The term ‘ETF’ stands for Exchange-Traded Fund, and an ETF is a type of investment fund that offers buyers exposure to a basket of underlying assets with shared characteristics. ETFs can contain all types of assets, including stocks, bonds, commodities, indices, and more, and they can be bought and sold on exchanges the same way a regular stock can through ETF brokers. Fund prices fluctuate throughout the day, and traders can find and seize opportunities in the ETF market anytime during market hours.

When you trade ETFs, you buy and sell funds through an ETF broker, tracking the performance of a group of underlying assets without owning the assets themselves. When you trade ETF CFDs, you speculate on the price movement of an ETF on an exchange and do not own the underlying fund nor any of the assets it tracks.

ETF CFDs are also highly leveraged products, and traders can make the most out of their capital and gain substantial exposure to global markets by only putting down a small deposit at the outset. At Alchemy Markets, you can trade a range of ETF CFDs with leveraged funds as high as 20:1, with institutional execution and liquidity, tight spreads, and commissions as low as 0.25% Round Turn¹.

The most popular ETFs, measured by trading volume, are the SPDR S&P 500 ETF (SPY), ProShares UltraPro Short QQQ (SQQQ), Financial Select Sector SPDR Fund (XLF), Invesco QQQ (QQQ), and iShares MSCI Emerging Markets ETF (EEM).

The SPDR S&P 500 ETF is a fund that tracks the S&P 500 Index in the United States. ProShares UltraPro Short QQQ is a leveraged ETF, providing 3 times the inverse exposure of the daily performance of the Nasdaq-100 index. The Financial Select Sector SPDR Fund offers exposure to 65 companies in the finance industry. The Invesco QQQ ETF is a basket of stocks of the 102 largest international companies, excluding those in the financial industry, and it tracks the Nasdaq-100 index. Finally, the iShares MSCI Emerging Markets ETF offers traders exposure to large and mid-sized companies in Emerging Markets, such as China, Taiwan, and South Korea.

You can participate in trading ETF CFDs on the best ETF trading platforms at Alchemy Markets— MetaTrader 4, MetaTrader 5, and our very own FIX API solution. All of our platforms are equipped with superior technical indicators and PAMM and Copy Trading tools. CFD traders can also automate their trades with Expert Advisors and enjoy trading with leveraged funds as high as 20:1 and expert customer support. For high-frequency traders, our FIX API offering includes a sliding scale commission¹ based on trading volume so that you can save more in costs.

Absolutely. Day trading ETF CFDs is a popular short-term strategy that involves entering into a trade and exiting it within the span of a day, seeking opportunities in small but frequent price movements. Day traders typically have several positions open at the same time. By closing out all your leveraged ETF positions at the end of each day, you can protect yourself from price movements that occur overnight.

At Alchemy Markets, you can day trade ETF CFDs on our platforms and find opportunities with leveraged funds as high as 20:1 of your initial deposit. As an experienced CFD ETF broker, we provide our traders with tight spreads, institutional liquidity and execution, with commissions as low as 0.25% Round Turn¹.

Yes. Aside from day trading leveraged ETFs with CFDs, you can also participate in swing trading and hold CFD positions over a number of days to several weeks. Swing traders that buy and sell ETF CFDs gauge underlying trends in the price movements of funds and find opportunities with technical analysis.

At Alchemy Markets, you can make use of the best ETF trading platforms and trade leveraged funds as high as 20:1 of your initial deposit with tight spreads, institutional liquidity and execution, with commissions as low as 0.25% Round Turn¹.

The best ETFs for day trading are highly liquid and have small but frequent price movements throughout the day, so that CFD traders can buy and sell positions quickly. The most popular ETFs for day trading, measured by trading volume, are the Vanguard S&P 500 ETF (VOO), the iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF Trust (SPY).