Silver is an important precious metal to both industry and speculators. It is more volatile than even exotic Forex currency crosses. Almost all Forex / CFD brokers offer CFD trading in Silver. I have created a shortlist for you of the best Forex / CFD brokers offering trading in Silver. Read on to view my shortlist and to learn how to choose the best Silver broker.
High floating leverage + fast execution
Daily market research and Autochartist access
High level regulation in multiple jurisdictions
Impressive range of tradeable assets including vanilla options and gold options
Solid broker for scalping and hedging
Institutional-style trading opportunities for retail traders
Trade 1,000+ financial instruments
Experience low, competitive spreads
Multiple funding and swift withdrawal options
- FXTM, Best all-around broker with high floating leverage and fast execution.
- FP Markets, ECN trading with leverage up to 1:500..
- AvaTrade, Highly regulated, choice of fixed or floating spreads.
- BlackBull Markets, Best ECN trading environment, with scalping and hedging.
- Eightcap, Competitive pricing + excellent daily videos.
5.0/5 in this category
Best all-around broker with high floating leverage and fast execution
Silver traders get a choice of two assets at FXTM, the XAG/USD and the XAG/EUR. The former is the most traded contract, while demand for the latter continues to rise. Having both allows traders to benefit from pricing discrepancies between Silver quoted in the US Dollar and the Euro. The minimum spread for the XAG/USD in the FXTM MT4 Advantage Account is $0.09, with an average of $0.22. While the XAG/EUR shows a lower minimum mark-up at $0.07, the average spread is notably higher at $0.79. The contract size is 5,000 units per lot.
The MT4 Advantage Account requires a minimum deposit of $500 or currency equivalent but offers traders the lowest spreads. Commissions range between $0.80 and $4.00 per round lot, dependent on the monthly trading volume, and Silver traders benefit from maximum leverage of 1:500 and an upgraded MT4 trading platform.
Excellent commission-based Forex pricing environment and transparency
Upgraded MT4/MT5 trading platforms plus proprietary mobile trading app
Quality market research and educational content for beginner traders
Proprietary copy trading platform, low minimum deposit, and high leverage
5.0/5 in this category
ECN trading with leverage up to 1:500.
FP Markets is another competitive broker for Silver traders. Besides high-speed trade execution, traders get a low-cost trading environment and a choice of three Silver crosses. The XAG/USD and the XAG/AUD show a minimum spread of $0.01 and an average of $0.02, with XAG/EUR slightly higher at $0.015 for the minimum, but an equal average cost of $0.020. The commission at FP Markets is $6.00 per round lot, the maximum leverage 1:500, and the minimum deposit is $100.
The commission-free account shows an average spread of $0.03 for the XAG/USD and the XAG/AUD and $0.22 for the XAG/EUR. Depending on the strategy, some traders may achieve lower trading costs in the commission-free account, which can be a unique opportunity. Diversified portfolios should opt for the ECN alternative, as overall costs remain lower. The twelve MT4/MT5 add-ons offer another advantage, together with quality trading services like VPS, MAM/PAMM accounts, and Autochartist.
Choice of trading platforms and auxiliary trading tools
Very competitive cost structure and excellent asset selection
Low minimum deposit requirement and leverage of up to 1:500
Well-regulated and trustworthy
5.0/5 in this category
Highly regulated, choice of fixed or floating spreads
AvaTrade offers beginner traders a brief but quality introduction to Silver, making it an ideal broker for them. While it only offers the XAG/USD pair, with a maximum leverage of 1:50, the commission-free spread is a competitive $0.029. Traders should also consider the choice of trading platforms for Silver trading. Besides the out-of-the-box MT4/MT5, AvaTrade deploys its proprietary web-based alternative for manual traders. Its mobile app, AvaTradeGO, caters to millennial and GenZ traders who prefer mobile trading.
The minimum deposit at AvaTrade is $100, and three copy trading services cater to passive Silver traders. A hidden gem is its spun-out SharpTrader business unit, one of the best educational resources available, featuring 40+ lessons and 200+ videos. New traders qualify for a bonus, dependent on their jurisdiction, and AvaTrade maintains a lucrative partnership program.
