HYCM, a global Forex broker based in Cyprus, is proud to announce the trading of exchange-traded funds (ETFs) on their MetaTrader 5 platform. The broker has long offered trading of currencies, commodities, stocks, and indices, and is thrilled to expand its offerings with ETF trading. HYCM also offers cryptocurrency trading to traders outside Europe.
An ETF is a group of assets that can be traded as together in individual units during regular trading hours. In general, ETFs are purchased or sold through brokers and trading is done with an arbitrage mechanism that keeps the ETF as close to its asset value as possible. ETFs have been especially popular in recent months due to news items that have moved the markets, including Brexit, tensions between the U.S. and Iran, and the spread of the coronavirus, which have increased volatility in the markets. Traders looking for assets that are less volatile than individual stocks can purchase ETFs as a way to avoid the high volatility.
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.”
HYCM’s ETF offerings are available with leverage up to 1:20 and competitive trading conditions. In the MT5 platform, HYCM traders can choose between three different account types:
1 – Fixed Account – get fixed spreads and no commission starting with 1.8 pips.
2 – Classic Account – variable spreads from 1.2 pips with no commissions
3 – Raw Account – enjoy spreads starting from 0.2 pips with $4 per round commissions
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.
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.