{"id":7385,"date":"2020-09-03T12:02:00","date_gmt":"2020-09-03T12:02:00","guid":{"rendered":"https:\/\/learnbonds.com\/uk\/?page_id=7385"},"modified":"2024-04-29T11:02:41","modified_gmt":"2024-04-29T11:02:41","slug":"trading-etf","status":"publish","type":"page","link":"https:\/\/learnbonds.com\/uk\/trading\/etf","title":{"rendered":"ETF Trading UK Guide 2022"},"content":{"rendered":"<p>Exchange-traded funds (ETFs) have become extremely popular in the UK in recent years. These funds trade on the open market just like stocks. But instead of buying shares of a single company, you get financial exposure to numerous companies at once. With ETF trading in the UK, you can easily speculate on the fortunes of an entire industry, country, or market sector.<\/p>\n<p>In this guide, <strong>we\u2019ll cover the basics about UK ETF trading<\/strong>. To start, we\u2019ll offer an answer to the common question \u2018What is ETF trading?\u2019. We\u2019ll also highlight five of the popular UK ETF brokers you can use to start trading ETFs today.<\/p>\n<div data-accordeon class=\"toc-block\">\n  <div data-accordeon-item>\n    <div data-accordeon-title class=\"toc-title-wrapper\">\n      <div type=\"button\" class=\"toc-btn toc-btn_main\">\n          <svg width=\"12\" height=\"6\" viewBox=\"0 0 14 8\" class=\"icon\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n    <path d=\"M1 1L7 7L13 1\" stroke=\"#fff\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\n<\/svg>\n          <\/div>\n      <span class=\"toc-title\">\n        In This Guide      <\/span>\n    <\/div>\n      <ul data-accordeon-content class=\"toc-list\" style=\"display: none;\">\n          <li class=\"StepProgress-item subList-in-progress\">\n  <div data-accordeon-item>\n  <div class=\"StepProgress-item__group\" >\n    <a href=\"#what_is_etf_trading\" class=\"btn-handleTocScrollToTitle StepProgress-item__link\" data-level=\"2\">What is ETF Trading?<\/a>\n\n          <button data-accordeon-title class=\"toc-btn\" type=\"button\">\n        <svg width=\"12\" height=\"6\" viewBox=\"0 0 14 8\" class=\"icon\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n    <path d=\"M1 1L7 7L13 1\" stroke=\"#060606\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\n<\/svg>\n          <\/button>\n        <\/div>\n\n      <ol data-accordeon-content class=\"StepProgress-sub-list\" style=\"display: none;\" id=\"TOC1sublist-what_is_etf_trading\">\n                <li class=\"StepProgress-sub-item\">\n            <a href=\"#types_of_etfs\" class=\"btn-handleTocScrollToTitle StepProgress-item__link\" data-level=\"3\">Types of ETFs<\/a>\n          <\/li>\n                <li class=\"StepProgress-sub-item\">\n            <a href=\"#etf_trading_costs\" class=\"btn-handleTocScrollToTitle StepProgress-item__link\" data-level=\"3\">ETF trading costs<\/a>\n          <\/li>\n          <\/ol>\n  <\/div>\n    <\/li>  <li class=\"StepProgress-item\">\n  <div data-accordeon-item>\n  <div class=\"StepProgress-item__group\" >\n    <a href=\"#why_trade_etfs\" class=\"btn-handleTocScrollToTitle StepProgress-item__link\" data-level=\"2\">Why Trade ETFs?<\/a>\n\n        <\/div>\n\n    <\/li>  <li class=\"StepProgress-item\">\n  <div data-accordeon-item>\n  <div class=\"StepProgress-item__group\" >\n    <a href=\"#etf_trading_risks\" class=\"btn-handleTocScrollToTitle StepProgress-item__link\" data-level=\"2\">ETF Trading Risks<\/a>\n\n        <\/div>\n\n    <\/li>  <li class=\"StepProgress-item\">\n  <div data-accordeon-item>\n  <div class=\"StepProgress-item__group\" >\n    <a href=\"#etf_trading_strategies\" class=\"btn-handleTocScrollToTitle StepProgress-item__link\" data-level=\"2\">ETF Trading Strategies<\/a>\n\n        <\/div>\n\n    <\/li>  <li class=\"StepProgress-item\">\n  <div data-accordeon-item>\n  <div class=\"StepProgress-item__group\" >\n    <a href=\"#etf_trading_tips\" class=\"btn-handleTocScrollToTitle StepProgress-item__link\" data-level=\"2\">ETF Trading Tips<\/a>\n\n        <\/div>\n\n    <\/li>  <li class=\"StepProgress-item\">\n  <div data-accordeon-item>\n  <div class=\"StepProgress-item__group\" >\n    <a href=\"#etf_trading_platforms\" class=\"btn-handleTocScrollToTitle StepProgress-item__link\" data-level=\"2\">ETF Trading Platforms<\/a>\n\n        <\/div>\n\n    <\/li>  <li class=\"StepProgress-item\">\n  <div data-accordeon-item>\n  <div class=\"StepProgress-item__group\" >\n    <a href=\"#etf_trading_fees\" class=\"btn-handleTocScrollToTitle StepProgress-item__link\" data-level=\"2\">ETF Trading Fees<\/a>\n\n        <\/div>\n\n    <\/li>  <li class=\"StepProgress-item\">\n  <div data-accordeon-item>\n  <div class=\"StepProgress-item__group\" >\n    <a href=\"#how_to_start_trading_etfs\" class=\"btn-handleTocScrollToTitle StepProgress-item__link\" data-level=\"2\">How to Start Trading ETFs<\/a>\n\n        <\/div>\n\n    <\/li>  <li class=\"StepProgress-item\">\n  <div data-accordeon-item>\n  <div class=\"StepProgress-item__group\" >\n    <a href=\"#conclusion\" class=\"btn-handleTocScrollToTitle StepProgress-item__link\" data-level=\"2\">Conclusion<\/a>\n\n        <\/div>\n\n    <\/li>  <li class=\"StepProgress-item\">\n  <div data-accordeon-item>\n  <div class=\"StepProgress-item__group\" >\n    <a href=\"#faqs\" class=\"btn-handleTocScrollToTitle StepProgress-item__link\" data-level=\"2\">FAQs<\/a>\n\n        <\/div>\n\n    <\/li>      <\/ul>\n  <\/div>\n    <ul data-accordeon-content class=\"toc-list\" style=\"display: none;\">\n        <li class=\"StepProgress-item subList-in-progress\">\n  <div data-accordeon-item>\n  <div class=\"StepProgress-item__group\" >\n    <a href=\"#what_is_etf_trading\" class=\"btn-handleTocScrollToTitle StepProgress-item__link\" data-level=\"2\">What is ETF Trading?<\/a>\n\n          <button data-accordeon-title class=\"toc-btn\" type=\"button\">\n        <svg width=\"12\" height=\"6\" viewBox=\"0 0 14 8\" class=\"icon\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n    <path d=\"M1 1L7 7L13 1\" stroke=\"#060606\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\n<\/svg>\n          <\/button>\n        <\/div>\n\n      <ol data-accordeon-content class=\"StepProgress-sub-list\" style=\"display: none;\" id=\"TOC1sublist-what_is_etf_trading\">\n                <li class=\"StepProgress-sub-item\">\n            <a href=\"#types_of_etfs\" class=\"btn-handleTocScrollToTitle StepProgress-item__link\" data-level=\"3\">Types of ETFs<\/a>\n          <\/li>\n                <li class=\"StepProgress-sub-item\">\n            <a href=\"#etf_trading_costs\" class=\"btn-handleTocScrollToTitle StepProgress-item__link\" data-level=\"3\">ETF trading costs<\/a>\n          <\/li>\n          <\/ol>\n  <\/div>\n    <\/li>  <li class=\"StepProgress-item\">\n  <div data-accordeon-item>\n  <div class=\"StepProgress-item__group\" >\n    <a href=\"#why_trade_etfs\" class=\"btn-handleTocScrollToTitle StepProgress-item__link\" data-level=\"2\">Why Trade ETFs?