What are ETFs
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. 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 on AvaTrade’s Technology
Friedberg Direct was one of the first Forex brokers to introduce ETFs for CFD trading. We offer more than 25 different ETFs for trading on MetaTrader 4 representing key index trackers, niche industries and regions worldwide. As one of the oldest canadian brokers, there are many advantages of trading ETFs with Friedberg Direct:
- Trade with confidence – Friedberg Direct, powered by AvaTrade’sTechnology is an internationally regulated CFD and Forex broker
- Large variety of instruments – Choose from a variety of instruments to trade with CFDs.
- Competitive Spreads
- Leveraged trading – Get leverage 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 Friedberg Direct 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 big 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 Friedberg Direct
Since ETFs play on the range of markets, you will need a broker that offers trading in all related 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. Friedberg Direct is aware of the ETFs’ special nature and helps you stay on top of the market, to use the price changes to your favour.
Friedberg Direct offers a range of more than 25 popular ETFs to trade as CFDs, giving traders the ability to trade long or short with leverage.
When you want to start trading, you can choose from a vast selection of trading platforms. Two of them are built for manual trading, while others are for traders who prefer their trades to be done automatically. We also support the use of expert advisors for MT4. With our clients in mind, each can find the platform that is most convenient for him to trade on. Opening a demo account before trading is a recommended option, so you can practice trading on those platforms before doing so in the real market. Platforms available at Friedberg Direct:
Trading on the Leverage
One of the most common tools used by traders is Leverage, whose purpose is to enable the trader to open positions larger than his account’s equity. Friedberg Direct offers you leverage when trading ETFs. Leverage is a common tool used worldwide, and we offer the best conditions for it.
We will give an example; if you want to trade a certain ETF basket that is valued at $2,500, a rather large amount of money. Using leverage, however, will require using only a fraction of the position worth.
Using Leverage makes trading easier and can increase a trader’s profits. However, one should always bear in mind that losses can be magnified on the same scale.
How Much Will it Cost to Trade ETFs
You can read more about the benefits for our clients on the Trading Conditions & Charges page.
Educational tools available at Friedberg Direct
When trading any instrument, especially one as complex as ETFs, you need to keep yourself updated and informed at all time. Naturally Friedberg Direct offers clients education and product knowledge. We recommend using our video tutorials and other educational tools prepared for you to make the most of your trades. Let us guide you all the way, and get started with learning materials and market reviews that are essential for trading.
Our portfolio of educational tools is vast. In addition, an education portal developed and maintained by AvaTrade called Sharp Trader offers any level of trader the right tools to get started on a potential trading career.
Start Trading ETFs with Friedberg Direct
If you enjoy working on several markets simultaneously, challenging yourself into making rational investments and trading on one of the most prestigious markets in the world – trading Exchange Traded Funds is exactly for you!