High-quality educational offering via SharpTrader
Excellent choice of trading platforms catering to various trading needs
Broad asset selection and cross-asset diversification opportunities
Well-regulated and trusted broker with oversight from a central bank
4.5/5 in this category
Best ECN trading environment, with scalping and hedging
BlackBull Markets was founded in 2014 in New Zealand. Like many antipodean Forex brokers, BlackBull Markets is an ECN broker, offering raw spreads and commissions. They are regulated in New Zealand by the Financial Services Providers Register (FSPR) and offer a maximum leverage on some Forex currency pairs as high as 500 to 1. In addition to their global headquarters in New Zealand, BlackBull Markets also has presences in the form of branch offices in New York and Malaysia. BlackBull Markets offers a relatively tight range of tradable assets: 27 Forex currency pairs and crosses, gold, silver, crude oil, natural gas, and 6 major equity indices. That should be sufficient for those traders with more focused strategies not requiring wide diversification.
BlackBull Markets Pros & Cons
ECN/NDD execution model with deep liquidity
Institution-grade pricing for retail traders via proprietary price aggregation
ZuluTrade and Myfxbook for social trading
Leverage of up to 1:500
4.5/5 in this category
Competitive pricing + excellent daily videos
Silver traders get the XAG/USD at Eightcap, which shows a minimum spread of $0.01 for a commission of $7.00 per round lot. A commission-free alternative is available with an average mark-up of $0.05. Eightcap also provides beginner traders with an introduction to Silver with tips to get started. Another benefit is the transparency and honesty at Eightcap, and the minimum deposit of $100 ensures most traders can afford an account.
Eightcap offers traders the MT4/MT5 trading platforms, upgraded via the FX Blue Labs package consisting of eleven add-ons, transforming the sub-standard core versions into competitive solutions. The excellent execution statistics make Eightcap an ideal broker for algorithmic Silver trading and scalping. Traders can also benefit from Capitalise AI, supporting automated trading without learning how to code. Eightcap additionally maintains quality partnership programs, where its MAM/PAMM service stands out for retail account management.
Low minimum deposit and high leverage of up to 1:500
Competitive cost structure
Excellent technology infrastructure and seasoned management team
Daily research and quality educational content
The five major Silver trading instruments are:
- Silver CFDs are a derivative contract ideal for non-US traders, granting exposure to price action without ownership of the underlying asset. It represents the most efficient form for day trading Silver and is available as a leveraged product.
- Silver futures are a legally binding contract for physical delivery of the specified amount of Silver at the contract date. Companies and traders use Silver futures to hedge their risk, locking in prices if they believe the cost of Silver will increase or decrease in the future.
- Spot Silver refers to the current price of Silver, with on-the-spot settlement and delivery, hence the name. It satisfies the immediate needs of market participants who seek ownership of the asset.
- Physical Silver suits investors with a long-term investment horizon. Silver bars are available as triangular or rectangular shapes of 995+ purity. They come in 1-ounce, 5-ounce, 10-ounce, 100-ounce, and 1-kilogram sizes. Those from reputable brands may cost more versus lesser-known competitors, while damaged Silver bars are available at a discount. Silver coins present an alternative, and holders may use them as a currency, making liquidation easier. The two dominant Silver coins are the 1-ounce 99.93% pure American Silver Eagle and the 1-ounce 99.99% pure Canadian Silver Maple Leaf.
- Silver ETFs can offer diversified exposure to Silver with a lower risk profile.
Which are the best Silver trading exchanges?
- The CME Group (US) is the largest futures exchange globally, consisting of six exchanges with offices in eleven countries.
- The National Stock Exchange of India commenced operations as an equity exchange but grew into a dominant futures exchange.
- Eurex (Europe) is the largest futures exchange in Europe and the third largest globally, owned by Deutsche Boerse.
- The Intercontinental Exchange (US) focuses on energy products, but a series of acquisitions offer expansion into other assets, including Silver.
