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Deriv now offers CFDs on ETFs
Now, Deriv X and Deriv MT5 both let you trade CFDs on ETFs.
An ETF, or an exchange-traded fund, is a type of investment fund that includes a collection of assets (such as stocks, bonds, or commodities).
Deriv X and Deriv MT5 give you access to 30+ popular ETFs traded during US market hours.
By trading CFDs on ETFs, you get to:
- Trade on margin
- Open larger positions than you’d be able to with your own capital.
- Go long or go short
- Profit from rising as well as falling prices.
- Access a wide range of ETFs
- Trade on funds from various markets and sectors.
- Receive dividends
- Gain dividends from the ETFs you’ve traded on.
Don’t miss out on this opportunity to expand your portfolio and trade ETFs on Deriv X and Deriv MT5.
What is a CFD on ETFs?
ETFs (an acronym for Exchange Traded Funds) are funds with low management fees traded on the stock exchange like normal shares.
They are characterized by the fact that they have the sole objective of faithfully replicating the trend and therefore the yield of stock, bond or commodity indexes.
Born in the United States in the early 1990s, ETFs became part of the securities available to investors all over the world.
Since then the market has achieved growing success, as evidenced by the increase in both trading volumes and assets under management and the ever-increasing number of ETFs listed on the market.
Some online brokers started offering CFDs on ETFs a few years ago.
Deriv is here to offer you the experience of 30+ popular ETFs through their fully-fledged advanced trading platforms.
What are the merits of trading ETFs?
The fundamental characteristics of the ETFs that have made them successful over time with both institutional and retail investors are:
- ETFs are passive instruments whose investment objective is exclusively to replicate the performance of the benchmark index to which they refer, allowing investors to immediately expose themselves to the market of interest (stock, bond, commodity, etc.) or to the target strategy (short and leveraged strategies, accessible via structured ETFs). Operationally, thanks to real-time trading on the Stock Exchange, ETFs can be bought and sold as if they were shares through your broker like Deriv.
- ETFs, by replicating a well-known market index, allow investors to be perfectly aware of the risk/return profile of their investment as well as the securities portfolio to which they are exposed. They also have a price that is updated in real time according to the performance of the components of the reference index and, therefore, the investor is constantly aware of the value of his investment in ETFs, also thanks to the daily publication of the official value of the ETF.
- ETFs have no expiry and are simultaneously listed on the Stock Exchange in real time. The investor can therefore modulate the time horizon of the investment according to his own objectives, which can range from the very short term (intraday trading) to the medium/long term, as for investments made for pension purposes. Finally, considering that the minimum trading lot is equal to a single unit/share on Deriv’s platforms, it is possible to take positions even for small amounts.