Silver is an exceptionally valuable metal used in jewelry, tableware, and various industries, including medicine and electronics. For centuries, it has functioned as a means of economic exchange and as an investment asset. While this precious metal is predominantly employed for industrial applications today, silver remains a highly traded commodity, ranking second only to gold in popularity among investors.
Similar to gold, silver is regarded as a haven during times of market instability and is frequently used as a safeguard against inflation. Moreover, it appeals to short-term traders who aim to diversify their portfolios by speculating on silver prices without the necessity of purchasing the metal.
Traders have access to several instruments to capitalize on the fluctuations in silver prices, including futures, ETFs, CFDs, and shares in silver mining companies. Trading silver on the spot market is another option for individuals seeking exposure to this sector. Continue reading this article to learn more about silver, the best silver trading brokers, and how to select the right silver brokers.
Why Should you Invest in Silver?
Engaging in silver trading presents a unique opportunity for commodities traders seeking to diversify their portfolios and capitalize on price fluctuations within this lucrative market.
Moreover, silver occupies a special role in the market as it fulfils both industrial and financial purposes. In contrast to certain other commodities, the value of silver is influenced by supply and demand dynamics in sectors such as technology, manufacturing, and jewelry.
Silver is frequently regarded as more than just a precious metal. It is a material that can be utilized across various industries. Traders should be aware that the price of silver can experience significant and rapid fluctuations, presenting profit opportunities. Nevertheless, trading in silver also entails considerable risks.
A notable aspect of silver is that its price is frequently significantly lower than that of gold. Consequently, this enables a greater number of traders to engage in investments and gain profits from silver trading.
Silver finds applications in various emerging technologies, such as solar panels and electronics, which suggests a growing demand.
Top Silver Trading Brokers
After traders have acquired the knowledge to establish a position in silver, they may begin to seek the best brokers to trade silver that meet their needs. Several factors should be considered before initiating silver trading with a specific broker, including trading conditions and fees, regulatory compliance and security measures, market diversity, funding alternatives, account classifications, and mobile application availability, among others.
1. Plus500
Minimum Deposit: $100
Tradable Instruments: 2764
Fees: High
The Reason for Our Selection
Plus500 is an internationally acknowledged brand celebrated for its extensive array of tools and services. This regulated silver trading broker holds licenses and is regulated across various jurisdictions, and it is also a member of the London Stock Exchange (LSE). Plus500 offers over 2,800 tradable instruments, which include a variety of metals.
Key Features of Plus500
- Regulatory Bodies: FCA, CySEC, ASIC, FMA, FSCA, MAS, FSA, DFSA, SCB
- Maximum Leverage: 1:30
- Silver Trading Instruments: XAG/USD
- Silver Trading Costs: Average spread of 2 pips. No commission
- Total Number of Metal Instruments: 6
- Trading Platforms: Plus500 WebTrader
- Research Tools Available: +Insights Analytics
What distinguishes Plus500 as an excellent choice for trading metals, particularly silver, is its extensive array of trading contracts. Metals can be traded through CFDs, options, and ETFs. This variety enables traders to hedge their market exposure and capitalize on trading and investment opportunities in multiple ways. Additionally, Plus500 offers sophisticated market analysis through the +Insights Analytics tool.
Traders assessed a standard account offered by Plus500, which features no commissions and floating spreads beginning at 0.8 pips. The spread for silver typically hovers around 2 pips. Overall, traders found that Plus500’s spreads are relatively low to average when compared to the industry standard.
The web trader platform provided by Plus500 is adaptable and features advanced charting capabilities. It includes over 150 technical indicators, drawing tools, and chart configurations, and accommodates all fundamental order types (market, limit, and stop).
