Page Summary
Interactive Brokers is a top brokerage firm with premium trading experience. It follows a transparent fee policy and funding process. Interactive Brokers is a top choice for traders looking to buy or sell silver.
Buying/selling silver has advantages and disadvantages. This article discusses how to buy or sell silver on Interactive Brokers.
Options For Buying And Selling Silver
Buying and selling silver is a good choice for investors with an Interactive Brokers account. This broker provides access to many assets, including silver. Traders are able to buy/sell silver ETF, silver CFD, silver options, silver futures, and silver spot forex.
Silver ETF
A silver ETF is an exchange-traded fund that focuses on silver investments. An ETF is a set of securities that follow an underlying index. ETFs work similarly to mutual funds, but they have lower costs and provide better returns.
Silver ETFs refer to either physical silver or businesses linked to silver. The disadvantage is that investors aren’t allowed to leverage or go short without a margin account.
Silver ETF
| Can you use leverage or go short? | No, unless you use a margin account |
| What can be the important costs? | Commission Custody fee Spread Fees charged by ETF issuers (e.g. expense ratio) |
| Ticker(s) of silver ETFs* | SLV, SIVR, SIL. AGQ |
| Further things to consider | Liquidity is usually high Wide range of silver ETFs available |
Silver CFD
A silver CFD is a financial contract that pays the differences in the set price between the opening and closing traders. It is either silver forex or a silver ETF.
The leverage on ETF CFDs is 1%, while on XAGUSD, CFD is 1:10. Investors are allowed to diminish trading risks by using stop-loss in their orders.
Silver CFD
| Can you use leverage/go short? | Yes |
| What can be the important costs? | Spread Commission Swap (cost for holding a position overnight) |
| Ticker(s) of silver CFD | Ticker of the underlying asset, e.g. XAGUSD, SLV |
| Further things to consider | Silver spot forex CFD market is open 24 hours a day, except weekends |
Silver Options
Silver Options represent a financial instrument with a derivative based on the silver value. Silver Options are available through the Chicago Mercantile Exchange under the SO symbol.
Silver Options
| Can you use leverage/profit from price decrease? | Yes, with a put option |
| What can be the important costs? | Spread Commission |
| Ticker(s) of silver option | SO |
| Further things to consider | Great risk management tool if appropriately used |
Silver Futures
Silver futures represent financial contracts that obligate an investor to transact an asset at a specific future date and price. These are leveraged and complex products, which is why silver futures are recommended for professionals.
Silver Futures
| Can you use leverage / go short | Yes |
| What can be the important costs? | Spread Commission |
| Ticker(s) of silver futures | SI (+month and year) |
| Further things to consider | Liquidity is high, high margin requirement |
Silver Spot Forex
Silver spot forex is a spot commodity based on the value of silver and traded against the US dollar. The leverage on XAGUSD is 1:10. Remember that trading on margin and leveraged trading strategies comes with significant risks. Read our in-depth review to learn more about brokers and online trading.
Silver Spot Forex
| Can you use leverage/go short? | Yes |
| What can be the important costs? | Spread Commission SWAP (cost for holding a position overnight) |
| Ticker(s) of silver spot forex | XAGUSD |
| Further things to consider | Great risk management tool if appropriately used |
Final Verdict
Silver ETF, silver CFD, silver options, silver futures, and silver spot forex are the main instruments available at Interactive Brokers for investing in silver. Each comes with different strengths, depending on your experience and trading style. Read our in-depth reviews to learn more about the asset portfolio available at Interactive Brokers.
Interactive Brokers compared to other brokers:
Interactive Brokers Review
Disclaimer
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Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 51% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money
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Braden Chase is an investor, trading specialist, and former research specialist for Forex.com who helps aspiring investors develop the confidence and habits they need to make an income from the market. Braden has served as a registered commodity futures representative for domestic and internationally-regulated brokerages and has also spoken & moderated numerous forex and finance industry panels across the globe.