<\/a>\n\n        <\/div>\n\n    <\/li>  <li class=\"StepProgress-item\">\n  <div data-accordeon-item>\n  <div class=\"StepProgress-item__group\" >\n    <a href=\"#etf_trading_risks\" class=\"btn-handleTocScrollToTitle StepProgress-item__link\" data-level=\"2\">ETF Trading Risks<\/a>\n\n        <\/div>\n\n    <\/li>  <li class=\"StepProgress-item\">\n  <div data-accordeon-item>\n  <div class=\"StepProgress-item__group\" >\n    <a href=\"#etf_trading_strategies\" class=\"btn-handleTocScrollToTitle StepProgress-item__link\" data-level=\"2\">ETF Trading Strategies<\/a>\n\n        <\/div>\n\n    <\/li>  <li class=\"StepProgress-item\">\n  <div data-accordeon-item>\n  <div class=\"StepProgress-item__group\" >\n    <a href=\"#etf_trading_tips\" class=\"btn-handleTocScrollToTitle StepProgress-item__link\" data-level=\"2\">ETF Trading Tips<\/a>\n\n        <\/div>\n\n    <\/li>  <li class=\"StepProgress-item\">\n  <div data-accordeon-item>\n  <div class=\"StepProgress-item__group\" >\n    <a href=\"#etf_trading_platforms\" class=\"btn-handleTocScrollToTitle StepProgress-item__link\" data-level=\"2\">ETF Trading Platforms<\/a>\n\n        <\/div>\n\n    <\/li>  <li class=\"StepProgress-item\">\n  <div data-accordeon-item>\n  <div class=\"StepProgress-item__group\" >\n    <a href=\"#etf_trading_fees\" class=\"btn-handleTocScrollToTitle StepProgress-item__link\" data-level=\"2\">ETF Trading Fees<\/a>\n\n        <\/div>\n\n    <\/li>  <li class=\"StepProgress-item\">\n  <div data-accordeon-item>\n  <div class=\"StepProgress-item__group\" >\n    <a href=\"#how_to_start_trading_etfs\" class=\"btn-handleTocScrollToTitle StepProgress-item__link\" data-level=\"2\">How to Start Trading ETFs<\/a>\n\n        <\/div>\n\n    <\/li>  <li class=\"StepProgress-item\">\n  <div data-accordeon-item>\n  <div class=\"StepProgress-item__group\" >\n    <a href=\"#conclusion\" class=\"btn-handleTocScrollToTitle StepProgress-item__link\" data-level=\"2\">Conclusion<\/a>\n\n        <\/div>\n\n    <\/li>  <li class=\"StepProgress-item\">\n  <div data-accordeon-item>\n  <div class=\"StepProgress-item__group\" >\n    <a href=\"#faqs\" class=\"btn-handleTocScrollToTitle StepProgress-item__link\" data-level=\"2\">FAQs<\/a>\n\n        <\/div>\n\n    <\/li>    <\/ul>\n<\/div>\n\n<h2 id=\"what_is_etf_trading\">What is ETF Trading?<\/h2>\n<p>Exchange-traded funds (ETFs) are baskets of stocks that trade on the open market. A single ETF might contain shares of anywhere from 10 to 500 or more different companies. When you buy an ETF, you effectively <a href=\"https:\/\/learnbonds.com\/uk\/buy-shares\">buy shares<\/a> of all the different companies it contains.<img decoding=\"async\" class=\"aligncenter wp-image-7390\" src=\"https:\/\/learnbonds.com\/uk\/wp-content\/uploads\/sites\/2\/2020\/09\/What-is-an-ETF_2.0-01-300x178.png\" alt=\"What is an ETF?\" width=\"1000\" height=\"593\" srcset=\"https:\/\/learnbonds.com\/uk\/wp-content\/uploads\/sites\/2\/2020\/09\/What-is-an-ETF_2.0-01-300x178.png 300w, https:\/\/learnbonds.com\/uk\/wp-content\/uploads\/sites\/2\/2020\/09\/What-is-an-ETF_2.0-01-1024x608.png 1024w, https:\/\/learnbonds.com\/uk\/wp-content\/uploads\/sites\/2\/2020\/09\/What-is-an-ETF_2.0-01-768x456.png 768w, https:\/\/learnbonds.com\/uk\/wp-content\/uploads\/sites\/2\/2020\/09\/What-is-an-ETF_2.0-01.png 1200w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><\/p>\n<p>Understanding how ETF prices change is important for answering the question, \u2018What is ETF trading?\u2019. Since ETF prices move up and down with the stock market, it is possible to trade ETFs for profit. The goal of ETF trading in the UK is to buy an ETF at a low price and sell it at a higher price.<\/p>\n<p>The price of an ETF is determined by the various prices of all the shares that go into it. Let\u2019s say you have an ETF that contains <a href=\"https:\/\/learnbonds.com\/uk\/buy-shares\/royal-mail\">Royal Mail<\/a> and <a href=\"https:\/\/learnbonds.com\/uk\/buy-shares\/tesco\">Tesco<\/a>. If the prices of all three companies rise, the value of the ETF will rise as well. But if Royal Mail\u2019s share price rises while Tesco\u2019s falls, the price of the ETF could stay the same or even fall slightly.<\/p>\n<p>It\u2019s important to note also that ETFs don\u2019t have to contain the same number of shares of every company. For example, a technology ETF could be 70% <a href=\"https:\/\/learnbonds.com\/uk\/buy-shares\/amazon\">Amazon<\/a> shares by value and 30% <a href=\"https:\/\/learnbonds.com\/uk\/buy-shares\/netflix\">Netflix<\/a> shares by value. For that ETF, a change in the price of Amazon shares would have a greater impact on the price of the ETF than a change in the price of Netflix shares.<\/p>\n<h3 id=\"types_of_etfs\">Types of ETFs<\/h3>\n<p>Importantly, there are many different styles of ETFs you can trade in the UK. In fact, many ETFs don\u2019t contain stocks at all, but rather give you exposure to other types of financial assets. Let\u2019s take a look at some of the most popular types of ETFs.<strong>\u00a0<\/strong><\/p>\n<p><strong>Index ETFs<\/strong><\/p>\n<p>Index ETFs are designed to mirror major stock indices like the FTSE 100 or the S&P 500. They contain the same shares in the same proportions, so that a 1% increase in the FTSE 100 results in a 1% increase in the value of the ETF.<\/p>\n<p>What\u2019s exciting about trading index ETFs in the UK is that they don\u2019t just allow you to invest in <a href=\"https:\/\/learnbonds.com\/uk\/buy-shares\/blue-chip-stocks\">blue chip stocks<\/a>. There are ETFs that cover indices for smaller companies, like the AIM 50, as well as ETFs that cover country-specific stock markets around the world.<img decoding=\"async\" class=\"aligncenter wp-image-7389\" src=\"https:\/\/learnbonds.com\/uk\/wp-content\/uploads\/sites\/2\/2020\/09\/types-of-etf-300x165.png\" alt=\"Types of ETFs\" width=\"1000\" height=\"549\" srcset=\"https:\/\/learnbonds.com\/uk\/wp-content\/uploads\/sites\/2\/2020\/09\/types-of-etf-300x165.png 300w, https:\/\/learnbonds.com\/uk\/wp-content\/uploads\/sites\/2\/2020\/09\/types-of-etf-1024x562.png 1024w, https:\/\/learnbonds.com\/uk\/wp-content\/uploads\/sites\/2\/2020\/09\/types-of-etf-768x422.png 768w, https:\/\/learnbonds.com\/uk\/wp-content\/uploads\/sites\/2\/2020\/09\/types-of-etf.png 1200w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><\/p>\n<p><strong>Industry ETFs<\/strong><\/p>\n<p>Industry ETF trading gives you exposure to a specific market sector. For example, industry ETFs may cover broad markets like technology, energy, or consumer goods. Alternatively, industry ETFs can get very specific \u2013 for example, only covering cloud computing or gold mining companies.