Page Summary
Saxo Bank is a good fit for advanced traders looking to buy or sell silver. Saxo Bank is a leading online broker with premium trading services. It has a transparent fee policy and a high minimum initial deposit.
Buying/selling silver has advantages and disadvantages. This article discusses how to buy or sell silver on Saxo Bank.
Options For Buying And Selling Silver
Buying and selling silver is an excellent choice for professional traders with a Saxo Bank brokerage account. This broker has a versatile asset portfolio, 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 for silver investments. An ETF is a set of securities that use an underlying index. ETFs work similarly to mutual funds, but they come with lower costs and better returns.
Silver ETFs are either physical silver or businesses connected to silver. The downside 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 refers to a financial contract that covers the differences in the set price between the opening and closing trades. It is either silver forex or a silver ETF.
The leverage on ETF CFDs is 1:5, while on XAGUSD, CFD is 1:10. Investors are able 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 derivate from the silver value. Silver Options are available through the Chicago Mercantile Exchange under the SO symbol.
Silver Options
| Can you use leverage / profit form 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 are financial contracts that allow investors to transact an asset at a specific future price and date. These are complex products, which is why only professional traders should use them.
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 represents a spot commodity linked to the value of silver and traded against the US dollar. The leverage on XAGUSD is 1:10. Trading on margin and leveraged trading strategies is risky. Read our in-depth reviews 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 Saxo Bank for investing in silver. Each comes with advantages and disadvantages depending on your trading skills and experience. Read our in-depth reviews to discover more information on the asset portfolio available at Saxo Bank.
Disclaimer
eToro is a multi-asset platform which offers both investing in stocks and crypto assets, as well as trading CFDs.
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.
This communication is intended for information and educational purposes only and should not be considered investment advice or investment recommendation. Past performance is not an indication of future results.
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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.