Trade a group of stocks at once with ETFs
Track the performance of underlying securities in biotech, robotics, space exploration, big data, blockchains, and more through ETF CFDs.
Learn about ETF CFDs
ETFs are investment funds you can buy and sell on stock exchanges. They track the performance of a variety of assets, such as gold, stocks, and currencies, or just one type of asset, sector, or index. ETF CFDs are derivative instruments that allow traders to speculate on the ETF’s future price without outright ownership of that ETF. They are agreements between a trader and a CFD broker to exchange the difference in ETF price between the opening and closing of the position.
Track investment returns on entire sectors
ETFs are baskets of securities grouped by design, offering exposure to multiple securities through one product.
Cost-effective
Get access to ETFs from BlackRock offering amplified exposure at low cost.
Easy to trade
Securities grouped by design allow you to trade entire sectors from one position.
Distribute risk
ETFs create automatic risk distribution by trading off underlying assets of sectors.
Trade a group of related stocks at once
ETFs are hand-selected by experts for easier built-in stock diversification
Exciting sectors
Trade on robotics, AI, ESG and more.
Trades like shares
Buy or sell ETFs as if they’re stocks.
Flexible leverage
Trade with margins as low as 5%.
ETF FAQs
What is an Exchange-Traded Fund (ETF)?
An Exchange-Traded Fund (ETF) is a type of security that can be bought and sold on an exchange, similar to a stock.
ETFs track the performance of a variety of assets such as gold, stocks, bonds, commodities, currencies, or derivatives, or sometimes focus on a single asset type, like currency ETFs.
ETFs offer diverse investment opportunities, as they can specialise in specific sectors such as energy or track major market indices like the Dow Jones, NASDAQ 100, or S&P 500. When you buy an ETF, you hold a share in the fund itself, not in the individual assets it invests in.
How can I trade ETFs through CFDs?
You can trade Exchange-Traded Funds (ETFs) via Contracts for Difference (CFDs) by logging into your MetaTrader 5 (MT5) account and depositing the required capital to open your positions. With Equiti, you can trade ETF CFDs covering a wide range of modern sectors, including artificial intelligence, biotechnology, blockchain and energy - giving you more opportunities to diversify and benefit from global market trends.
ETF CFDs allow you to speculate on ETF price movements without owning the actual fund. A CFD is a derivative instrument that reflects the change in the ETF’s underlying price, where the trader and broker agree to exchange the price difference between the time a position is opened and closed. If you expect the ETF price to rise, you can open a long (buy) position to profit from the increase. If you expect the price to fall, you can open a short (sell) position to benefit from the drop.
What are the advantages of trading ETF CFDs?
Trading ETFs through CFDs gives you the ability to use leverage to increase your market exposure, trade directly during market hours, take advantage of both rising and falling markets through short selling. ETFs are made up of multiple stocks and trade just like regular shares.
What are the risks of trading ETF CFDs?
It’s important to remember that leveraged products magnify both gains and losses. Always manage your risk responsibly and make use of risk management tools and strategies provided by Equiti to help protect your capital against potential losses.
How are ETF CFDs priced?
The price of an ETF CFD is determined by the price of the underlying asset it tracks. It is influenced by factors such as supply and demand, market conditions, news events and global economic developments.
What is leverage?
Leverage is a tool that allows you to increase your purchasing power in the market by opening larger positions than the amount you’ve deposited.
For example, with a 20:1 leverage ratio, a $100 deposit gives you exposure to $2,000 worth of trading volume. However, leverage is a double-edged sword, it can amplify profits but also magnify potential losses.
How can I use leverage when trading ETF CFDs?
With Equiti, you can use leverage of up to 20:1 when trading ETF CFDs.
This allows you to open larger positions while committing less capital upfront, giving you greater flexibility and more opportunities to manage your exposure efficiently.