We found 11 online brokers that are appropriate for Trading Inverse ETF Investment Platforms.
Inverse ETF is a type of exchange-traded fund (ETF) investment where traders use diverse derivatives to capitalize the value decline on the benchmark. In inverse ETF trading, traders borrow multiple securities to sell them with the expectation the price would decline in the future that allows the trader to repurchase. This way, traders hold multiple short positions in an inverse ETF.
The returns of ETFs are typically gained through daily futures contracts that trade assets at a particular set of time and price. It looks similar to the future contracts where derivatives are also widely used. In inverse ETF trading, you can make a bet based on the expected set time and price. Once the prediction is correct, which is the market fall, the gross return of the inverse of the ETF would be gained by the same percentage. Of course, brokerage commissions and other fees are applied.
Since the derivative's contracts are opened and closed on the same day, inverse ETFs are not a form of short investment. At this point, you can't use the inverse ETF's performance as a one-time reference or overview for the longer-term performance of the short-traded assets or securities. Since there are many trades executed in a day, the inverse ETF's cost could be high in favour of accumulated trading fees, and it can go to more than 1% per trade.
However, inverse ETFs aren't the same as short selling, which means it provides some advantages. Investors won't have to hold the margin positions as they're short-selling the securities. In other words, they don't have to borrow money from the broker. The borrowed securities are not owned by the investors in the plain short-selling. On the other hand, short-selling has a higher risk of buying back the securities at higher prices as the securities prices uptrend rather than downtrend.
Furthermore, the brokerage would charge you the stock loan fees for the borrowed shares. It's just a simple economic law where securities with high demand for shorts would typically cost higher as they're getting rare. You may have to pay up to 3% of the total borrowed stocks making it one of the costliest trading approaches. Short selling is obviously not for beginner traders due to the complicated execution and the high risk to bear.
Inverse ETFs are typically less costly as you can purchase them with fees less than 2%. On the other hand, you can lower the cost down for opening the position with the inverse ETF. Short selling is generally more costly than inverse ETFs in all aspects.
From the investors perspective, inverse ETFs offer advantages. First of all, investors can capitalize on returns with inverse ETFs when the underlying assets are declining. Second, investors would need to use inverse ETFs for hedging their investment portfolio. Last but not least, investors are exposed to the wider options of inverse ETFs to purchase.
Despite the legitimate features, there are things you should consider about investing in inverse ETFs. Once the market goes in another direction of what you're betting, you can experience massive losses to the inverse ETFs. These kinds of ETFs are typically traded daily, and you can potentially lose them for holding them for more than one day. Compared to conventional ETFs, the inverse version generally comes with higher fees due to the lending fees and the number of trades to execute.
Inverse ETFs can either profit from broad market index decline or targeting specific business sectors, including energy, technology, financial, and so forth. As short-trading instruments, the success of inverse ETFs strictly depends on the perfect timing. Investors should allocate the money they can bear to lose for if they fail to enter and exit the position correctly.
Just like the traditional ETFs, inverse ETFs can also be leveraged to pursue higher returns following the decline of the market. The leveraged inverse ETFs can double and even triple the percentage of the declining price for your return. For example, when the price falls by 4%, you'd gain a return of 8-12% with the leveraged inverse ETFs. You'd get a clean profit of your inverse ETF investment after being cut with brokerage fees and commissions.
Inverse ETFs allow investors to optimize their return with a one-day trading bet. Consequently, you can't use your inverse ETF on particular securities for a long-term investment strategy. Hedging your portfolio with inverse ETFs could be risky as well. Holding your inverse ETFs would only double the risk, and you can lose all of your investment. Be cautious when investing in inverse ETFs and be sure to use trusted, reliable brokerage services/platforms.
We've collected thousands of datapoints and written a guide to help you find the best Inverse ETF for you. Our aim is that this information helps you choose a trustworthy, reputable and professional broker who can satisfy your trading needs online. We have compiled a list of what we consider the best Inverse ETF Investment Platforms below.
There are a number of important factors to consider when picking an online Inverse ETF Investment Platforms trading brokerage.
Our team have listed brokers that match your criteria for you below. All brokerage data has been summarised into a comparison table. Scroll down.
We compare these features to make it easier for you to make a more informed choice.
Here are the top Inverse ETF Investment Platforms.
Compare Inverse ETF Investment Platforms min deposits, regulation, headquarters, benefits, funding methods and fees side by side.
All brokers below are Inverse ETF Investment Platforms. Learn more about what they offer below.