<\/p>\n<p><strong>Bond ETFs<\/strong><\/p>\n<p>Bond ETFs don\u2019t contain stocks at all. Rather they are bundles of <a href=\"https:\/\/learnbonds.com\/uk\/bonds\">UK bonds<\/a>. Bond ETFs pay distributions from the bonds they contain, and the price of these ETFs can go up or down based on the value of the bonds they include. Bond ETFs can include <a href=\"https:\/\/learnbonds.com\/uk\/bonds\/corporate-bonds\">corporate bonds<\/a>, <a href=\"https:\/\/learnbonds.com\/uk\/bonds\/premium-bonds\">premium bonds<\/a>, government bonds, or any mix of the three.<\/p>\n<p><strong>Commodity ETFs<\/strong><\/p>\n<p>Commodity ETFs offer a way to engage in <a href=\"https:\/\/learnbonds.com\/uk\/trading\/commodity\">commodity trading<\/a>. These ETFs contain futures contracts for commodities like oil, wheat, and gold. Specific commodity ETFs may focus on agricultural products or metals.<\/p>\n<p><strong>Currency ETFs<\/strong><\/p>\n<p>Currency ETFs contain contracts for foreign currency. Trading currency ETFs can be a good alternative to <a href=\"https:\/\/learnbonds.com\/uk\/trading\/forex\">forex trading in the UK<\/a> since you don\u2019t have to worry about currency conversion fees.<\/p>\n<p><strong>Inverse ETFs<\/strong><\/p>\n<p>Inverse ETFs short sell specific industries or entire markets. The idea behind these ETFs is that they increase in price when the stock market falls.<\/p>\n<h3 id=\"etf_trading_costs\">ETF trading costs<\/h3>\n<p>ETF trading in the UK can be very inexpensive. An increasing number of online UK brokers that offer ETF trading don\u2019t charge commissions, which saves you several pounds every time you buy and sell.<\/p>\n<p>Note that if you trade ETFs through contracts for difference (CFDs), you\u2019ll typically be charged a spread. This is the difference between the buy and sell price for your CFD. Spreads for ETF trading can be very inexpensive.<\/p>\n<p>One thing to keep in mind about UK ETF trading is that many ETFs have fees of their own, which aren\u2019t controlled by your broker. These fees can be as low as 0.01% or as high as 0.5% per year. It\u2019s important to carefully evaluate the ETF you want to trade to see whether it charges management fees. Often, you may be able to find a similar ETF with lower fees.<\/p>\n<h2 id=\"why_trade_etfs\">Why Trade ETFs?<\/h2>\n<p>ETF trading in the UK has exploded in popularity in recent years because it offers a number of advantages over traditional <a href=\"https:\/\/learnbonds.com\/uk\/trading\/stock\">stock trading in the UK<\/a> and mutual fund investing.<\/p>\n<p><strong>Diversified Trading<\/strong><\/p>\n<p>To start, ETF trading enables you to trade a bundle of assets at once. This is a huge deal for traders. If you think the technology sector is going to take off, but don\u2019t want to bet on a single company, it\u2019s impractical and expensive to buy shares of 50 different companies. With ETF trading, you can get financial exposure to dozens of technology stocks in a single trade.<\/p>\n<p>The same is true for other financial markets. With ETF trading in the UK, you can get broad exposure to an entire country\u2019s economy, to the bond or forex markets, or to a range of commodities in a single trade.<img decoding=\"async\" class=\"aligncenter wp-image-7391\" src=\"https:\/\/learnbonds.com\/uk\/wp-content\/uploads\/sites\/2\/2020\/09\/Benefits-of-ETFs-300x242.jpg\" alt=\"Benefits of ETF trading UK\" width=\"1000\" height=\"806\" srcset=\"https:\/\/learnbonds.com\/uk\/wp-content\/uploads\/sites\/2\/2020\/09\/Benefits-of-ETFs-300x242.jpg 300w, https:\/\/learnbonds.com\/uk\/wp-content\/uploads\/sites\/2\/2020\/09\/Benefits-of-ETFs-768x619.jpg 768w, https:\/\/learnbonds.com\/uk\/wp-content\/uploads\/sites\/2\/2020\/09\/Benefits-of-ETFs.jpg 950w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><\/p>\n<p><strong>Low Barriers to Entry<\/strong><\/p>\n<p>Another benefit of ETF trading, especially compared to similar assets like mutual funds, is that entering the ETF market in the UK is simple. ETFs don\u2019t require a minimum investment.<\/p>\n<p>On top of that, ETFs trade on the stock market just like shares of individual companies. You can buy and sell them at any time the market is open, and you don\u2019t need to have a special relationship with a financial advisor to get access to a hot ETF.<\/p>\n<p><strong>Liquidity<\/strong><\/p>\n<p>ETFs, and especially popular ETFs, trade fairly frequently on major stock exchanges. That\u2019s a good thing for ETF traders in the UK, since it means there\u2019s little chance that you\u2019ll get stuck in a position. It\u2019s always easy to find another trader willing to sell you and ETF or to buy shares of an ETF that you\u2019re selling.<\/p>\n<p><strong>CFD Trading<\/strong><\/p>\n<p>A lot of ETF trading in the UK happens through CFDs. With CFD trading, you don\u2019t own shares of an ETF, but you still get financial exposure to changes in its price.<\/p>\n<p>The benefit of ETF trading through CFDs is that you can apply leverage. If you have, say, \u00a3100 in your trading account, 10:1 leverage allows you to purchase up to \u00a31,000 of ETF CFDs. That means you can spread your money across more positions as well as potentially make significant profits off of small changes in the price of an ETF.<\/p>\n<h2 id=\"etf_trading_risks\">ETF Trading Risks<\/h2>\n<p>ETFs inherently reduce trading risk by giving you exposure to multiple companies or assets rather than a single one. However, ETF trading still carries some risks for UK traders.<\/p>\n<p>The biggest risk is that a trade goes against you. If the value of many of the assets in an ETF drops, the price of the ETF will drop as well. You might have to sell your position for a loss.<\/p>\n<p>If you trade ETF CFDs with leverage, it\u2019s important to keep in mind that your risk is multiplied. A 1% loss in the price of an ETF can mean a 10% loss in the value of your position when you\u2019re trading with 10:1 leverage.<\/p>\n<h2 id=\"etf_trading_strategies\">ETF Trading Strategies<\/h2>\n<p>A popular way to approach ETF trading is with a clear strategy in mind. The better your ETF trading strategy, the more likely you are to achieve consistent profits. So, let\u2019s explore some popular ETF trading strategies for UK traders.