EU10:1Leverage non-EU30:1CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Established in 1983 in the UK, City Index is a broker that has grown synonymous with best-in-class spread betting, Forex, and CFD trading. It is a broker with an international presence that is part of the StoneX group, which connects organizations, companies, and investors to the global markets.
City Index users can access a wide range of products to trade and invest in, which promises that they will find the opportunities that measure up to their financial requirements. The broker offers competitive spreads, and fast, and reliable execution, no matter if its users are keen on silver trading or are more interested in other precious metals. Commodities, shares, bonds, indices, and Forex are on the list of options traders can pick from.
Traders will have an easy time finding the account type that suits them most as City Index gives them a choice from standard, corporate, professional, MT4, and demo accounts. As for the available platforms, traders are offered the opportunity to go for Web Trader and MT4. In spite of the fact that both platforms are accessible on the same range of devices, traders should keep in mind that the selection of markets, tools, and features they can make use of will differ.
The tools traders can make use of are also worth mentioning, and they can go for smart signals, performance analytics, and economic calendar, among others.
- 7. OandaMin DepositBank wire transfer and automated house clearing have no minimum or maximum deposit limits. Still, traders will only be allowed to deposit up to 50% of their net worthFeesAn inactivity fee of 10 units of the currency in which the account is set if no trades are open for 12 months. Depending on the currency traders’ accounts are set in, deposits and withdrawals might also have additional costs.CommissionsA minimum commission of $0.01 per trade. Oanda offers two pricing options, core pricing plus commission and spread-only pricing.SpreadStarts from 150 centsLeverage EU10:1Leverage non-EU200:1CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.3% of retail investor accounts lose money when trading CFDs with OANDA Europe Markets Ltd. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Oanda is a top-ranking broker that started operating in 1996, which turns it into one of the pioneers in the trading industry. Throughout the years, the broker has seen significant growth and development, and today, it allows its users to take a position on its metals markets through several fully-functional platforms and apps.
Currently, Oanda gives its users the opportunity to trade in four different ways, and the platforms they can access include the Oanda Trade mobile and tablet app, Oanda Trade desktop, and Oanda Trade web. Additionally, traders who have live or demo accounts can make the most out of the Oanda TradeView synergy. With Oanda Trade traders will gain access to 31 overlays and indicators, over 50 technical tools, 9 chart types, and 11 drawing tools.
Oanda users can trade metals, including silver, throughout the day, and the other assets they can access include indices, commodities, cryptocurrencies, and bonds, among others. Traders will benefit from tight spreads on all minor and major currency pairs and will have a choice of premium and standard pricing modules.
Depositing and withdrawing funds to and from your Oanda trading account is simple and straightforward and is possible through a number of time-efficient payment processors. When you are ready to start trading silver, you can transfer the preferred amount to your trading account using a credit card, bank wire, checks, or an automated clearing house. Cashouts, on the other hand, can be executed through bank transfer or using your debit card.
One of the reasons why Oanda might be an instant attention-grabbing silver trading platform is that it offers special incentives and an advanced trading platform.
- Min Deposit
- $50 for a standard account
- $2,000 for a prime account
- $20,000 for an institutional account
- No deposit and withdrawal fees
- No inactivity fee
- No commission for standard accounts
- $6.00 per lot for a prime account
- from $15 per million for institutional
Leverage EU10:1Leverage non-EU100:1Risk Warning: Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange, you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore, you should not invest money you cannot afford to lose. You should make yourself aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any questions or concerns as to how a loss would affect your lifestyle. BlackBull Markets does not accept client applications from Canada and the United States.
- 0.8 for standard account
- 0.2 for prime account
- 0.0 for institutional
Serving clients from 180 countries and counting, BlackBull Markets is one of the best stops for silver trading. It is a New Zealand-based broker that welcomed its first clients in 2014 and claims to offer institutional-grade trading conditions.
With more than 23,000 trading instruments on offer, BlackBull Markets is a go-to broker for traders who are interested in trading precious metals, including silver, indices, shares, forex, commodities, and energy. These instruments are available across several platforms like MetaTrader4, Metrader5, and WebTrader. These trading platforms are accessible in web, as well as on desktop and portable devices.
