Best Silver Trading Brokers
At InvestinGoal, we adhere to strict standards to ensure an unbiased review process. We conduct our reviews by examining each broker’s offering and performance across 4 key categories. A final rating is produced for each forex broker based on a total of 187 data points. Learn more about our review process and methodology.
Silver trading is often overshadowed by the much more prestigious and glamourous metal gold. However, the price of silver is strongly correlated with gold, the price per lot is far less, and the fundamentals are very different from gold. That’s why the interest in silver brokers has risen in recent months.
You will find that most of the top ten best forex brokers do offer the ability to trade silver. However, in this article, we will explore the best of the best silver brokers.
Table of contents
Top Ten Best Silver Forex Brokers [2021]
Here’s our rundown of the top ten silver brokers to trade with.
HotForex
With HotForex, you can trade a CFD of silver, which is a popular and convenient form of derivative. The spread of the price of silver against the US dollar is 0.03, which is approximately $30 for one-Lot of XAG/USD. With a minimum deposit of just $5, you can start trading silver on either MT4 or MT5 trading platforms, or open a demo account, which you can practice on for an unlimited amount of time. Besides trading a derivative of silver, HotForex also offers various exchange-traded funds (ETFs) which can give you exposure to a thematic fund, such as the SPDR Gold Share or the SPDR S&P Metals & Mining ETF.
IG Markets
With IG Markets, you can speculate on the price of gold or silver via spread betting or by trading CFDs. Alternatively, you can trade ETFs and shares from the precious metals industry.
When trading CFDs or spread betting with IG Markets, you should expect to see a spread of 3 Pips. The Pip value of one-Lot of silver is $10. Therefore, a 3 Pip spread is equal to $30 per Lot. The minimum deposit to open an account is $300, but you can get a lifetime demo account for free. The trading platforms available include MetaTrader4, IG Markets L2 Dealer & IG Markets ProRealTime Platform.
eToro
eToro is best known as a social trading platform but also offers brokerage services for self-traders. With an eToro account, you can trade CFDs on silver and many other investment products. Among the many other investment products offered by eToro, you will also find ETFs and stocks which relate to mining for precious metals. You can even find trading strategies available to copy that are dedicated to trading gold and silver.
The minimum deposit to get started with eToro is $200, and the company offers a unique proprietary trading platform which combines trading, copy trading and investing in one application. An unlimited demo account is available to explore the platform before investing any money.
Admiral Markets
Admiral Markets is a popular MetaTrader broker who specialises in enhancing the trading experience on the MetaTrader 4 and MetaTrader 5 trading platforms. With Admiral Markets, you can trade silver CFDs on both MT4 and MT5, as well as ETFs and gold. The spread on silver is 0.021, which to put into context is equal to $21 for one-Lot of XAG/USD.
The minimum deposit to start trading is $100, or you can practice trading silver with Admiral Markets by using a demo account, which is limited to 30 days.
Forex.com
Forex.com is undoubtedly a household name in the forex trading community. Contrary to the name, Forex.com is also a silver broker which offers precious metals trading. With Forex.com, you can trade spot silver, CFDs and ETFs.
The spread for trading XAG/USD CFDs is typically 0.03, which translates to $30 per Lot. The spread for trading unleveraged spot silver is 2 Pip, which would mean $20 per Lot.
Although Forex.com does offer the MetaTrader 4 platform, gold and silver trading is only available on the brokers proprietary trading platform. The minimum deposit is $50, and there is a demo account available to test the Forex.com proprietary platform for up to 30 days.
AvaTrade
With AvaTrade, you can trade silver and other precious metals in a variety of ways. Notably, you can trade both silver CFDs, futures and related ETFs. When trading silver as a CFD, you can expect to see a spread of 0.29, which means you’ll pay $0.29 for each micro-Lot of silver you trade, or $29 for each Lot you trade.
All in all, AvaTrade offers three CFD trading platforms where you can trade silver. The options are MetaTrader 4, MetaTrader 5 and AvaTradeGO. Additionally, there is the AvaOptions platform for trading options. You can test what it’s like to trade silver with AvaTrade on a demo account which lasts for 21-days. The minimum amount required to open an account is $100.
