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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 
Here’s our rundown of the top ten silver brokers to trade with.
Round-up of the best silver trading forex brokers
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|
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.
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 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
- 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.
- 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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