ETF Trading

FXOpen: The best ETF trading platform for experts

Exchange traded fund (ETF) trading involves speculating on the performance of a group of shares instead of individual assets. ETFs are available to trade instantly and are a cost-effective means of getting diversified exposure to a certain sector or region.

Advantages of ETF trading in Hong Kong with FXOpen

Trade ETFs with leverage

Trade ETF CFDs with up to 1:5 leverage.

You’re trading with an FCA-regulated broker

Based in the UK, your funds are fully protected up to £85,000 by the FSCS.

Highly customisable ETF trading system

Experience over 1,200 advanced trading tools and an intuitive user interface that can be tailored to your trading style and strategies.

Multiple ETF trading options

Take advantage of market, limit and stop orders with settings for volume units, stop levels and slippage.

One/double-click trading mode

Move quickly on rapidly changing markets and place your orders immediately throughout the day.

Level 2 pricing

Venture the market depth with up to 50 levels and see your limit orders inside the order book.

What is ETF trading? Exchange traded funds definition

An ETF is a basket of securities which are based around an index, industry or theme, and can track a group of shares, commodities, currencies and other assets.

ETFs are traded on exchanges just like regular stocks, with prices fluctuating throughout the day as they’re bought and sold. For many investors, ETF trading combines the portfolio diversification of mutual funds with the speed and ease of stock trading.

Launched in the US in 1993 to track the S&P 500 Index, the SPDR S&P 500 was the first ETF and remains one of the top exchange traded funds available today. It’s one of 33 ETFs available to trade through our TickTrader ETF trading platform in Hong Kong.

How do exchange traded funds work?

An ETF is created by a fund provider who owns a basket of underlying assets. The fund itself then tracks its performance, with shares in the ETF being sold to investors. This means that, as an investor, you’ll own a portion of the ETF without owning the individual assets that it’s made up of.

Buyers and sellers can then trade the ETF throughout the day on an exchange like they would with a regular stock. Prices are market-determined and usually differ from those of the assets they track.

When online ETF trading with FXOpen in Hong Kong, you’ll gain exposure to the ETF via a CFD, so you do not own it directly.

Exchange traded funds: Pros and cons

ETF trading is popular for a range of reasons. But as with any investment, there are potential risks to weigh up before you make any decisions.

An ETF can provide exposure to several different stocks, industries and sectors in one convenient investment.
Investing in multiple assets in an ETF can manage the risk of individual assets that might fluctuate in value.
ETF trading can be a cost-effective means of investing as many are passively managed and cheaper for this reason.
It’s easy to buy and sell ETFs throughout the day, especially when using an advanced ETF platform like TickTrader.

You will still be exposed to the risk of an ETF’s underlying index or assets falling in value. This risk is heightened when trading on leverage, which is 1.5 with FXOpen.
Actively managed ETFs come with higher expense ratios due to the extra research and work involved.
An ETF’s trading volume affects how easy it is to buy and sell. Those with lower volume can be harder to offload.
Unlike buying individual assets, you won’t have full control over the holdings in an ETF, or if and how they’re rebalanced.

Online ETF trading with FXOpen in Hong Kong

By registering for an ETF trading account in Hong Kong with FXOpen, you’ll gain access to TickTrader, the all-in-one platform for the most demanding traders. From here you can trade multiple asset classes – forex, stocks, commodities, indices and cryptocurrencies* – all from one account. We’re also fully regulated by the FCA and offer FSCS protection up to £85,000.

Registering is quick and easy through our online form. Open an account and verify your identity to begin your ETF trading journey today.

How to trade ETF CFDs

Follow these four steps to start ETF trading with FXOpen.

1. Open an ETF account

You can register for an FXOpen ETF trading account in minutes by completing our simple online form and verifying your identity.

2. Find and compare ETFs

With an active trading account, the next step is to identify the ETFs you wish to trade. Factors to compare include expense ratios, trading volume, holdings, historical performance and current trading prices. This process is enhanced with TickTrader’s advanced trading tools.

3. Place trades

Placing an ETF trade is very similar to buying or selling a stock. Decide on the number of shares you wish to buy and what order type you want to execute – market, limit or stop.

4. Refine your strategy

Assess how ETFs fit within your portfolio and trading strategy by continually reviewing their performance.

What factors can affect ETF trading?

The price of an ETF share is linked to the price of the underlying assets it holds and can change throughout the day in line with their value. ETF pricing is also influenced by supply and demand because they trade like shares of stocks, so their price will increase if more buyers arise, and drop if more sellers appear.

What is an ETF trading broker?

A broker connects the trader with the market and offers pricing quotes via its liquidity providers. Their ETF trading system – in our case, the TickTrader platform– reflects market conditions and allows users to execute trades online. ETF trading brokers make money by charging a small commission on executed deals, so have no conflict of interest with clients.

Open an ETF trading account
with FXOpen

*Cryptocurrency CFDs are only available for trading by Professional clients.