How to trade silver: Silver trading tips for beginners in 2025

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CFD service. 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

This information is NOT relevant to EU residents who are to be serviced by EU subsidiaries of the Plus500 Group, such as Plus500CY Ltd, authorised by CySEC (Reg. 250/14). Different regulatory requirements apply in Europe such as leverage limitations and bonus restrictions.

This page explains how to trade silver online in 2025. Learn about the different ways you can trade silver, what moves its price, and why it might be a good addition to your portfolio. 

Can I trade silver?

Yes, trading silver is straightforward and available to anyone using an online trading platform. Silver is one of the most popular commodities for trading you can trade it through many different avenues, including spot silver, futures contracts, silver options, silver exchange traded funds, or CFDs. 

To decide on the best approach, you will need to consider your goals and time horizon before aligning your strategy with your specific objectives. 

Where can I trade silver online?

Before you get started with silver trading you’ll need to register with an online broker. Our experts have selected some of the top silver trading platforms and you can click any of the links below to get started in just a few minutes.

4.5

Plus500

Min. Deposit $100

Fees From 2%

No. assets 2800+

Demo account Yes

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CFD service. 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

This information is NOT relevant to EU residents who are to be serviced by EU subsidiaries of the Plus500 Group, such as Plus500CY Ltd, authorised by CySEC (Reg. 250/14). Different regulatory requirements apply in Europe such as leverage limitations and bonus restrictions.

4.6

eToro

Min. Deposit $100

Fees 1%

No. assets 50+

Demo account Yes

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51% of retail CFD accounts lose money. Your capital is at risk.

BullionVault

Min. Deposit n/a

Fees -

No. assets n/a

Demo account -

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What is silver trading?

Silver trading involves speculating on its price in the hope of earning profits from fluctuations. Unlike traditional investing, traders seek to capitalise on short-term price movements. Traders can buy or sell silver in many forms, although the most practical ways to trade silver include futures, ETFs, CFDs, and spots. 

How does the silver price work?

Silver does not have a ‘fixed’ price; instead, it trades on several global exchanges. The benchmark is the silver spot price. Silver spot represents the current price it trades at for immediate delivery. This means you will use the spot price if you want to buy silver right now. 

Trading activity between banks, commercial wholesalers, mining companies, funds, and other institutional market players helps determine the silver spot price. 

COMEX and the London Bullion Market Association (LBMA) are the exchanges with the most silver trading volume. The spot price is constantly changing and fluctuates based on buy and sell orders matching up. 

Ways to trade silver

There are several options available when it comes to trading silver and the one you should pick depends on your budget, experience, and the timeframe for seeing returns. Here’s a look at the various ways you can trade silver online.

• Trade silver CFDs. Contracts for Difference (CFDs) are a popular way to speculate on silver price movements without having to own the physical asset itself. This makes them ideal for commodity trading, where owning and storing large quantities of silver is not practical. With CFDs, you can profit from both rising and falling prices. CFDs also offer leverage, which can amplify your exposure to silver markets. 
• Silver spread betting. Spread betting is a trading method allowing you to speculate on the price movements of silver without owning the physical commodity. With spread betting, traders can take positions on whether the price of silver will rise or fall. You can use leverage when spread betting silver. All profits are also tax-free. 
• Trade silver futures. Futures contracts are the most common way to speculate on short term price changes. They are an agreement to make a trade at a future date for a pre-agreed price. silver futures contracts require a detailed understanding of what impacts short term prices, and are most suited to someone with experience in the market.
• Trade silver options. Options let you buy or sell silver contracts at a predetermined price on or before a specific future date. silver options trading requires some expertise but allows traders to capitalise on price changes and manage risk, which makes it popular with people familiar with the silver market.

Should I trade spot silver or silver futures?

Trading silver spot and silver futures offer opportunities for profits but are suited for different types of traders. Here’s a quick rundown of each. 

Spot trading is best suited for short-term traders focused on quick moves. The spot market gives direct exposure to physical silver prices, has high liquidity, and you can quickly enter and exit trades. Spot silver trading is the avenue most retail traders go down when trading silver online. 

Silver futures trading offers leverage as contracts are standardised and only require you to post margin rather than the full value. This means you can take larger trades and magnify gains. However, leverage also compounds losses, which introduces more risk. Futures require extensive knowledge and experience to trade profitably due to amplified risks.

How to trade silver

Trading silver is a simple process. Before you begin, you’ll need to register with a trusted online broker to access the silver market. Follow the steps below to learn how to trade silver.

What moves the silver price?

Not all commodities move in the same way and silver has a number of unique features that make it independent. Below are some of the key factors at play.

• Industrial demand. Silver is more than just a store of value or used in jewellery making. Recently, it has become an essential component in various industries, including electronics, solar, and medical equipment. The demand from these industries directly impacts the price of silver. 
• Inflation. Silver is considered an inflation hedge. Rising consumer prices and negative rates can increase investment flowing into silver, ultimately pushing prices. 
• Correlation to gold. Silver tends to follow the price of gold. The correlation between the two varies over time; however, rising prices in the wider precious metals markets is generally a positive for silver. This is sometimes referred to as the Gold to Silver Ratio. 
• Falling stock market. Silver often countertrades the direction of stocks. When the stock market rises, the price of silver usually falls and vice versa. However, this is only sometimes the case, and the inverse correlation between the two can vary. 
• The US dollar. Since silver is priced in dollars, any weakness in the currency tends to see an uplift in silver prices as it takes more dollars to buy the same amount of metal. 
• Geopolitics. Silver is a safe haven, which means any economic uncertainty or instability can see an inflow of investment into it. 
• Supply issues. The supply of silver can be impacted by labour strikes, depletion of quality mines, and other factors that influence mining output. 

