Becoming a silver trader can be done through a commodity exchange market, ETFs, managing institutional investors’ capital, or trading physical silver. Licensing is required for those who want to become a commodity trading consultant or pool operator. Trading physical silver requires less regulation but offers less liquidity. Rare silver coins can also be traded for higher value.
A person can become a silver trader in many ways. Silver can be traded through a dedicated commodity exchange market or through investment vehicles such as an exchange-traded fund (ETF). Many silver traders begin their careers managing institutional investors’ capital and using that capital to trade silver. Small investors who want to become a silver trader can also buy and trade silver bullion and rare silver coins as a viable investment strategy.
Individuals looking to become a silver trader for other investors as a commodity trading consultant (CTA) or commodity pool operator (CPO) will need to be licensed. Aspiring silver traders who wish to operate in this capacity will need to pass the Financial Industry Regulatory Authority’s FINRA (National Industry Commodity National Futures Series 3) exam. Successful completion of this exam is mandatory for any silver trader in the United States who wishes to trade silver with other investors. The exam consists of over 100 questions and is designed to test candidates based on their knowledge of the market as well as the rules and regulations applicable to investor equity trading. Other countries across the world have similar financial regulations for those wanting to become a silver trader who will manage and trade other investors’ capital.
A person who wants to become a silver trader can trade their own equity without needing to be licensed. This is the route many silver traders take as it requires less regulation and trading strategies can be implemented right away. Traders can open a brokerage account and trade a variety of silver exchange-traded funds. A silver ETF can be bought like a stock, and its share price closely matches the market price of silver. For those looking to become a silver trader, a silver ETF is a great way to trade silver, as these funds allow people to invest in silver without the hassles of buying, storing and holding physical silver bars or coins.
Investors who wish to trade physical silver can do so by purchasing silver bullion or bullion at a local silver coin exchange. This form of silver trading generally offers less liquidity and is considered a long-term investment. A person who wants to become a silver trader can also specialize in buying and selling rare silver coins, which often have a higher value than the market price of silver, depending on their condition and rarity.
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