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CFDs and ETFs are both excellent investment options, though one might be the better choice for you. Continue reading our CFD vs ETF (Exchange Traded Fund) guide to see which instrument you should trade & why you should trade with CAPEX – The best online broker for beginners and experts alike.
Diversifying your trades is a great way to decrease the risk of losing all of your money. With CAPEX, you can invest in over 5000 tradable instruments through CFDs.
We offer traders CFDs on stocks, Forex, indices, blends, bonds, mutual funds, ETFs, investment funds, crypto, commodities and other financial derivatives. You can diversify your trades and experience trading in numerous markets. So, sign up with us for free and trade in a wide range of markets with the lowest trading fees.
Nothing is worse than having to trade on a platform that’s more like a maze, where you spend more time figuring out how to trade rather than trading.
Luckily, here at CAPEX, both our trading platforms are easy to use and have a simple interface. Everything on our platform is neatly aligned and merely a click away, so you can enjoy trading with ease and convenience. To get a better idea of how our trading platform is before beginning your trading journey, you can register on our free demo trading account.
Whether you are a swing trading enthusiast or a professional institutional investor, our platform makes it easy for you to trade in multiple stocks and other instruments like leveraged ETFs. Everything is conveniently placed just a click away, so you can focus on making profitable trades rather than navigating a complex maze within the financial markets. To experience our platform’s ease of use, sign up for our CFD demo trading account.
A CFD or contract for difference is a popular form of financial derivative. It’s a contract between two parties, where both parties speculate on an asset’s future price and agree to exchange the difference in the asset’s value after a specific time period. CFD traders do not buy and sell assets; instead, they bet on an asset’s price and buy or sell a contract accordingly.
The best part about trading CFDs is that it is traded with leverage, so traders don’t need too much capital to begin their CFD trading journey. Instead, you can invest limited capital and obtain greater market exposure. Plus, CFDs can be traded on a wide range of financial instruments, including stocks, indices, ETFs, bonds, blends, Forex, and crypto. Take in mind that day trading with leverage also means a higher risk tolerance, so it’s essential to have a good understanding of how the CFDs work.
Trading CFDs with leverage provides traders with the ability to gain exposure to various asset classes and underlying markets, such as stocks, futures contracts, and stock indices. At CAPEX, we allow traders to invest in over 5000 instruments through CFDs in the stock market. We also offer the opportunity to trade with leverage, as well as StoX, a product without leverage.
Elevate your trading experience with expert support available when you need it. Join CAPEX.com for free and trade wisely.
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An ETF, short for exchange traded funds, is a type of fund that is traded through exchange platforms. The ETF provider designs and offers a fund based on an underlying asset/s that they own and then sells shares in that fund to traders.
Investors then become shareholders of the ETF, and based on the value of the ETFs underlying asset; they make or lose money. Exchange traded funds can be used to invest in a wide range of assets, including stocks, commodities, bonds and other underlying assets.
ETF trading is becoming increasingly popular as traders can easily trade ETFs on stock exchanges, making it a convenient way to invest. Broker benefits include lower fees and easier diversification. However, it’s important to note that ETF trading is different from trading CFDs, and traders should be aware of the differences before taking a CFD position.
Having available customer support is important, especially when you’re investing somewhere. Luckily, we at CAPEX offer traders customer support through live chat, phone, and email. Individual traders and institutional investors can reach out to us for queries and concerns seven days a week. Plus, to cater to our multilingual user base, we offer customer support in several languages. For an even more convenient option, you can hop on to our FAQs page, where we have answered several queries in an elaborate manner.
The primary similarities between CFDs and ETFs are that both instruments don’t involve complete ownership of the underlying asset that you’re investing in. Plus, both of these instruments are traded with leverage, which means investors can get greater market exposure with lower capital investment.
The differences between both instruments are that:
Here at CAPEX, we have integrated several learning tools to reduce the risk that tags along with CFD trading. For instance, you can practice trading on our demo account without investing any capital, or you can even learn how to trade through our CAPEX Academy.
