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 understand how CFDs work and whether you can afford to take the high risk of losing your money.
Between 54-87% of retail CFD accounts lose money. Based on 69 brokers who display this data. *Availability subject to regulation.
Next to gold, silver is one of the most commonly traded metals. Silver is traded in many forms, which for the sake of classification can be broadly grouped into actual physical silver and representatives (derivatives like CFDs). It is one of the most popular traded metals on the Comex future exchange.
In non-physical forms, silver can be traded as:
Trading Silver as a CFD is offered by many CFD brokers like London Capital Group. Trading Silver Futures and Spot Silver as a CFD has opened up the door for more traders because it requires less capital than trading a traditional Future. For example, a simple example of trading a Silver Future vs a Silver CFD:
Minimum Trade Silver Future:
Last Spot price of Silver for 1st February 2017 was $17.585
Contract size for Mini-Silver Future = 1,000 troy ounces
Therefore a minimum trade for a single futures contract for Silver would be 1000*$17.585 = $17,585.
*The maintenance margin required by ICE for a Mini Silver contract is $1,250.
Minimum Trade Silver Future as a CFD:
Using the trading conditions offered by London Capital Group, a minimum margin for Silver of 1% and a minimum trade size of 0.1 lot (contract size). The cost of a trade of Silver Future using London Capital Group in this example would be $17.86 (100*17.585/100=$17.585).
To see more trading details about the 5,000+ instruments on offer, click here: London Capital Group
|Market||Trading hours||Min spread||Min trade size||Unit risk||Value of 1 pip/lot||Min Margin||Guaranteed Stop change|
|Silver Futures||23:00-22:00||4||0.1 lot||0.01||$50||1%||6|
*All information collected from https://www.lcg.com/uk/, see website for full terms and conditions. Your capital is at risk. Last updated on February 6, 2017.
|TRADING SCREEN PRODUCT NAME|
|1,000 oz Mini Silver Futures|
|TRADING SCREEN HUB NAME|
|LONDON:1:00 AM – 11:00 PM*01:00 – 23:00|
|1,000 troy ounces|
|Every calendar month in the 3-month period beginning with the first listed futures month.|
|U.S. dollars and cents per oz|
|$0.001 per oz, or $1 per contract|
|LAST TRADING DAY|
|Third to last business day of the contract month at 1:25pm New York time|
|DAILY PRICE LIMIT|
|Yes. 5 contract block trade minimum quantity|
|EFPS AND EFSS|
These are widely considered the most efficient method of trading silver due to the fact that they are valued exclusively for the silver content rather than any ornamentation or value as currency.
These help investors trade silver without the need of holding silver in physical form.
Examples include iShares Silver Trust, which has over 340 million troy ounces of silver in storage, ETFS Physical Silver, ETFS Silver Trust and Sprott Physical Silver Trust.
This serves a similar function to ETFs in the sense that they allow silver to be held and traded without use of the physical forms instead transactions are made using silver certificates of ownership.
Silver bars can come in various shapes and sizes and bars from more reputable brands may command a slightly higher price than lesser known ones while damaged silver bars will also go for less than bars in mint condition.
The bullion bar is the most common form of silver bar.
It is a rectangular or triangular bar of .995+ purity silver, and it comes in sizes of 1 oz, 5 oz, 10 oz, 1 kilo and 100 oz.
Silver coins have the advantage of bars in that they are more difficult to forge, mostly because of their use as currency, and their ease of liquidation.
Some examples of silver coins include the one ounce 99.93 percent pure American Silver Eagle, and the one ounce 99.99 percent pure Canadian Silver Maple Leaf.
|Spot Silver||Silver Future|
|Spot silver represents the price at which silver is currently trading and is the base price for unfabricated silver||Silver futures represent a legally binding agreement for delivery of silver in the future at an agreed-upon price|
|Delivery of silver happens on the spot||Silver is delivered and paid for at a later date|
|Spot silver purchases are usually made with the expectation of future increase in price.||Silver futures to may be purchased to hedge the purchase of physical silver that might lose value if silver prices drop moving forward|
|Spot silver is usually purchased primarily for reasons of taking possession of the physical asset||Futures contracts may be bought with the intention to profit from future price changes with no interest in taking possession of the underlying asset|
The largest factor influencing silver demand is industrial use. According to the Silver Institute,industrial fabrication accounts for 60% of total physical demand.
As industrial silver applications increase, demand for silver naturally also tends to go up.
For example, use of silver in photovoltaics for sola energy is set to surpass its previous peak of 75.8 million ounces due to the growth of global solar panel installations.
Use of silver by Ethylene Oxide producers, used in the production of plastics and detergents was also projected to increase to 10 million ounces in 2016, which was an over 25 percent increase from 2015.
Supply of silver globally was projected to fall by up to 5 percent as a result of the relatively lower price environment providing primary producers with little incentive to expand production capacity in existing mines and the drop off in production from more mature existing mines.
Ag or Silver as it is more commonly known is a lustrous, white transition metal. Silver is a metal that is valued by industries for its properties, among which include the highest electrical and thermal conductivity of any known metal, and as a precious metal due to its lustre, relative scarcity and use as a store of value.
Currently, the largest producers of silver include:
1. KGHM Polska Miedź S.A. based in Poland with 41 million ounces produced annually.
2. BHP Billiton Plc in Australia with 39.0 million ounces produced annually.
3. Fresnillo Plc in Mexico, responsible for 36.9 million ounces annually.
4. Goldcorp Inc. in Canada with 30.5 million ounces produced annually
5. Polymetal International Plc based in Russia which is responsible for 26.5 million ounces produced annually.
6. Pan American Silver Corporation in Canada which produces 25.1 million ounces annually.
7. Volcan Compania Minera S.A.A. in Peru which produces 22.0 million ounces annually.
8. Compania de Minas Buenaventura S.A.A. in Peru which produces about 18.3 million ounces annually.
9. Coeur d’Alene Mines Corporation based in the United States and Mexico producing 18.0 million ounces annually.
10. Southern Copper Corporation based in the United States of America, Mexico and Peru which produces close to 13.6 million ounces annually.
As a result, the silver market deficit is expected to widen in 2016, driven primarily by a contraction in supply.
Silver is one of the most popular traded precious metals. Trading Silver as a CFD will allow a retail trader to trade silver with a smaller account requirement than a regular future contract.
Forex.com scored best in our review of the top brokers for trading silver , which takes into account 120+ factors across eight categories. Here are some areas where Forex.com scored highly in:
Forex.com offers one way to tradeForex . If you wanted to trade SILVER
The two most important categories in our rating system are the cost of trading and the broker’s trust score. To calculate a broker’s trust score, we take into account a range of factors, including their regulation history, years in business, liquidity provider etc.
Forex.com have a AAA trust score . This is largely down to them being regulated by Financial Conduct Authority, segregating client funds, being segregating client funds, being established for over 19
|Regulated by||Financial Conduct Authority|
|Uses tier 1 banks|
|Segregates client funds|
Want to see how Forex.com? We’ve compared their spreads, features, and key information below.
|Gold spreads from||0.3|
|Silver spreads from||0.61|
|Copper spreads from||7.0|
|Crude Oil spreads from||5.0|
|Natural gas spreads from||8.0||DAX Spread||250.0|
|FTSE 100 Spread||150.0|
|Platform||MT4, Web Trader, NinjaTrader, Tablet & Mobile apps|
|Base currency options||USD, GBP, EUR|
|Funding options||Bank transfer, Cheque, DebitCard,|