ETF Trading Markets

FAQs

• How does trading CFDs on ETFs work on VT Markets?

  Trading ETF CFDs online with VT Markets is simple. Simply open a live trading account, make an initial deposit and browse the 1000+ assets on the VT Markets platform. You should also consider a highly reliable trading platform, like MetaTrader 4, to assist you with your trading strategies. For more information about our account set-up process, please contact the VT Markets customer service team.

  If you are new to trading ETF CFDs, VT Market customers can open a demo account, which allows you to hone your trading skills without using real capital. It’s also a good idea to test-drive your risk management strategies, such as using correct position sizing and implementing stop-loss orders, to remain prepared should the market move against you.

• What’s the difference between trading ETF CFDs and investing in ETFs?

  The main differences between trading ETF CFDs and investing in ETFs lie in the method and nature of the financial instruments involved. When you invest in ETFs, you become a direct owner of the underlying assets held by the ETF. This means you own the underlying securities or assets, such as stocks, bonds or commodities. In contrast, when trading ETF CFDs, you do not own the underlying assets. Instead, you enter into a contract with the broker to speculate on the price movements of the ETF without directly owning the assets it represents.

  Trading ETF CFDs often involves leverage, which allows you to control larger positions with a smaller amount of capital, which can increase potential profits and losses. Investing in ETFs does not involve leverage, unless you use margin accounts offered by some brokers.

  There are also major differences in terms of cost. Investing in ETFs involves expenses such as management fees, custodian fees and other operational costs associated with the ETF, typically deducted from the ETF’s assets. Trading ETF CFDs may involve costs such as spreads, commissions and overnight financing charges, which can vary depending on the broker and trading conditions.

• What are the benefits of trading ETF CFDs on VT Markets?

  VT Markets offers traders more than 51 different ETFs spanning the technology, energy and mining sectors, allowing traders to focus on their preferred industry. VT Market customers also enjoy a unique and cost-effective fee structure that allows them to gain full market exposure. You’ll also be able to trade ETF CFDs with up to 33:1 leverage.

• What factors influence the prices of ETFs?

  A combination of factors can influence the prices of ETFs, such as the supply and demand levels for the ETF. Supply and demand for ETFs are influenced by investor sentiment, market trends and overall market conditions. Many ETFs track specific market indexes, such as the S&P 500 or NASDAQ. If the index experiences gains or losses, the ETF’s price tends to reflect those movements.

  Broader market sentiment, economic indicators and geopolitical events can influence ETF prices. Factors like economic growth, inflation, unemployment rates, geopolitical tensions and policy decisions can impact investor confidence and affect the overall demand for ETFs. That being said, the performance of the underlying assets held by the ETF also affects its price. If the prices of the stocks, bonds, commodities or other assets in the ETF’s portfolio increase, it generally increases the ETF’s price.

• What are the trading hours for ETF CFDs on VT Markets?

  Trading hours for ETF CFDs vary based on the ETF you are looking to trade in. To learn the quotation and trading hours for the ETFs you are interested in, please visit our trading hours page.

• What is the maximum leverage that VT Markets offers for trading ETFs?

  Traders can utilise a maximum leverage ratio of 33:1 when trading ETFs on the VT Markets platform. This means you can control $33 in ETF CFDs for every $1 in your account.

• How can I deposit and withdraw funds from my VT Markets ETF trading account?

  Managing your deposits and withdrawals is simple through the VT Markets Client Portal, offering you convenience and control over your trading account. It is important to ensure that funds are deposited from a source that matches the name of your trading account. You have the flexibility to use various payment options, including credit or debit cards and alternative payment accounts.

  We prioritise prompt processing of withdrawal requests, typically within one business day. However, please remember that the timeframe for receiving your funds may vary and can range from 1 to 7 business days. The specific duration depends on the banking and payment systems involved in the transaction.