EBC Honoured with Best CFD Provider Award

EBC Financial Group has won Best CFD Provider at the 2025 Online Money Awards and launched over 100 US-listed ETF CFDs. This guide explains what CFDs are, how ETF CFDs work, and why they might be useful for traders looking to access diverse markets with flexibility and lower costs.

What Are CFDs?

CFD stands for "Contract for Difference." It's an agreement between you and a broker to exchange the difference in an asset's price from when you open the trade to when you close it.

With CFDs, you don't actually own the underlying asset (like shares or gold). Instead, you're speculating on whether the price will go up or down. If you predict correctly, you make a profit. If you're wrong, you make a loss.

What does this mean for you?

CFDs let you trade on price movements without needing to buy the actual asset. This can be more cost-effective and gives you more flexibility in your trading strategies.

What Are ETFs?

ETF stands for "Exchange-Traded Fund." An ETF is like a basket that holds many different investments (stocks, bonds, commodities) and trades on the stock exchange like a single stock. For example, a technology ETF might contain shares from Apple, Microsoft, Google, and other tech companies.

What Are ETF CFDs?

ETF CFDs combine the benefits of both CFDs and ETFs. Instead of buying an ETF directly, you trade a CFD based on the ETF's price. This gives you exposure to the ETF's performance without owning it.

What does this mean for you?

You can gain exposure to entire sectors, regions, or investment themes (like clean energy or healthcare) through a single trade, without paying fund management fees.

EBC's New ETF CFD Offering

EBC has launched over 100 US-listed ETF CFDs, covering:

• Geographic exposure: Asia-Pacific, Brazil, and other regions
• Sector themes: US healthcare, energy, consumer goods, and technology
• Investment styles: Value, growth, and dividend-focused strategies
• Fixed income: High-yield and investment-grade bond ETFs

These ETF CFDs come from leading providers like Vanguard, iShares (BlackRock), and State Street Global Advisors, all listed on the NYSE and NASDAQ.

Key Benefits of EBC's ETF CFDs

• Lower costs: No fund management fees, unlike traditional ETF investing
• Flexibility: Go long (bet prices will rise) or short (bet prices will fall)
• Leverage available: Control larger positions with smaller capital
• Zero commission: Most trades have no commission fees
• Fast execution: Trades execute in as little as 20 milliseconds
• Thematic investing: Access specific market themes easily

Understanding Key Terms

Leverage

Leverage lets you control a larger position with less money. For example, with 10:1 leverage, you could control £1,000 worth of ETF CFDs with just £100 of your own money.

What does this mean for you?

Leverage can increase both profits and losses. While it can boost returns, it also increases risk, so it should be used carefully.

Thematic Investing

This means investing in specific themes or trends, like clean energy, artificial intelligence, or ageing populations, rather than just individual companies.

What does this mean for you?

You can position your portfolio around big trends you believe in, rather than trying to pick individual winning companies.

FAQs

Q: What's the difference between buying an ETF and trading an ETF CFD?

A: When you buy an ETF, you own a share of the fund. With an ETF CFD, you're just speculating on the price movement without ownership, but you avoid fund management fees and can use leverage.

Q: Can I lose more than I invest?

A: Yes, especially with leverage. If the market moves against you, losses can exceed your initial investment. Always use risk management tools.

Q: What markets can I access with EBC's ETF CFDs?

A: You can access US healthcare, energy, technology, consumer goods, geographic regions like Asia-Pacific and Brazil, plus fixed income and different investment styles.

Q: Are ETF CFDs suitable for beginners?

A: ETF CFDs can be complex due to leverage and the derivative nature. Beginners should understand the risks and start with small positions.

Key Takeaways

• CFDs let you speculate on price movements without owning the underlying asset
• ETF CFDs give you exposure to diversified baskets of investments
• EBC's offering includes over 100 US-listed ETF CFDs covering various themes and regions
• Benefits include lower costs, flexibility to go long or short, and fast execution
• Leverage can increase both profits and losses, so risk management is crucial

Disclaimer:

This article reflects the observations of EBC Financial Group and all our global entities. It is not financial or investment advice. Trading in commodities and foreign exchange (FX) involves a significant risk of loss, potentially exceeding your initial investment. Consult a qualified financial advisor before making any trading or investment decisions, as EBC Financial Group and our entities are not liable for any damages arising from reliance on this information.