Limassol, 20th February 2020
Well established global forex broker, HYCM, has launched exchange-traded funds (ETFs) on their MT5 platform*. In addition to forex, stocks, indices, cryptocurrencies**, and commodities, HYCM now also offers 20 different ETFs including the top 3 traded ETFs: SPDR S&P 500, iShares Russell 2000 Index, and VelocityShares 3x Inverse Crude Oil ETN.
An ETF is a basket of assets such as stocks, commodities, bonds and other securities that can be traded during the trading hours. ETFs can be bought or sold through brokerage firms and generally operate with an arbitrage mechanism designed to keep the ETF as close to its net asset value as possible.
Giles Coghlan, HYCM’s Chief Currency Analyst, explains why more traders are becoming interested in ETFs:
” One of the key benefits of an ETF is that it allows our investors to diversify their portfolios. As ETFs hold a basket of stocks or securities, they are also an ideal way of investing in market sectors. For example, say market conditions are looking good for banks, you could use an ETF to invest in the financial sector as a whole rather than take a chance on an individual bank stock. It is not hard to see why ETF’s have grown in popularity year on year since their inception in 1993. They are now attracting over US$5 trillion per year. By investing in a sector via an ETF, the ups and downs of individual stocks are reduced, portfolios are diversified, and volatility can be reduced.”
In this era of high volatility including recent news cycles concerning coronavirus, Brexit, and US-Iran tensions, traders are looking for less volatile instruments, making ETFs very desirable. Not only are ETFs less volatile than stocks, but they also incur lower operating costs and fewer broker commissions than buying each stock individually would. Traders can choose between existing ETFs that focus on a variety of targeted industries knowing that they tend to have a more innovative and faster response to trends.
HYCM is one of the few brokers that offer ETFs. This new asset class comes with excellent trading conditions including competitive spreads, leverages up to 1:20, and different account types to suit all trading styles. HYCM is a reliable and trusted broker with over 40 years of group experience.
Register with HYCM to trade ETFs and more
*HYCM Group is launching ETFs, available only on MT5 under CIMA and SVG.
**Cryptocurrencies are not available under HYCM (Europe) Ltd.
HYCM is the global brand name of Henyep Capital Markets (UK) Limited, HYCM (Europe) Ltd, Henyep Capital Markets (DIFC) Ltd and HYCM Ltd, all individual entities under Henyep Capital Markets Group, a global corporation founded in 1977, operating in Asia, Europe, and the Middle East.
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High Risk Investment Warning: Contracts for Difference (‘CFDs’) are complex financial products that are traded on margin. Trading CFDs carries a high degree of risk. It is possible to lose all your capital. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent expert advice if necessary and speculate only with funds that you can afford to lose. Please think carefully whether such trading suits you, taking into consideration all the relevant circumstances as well as your personal resources. We do not recommend clients posting their entire account balance to meet margin requirements. Clients can minimise their level of exposure by requesting a change in leverage limit. For more information please refer to HYCM’s Risk Disclosure.
Limassol, 20th February 2020