What to consider when you trade silver

When you begin trading silver, it’s important to approach with a well thought out strategy. Considering a range of factors before trading can save you time and money in the long run. Use the helpful tips below to plan your silver trading strategy. 

What are your trading goals?

Before you start, you should clearly define your trading objectives. Are you seeking quick gains, or will you be focused on a longer time frame using swing trading strategies? Knowing your goals before you start can help guide you in your strategy and also which silver market to use. 

Does silver suit your risk tolerance?

Make sure you’re comfortable with the potential for market fluctuations. If you’re a short term trader, then ensure you’ve checked the historical price chart for silver to determine if it’s volatile enough for day trading. 

Will trading silver add diversification to your portfolio?

Many traders focus on more than one market at a time and diversification is one of the core principles to follow. When you trade silver, make sure it complements the other markets you trade. For example, if you already trade several similar commodities, you may be better off choosing another commodity market to spread your risk. 

Take the time to study the silver market dynamics. 

Like many commodities, silver has unique characteristics and supply and demand fundamentals. To trade silver, studying the broader silver market, especially historical price trends is essential. Before trading silver, you will need to understand the factors that influence its value. 

Choose the right trading method.

We’ve already discussed the options available to you to trade silver. Each has its own advantages, so you should select the one most suited to your trading goals. For example, trading silver is best done via futures, options, CFDs, and spot. You could also trade silver exchange traded funds (ETFs). 

Is silver a good market to trade?

Yes, silver is one of the best commodity markets to trade and is very suited to anyone interested in speculating on short term price movements. Silver tends to exhibit high volatility and large price movements in short timeframes. 

Compared to other markets, silver is relatively small. The gold market alone is ten times the size of the silver market. This means it takes much less to move the price of silver, which can provide ample opportunities for traders. 

In addition to its size and volatility, silver trading has become very accessible through products like ETFs, CFDs, and futures contracts. This convenience means you can trade silver using a method you’re most comfortable with. 

What are the risks of trading silver?

Trading silver has the potential for significant rewards but also carries risks you need to be aware of. These risks are the same across the overall commodity market, but for silver, several more specific ones apply. Below, we’ve explained the main risks of silver trading.

• Macroeconomic factors. silver prices are affected by several macroeconomic factors, such as industrial demand, inflation, interest rates, dollar strength, and geopolitics. Before trading silver, you should have a good understanding of these. 
• Regulatory risks. Government policies can play a role in the way silver prices move. Export restrictions or changes in tax regulations could introduce unforeseen risks. 
• Volatility. Silver is a small market, approximately 1/10th the size of the gold market. Due to its size, it often experiences wild price swings over short periods. You could lose money if you’re not careful and on the wrong side. 
• Manipulation. Although rare, manipulation in the silver can market can occur. Large commercial traders hold dominant positions, which sometimes causes fears of manipulation. However, regulatory oversight has decreased abuse. 
• Deflation. Silver is considered a hedge against inflation. However, it may underperform during deflationary periods when currencies gain strength. 
• Risk of contango. Contango is when the futures price of silver is higher than the expected spot price at the expiry of the contract. For futures traders, when silver is in contango, it can diminish returns. 

Silver trading strategies

There are diverse opportunities when trading silver, and you can use various strategies to make the best decisions. Understanding these strategies is essential to navigate the silver market effectively. Below are several general trading strategies that can be applied to silver trading. 

• Trend trading. Trend trading is a basic strategy and involves identifying and following the prevailing price direction of silver. Technical indicators like moving averages can help in identifying trends. You can also look for higher highs or lower lows in silvers price action. Traders look to profit by entering positions in the direction of the established trend, whether an uptrend (bullish) or downtrend (bearish). 
• Range trading. The silver market will consolidate or move within a defined range or channel when it is not trending. You can use a range trading strategy whereby you aim to buy at the lower end of the range and sell at the upper end. Understanding support and resistance levels within a range is essential to trade this strategy effectively. 
• Moving averages strategy. Moving averages are technical indicators that smooth out price data and help identify trends. One common strategy is to compare short-term moving averages (e.g. 10 day), with longer term moving averages (e.g. 50 days). You can then look for crossovers and divergences between these moving averages to find signals for buying to selling silver. 
• Breakout trading. Breakout trading involves identifying key price levels, such as support and resistance, and entering positions when the price breaks through these levels. Traders expect the breakout to lead to a significant price movement in the direction of the breakout, allowing them to capture potential gains.
• Fundamental analysis. Fundamental analysis is a strategy used to evaluate the intrinsic value of silver. This means rather than focusing on silver ‘s price chart, you can analyse data like supply and demand, geopolitical events, and other variables that impact its price. You can then use your findings and technical analysis to place a trade. 

The above strategies are just a few of the many that you can use to trade the silver market. Remembering that each strategy has its own rules and risk management techniques is important. Professional silver traders often combine multiple systems and adapt their approach to market conditions. 

Bottom line

One of the key benefits of trading the silver market is the various ways you can get involved. There is a trading vehicle for everyone, from silver stocks and ETFs for long term speculators to spot silver, futures, and CFDs for short term traders. A trusted and regulated trading platform is a must if you want to navigate the silver industry successfully. 

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