City Index
City Index is a popular spread betting and CFD trading broker which provides access to the precious metals market, therefore being a suitable option as a silver broker. Unlike many of the other forex and silver brokers listed above, City Index does not offer any related ETFs or shares in precious metals funds or companies. The spreads on silver CFDs are 2.0 Points, and the spread on Futures prices are 2.5 Points.
With City Index, you have two platforms to choose from; the first is the classic MT4 platform. The second is its proprietary web trading platform. With both platforms, you can get twelve-weeks access to a demo account. If and when you’re ready to start trading, there is a minimum deposit of $100.
CMC Markets
CMC Markets is another well-known spread betting and CFD provider, which offers the ability to speculate on the price of silver. The minimum spread on silver CFDs is 2.5 on both MT4 and CMC’s proprietary trading platforms. There is no minimum deposit to start trading with CMC Markets, and you can keep your demo account for as long as you want, providing you remain an active trader. If you don’t trade for an entire year, you’ll lose your demo account and start being charged a monthly fee of $15 if you have a funded live account.
FBS
FBS is an international online forex broker which also offers to trade on silver as a CFD instrument. With FBS, you can only trade spot silver products. The company does not offer any ETFs, shares or futures products associated with the precious metals market. The typical spread on silver with FBS is 5.
There are three trading platforms to choose from; FBS Trader, MetaTrader 4, MetaTrader 5; all of which offer a 90-day demo period and the minimum you need to open an account is just $1.
Plus500
Plus500 is a famous online trading company, suitable for experienced traders. What makes Plus500 so attractive to traders are the proprietary trading platform and demo accounts which have no time limitations whatsover.
Just like many of the other silver broker examples given, Plus500 also offers CFD trading on silver as well as ETFs and futures.
Round-up of the best silver trading forex brokers
WARNING
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Between 74-89% of retail investor accounts lose money when trading CFDs.
You should consider whether you can afford to take the high risk of losing your money
| Brokers | Silver CFD | Silver Spot | Silver Future Contract | Silver ETFs | Silver Shares |
|---|---|---|---|---|---|
| HotForex | Yes | No | No | Yes | No |
| IG Markets | Yes | Yes | Yes | Yes | Yes |
| eToro | Yes | No | No | No | No |
| Admiral Markets | Yes | No | No | Yes | No |
| Forex.com | Yes | Yes | No | Yes | No |
| AvaTrade | Yes | No | Yes | No | No |
| City Index | Yes | No | Yes | No | No |
| CMC Markets | Yes | No | No | Yes | No |
| FBS | No | Yes | No | No | No |
| Plus500 | Yes | No | Yes | Yes | No |
Ways to trade Silver: type of Silver asset
There are many different ways to trade and invest in silver. Here is an overview of the various products you might find offered by silver brokers.
Real Silver
Silver, just like gold, is a form of currency. You can buy it in the form of bullion coins from mints around the world. The 1 oz. silver Britannia coins from the Royal Mint have a face value of £2. The internationally accepted code for silver is XAG.
Silver Spot
Silver spot represents the current price of the metal. The transaction is closed and settled immediately rather than a future date.
Silver as CFD
Silver CFDs are derivative instruments in which you can use to speculate on the fluctuation of the price of silver. In the case of a CFD, the contract settlement is the difference between the opening price and the closing price of the contract. Silver CFDs are always settled in cash.
Silver as Futures Contract
Silver as a futures contract is a legal agreement where silver is traded at a predetermined price but is physically settled on a delivery date in the future.
Silver as Option
Silver options are contracts where the holder of a silver option possesses the right to conclude a long position (buy) or a short position (sell) in the underlying silver futures at the strike price. With an options contract, you have the right to physically settle the contract, but not the obligation. This is unlike a futures contract where you are obligated to receive the asset physically.
Silver as ETF
A Silver ETF is a passive investment fund that invests in assets related to silver. A Silver ETF is an instrument that can be easily bought and sold on a stock exchange. Investing in silver this way allows you to invest in various silver assets with a relatively low-cost and benefit from a diversified portfolio rather than simply buy silver as a commodity.