- NASDAQ (the US and Europe) owns the NASDAQ Futures Exchanges (NFX), where Silver trading is available.
- CBOE Holdings (US) consists of four subsidiaries and established itself as an influential futures exchange.
- The Moscow Exchange (Russia) is the dominant Russian exchange, a hub for many Silver traders from the CIS, including Silver mines and supporting industry.
- The Tokyo Commodity Exchange (Japan) is one of the largest futures exchanges in Asia and sometimes is a leading global Silver exchange by volume.
- The Shanghai Futures Exchange (China) is the dominant exchange in China, where Silver is usually in demand as a precious metal.
- The Korea Exchange (South Korea) is a hub for Korean Silver traders and features notable trading volumes during the Asian trading session.
The major factors which tend to move the Silver market are:
- Silver is mined, so discovery of new deposits or their scarcity can affect the price of Silver.
- Silver is often seen as a semi-currency which holds a good store of value, so the value of Silver can rise during periods of high inflation or negative interest rates.
- Industrial demand for Silver – unlike most other precious metals, Silver has several industrial uses, and is not only in demand as a precious metal but also as an industrial metal. Silver is used in the manufacture of solar panels, electrical and thermal conductors, and other reflective products. If such materials are in demand, the price of Silver will tend to appreciate.
- Silver is used in water filtration, and as a chemical catalyst in manufacturing. As demand rises in these industries, so the price of Silver is likely to rise.
- Silver is also seen as a precious metal, offering a safe haven / store of value.
- Silver is a key ingredient in jewelry and high-end tableware, although demand for these products is quite constant so is unlikely to move the Silver market.
How can Silver lower portfolio risk?
Silvers can act as an inflation hedge, outperforming stocks during volatile and/or bear markets, offer low-risk exposure to emerging and frontier markets with Silver production, and assist in portfolio diversification.
How does Silver perform versus other financial assets?
Silver tends to outperform the stock market during periods of crisis, inflation, or volatility, but underperform in more “normal” market conditions.
Can traders use Silver to gain exposure to developing countries?
As several developing countries are leading Silver producers, Silver can be a lower-risk entry to potential growth opportunities. Silver can provide upside exposure while limiting risk. Mexico, Peru, China, and Chile are the top four Silver producers. Other significant Silver producers are Bolivia, Argentina, Kazakhstan, Morocco, Indonesia, Uzbekistan, Papua New Guinea, and the Dominican Republic.
What is the outlook for global Silver demand?
The long-term outlook for global Silver demand is bullish, especially given the projected growth in solar panel demand from the coming global shift towards cleaner energies. Global debt levels, higher inflation, and a production decrease as demand rises add to the positive outlook, but risks remain. The most significant risk is the possibility that industrial users will begin to substitute the use of Silver with other metals.
What is the relationship between Silver and gold?
Since most Silver production remains a byproduct of copper, gold, lead, and zinc refining, and its status as a companion precious metal to gold, it usually follows the price action of its significantly larger counterpart. Silver and gold have demonstrated a high positive price correlation since the US Dollar was floated against them in 1971.
Although individual traders will have differing needs, the best Silver brokers should first of all offer a well-regulated and competitive core trading environment.
Traders should check a Silver broker’s core trading environment for the following:
- Regulation and Security: Traders should check if their broker has a regulatory license. While a license does not eliminate risk, it will notably decrease the risk of malpractice and fraud.
Some trustworthy brokers operate from a business-friendly jurisdiction but supplement the absence of regulation with security features on par with or superior to regulated brokers. In that case, traders should ensure any such Silver brokers have a membership in the Hong Kong-based Financial Commission, together with a third-party deposit insurance policy.
- Traders should consider the operating record of Silver brokers, not just the existence of regulatory oversight.
- Active traders should ensure that regulation does not limit competitiveness. Many brokers have multiple jurisdictions, offering choices between stricter regulation and more restrictive trading conditions and a lighter regulatory touch with a competitive trading environment.
- Trading Costs: Trading fees are extremely important. Many beginner traders dismiss minor differences in spreads. Unfortunately, they can fall for the commission-free trap, where brokers lure traders with commission-free offers while increasing costs elsewhere.