<\/p>\n<p><strong>Swing Trading ETFs<\/strong><\/p>\n<p><img decoding=\"async\" class=\"alignright wp-image-7388 size-medium\" src=\"https:\/\/learnbonds.com\/uk\/wp-content\/uploads\/sites\/2\/2020\/09\/typical-swing-1-300x164.png\" alt=\"Swing trading strategy ETF\" width=\"300\" height=\"164\" srcset=\"https:\/\/learnbonds.com\/uk\/wp-content\/uploads\/sites\/2\/2020\/09\/typical-swing-1-300x164.png 300w, https:\/\/learnbonds.com\/uk\/wp-content\/uploads\/sites\/2\/2020\/09\/typical-swing-1-768x419.png 768w, https:\/\/learnbonds.com\/uk\/wp-content\/uploads\/sites\/2\/2020\/09\/typical-swing-1.png 987w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/>Swing trading is a popular ETF trading strategy that aims to capitalize on short-term price trends. Often, swing trading takes place over days to weeks \u2013 in contrast to <a href=\"https:\/\/learnbonds.com\/uk\/trading\/day\">day trading<\/a>, which takes place over minutes to hours.<\/p>\n<p>To identify swing trades, look for ETFs that are trading with strong momentum either up or down. As soon as the momentum begins to fade, it\u2019s time to exit the trade. It is generally better to lock in profits when swing trading than to try to perfectly time the market and risk losing your winnings.<\/p>\n<p><strong>Seasonal ETF Trading<\/strong><\/p>\n<p>Many industries and markets go through seasonal cycles. For example, some commodities like natural gas rise in price in the winter and fall in the summer. Other cycles are ties to the holiday shopping season or the summer travel season.<\/p>\n<p>With industry ETFs, you can speculate on these cycles without committing to a single company. Look for price patterns in past years of trading, keeping in mind that every year can be different and that industries are constantly changing.<\/p>\n<p><strong>Overbought and Oversold Trading<\/strong><\/p>\n<p><img decoding=\"async\" class=\"size-medium wp-image-7392 alignright\" src=\"https:\/\/learnbonds.com\/uk\/wp-content\/uploads\/sites\/2\/2020\/09\/Overbought-vs.-Oversold-300x212.jpg\" alt=\"Overbought and oversold ETF trading strategy\" width=\"300\" height=\"212\" srcset=\"https:\/\/learnbonds.com\/uk\/wp-content\/uploads\/sites\/2\/2020\/09\/Overbought-vs.-Oversold-300x212.jpg 300w, https:\/\/learnbonds.com\/uk\/wp-content\/uploads\/sites\/2\/2020\/09\/Overbought-vs.-Oversold.jpg 623w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/>One simple method for UK ETF trading is to buy when an ETF is oversold and sell when it is overbought. This ETF trading strategy relies on technical indicators like the relative strength index and Chaikin Money Flow. While these indicators aren\u2019t perfect, they can give a surprisingly reliable look at whether an ETF\u2019s price has hit a top or bottom.<\/p>\n<h2 id=\"etf_trading_tips\">ETF Trading Tips<\/h2>\n<p>Getting started with ETF trading is easier with some tips to help guide you.<\/p>\n<p><strong>Tip #1: Take an ETF Trading Course<\/strong><\/p>\n<p>This guide is a great place to learn the basics of ETF trading in the UK. But if you want to dive deeper into strategies and techniques to profit, we recommend taking an ETF trading course. Many brokers and professional traders offer online courses to teach you the ropes.<\/p>\n<p><strong>Tip #2: Read some ETF Trading Books<\/strong><\/p>\n<p>Another good way to immerse yourself in the world of ETF trading is to pick up a book. There are many excellent strategy guides for ETF trading. Two of our favourites are \u2018Trading ETFs: Gaining an Edge with Technical Analysis\u2019 by Deron Wagner and \u2018The Ultimate Guide to Trading ETFs\u2019 by Don and Carolyn Dion.<\/p>\n<p><strong>Tip #3: Start out with Demo Trading<\/strong><\/p>\n<p>Before you jump into ETF trading, it\u2019s a good idea to practice your skills. Most online brokers offer free demo trading accounts. These offer an opportunity to learn how your ETF trading platform works and develop an ETF trading strategy.<\/p>\n<p><strong>Tip #4: Focus on a Single Asset<\/strong><\/p>\n<p>A common mistake that beginner ETF traders make is to spread themselves thin by trading different types of ETFs. Instead, focus on a single type of ETF, like index ETFs or industry ETFs. Learn a lot about trading that type of ETF before moving on to funds that contain other financial assets.<\/p>\n<p><strong>Tip #5: Always Use Stop Losses<\/strong><\/p>\n<p>You don\u2019t have to win every trade when ETF trading, but you do need to prevent bad trades from wiping out all your profits. We recommend that you always set a stop loss when ETF trading in the UK. With a stop loss, your position will automatically be closed before losses can start to mount.<\/p>\n<h2 id=\"etf_trading_platforms\">ETF Trading Platforms<\/h2>\n<p>Choosing an ETF broker is one of the biggest decisions you\u2019ll need to make. Your broker will determine whether you can trade ETFs outright or ETF CFDs, as well as how much trading will cost. Your broker\u2019s ETF trading platform will also be your main source of technical and research tools.<\/p>\n<p>With that in mind, let\u2019s review five of the popular platforms for ETF trading in the UK:<\/p>\n                    \n                    <div class=\"inContentProviderStatic inContentColor--learnbonds fc-row\">\n                        <div class=\"inContentProviderStatic--wrapper\">\n                            <div class=\"container p-0\">\n                                <div class=\"row mb-lg-3 inContentProviderStatic--headerRow\">\n                                    <div class=\"col-12\">\n                                        <h3 class=\"inContentProviderStatic--title\"><strong>Plus500<\/strong><\/h3>\n                                    <\/div>\n                                <\/div><!--\/.row-->\n                                <div class=\"row mb-3 pt-sm-3 pt-md-3 pt-lg-0\">\n                                    <div class=\"col-12 col-sm-8 col-lg-9\">\n                                        <div class=\"inContentProviderStatic--descriptions\">\n                                            <p>\n<\/p><p class=\"paragraph-text-0\">If you\u2019re looking to make big bets on the ETF market, Plus500 is the UK broker of choice. With this CFD broker, you can apply leverage of up to 100:1 to your ETF trades. All trades are commission-free, although spreads for ETF CFDs at Plus500 are typically around 0.45%.