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Can Spread Bets be used to trade ETFs
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Last update : July 2010
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| ETFs, or Exchange Traded Funds are shares that mimic an index such as the FTSE 100 or American S&P 500. If the FTSE for example rallies by 6.5% over the next few months so will the corresponding ETF.
The difference between ETFs and futures, spread bets or other margined products traded such as CFDs, is that ETFs offers no leverage. They are also traded on the stockmarket just like any other share.
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| The spread betting firms do offer quotes on most ETFs. They also offer them on what's called ETCs or Exchange Traded Commodities. These enable speculators or investors access to such markets as Gold, Crude Oil or Currencies.
My personal opinion is ETFs/ETCs are not the best products to use for speculation as they're best suited for investors who want exposure to certain markets without the leverage.
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| The importance of getting the right spread bet broker |
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There are good spread bet brokers and bad ones. Having a good broker won't guarantee you profits but a bad broker will probably lead to losses as a combination of their gamesmanship and suspect software takes its financial toll.
So who do I recommend? Simple, the 2 brokers I personally use for my own spread betting. Read this page for more details.
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FREE Report - How to Learn Spread Betting and Prosper
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How to build the all-important trading experience
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Where to get trading help and advice
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Which broker to use and why
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Simple 2 month training plan to follow
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Download the FREE report |
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Read more in the Spread Betting section:
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