Silver as Shares Industry
Just like gold, investors can invest in the production of silver by purchasing shares in mining and production companies. The value of these shares is correlated to the price of silver. Usually, if the market price of silver increases, so does the price value of publicly listed companies which deal in precious metals.
Silver trading exchange
Silver can be traded on numerous commodities, derivatives and metals exchanges. The most active exchanges for trading silver are:
- Eurex Exchange, based in Frankfurt, has a massive trading volume of silver and is one of the leading derivatives exchanges in the world.
- COMEX, which is part of the CME Group, has a healthy turnover of silver trading volumes.
- The Tokyo Commodity Exchange (TOCOM) is one of the largest commodities exchanges in Asia, and it plays a pivotal role in the trading of silver in the region.
How to choose a Silver Broker
To choose the right silver broker to trade with, you should be careful and consolidate. There are what many traders consider to be the primary points:
- If and where the broker is regulated and the number of years of experience the company boasts.
- Diversity of instruments the broker can offer if silver isn’t the only product that you want to trade.
- Key features such as leverage, the minimum deposit required to open an account and the spreads and fees for trading silver are crucial factors. You should be particularly careful about commissions and costs, to protect your investments and maximise your potential to profit.
Value of Silver in Trading history
If you’re new to the concept of trading silver, here is a brief introduction to help you get started and assist you with choosing one of the above best silver brokers to trade with.
Silver has long been one of the most commonly traded metals and plays a role in the precious metals market and the industrial market. Silver is traded in various formats, which can be divided into physical silver which you can hold in your hands, and representative instruments, which are known in the world of finance as derivatives.
Physical silver can be traded as bullion coins or ingots. A common form of silver trading derivatives is a Contract-for-Difference. Most silver brokers offer CFDs to trade silver and are typically traded in the spot market with the ticker symbol XAG/USD.
Silver has been culturally important to humans for thousands of years. The most pivotal period for silver in recent history was the exploration of the New World, led by Christopher Columbus and the Spanish Empire in 1492. Silver was already a popular metal used in Europe for minting coins. Vast deposits of silver were discovered in South America, which led to a significant increase in mining. Ultimately, the Spanish dollar became the world’s first international currency and was even classified as legal tender in the United States until 1857.
Around the world, silver production grew exponentially. During the 1870s, global production of silver from 40 million troy ounces every year up to 80 million. Then, due to developments in technology and the exploitation of new regions, annual production reached a total of approximately 120 million troy in 1920.
Trading Gold vs Trading Silver
Many new silver traders often wonder what’s the difference between trading gold and silver.
- Silver is more affordable than gold.
- Silver is more versatile to spend.
- Silver is more volatile than gold because it takes only a relatively small amount of capital to get exposure to the market and volatility.
- Silver has broader industrial applications than gold because of its unique characteristics.
Most brokers do not offer only silver but instead provide the ability to trade or invest in a range of commodities. If you’re interested in metals, you should also take a look at our best gold brokers ranking. It’s very common to be able to trade gold and silver side-by-side.
Why invest in Silver?
Investing in silver is considered a good idea for several reasons. It’s always a good idea to diversify your investment portfolio with various assets. Silver is regarded as a more liquid and relatively safe investment compared to alternative non-market options. Many investment analysts are optimistic about the projection of the price of silver in the short and medium-term.
Pros and cons for trading Silver online
Pros
- It has a lower cost of entry compared to other precious metals. For example, an ounce of silver bullion has a value of approximately 40-80 times less than an ounce of gold. Therefore, the initial capital requirements are lower, but so are the associated commissions, spreads and swap fees.
- Silver is considered a safe-haven investment, especially in times of economic uncertainty.
- Trading silver offers many trading opportunities for speculators since the price is relatively volatile for a precious metal.
- It has a wide variety of industrial applications, which means it will always be in demand.
Cons
- Silver has a weak return on investment for long term holders. Even if silver bullion may be a reliable safe-haven asset, it’s not likely to perform as well as other investments.
- Price fluctuations of silver can be less predictable than other commodities. Therefore, you should be careful about the risk of losing a considerable amount of your capital.
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