<\/p>\n<p class=\"paragraph-text-0\">A nice thing about Plus500 is that it has such a wide range of ETFs available. You\u2019ll find hundreds of ETFs in total, including numerous industry and index ETFs for the US and UK markets. There are also dozens of different commodity ETFs and index ETFs for emerging markets around the world.<\/p>\n<p class=\"paragraph-text-0\">Plus500 offers traders a proprietary ETF trading platform that\u2019s highly intuitive and user-friendly. You can\u2019t create your own custom technical indicators, but the charting software ships with nearly 100 different studies to help you build an ETF trading strategy. Plus500 also has a handy mobile app for trading on the go.<\/p>\n<p><img class=\"paragraph-image-0\"><\/p>\n                                        <\/div><!--\/.descriptions-->\n                                    <\/div>\n                                    <div class=\"col-12 col-sm-4 col-lg-3 order-first order-md-2\">\n                                        <div class=\"inContentProviderStatic--rating\">\n                                            <div class=\"rating--holder\">\n                                                <p class=\"rating--text\">Our Rating<\/p>\n                                                <div class=\"rating--star-container\">\n                                                    <div class=\"rating--star\" style=\"width: 90%;\"><\/div>\n                                                <\/div>\n                                            <\/div>\n                                        <\/div><!--\/.rating-->\n\n                                        <div class=\"inContentProviderStatic--provider-logo mt-2\">\n                                            <img decoding=\"async\" class=\"float-md-right\" src=\"https:\/\/learnbonds.com\/uk\/wp-content\/uploads\/sites\/2\/2020\/03\/plus500-demo-account.png\" alt=\"UK Trading\">\n                                        <\/div><!--\/.logo-->\n                                    <\/div>\n                                <\/div><!--\/.row-->\n                                <div class=\"row\">\n                                    <div class=\"col-12 col-md-6\">\n                                        <div class=\"inContentProviderStatic--pros\">\n                                            <ul class=\"inContentProviderStatic--pros-list\">\n                                                                                                                                                                                            <\/ul>\n                                        <\/div>\n                                    <\/div>\n                                    <div class=\"col-12 col-md-6\">\n                                        <div class=\"inContentProviderStatic--cons\">\n                                            <ul class=\"inContentProviderStatic--cons-list\">\n                                                                                                                                                                                            <\/ul>\n                                        <\/div>\n                                    <\/div>\n                                <\/div><!--\/.row-->\n                                <div class=\"row mt-3\">\n                                    <div class=\"col-12 col-md-12 text-center text-sm-left\">\n                                        <div class=\"inContentProviderStatic--button\">\n                                                                                        <a href=\"https:\/\/learnbonds.com\/uk\/visit\/plus500-stocks\" title=\"Start Trading\" rel=\"sponsored\" data-relfix=\"1\">Visit Plus500<\/a>\n                                        <\/div>\n                                        <div class=\"inContentProviderStatic--disclaimerText\">\n                                            80.5% of investors lose money when trading CFDs. Sponsored ads                                        <\/div>\n                                    <\/div>\n                                <\/div>\n                            <\/div><!--\/.container-->\n                        <\/div><!--\/.inContentProviderStatic--wrapper-->\n                    <\/div><!--\/.inContentProviderStatic-->\n\n                                        \n                    \n                    <div class=\"inContentProviderStatic inContentColor--learnbonds fc-row\">\n                        <div class=\"inContentProviderStatic--wrapper\">\n                            <div class=\"container p-0\">\n                                <div class=\"row mb-lg-3 inContentProviderStatic--headerRow\">\n                                    <div class=\"col-12\">\n                                        <h3 class=\"inContentProviderStatic--title\"><strong>AvaTrade<\/strong><\/h3>\n                                    <\/div>\n                                <\/div><!--\/.row-->\n                                <div class=\"row mb-3 pt-sm-3 pt-md-3 pt-lg-0\">\n                                    <div class=\"col-12 col-sm-8 col-lg-9\">\n                                        <div class=\"inContentProviderStatic--descriptions\">\n                                            <p>\n<\/p><p class=\"paragraph-text-0\">AvaTrade offers CFD trading on several dozen popular ETFs, including a number of index, industry, and commodity funds. While the selection is on the whole limited, we like that AvaTrade offers commission-free trading and below-average spreads. Plus, you can trade CFDs with leverage of up to 20:1.<\/p>\n<p class=\"paragraph-text-0\">The real benefit of this broker is that it includes access to some of the most powerful ETF trading platforms we\u2019ve seen. You get access to both AvaTrade\u2019s own charting software and MetaTrader 5. AvaTrade\u2019s platform is ideal for everyday charting and trading, while MetaTrader 5 enables you to create custom technical indicators.<\/p>\n<p class=\"paragraph-text-0\">It\u2019s hard to overstate the importance of these tools. Although it can be somewhat difficult for beginners to use, AvaTrade\u2019s platform allows you to backtest your trading strategy against historical price data. Plus, you can even automate your trading to buy and sell ETFs without lifting a finger.<\/p>\n<p><img class=\"paragraph-image-0\"><\/p>\n                                        <\/div><!