- For example, a Silver broker quoting the XAU/USD with a spread of $0.006 per 5,000 ounces contract results in a $30.00 raw cost. A competing broker with a $0.015 mark-up will cost traders $75.00. Trading one contract per day can result in $10,000+ more in trading costs annually with the expensive broker in my example.
- Trading costs will increase once traders consider commissions. Some Silver brokers advertise commission-free trading but increase spreads, creating a more expensive pricing environment. Traders should ensure that a commission-based Silver broker offers a volume-based rebate program, lowering final trading costs.
- Another overlooked trading cost is swap rates on leveraged overnight positions. Silver trading as a leveraged derivative incurs financing costs known as swap rates. Competitively priced Silver brokers may sometimes offer a positive swap rate on a Silver position, meaning traders can get paid to hold a leveraged Silver trade overnight.
- Trading Platforms: The best Silver brokers will offer a trading platform that fully supports automated trading and features API trading for advanced solutions.
- Traders should look for a user-friendly interface with swift navigation. MT4 remains the most used trading platform but has a dated design and lacks certain core functions. Thousands of upgrades and plugins are available, and some are necessary to ensure a clutter-free workspace with improved trading efficiency. The most competitive Silver brokers will offer them free of charge to traders.
- Many traders request a range of technical indicators and multi-chart toggling, and most Silver brokers offer the former, while the latter is a feature many fail to deliver. It is a crucial tool for manual traders and is available as paid-for upgrades unless the broker invests in their trading environment and offers traders the required tools.
- Other useful trading tools include economic calendars, earnings calendars, dividend calendars, a streaming news service, and trading calculators.
- The deal ticket or contract specifications tab should provide in-depth details of each trading instrument, including margin requirements, swap rates, contract size, and trading hours.
- Silver brokers offering only the MT4 or MT5 trading platforms should upgrade these platforms, but few make the necessary investment.
- Deposits & Withdrawals: Many traders ignore the importance of financial transactions, especially withdrawals. While deposits generally remain free of charge, traders must ensure the same applies to withdrawals. Third-party payment processor costs usually apply and are outside the control of brokers.
- Many brokers only offer bank wires and credit/debits cards, the two most expensive and time-consuming methods. It is best to avoid Silver brokers limiting financial transactions to dated payment processors.
- Traders should stay clear of brokers levying internal withdrawal fees, as there is neither reason nor excuse for it.
- Traders should keep trading-related transactions separate. It provides a clear portfolio overview and assists traders and accountants during tax season.
- Another withdrawal cost to consider is fees from their preferred payment processor to their bank unless a debit card is available.
Traders should check a Silver broker’s trading environment for additional factors:
- Asset Selection: Most retail traders will trade the XAU/USD CFD, available at almost every broker. A growing number of Silver brokers provide greater exposure to Silver by quoting it against other currencies, for example, XAU/EUR or XAU/GBP. This generates more trading opportunities and allows for more complex Silver trading strategies.
- Each trader has different requirements, but the best Silver brokers will provide traders with numerous choices of Silver trading instruments. Besides Silver CFDs, this may include futures contracts or indirect exposure via shares in Silver miners, ETFs, and ETNs. Traders must confirm that their preferred Silver broker offers the assets they require to execute their strategy.
- Research and Education: Research is for manual traders, while education remains a service geared towards beginner traders. Seasoned traders generally do not need them and may opt for execution-only brokers with a competitive core trading environment. The absence of high-quality research and education creates a services gap to brokers providing them.
- Manual traders may source research from independent and trusted third-party sources, either free of charge or for a fee. The MT4/MT5 trading platforms support thousands of plugins, and dozens of companies offer their services from within MT4/MT5.
- Beginner traders have access to free high-quality education online and should consider it if their preferred Silver broker fails to provide educational resources.
- Traders should not disqualify Silver brokers with an excellent core trading environment due to the absence of research or education, as countless services exist from third-party providers.
- Paid-for services and subscriptions are available, but traders should approach them cautiously. Many provide a sub-standard product or try to scam and defraud beginner traders.
