ETFs, or Exchange Traded Funds, are a type of investment fund that tracks indices, bonds, commodities and other instruments, combined in a basket of assets such as bitcoin trading platform, stocks, commodities and more. ETFs are traded on an exchange, and their value shifts during the day, due to buying and selling actions done by the traders.
Why Trade ETFs with BancDeMonarch
Large variety of instruments – Choose from a variety of instruments to trade with CFDs.
Competitive Spreads – Starting at just 0.8 pips.
Leverage – Get leverage of up to 20:1 on your trades.
Short trading available – Benefit also when the market goes down.
Master your trading skills – High quality educational materials & daily market analysis.
Best in class costumer service – 24/5 multi-lingual live support.
What is ETF Trading
An ETF is a collection of assets put together, to permit traders to trade in a few markets simultaneously. The baskets are usually combined together with a common characteristic such as energy instruments, agriculture instruments and others. If you wish to trade a stock, commodity and bonds all together you can simply trade in the ETF market.
Some ETFs track the performance of a specific nation’s equity market. Examples are the MSCI Brazil Index Fund, MSCI South Korea Index Fund and others. ETFs also make it possible to invest in certain industry sectors. Examples offered by BancDeMonarch are the Dow-Jones U.S. Real Estate Index Fund and the Energy Select Sector SPDR. It is important to know that all ETFs are traded as CFDs.
ETFs are traded as a basket of assets – stocks, commodities and more, put together per sector. If you speculate that the energy market, for instance, will go up, you can invest in a few trades simultaneously. A prominent advantage of ETFs is that often they balance each other out; if one instrument’s value goes down, another instrument’s value can go up and even it out. If the price of crude oil goes down, as part of the energy basket, a stock of the same basket might even it out.
How to Trade ETFs with BancDeMonarch
Since ETFs play on the range of markets, you’ll need a broker that offers trading in all those markets with good conditions. ETFs require knowing the markets well enough to determine when to enter it and when to exit, and to know how each instrument will affect the other. BancDeMonarch is aware of the ETFs’ special nature and helps you stay on top of the market, to use the price changes to your favour.
BancDeMonarch offers a range of more than 25 popular ETFs to trade as CFDs, giving traders the ability to trade long or short with leverage of up to 20:1.
How Much Will it Cost to Trade ETFs
You can read more about the benefits for our clients on the Trading Conditions & Charges page.