Some of the regulated forex brokers on our list also offer trading in exchange traded funds, usually referred to as ETFs. These are essentially like mutual funds, with the difference being that they are traded on a public exchange just like a stock. This way, investors and traders can buy shares in a fund in real time and always know what price they are getting.
Regulated forex brokers that offer ETF trading usually do so in the form of contracts-for-difference, or CFDs for short. Although CFDs automatically track the price of the ETF that is traded on the exchange, they differ from buying the ETF directly in a few key ways. Firstly, CFDs make it much easier to profit from falling prices in by short-selling them. And secondly, CFDs come with built-in leverage that boosts a trader’s buying power in the market. Thanks to this, even traders with small accounts can make meaningful profits when trading CFDs.