- Unique Features: Traders should view unique features as complementary to the core trading environment but not judge Silver brokers strongly on them. They may assist traders in deciding between two brokers who offer an identical core trading environment.
- Traders should look for unique features that improve core trading conditions and assist them with their strategies. They can consist of free VPS hosting, API trading, or proprietary trading tools.
- Regrettably, many brokers offer unique features that carry little to no significance to traders and use them as marketing tools geared towards inexperienced beginners.
- Customer Support: While swift access to customer support must exist, preferably 24/5, covering Silver trading hours, the best Silver brokers explain their products and services well. Their FAQ section answers the most common questions, reducing the need for customer support to unlikely emergencies.
- A valid phone number, the best contact method for emergencies, must exist.
- Most issues may arise with financial transactions, and the finance department should have a dedicated phone support line.
- Live chat, if available, is suitable for non-urgent matters.
- While 24/5 multilingual support is ideal, the availability of customer support during regular business hours is acceptable.
- Bonuses and Promotions: As a tertiary product, bonuses and promotions can benefit traders and complement a competitive core trading environment, but they should carry no weight in the evaluation process.
- Traders must read and understand the terms and conditions before accepting bonuses and promotions.
- Deposit bonuses can help traders with long-term portfolio growth if the terms and conditions are reasonable.
- Traders should ignore non-withdrawable bonuses, as they fail to offer a mechanism to grow portfolios as competitively as withdrawable ones.
- Account Types: Many brokers offer traders a multi-tier account structure, which is either based on deposits, portfolio size, or monthly trading volume, where higher tiers unlock access to improved trading conditions. Some brokers provide identical trading conditions to all traders from one account type.
Traders should carefully evaluate any upgrades to trading conditions which are offered with each higher tier, as not all will necessarily make sense or provide benefits but may only serve marketing purposes. A reasonable account structure results in better trading conditions, which can decrease trading costs and increase profitability.
- The most notable benefit traders should focus on is a lower cost of trading. Many brokers advertise additions like a personal account manager, a pointless service, especially for traders who qualify for higher tier account types anyway.
- Account Opening Process: A final plus is a swift account opening process for access to the back office, free of unnecessary questionnaires.
- Traders may use social media profiles to complete the initial application steps if brokers support this function.
- Regulated brokers comply with AML/KYC requirements, and their absence should raise a red flag. Most traders will pass verification quickly and easily by sending a copy of their ID and one proof of residency document dated no older than three months ago.
- Some brokers include unnecessary questionnaires, which serve no purpose, collect data, and allow traders to answer without proof or documentation. Most traders can avoid those brokers as there are many good brokers that offer a better process.
Silver is one of the most traded metals, while CFDs and ETFs present the best overall financial instruments, in terms of cost and reliability, for exposure to Silver’s price movements. CFDs are generally the superior instrument for day traders and other shorter-term traders, while ETFs are usually a more suitable vehicle for longer-term investors, as most CFD providers include a negative overnight swap fee on Silver positions. However, US persons are usually unable to access Silver CFDs so will be better advised to consider Silver futures (although they can be somewhat large for many retail traders as even the Silver micro future contract has a position size of about $20,000), or spot Silver which can be hard to find.
Traders seeking the best Silver brokers should consider the Silver trading options available and the associated costs of trading those instruments, as well as evaluating the brokers’ regulatory statuses and any other protections offered such as negative balance protection.
Silver traders or investors should remain aware that Silver tends to exhibit very high price volatility, higher even than gold, and this high volatility should always be considered when sizing positions.
Is buying Silver illegal?
Laws differ country by country, but buying Silver is legal in most countries.
What is the best place to buy Silver from?
The most convenient method of buying physical Silver is online via a professional bullion dealer.
What is the cheapest way to invest in Silver?
The cheapest way to invest in Silver is via ETFs. Junk Silver is another cost-effective method for advanced investors.
Can you buy Silver from a bank?
Most banks no longer sell Silver coins, but some banks sell antique coins which contain Silver as valuable collector’s items.