Pros and Cons of Plus500
Pros
- Over 2800 tradable instruments
- Contracts for Difference (CFD), options, and Exchange-Traded Fund (ETF) metals contracts
- Sophisticated trading platform
- Numerous regulations across the globe
Cons
- No desktop platform
2. FxPro
Min Deposit: $100
Tradable Instruments: 1995
Fees: High
Reasons for Our Selection
FxPro is a top silver trading broker specializing in financial derivatives, based in London and founded in 2006. The firm provides over 2,100 tradable instruments, which include 12 types of metals, accessible through a robust array of adaptable platforms, notably the outstanding FxPro WebTrader.
Key Features of FxPro
- Regulatory Bodies: FCA, CySEC, FSCA, FSA (Seychelles), SCB (Bahamas)
- Maximum Leverage: 1:200
- Silver Trading Instruments: XAG/USD, XAG/EUR
- Silver Trading Fees: Average spread of 2.7 pips. $0.35 for every 10,000 units traded
- Total Number of Metal Instruments: 12
- Available Platforms: FxPro Web Trader, MT4, MT5, cTrader
- Research Resources: Trading Central
The FxPro WebTrader offers 66 technical indicators and drawing tools, along with 15 timeframes and 6 types of charts. It accommodates all fundamental order types, such as market, limit, and stop orders. The charts are robust and display price action in high definition.
Furthermore, the platform boasts significant functionality, allowing for one-click trading, Depth of Market (DoM) access, the configuration of trading alerts, and additional features.
FxPro provides ultra-fast order execution speeds, averaging 12 milliseconds. Furthermore, it indicates that 84% of client orders are executed at the requested price or better. For silver traders, this implies that the risk of negative slippage is minimized with FxProm making it one of the most trusted platforms to trade silver.
Live tests have also shown that, in addition to the baseline spread, FxPro imposes a commission of $35 for every 1 million units (in metals and FX) traded. While the commission itself is lower than the industry average, the markup on the spread results in a less advantageous net cost.
Pros and Cons of Using FxPro
Pros
- A strong proprietary trading platform
- Numerous silver contracts
- Rapid execution speeds
- Integrated Trading Central content within the platform
Cons
- Fixed commission plus spread for trading in metals
3. AvaTrade
Min Deposit: $100
Tradable Instruments: 1472
Fees: Medium
Reasons for Our Selection
Established in 2006, AvaTrade offers low spreads and trading without commissions on over 1,250 instruments available for trading. This includes metals, forex, commodities, stocks, and indices, accessible through the MT4 and MT5 trading platforms, as well as its proprietary web platform.
Notable Features of AvaTrade
- Regulatory Bodies: CBI, ASIC, CySEC, FSCA, FSC BVI, FSRA, ISA, FSA Japan
- Maximum Leverage: 1:10
- Silver Trading Instruments: XAG/USD
- Silver Trading Fees: Average Spread of 2.9 pips with no commission
- Total Metal Trading Instruments: 5, including Silver, Gold, Platinum, Palladium, and Copper
- Trading Platforms: MT4, MT5, Ava Web Trader
- Research Resources: Trading Central
During the live testing by traders, they observed that the average spread for silver trading was 2.9 pips during the New York session. This figure aligns closely with the industry standard for a commission-free trading account, making it one of the best platforms for silver trading. In the case of the EUR/USD pair, the average spread was 0.9 pips during the same session, which exceeds the industry average.
AvaTrade provides a comprehensive portfolio of more than 1,250 tradable instruments, encompassing commodities, forex, stocks, and indices. This selection includes various metals such as silver, gold, platinum, palladium, and copper, offering a robust range of trading options. These assets can be accessed via the MT4 and MT5 trading platforms, which can be augmented with the Trading Central plugin for up-to-date market news and trading insights.
Pros and Cons of AvaTrade
Pros
- Narrow spreads and trading without commissions.
- Over 1,250 instruments available for trading.
- Access to MT4, MT5, and Trading Central resources.
- The AvaOptions application for forex and gold trading.
Cons
- A fee of $50 will be charged in case of no activity for 3 months.