--\/.descriptions-->\n                                    <\/div>\n                                    <div class=\"col-12 col-sm-4 col-lg-3 order-first order-md-2\">\n                                        <div class=\"inContentProviderStatic--rating\">\n                                            <div class=\"rating--holder\">\n                                                <p class=\"rating--text\">Our Rating<\/p>\n                                                <div class=\"rating--star-container\">\n                                                    <div class=\"rating--star\" style=\"width: 86%;\"><\/div>\n                                                <\/div>\n                                            <\/div>\n                                        <\/div><!--\/.rating-->\n\n                                        <div class=\"inContentProviderStatic--provider-logo mt-2\">\n                                            <img decoding=\"async\" class=\"float-md-right\" src=\"https:\/\/learnbonds.com\/uk\/wp-content\/uploads\/sites\/2\/2020\/03\/AVAtrade01.png\" alt=\"AvaTrade logo\">\n                                        <\/div><!--\/.logo-->\n                                    <\/div>\n                                <\/div><!--\/.row-->\n                                <div class=\"row\">\n                                    <div class=\"col-12 col-md-6\">\n                                        <div class=\"inContentProviderStatic--pros\">\n                                            <ul class=\"inContentProviderStatic--pros-list\">\n                                                                                                                                                                                            <\/ul>\n                                        <\/div>\n                                    <\/div>\n                                    <div class=\"col-12 col-md-6\">\n                                        <div class=\"inContentProviderStatic--cons\">\n                                            <ul class=\"inContentProviderStatic--cons-list\">\n                                                                                                                                                                                            <\/ul>\n                                        <\/div>\n                                    <\/div>\n                                <\/div><!--\/.row-->\n                                <div class=\"row mt-3\">\n                                    <div class=\"col-12 col-md-12 text-center text-sm-left\">\n                                        <div class=\"inContentProviderStatic--button\">\n                                                                                        <a href=\"https:\/\/learnbonds.com\/uk\/visit\/avatrade\" title=\"Start Trading\" rel=\"sponsored\" data-relfix=\"1\">Visit AvaTrade<\/a>\n                                        <\/div>\n                                        <div class=\"inContentProviderStatic--disclaimerText\">\n                                            There is no guarantee you will make money with this provider. Sponsored ad                                        <\/div>\n                                    <\/div>\n                                <\/div>\n                            <\/div><!--\/.container-->\n                        <\/div><!--\/.inContentProviderStatic--wrapper-->\n                    <\/div><!--\/.inContentProviderStatic-->\n\n                                        \n                    \n                    <div class=\"inContentProviderStatic inContentColor--learnbonds fc-row\">\n                        <div class=\"inContentProviderStatic--wrapper\">\n                            <div class=\"container p-0\">\n                                <div class=\"row mb-lg-3 inContentProviderStatic--headerRow\">\n                                    <div class=\"col-12\">\n                                        <h3 class=\"inContentProviderStatic--title\"><strong>IG<\/strong><\/h3>\n                                    <\/div>\n                                <\/div><!--\/.row-->\n                                <div class=\"row mb-3 pt-sm-3 pt-md-3 pt-lg-0\">\n                                    <div class=\"col-12 col-sm-8 col-lg-9\">\n                                        <div class=\"inContentProviderStatic--descriptions\">\n                                            <p>\n<\/p><p class=\"paragraph-text-0\">IG is one of the most established online brokers in the UK and it offers an incredibly wide range of ETFs. With this broker, you get access to several thousand ETFs from US, UK, and European investment firms. That means that you can pick and choose from several ETFs for the same underlying asset.<\/p>\n<p class=\"paragraph-text-0\">Another exciting thing about IG is that you have three different ways to trade ETFs in the UK. You can trade ETFs directly, trade ETF CFDs, or speculate on the price of ETFs through spread betting.<\/p>\n<p class=\"paragraph-text-0\">CFD trading and spread betting are commission-free, while direct ETF trading comes with commissions of up to \u00a33. IG offers traders access to the ProRealTime ETF trading platform. This is an advanced software that supports custom indicators, multi-chart dashboards, and backtesting against historical price data<\/p>\n<p><img class=\"paragraph-image-0\"><\/p>\n                                        <\/div><!--\/.descriptions-->\n                                    <\/div>\n                                    <div class=\"col-12 col-sm-4 col-lg-3 order-first order-md-2\">\n                                        <div class=\"inContentProviderStatic--rating\">\n                                            <div class=\"rating--holder\">\n                                                <p class=\"rating--text\"><\/p>\n                                                <div class=\"rating--star-container\">\n                                                    <div class=\"rating--star\" style=\"width: 80%;\"><\/div>\n                                                <\/div>\n                                            <\/div>\n                                        <\/div><!--\/.rating-->\n\n                                        <div class=\"inContentProviderStatic--provider-logo mt-2\">\n                                            <img decoding=\"async\" class=\"float-md-right\" src=\"https:\/\/learnbonds.com\/uk\/wp-content\/uploads\/sites\/2\/2019\/12\/ig-logo-1.jpg\" alt=\"\">\n                                        <\/div><!--\/.logo-->\n                                    <\/div>\n                                <\/div><!