ETF trading

Discover exchange-traded fund (ETF) trading in the UK and spread bet or trade CFDs on over 1,000 ETF instruments.

  • Sign up for free and join over 90,000​ active global clients ​
  • ​Competitive ETF spreads and margins
  • ​Access over 1,000 ETFs on our award-winning trading platform​*
  • ​No minimum deposit​​​
CMC Markets

How to open an ETF trading account

  • 1

    Sign-up

    Complete our application form to create your free UK trading account. ​Apply now >

  • 2

    Explore

    Launch our online trading platform and browse through our library of ETFs.​

  • 3

    Discover ETF Trading

    When you're ready, you can place a trade. If you're a beginner, you can practise on a demo ETF trading account​​.​

What is ETF trading?

An exchange-traded fund or ETF is an investment fund that comprise a collection of assets including shares, commodities and bonds. An ETF is a single entity and operates in a similar manner to a share. However, ETFs offer the opportunity to spread risk over several assets with a single transaction. 

Common ETFs can track certain sectors in the market, such as marijuana or the biopharmaceutical industry. Some ETFs also commonly track market indices such as the FTSE 100 or DOW Jones.

ETF trading provides the opportunity to trade on margin by utilising leverage. When trading an ETF with leverage, you only need to deposit a percentage of the full trade value in order to open a position. This initial deposit is known as margin. However, your profits and losses are based on the full trade value.

Read about the differences between a spread betting and CFD trading account​.

CMC Markets


Why open an ETF trading account with us?

  • We create value with competitive spreads and margins across our ETF markets
  • Access our award-winning customer service* whenever the markets are open
  • We are an FCA-regulated broker and adhere to strict regulatory requirements
  • We offer over 8,000 shares and 1,000 ETFs

Why trade with CMC?

Why trade ETFs with CMC?

No. 1 provider for customer service

30 years’ industry know-how

 ​ Trade on the go with our award-winning mobile app*

Listed on the London Stock Exchange

Features of ETF trading

ETF trading can provide many advantages in comparison to other assets. These advantages include:

  • Playing both sides of the market: You can go long and ‘buy’ or go short and ‘sell’ on ETF instruments
  • Portfolio management: ETFs can help to build a balanced trading portfolio
  • Trade ETFs with leverage: You only need to put down a percentage of the full value of the trade as a deposit, but remember that profits and losses are amplified based on the full trade value
  • Availability: ETFs provide access to instruments that you may have not had access to otherwise
  • Lower cost: ETF trading is better value compared with trading the constituents of an ETF individually
  • Diversification: Spread your risk across multiple assets with one financial instrument
  • Liquidity: You can trade ETFs whenever the applicable underlying stock exchange is open

Leveraged ETFs are complex financial instruments that carry significant risks. Certain leveraged ETFs are only considered appropriate for experienced traders.

ETF demo trading account

You can practise trading ETFs with a spread betting or CFD trading demo account. Trade on your desktop, or via our app on your tablet or mobile.

FAQ

What are leveraged ETFs?

A leveraged exchange-traded fund (ETF) is a financial instrument that tracks a collection of individual assets, such as shares, commodities and bonds. The main characteristic of leveraged ETFs compared with ETFs in the underlying market, is that your profits and losses are magnified, as you are trading on margin. Find our more about leveraged trading.

 

Can ETF trading help to diversify your portfolio?

All investments contain a certain amount of risk, including ETF trading. However, when compared to trading individual shares, ETF trading benefits from diversification, which could help reduce risk. This is because an ETF tracks a selection of assets and isn’t reliant on the performance of a single asset or instrument. Consult our risk-management guide to help reduce your exposure to risk when trading.

What are the advantages of trading ETFs?

Trading ETFs can benefit investors in a number of ways. ETFs track several assets within a single trade, so when compared with trading on individual shares, ETFs can be a less costly investment, while also offering a more diversified selection of assets. Additionally, ETFs can provide exposure to markets that may not otherwise be available. Discover more advantages of ETFs on our ‘What is ETF trading?’ page.

What’s the difference between ETF trading and stock trading?

Trading stocks focuses on trading a single company. ETFs instead provide exposure to a tracked market index, in a similar way to the S&P 500 or FTSE 100. ETFs also track a selection of assets that can include stocks, bonds and commodities, for example. Although an ETF is essentially a wrapper tracking several assets, they are still traded like a share. Find out more about how ETFs work.

Ready to trade ETFs?

No minimum deposit Or try a FREE demo

*Awarded Best Platform Features, Best Telephone Customer Service, Best Email Customer Service & Best Mobile/Tablet App, based on highest user satisfaction among spread betters, CFD & FX traders, Investment Trends 2019 UK Leverage Trading Report.