Trading and investing in exchange traded funds (ETFs) have in recent years become extremely popular, which has also led many low spread forex brokers to offer some of the most liquid ETFs in the form of CFDs. Trading in ETFs offer advantages in that it eliminates the company-specific risks that comes with holding stocks of individual companies. Instead, ETFs allow traders to place bets on entire industries, and thus profit when the overall industry moves in the expected direction.
CFD trading with a low spread forex broker also makes it possible to trade ETFs with much higher leverage than most traditional stock brokers will offer. And in addition to that, it also makes it incredibly easy to make money from falling ETF prices by shorting the CFD, which can sometimes be a complicated process on a traditional stock exchange.