4. FP Markets
Min Deposit: $100
Tradable Instruments: 10180
Fees: Low
Reasons for Our Selection
Founded in 2005, FP Markets is acknowledged as the top broker for trading silver. This broker provides six pairs of silver and gold that can be traded against the USD, EUR, and GBP. With competitive spreads, no commission fees, ECN pricing accounts, and a comprehensive suite of research tools and platforms, FP Markets is an excellent choice for traders.
Notable Features of FP Markets
- Regulatory Bodies: CySEC, ASIC, FSCA, Unregulated SVG entity
- Maximum Leverage: 1:500
- Silver Trading Instruments: XAG/AUD, XAG/USD, XAG/EUR
- Silver Trading Fees: Average Spread of 2 pips. No commission
- Total Metal Trading Instruments: 6 Silver & Gold
- Trading Platforms: MT4, MT5, cTrader
- Research Tools Available: Trading Central, Autochartist
Traders observed that the spread for silver trading against the US dollar (XAG/USD) averaged 2.0 pips during the New York session on FP Markets’ Standard commission-free account. This figure is notably competitive when compared to the industry average. In total, six silver and gold pairs are available for trading, which are paired against the USD, EUR, and GBP.
FP Markets – another trusted silver trading platform offers access to three of the leading forex trading platforms in the world: MT4, MT5, and cTrader. Traders particularly appreciated the MT4/MT5 plugins from Trading Central, which provide real-time market news and research. Additionally, the Autochartist plugin serves as a valuable resource, offering real-time technical analysis and trading ideas directly within the MetaTrader platforms.
Pros and Cons of FP Markets
Pros
- Raw ECN pricing accounts
- Commission-free trading is available
- Over 850 tradable instruments
- Customer support available 24/7
Cons
- The cTrader platform is not accessible in every area.
5. OCTA
Min Deposit: $25
Tradable Instruments: 254
Fees: Low
Reasons for Our Selection
Established in 2011, OCTA operates as an unregulated broker located in St. Lucia, whereas its OctaEU division is regulated by CySEC. The broker provides a comprehensive array of educational resources, including trading tutorial articles, a Forex Basics video course, and frequent live trading webinars.
Notable Features of OCTA
- Regulatory Bodies: CySEC, an Unregulated entity in St. Lucia
- Maximum Leverage: 1:200
- Silver Trading Instruments: XAG/USD
- Silver Trading Fees: Average Spread of 2 pips. No commission
- Total Metal Trading Instruments: 2 (Silver & Gold)
- Trading Platforms: MT4, MT5, OctaTrader
OCTA offers a wide variety of educational materials designed for newcomers. The Forex Basics video course includes 11 videos, each approximately five minutes long that cover subjects such as the functioning of forex, the principle of leverage, candlestick trading, and both technical and fundamental analysis.
Additionally, this reliable platform for silver trading offers a diverse collection of trading tutorial articles that focus on risk management, trading in gold and silver, the fundamentals of forex trading, various trading strategies, and more.
These articles are detailed and enhanced with both text and images for better understanding. For those who favour interactive learning, OCTA frequently conducts live trading webinars in English, which are also accessible through the OctaTrader app.
Pros and Cons of OCTA
Pros
- Comprehensive educational resources.
- Forex Fundamentals video course.
- No-commission and practice trading account.
- Platform instructional videos.
Cons
- Only 2 pairs of silver and gold are available against the USD.
6. eToro
Min Deposit: $100
Tradable Instruments: 6030
Fees: High
Reasons for Our Selection
Established in 2007, eToro runs the largest social and copy trading platform, boasting over 20 million users each month. With more than 2,000 tradable instruments at your disposal, including nine distinct metals, integrated charts powered by TradingView, and user-friendly copy trading tools, eToro is a broker that merits consideration for a top silver trading broker.
Notable Features of eToro
- Regulatory Bodies: FCA, CySEC, ASIC, FINRA, FSA Seychelles
- Maximum Leverage: 1:10
- Silver Trading Instruments: XAG/USD
- Silver Trading Fees: Average Spread of 5 pips. No commission
- Total Metal Trading Instruments: 9, including Silver, Gold, Platinum, Copper, Palladium, Nickel, Aluminium, Zinc, Lead
- Trading Platforms: eToro Web Platform
Trading is conducted on nine different metals. This range is remarkable and significantly exceeds the industry standard. In total, eToro provides over 2,000 tradable instruments spanning forex, stocks, indices, and commodities, all of which can be easily accessed through the eToro web platform.