--\/.row-->\n                                <div class=\"row\">\n                                    <div class=\"col-12 col-md-6\">\n                                        <div class=\"inContentProviderStatic--pros\">\n                                            <ul class=\"inContentProviderStatic--pros-list\">\n                                                                                                                                                                                            <\/ul>\n                                        <\/div>\n                                    <\/div>\n                                    <div class=\"col-12 col-md-6\">\n                                        <div class=\"inContentProviderStatic--cons\">\n                                            <ul class=\"inContentProviderStatic--cons-list\">\n                                                                                                                                                                                            <\/ul>\n                                        <\/div>\n                                    <\/div>\n                                <\/div><!--\/.row-->\n                                <div class=\"row mt-3\">\n                                    <div class=\"col-12 col-md-12 text-center text-sm-left\">\n                                        <div class=\"inContentProviderStatic--button\">\n                                                                                        <a href=\"https:\/\/learnbonds.com\/uk\/visit\/ig\" title=\"Start Trading\" rel=\"sponsored\" data-relfix=\"1\">Visit IG<\/a>\n                                        <\/div>\n                                        <div class=\"inContentProviderStatic--disclaimerText\">\n                                            There is no guarantee you will make money with this provider. Sponsored ad                                        <\/div>\n                                    <\/div>\n                                <\/div>\n                            <\/div><!--\/.container-->\n                        <\/div><!--\/.inContentProviderStatic--wrapper-->\n                    <\/div><!--\/.inContentProviderStatic-->\n\n                                        \n<h2 id=\"etf_trading_fees\">ETF Trading Fees<\/h2>\n<p>To give you an idea of the kind of fees you can expect when trading ETFs, here\u2019s a look at how the ETF trading platforms compare to each other in terms of charges.<\/p>\n<p><!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--><\/p>\n<table dir=\"ltr\" style=\"width: 73.8814%;height: 216px\" border=\"1\" cellspacing=\"0\" cellpadding=\"0\">\n<colgroup>\n<col width=\"93\" \/>\n<col width=\"86\" \/>\n<col width=\"184\" \/>\n<col width=\"117\" \/>\n<col width=\"137\" \/><\/colgroup>\n<tbody>\n<tr style=\"height: 48px\">\n<td style=\"width: 14.7673%;text-align: center;height: 48px;border-color: black\" data-sheets-value=\"{\"1\":2,\"2\":\"Crypto Broker\"}\"><strong>ETF Broker<\/strong><\/td>\n<td style=\"width: 24.4626%;text-align: center;height: 48px;border-color: black\" data-sheets-value=\"{\"1\":2,\"2\":\"Commission\"}\"><strong>Commission<\/strong><\/td>\n<td style=\"width: 22.149%;text-align: center;height: 48px;border-color: black\" data-sheets-value=\"{\"1\":2,\"2\":\"Deposit Fees\"}\"><strong>Deposit Fees<\/strong><\/td>\n<td style=\"width: 22.4362%;text-align: center;height: 48px;border-color: black\" data-sheets-value=\"{\"1\":2,\"2\":\"Minimum Deposit\"}\"><strong>Inactivity Fee<\/strong><\/td>\n<td style=\"width: 15.8639%;text-align: center;height: 48px;border-color: black\" data-sheets-value=\"{\"1\":2,\"2\":\"Max Crypto Leverage\"}\"><strong>Withdrawal Fee<\/strong><\/td>\n<\/tr>\n<tr style=\"height: 24px\">\n<td style=\"width: 14.7673%;text-align: center;height: 24px\" data-sheets-value=\"{\"1\":2,\"2\":\"Plus500\"}\">Plus500<\/td>\n<td style=\"width: 24.4626%;text-align: center;height: 24px\" data-sheets-value=\"{\"1\":3,\"3\":0}\" data-sheets-numberformat=\"{\"1\":3,\"2\":\"0%\",\"3\":1}\">Variable spread<\/td>\n<td style=\"width: 22.149%;text-align: center;height: 24px\" data-sheets-value=\"{\"1\":2,\"2\":\"Free\"}\">\u00a30<\/td>\n<td style=\"width: 22.4362%;text-align: center;height: 24px\" data-sheets-value=\"{\"1\":2,\"2\":\"\u00a3100\"}\">\u00a310 per quarter after 3 months<\/td>\n<td style=\"width: 15.8639%;text-align: center;height: 24px\" data-sheets-value=\"{\"1\":2,\"2\":\"1:2\"}\">\u00a30<\/td>\n<\/tr>\n<tr style=\"height: 24px\">\n<td style=\"width: 14.7673%;text-align: center;height: 24px\" data-sheets-value=\"{\"1\":2,\"2\":\"FinMaxFX\"}\">AvaTrade<\/td>\n<td style=\"width: 24.4626%;text-align: center;height: 24px\" data-sheets-value=\"{\"1\":2,\"2\":\"Varies\"}\">Variable spread<\/td>\n<td style=\"width: 22.149%;text-align: center;height: 24px\" data-sheets-value=\"{\"1\":2,\"2\":\"Varies\"}\">\u00a30<\/td>\n<td style=\"width: 22.4362%;text-align: center;height: 24px\" data-sheets-value=\"{\"1\":3,\"3\":100}\" data-sheets-numberformat=\"{\"1\":4,\"2\":\"\"$\"#,##0\",\"3\":1}\">Flat \u00a350 after 3 months, \u00a3100 after one year<\/td>\n<td style=\"width: 15.8639%;text-align: center;height: 24px\" data-sheets-value=\"{\"1\":3,\"3\":0.04861111111111111}\" data-sheets-numberformat=\"{\"1\":6,\"2\":\"h:mm\",\"3\":1}\">\u00a30<\/td>\n<\/tr>\n<tr style=\"height: 48px\">\n<td style=\"width: 14.7673%;text-align: center;height: 48px\" data-sheets-value=\"{\"1\":2,\"2\":\"IG\"}\">IG<\/td>\n<td style=\"width: 24.4626%;text-align: center;height: 48px\" data-sheets-value=\"{\"1\":3,\"3\":0}\" data-sheets-numberformat=\"{\"1\":3,\"2\":\"0%\",\"3\":1}\">\u00a30-\u00a310 if buying and selling, variable spread for CFDs<\/td>\n<td style=\"width: 22.149%;text-align: center;height: 48px\" data-sheets-value=\"{\"1\":2,\"2\":\"Free (0.5%-1% on credit cards\"}\">Free (0.5%-1% on credit cards)<\/td>\n<td style=\"width: 22.4362%;text-align: center;height: 48px\" data-sheets-value=\"{\"1\":2,\"2\":\"\u00a3250\"}\">\u00a312 per month after 2 years<\/td>\n<td style=\"width: 15.8639%;text-align: center;height: 48px\" data-sheets-value=\"{\"1\":2,\"2\":\"1:2\"}\">\u00a30<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<h2 id=\"how_to_start_trading_etfs\">How to Start Trading ETFs<\/h2>\n<p>Want to start trading ETFs in the UK? We\u2019ll show you how to get started using a broker.<\/p>\n<p><strong>Step 1: Open a Brokerage Account<\/strong><\/p>\n<p>The first step to start trading ETFs is to open a new brokerage account. Head to broker\u2019s homepage and click \u2018Join Now\u2019. Then enter a new username and password for your account and fill in details like your name and email.