The secret to becoming an expert trader is focusing on ongoing learning. The more knowledge you have the better investments you can make. If you trade with us at CAPEX, you’ll get access to a number of tools – many of which are integrated into our trading platform. For instance, you can follow expert traders through a feature on our MetaTrader 5 (MT5) trading platform, or you can access CAPEX Academy, where we teach trading through video content.
While no trading instrument is better than the other, it all comes down to what you’re looking for as an investor or trader. For instance, if you’re hesitant to invest in a high-risk instrument and would rather invest in a less risky instrument that offers fewer trading opportunities, is a long term investment, and offers smaller gains, then you can invest in Exchange Traded Funds.
Similarly, if you’re looking for an instrument that is easy to trade, can be traded on a wide range of assets or securities, has lower trading fees, can be traded with leverage and doesn’t require a large investment to begin with – CFDs should be your go-to option.
Here at CAPEX, we offer traders an excellent CFD demo trading account where they can sign up for free and practice trading until they’re ready to invest. This shall also allow you to determine whether CFDs are the right instrument before you begin your trading journey.
There are several factors that determine whether a trading platform is worth signing up with or not. Being the best CFD trading platform out there, we’ll go over a few of these factors and shine a light on how we at CAPEX offer each of them.
The last thing a trader needs is a platform that isn’t smooth and is complicated. Traders spend a good amount of time on their trading platforms, which is why it’s essential that the platform is highly intuitive, easy to use, and has a simple interface. At CAPEX, we offer traders two user-friendly trading platforms – CAPEX WebTrader & MetaTrader 5 (MT5). Both our platforms are easy on the eyes and designed to all traders.
Having queries when you begin your trading journey is completely normal; however, not having access to available customer support can ruin your trading experience. We at CAPEX offer customer support services through phone, live chat, and email. Our support team is on their toes seven days a week. Plus, if you have a query, we’d recommend that you check out our FAQs page for a quick fix, as we’ve answered commonly recurring questions in an elaborative manner.
The key to avoiding serious losses while trading is to diversify your trades. In order to diversify your trades, you need a broker that offers a good range of instruments or markets to trade-in. Here at CAPEX, we offer traders over 5000 instruments that can be invested in through CFDs. Whether you’re interested in the Forex market, stocks, or even crypto, funds and their underlying asset – you can invest with CAPEX. In fact, you can also invest in ETFs through CFDs through our trading platform.
Trading with a low fee broker is a great way to avoid extra trading costs and keep most of your profits to yourself. CAPEX is known as an excellent broker with low commission, and has some of the lowest trading fees. Plus, we don’t have a deposit or withdrawal fee, nor do we have a minimum deposit amount. You can simply hop on to our trading platform and begin your trading journey with as much capital as you’d like.
Here at CAPEX, we also offer traders Islamic accounts, especially for our Muslim clients. If you’re looking to convert your regular trading account to swap-free accounts, you can request the customer support team or staff at CAPEX.
RegisterRegister an account on CAPEX.com and start trading.
VerifySend over your documents and verify your account.
DepositLogin into your CAPEX.com account and deposit money.
TradeStart trading with CFD’s and over 5000 other instruments.
You can begin your trading journey by signing up with CAPEX within minutes. Here’s a step-by-step guide that you can follow:
Once you’ve completed the assessment, your account should be verified shortly, and you can begin your trading journey. Though we do recommend, traders try out our CFD demo account, so they can get a better idea of how CFD trading works, what risks are involved and also practice CFD trading before investing in it.
Every financial instrument comes with its own set of pros and cons, so there’s no such thing as ‘the better instrument’. However, one instrument could be better than the other for you based on what your trading priorities are.
ETFs (Exchange Traded Funds) are less risky but offer lower returns, so they might be suitable for traders who like to play it safe. On the other hand, CFDs are a great option for traders that want to invest with limited capital, don’t want to obtain ownership of an underlying asset while investing, and would like to diversify their trades.
If you’re still confused, we’d recommend that you sign up on our CFD demo trading account and experience CFD trading without risking your capital. Not only will you enjoy trading on a smooth and fast platform, but you might end up learning trading tips and strategies as well.