The eToro platform is user-friendly and straightforward to navigate. Its charts are now enhanced by TradingView, offering access to over 100 indicators, 90 drawing tools, and a wide range of chart types. All these offerings to its traders give this broker enough score to make it to our list of the best silver trading platforms.
Furthermore, the platform enables you to monitor and emulate the trading performance of other users within your account. Alternatively, you have the option to become a copy provider, enabling others to follow your trades, which could create an extra source of income.
Pros and Cons of eToro
Pros
- Nine metals are available for trading.
- Easily replicate the strategies of other traders.
- Utilize TradingView charts featuring over 100 indicators.
- More than 2,000 instruments available for trading.
Cons
- Restricted market analysis.
How to Choose a Perfect Silver Trading Broker?
Currently, there exists a multitude of silver trading platforms, and selecting the top silver trading platform may require considerable time. We consulted our commodity specialists for their essential advice on identifying the finest silver trading platforms, and you can refer to the guide below to understand how to choose the best silver trading broker.
1. Does the broker possess a strong reputation?
The reputation of a silver trading broker is established over a significant period. Thus, it is essential to select one that has been operational for many years. A seasoned broker will have already experienced the fluctuations in the silver market cycles, enabling them to safeguard your assets during unpredictable periods.
Utilize feedback from previous customers to assist in your decision-making process. A broker who has a substantial number of content clients is preferable to one with a problematic past. Dedicating time to assessing reputation can prevent issues in the future.
2. Does it focus on the silver products that you are interested in?
Certain brokers concentrate on physical bullion, while others deal with futures or CFDs. If you intend to invest in physical bars or coins, it is advisable to select a broker to trade silver that specializes in production, storage, and delivery. Conversely, if you aim to speculate on the price of silver, opt for a CFD or futures broker.
There are several approaches to predicting the price of silver. CFD brokers typically provide spot silver markets (XAG/USD). Additionally, some brokers allow trading silver against other currencies, such as XAG/EUR or even against cryptocurrencies like XAG/BTC. Regardless of your preference, ensure that your broker offers the products you are interested in.
3. What fees and commissions will you incur?
When purchasing silver, trading fees are typically applied via a spread or commission. It is essential to take these into account, in addition to storage and delivery expenses, as well as insurance if you are acquiring physical silver coins.
Evaluate the initial costs, storage charges, and trading fees and commissions among the brokers on your shortlist. Be wary of hidden fees, and it is advisable to choose a silver trading firm that offers competitive pricing.
4. Is the broker appropriately licensed and by regulations?
Legitimate brokers are required to be licensed by organizations such as the FCA and CySEC. Regulated silver trading brokers must adhere to stringent rules, including maintaining client funds in separate accounts and providing compensation schemes. It is advisable to refrain from using unlicensed brokers. You can conveniently verify license numbers and compliance records on a regulator’s website.
5. Is customer service dependable?
You should select the best silver trading broker that is easily accessible and offers prompt customer service along with quick resolution of inquiries. Evaluate the customer support prior to making any deposits by utilizing the broker’s online chat or email. If the support is inadequate, it may lead to frustrating delays when you require help.
Conclusion
Selecting the appropriate silver trading platform or broker is an essential step for every silver trader. The top silver trading brokers offer competitive spreads, reliable platforms, a variety of instruments, and strong regulatory oversight. The brokers mentioned in this guide provide distinct advantages suited to various trading styles and objectives.
However, this is not a complete list. Numerous other best silver trading brokers are not included here. Therefore, we consistently advise readers to perform their thorough research prior to making any investment choices. Ultimately, the top broker for silver trading depends on personal needs, preferences, and trading strategies.