Why would I trade an Exchange-Traded Fund (ETF) CFD over trading the underlying ETF itself?

CFDs give traders a lot of options that they would not otherwise have:

1. CFDs are traded with leverage

This allows a trader to control a large market position while employing a smaller amount of capital than would be required to control an equivalent position in the underlying asset. Keep in mind, leverage can significantly increase both your gains and losses.

2. With an FXCM CFD account a trader has the ability to trade Shares, ETFs, Forex, Stock Indices, Commodities, Cryptocurrencies all from the same account.

• To trade the underlying market itself, a trader usually needs to have different accounts, often denominated in several different currencies, and often at different brokers.

3. Immediate settlement​

• Immediate access to profits vs. having to wait 3 business days when trading physical shares