<\/p>\n<p>You\u2019ll also need to verify your identity to comply with government regulations. You can complete this step online by uploading a copy of your passport or driver\u2019s license and a copy of a recent utility bill or bank statement.<\/p>\n<p><strong>Step 2: Deposit Funds<\/strong><\/p>\n<p>Most brokers require a minimum deposit when you sign up for a new account. You can make a payment using a debit or credit card, through an e-wallet like Neteller or Skrill, or by bank transfer. Debit, credit, and e-wallet funds are available for trading immediately.<\/p>\n<p><strong>Step 3: Place Your First ETF Trade<\/strong><\/p>\n<p>Now you\u2019re ready to buy and sell ETFs. Search for an ETF by name or browse ETFs on the broker\u2019s market dashboard. Once you\u2019ve found the ETF you want, click \u2018Trade\u2019.<\/p>\n<p>In the order form that appears, enter how much money you want to trade. If you\u2019re trading CFDs, you can also specify whether to apply leverage to your trade. We recommend setting a stop loss for your order as well to help manage trading risk.<\/p>\n<p>When your order is ready, click \u2018Trade\u2019 to complete your first ETF trade.<\/p>\n<h2 id=\"conclusion\">Conclusion<\/h2>\n<p>ETF trading in the UK is a great way to get financial exposure to a wide range of assets at once. By trading ETFs, you can minimize your risk to any single stock, commodity, or currency, yet still speculate on price changes in these markets. Better yet, ETFs are traded on the stock market, so they\u2019re easy to access and you don\u2019t need a huge amount of money to start trading.<\/p>\n<h2 id=\"faqs\">FAQs<\/h2>\n<div class='man_faq_sec' itemscope itemtype='https:\/\/schema.org\/FAQPage'> <\/time><time itemprop=\"dateModified\" datetime=\"2020-06-11 11:18:17\"><\/time><script>jQuery(document).ready(function() {\r\n\t\t\tjQuery('.accordionButton').on('click', function() {\r\n\r\n\t\t\t\t\/\/REMOVE THE ON CLASS FROM ALL BUTTONS\r\n\t\t\t\tjQuery('.accordionButton').removeClass('on');\r\n\t\t\t\t\t\r\n\t\t\t\t\/\/NO MATTER WHAT WE CLOSE ALL OPEN SLIDES\r\n\t\t\t\tjQuery('.accordionContent').slideUp('normal');\r\n\t\t\t\r\n\t\t\t\t\/\/IF THE NEXT SLIDE WASN'T OPEN THEN OPEN IT\r\n\t\t\t\tif(jQuery(this).closest('.ms_faq').find('.accordionContent').is(':hidden') == true) {\r\n\t\t\t\t\t\r\n\t\t\t\t\t\/\/ADD THE ON CLASS TO THE BUTTON\r\n\t\t\t\t\tjQuery(this).closest('.ms_faq').find('.accordionButton').addClass('on');\r\n\t\t\t\t\t\t\r\n\t\t\t\t\t\/\/OPEN THE SLIDE\r\n\t\t\t\t\tjQuery(this).closest('.ms_faq').find('.accordionContent').slideDown('normal');\r\n\t\t\t\t} \r\n\t\t\t\t\t\r\n\t\t\t\t});\r\n\t\t\t});\r\n\t\t\t<\/script><section class=\"ms_faq ms_card \" ><div itemscope itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\"><div class=\"accordionButton\"><h3 itemprop=\"name\">What is ETF options trading?<\/h3> <\/div>\n<div class=\"accordionContent\" itemscope itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none;\"><p itemprop=\"text\">You can trade options for ETFs just as you would trade options for stocks. Options expire at a specified date, so you are speculating on the timing as well as direction of a price change. Options trading is more suited for advanced traders.<\/p>\r\n                <\/div><\/div><\/section>\n<section class=\"ms_faq ms_card \" ><div itemscope itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\"><div class=\"accordionButton\"><h3 itemprop=\"name\">What are the ETF trading rules?<\/h3> <\/div>\n<div class=\"accordionContent\" itemscope itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none;\"><p itemprop=\"text\">ETF trading follows many of the same rules as stock trading. ETF trading in the UK is subject to a stamp tax, and profits from ETF trading are subject to capital gains tax.<\/p>\r\n                <\/div><\/div><\/section>\n<section class=\"ms_faq ms_card \" ><div itemscope itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\"><div class=\"accordionButton\"><h3 itemprop=\"name\">Can you collect dividend when trading ETFs?<\/h3> <\/div>\n<div class=\"accordionContent\" itemscope itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none;\"><p itemprop=\"text\">Yes. If you are trading ETFs that contain shares of dividend stocks, you are eligible to collect dividends.<\/p>\r\n                <\/div><\/div><\/section>\n<section class=\"ms_faq ms_card \" ><div itemscope itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\"><div class=\"accordionButton\"><h3 itemprop=\"name\">Should I trade ETFs or ETF CFDs?<\/h3> <\/div>\n<div class=\"accordionContent\" itemscope itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none;\"><p itemprop=\"text\">Direct ETF trading is generally more for medium- to long-term investing. ETF CFDs are more for day trading and for trading with leverage.<\/p>\r\n                <\/div><\/div><\/section>\n<section class=\"ms_faq ms_card \" ><div itemscope itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\"><div class=\"accordionButton\"><h3 itemprop=\"name\">Are ETFs better than mutual funds?<\/h3> <\/div>\n<div class=\"accordionContent\" itemscope itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none;\"><p itemprop=\"text\">ETFs are more accessible and cheaper than mutual funds in most cases. ETFs can be bought on the stock market, don\u2019t require a minimum investment, and typically have lower annual management fees.<\/p>\r\n                <\/div><\/div><\/section>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Exchange-traded funds (ETFs) have become extremely popular in the UK in recent years. These funds trade on the open market just like stocks. But instead of buying shares of a single company, you get financial exposure to numerous companies at once. With ETF trading in the UK, you can easily speculate on the fortunes of&#8230;<\/p>\n","protected":false},"author":673,"featured_media":0,"parent":2312,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"class_list":["post-7385","page","type-page","status-publish","hentry"],"acf":{"show_disclaimer":false},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.8.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>ETF Trading UK Guide 2022 - LearnBonds UK<\/title>\n<meta name=\"description\" content=\"Learn How to Trade ETFs in the UK \u2714\ufe0fETF Trading Strategies \u2714\ufe0f ETF Trading Tips \u2714\ufe0f ETF Trading Platforms for 2025\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/learnbonds.com\/uk\/trading\/etf\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"ETF Trading UK Guide 2022 - 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