The broker does not overlook its users that are new to trading, and in order to ensure that they will be able to start their trading experience on the right foot, BlackBull Market offers tons of educational materials.
This broker gives its users a choice of several account types, including standard, prime, Islamic, and institutional. The funding options are also thick on the ground, and in addition to credit card payments made through Visa and Mastercard, BlackBull Markets also accepts payments through bank transfer, Neteller, Skrill, FasaPay, and UnionPay.
BlackBull Markets is dedicated to further improving the platform trading experience of their clients and does not underperform when transparency and reliability is concerned. The broker has licenses issued by the Financial Markets Authority of New Zealand and the Financial Services Authority of Seychelles.
Lastly, BlackBull Markets offers around-the-clock live customer support, and it is up to traders to decide if they want to give the agents a call, write them an email, or forward their queries using the live chat.
- 9. IGMin DepositThere is no minimum deposit amountFees
CommissionsNo commissionSpread0.01 pointsLeverage EU10:1Leverage non-EU100:1CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.1% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
- No fees for opening an account
- 1% fee for deposits via Visa and 0.5% for deposits via Mastercard-branded credit cards
Established in 1974, IG is a trading company that gives its users unlimited access to thousands of financial markets. With its market-leading services and premium-quality platforms, IG is a preferred silver trading broker by many traders.
IG offers a reliable execution and gives its users to more than 17,000 global markets. The market range is indeed massive, and in addition to silver trading, you can settle on shares, indices, Forex trading, commodities, or go for thematic investing, among others. IG also offers exceptionally low margins and tight spreads, which is yet another reason why it is an attention-grabbing silver trading broker. Not to mention that traders will benefit from seamless execution of their traders no matter the time or the place.
IG offers its users a choice of several intuitive and well-designed trading platforms, and in addition to the online and mobile platforms, traders might be interested in MT4, the progressive web app, ProRealTime, or the L2 Leader.
If they want to sharpen their skills, traders will be offered the opportunity to build up their skills after they roll in the IG’s trading academy.
There are a number of reasons why traders might prefer IG over some of the other brokers that offer silver trading, and its reliability and trustworthiness are among the main causes for its popularity. The broker is authorized and regulated by the Monetary Authority of Singapore (MAS), which allows it to offer nvestment and digital asset businesses.
- 10. IC MarketsMin Deposit$200 or the currency equivalentFeesNo inactivity feesCommissionsNo commission for standard accounts and 7.00 round turn for accounts set up in USD, 5.00 for GBP, and 5.50 for EURSpread0.894 for raw spread account and up to 1.894 for a standard accountLeverage EU10:1Leverage non-EU100:1Risk Warning: Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved and seek independent advice if necessary.
With more than 180,000 active users around the globe, IC Markets is also among the top choices for silver trading enthusiasts. It was established in 2007 in Sydney, and gradually gained the reputation of one of the best Forex brokers. It is a go-to destination for day traders and scalpers, as well as total novices to the world of trading.
The range of products traders are given access to includes Forex, indices, stocks, bonds, cryptocurrencies, and commodities. In addition to this, IC Markets gives its users the opportunity to gain exposure to some of the world’s most popular commodities, including silver.
The cutting-edge platforms IC Markets offers will, without a doubt, tick all the right boxes for traders, and in addition to MT4 and MT5, the broker also offers cTrader. The latter is celebrated for its user-friendliness, advanced features, and high speed of execution. IC Markets offers two account types, and traders can sign up for its market-leading Raw Spread account or a standard one.
The broker has seen to it that its users will be able to set up their accounts in the preferred currency and will have an easy time depositing and withdrawing their funds. The currencies IC Markets supports include CAD, EUR, USD, AUD, JPY, NZD, CHF, GBP, SGD, and HKD. The funding options are not thin on the ground, and traders can add funds to their accounts using PayPal, Neteller, Visa, Mastercard, UnionPay, Skrill, wire transfer, POLi, and Klarna, among others. The security of traders’ funds is guaranteed through a Security Socket Layer, which ensures that all payment information will remain confidential.