An ETF (Exchange Traded Fund) is also called an index fund or index tracker called. The investment follows the actual market price as accurately as possible. ETFs are managed by “automated computers”, they follow the index of an investment automatically. There are not too many people who act in this form of investing, in my knowledge, this is a shame, because this way of investing has its advantages. The problem is that most people do not know exactly what an ETF actually is, that’s a shame! Hence also this page!
The main advantage of ETFs are the lower administrative costs (spreads) than normal indices and normal investment have. So it is actually cheaper than normal stock trading. The reason for this is that automated computers follow the index. So there is no broker inbetween which is directly linked to the real exchange rates and prices of the investment.
Possibilities with ETF
Some brokers like Plus500 CFD Service (your capital is at risk) may also offer cheaper ETF than other investment products. Below are a number of options that are offered in this category of the broker:
Raw materials (commodities):
- iShares Silver
- USO Oil Fund
- GBS Gold
- Gas Fund UNG
- Volatility VXX
The most popular ETF in the Plus500 CFD Service trading platform are:
- SBM Offshore
- Tesla Motors
- J.C. Penney
- Air France-KLM
- Ariad Pharmaceuticals
When you take a look at the details of Plus500 CFD Service it is always described exactly what the product does. Usually it is quite logical. Silver ETF is one that is about silver. It is also very important to note that there is no dealing in the real market price. At ETFs these are the underlying asset or value! It may be that the example Silver ETF differs from the actual price of silver.
ETF trading at Plus500 CFD Service includes
- Up to 1:100 Leverage
- Get €25 on signup to trade ETFs – no deposit required!
- Authorised & Regulated by the Financial Conduct Authority
- Based in the city of London
- No commissions! – fixed spreads
- ETFs – Exchange-traded fund with low spreads between the buy and sell prices.
- Advanced trading tools
- Online trading platform – professional graphs, profit/loss limits, variety of CFDs on ETFs.
- High leverage, low margin
Trade on the ETF market with up to 1:100 leverage. Start trading Exchange-traded funds (ETF) with as little as €200 to gain the effect of €20000 capital.[button-green url=”http://www.plus500.com/Trading/ETFs.aspx?id=60661&tags=etfbasics101&pl=1″ target=”_blank” position=”center”]More information on the Plus5oo website[/button-green]
Remember that CFDs and ETF are a leveraged product and can result in the loss of your entire deposit. Trading CFDs may not be suitable for you. Please ensure you fully understand the risks involved.