You can scroll left and right on the comparison table below to see more Inverse ETF Investment Platforms that accept Inverse ETF Investment Platforms clients
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eToro
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IC Markets
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Roboforex
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AvaTrade
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XM
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XTB
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Pepperstone
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FP Markets
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Trading212
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Plus500
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EasyMarkets
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Regulation | Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC), Markets In Financial Instruments Directive (MiFID), Australian Securities and Investments Commission (ASIC) | Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), Cyprus Securities and Exchange Commission (CySEC) | Cyprus Securities and Exchange Commission (CySEC) | Central Bank of Ireland, Australian Securities and Investments Commission (ASIC), ASIC (406684), Financial Services Authority (FSA), South African Financial Sector Conduct Authority (FSCA), Financial Stability Board (FSB), The Financial Services Agency (JAPAN FSA), Financial Futures Association of Japan (FFAJ), Abu Dhabi Global Markets (ADGM), Financial Regulatory Services Authority (FRSA), Polish Financial Supervision Authority (KNF), Israel Securities Association (ISA), British Virgin Islands Financial Services Commission (BVI), BVI (SIBA/L/13/1049) | Financial Services Commission (FSC), Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC) | Financial Conduct Authority (FCA), FCA number FRN 522157, Cyprus Securities and Exchange Commission (CySEC), CySEC Licence Number: 169/12, Comisión Nacional del Mercado de Valores, Komisja Nadzoru Finansowego, Belize International Financial Services Commission (IFSC) under license number IFSC/60/413/TS/19, Polish Securities and Exchange Commission (KPWiG), Dubai Financial Services Authority (DFSA), Dubai International Financial Center (DIFC),Financial Sector Conduct Authority (FSCA), XTB AFRICA (PTY) LTD licensed to operate in South Africa | Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC), Federal Financial Supervisory Authority (BaFin), Dubai Financial Services Authority (DFSA), Capital Markets Authority of Kenya (CMA), Pepperstone Markets Limited is incorporated in The Bahamas (number 177174 B), Licensed by the Securities Commission of the Bahamas (SCB) number SIA-F217 | Australian Securities and Investments Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC) | Financial Conduct Authority (FCA), Financial Supervision Commission (FSC) | Plus500UK Ltd authorized & regulated by the FCA (#509909), Plus500CY Ltd authorized & regulated by CySEC (#250/14), Plus500AU Pty Ltd (ACN 153301681), ASIC in Australia AFSL #417727, FMA in New Zealand, FSP #486026 and Authorised Financial Services Provider in South Africa FSP #47546, Plus500SEY Ltd is authorised and regulated by the Seychelles Financial Services Authority (Licence No. SD039), Plus500SG Pte Ltd (UEN 201422211Z) holds a capital markets services license from the Monetary Authority of Singapore (MAS) for dealing in capital markets products (License No. CMS100648-1), PLUS500AU (PTY) LTD is regulated by the FSCA (Financial Sector Conduct Authority), Plus500 adheres to MiFID rules | Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), British Virgin Islands Financial Services Commission (BVI) |
Min Deposit | 10 | 200 | 1 | 100 | 5 | No minimum deposit | 200 | 100 | 1 | 100 | 100 |
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Used By | 27,000,000+ | 180,000+ | 10,000+ | 300,000+ | 3,500,000+ | 250,000+ | 89,000+ | 10,000+ | 15,000,000+ | 15,500+ | 142,500+ |
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Platforms | Web Trader, Tablet & Mobile apps | MT4, MT5, Mirror Trader, ZuluTrade, Web Trader, cTrader, Mac | MT4, MT5, Mac, Web Trader, cTrader, Tablet & Mobile apps | Web Trader, MT4, MT5, AvaTradeGo, AvaOptions, DupliTrade, ZuluTrade, Mobile Apps, ZuluTrade, DupliTrade, MQL5 | MT4, MT5, Mac, Web Trader, Tablet & Mobile apps | MT4, Mirror Trader, Web Trader, Tablet & Mobile apps | MT4, MT5, TradingView, DupliTrade, myFXbook, Mac, Web Trader, cTrader, Tablet & Mobile apps | MT4, MT5, IRESS, Mac, Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | MT4, MT5, Web Trader, Tablet & Mobile apps |
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Learn More |
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Up with etoro |
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Up with xm |
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Up with xtb |
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Up with fpmarkets |
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Up with trading212 |
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Up with plus500 |
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Up with easymarkets |
Risk Warning | 78% of retail investor accounts lose money when trading CFDs with this provider. | Losses can exceed deposits | Losses can exceed deposits | 71% of retail investor accounts lose money when trading CFDs with this provider | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.59% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. | 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. | 74-89 % of retail investor accounts lose money when trading CFDs | Losses can exceed deposits | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. | 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. | Your capital is at risk |
Demo |
eToro Demo |
IC Markets Demo |
Roboforex Demo |
AvaTrade Demo |
XM Demo |
XTB Demo |
Pepperstone Demo |
FP Markets Demo |
Trading 212 Demo |
Plus500 Demo |
easyMarkets Demo |
Excluded Countries | ZA, ID, IR, KP, BE, CA, JP, SY, TR, IL, BY, AL, MD, MK, RS, GN, CD, SD, SA, ZW, ET, GH, TZ, LY, UG, ZM, BW, RW, TN, SO, NA, TG, SL, LR, GM, DJ, CI, PK, BN, TW, WS, NP, SG, VI, TM, TJ, UZ, LK, TT, HT, MM, BT, MH, MV, KZ, GD, FJ, BB, BM, BS, AG, AI, AW, LB, SV, PY, HN, GT, PR, NI, VG, AN, | AF, GN, SL, BW, IR, SY, MM, IQ, TG, KH, LS, YE, CI , LR, ZW, CU, LY, TZ, CG, ML, BO, LR, NE, AO, GM, NG, AG, GH, KR, KG, GN, SN, NA | US, JP | BE, BR, KP, NZ, TR, US, CA, SG | US, CA, IL, KR, IR, MM, CU, SD, SY | US, IN, PK, BD, NG , ID, BE, AU | AF, AS, AQ, AR, AM, AZ, BY, BE, BZ, BT, BA, BI, CM, CA, CF, TD, CG, CI, ER, GF, PF, GP, GU, GN, GW, GY, HT, VA, IR, IQ, JP, KZ, LB, LR, LY, ML, MQ, YT, MZ, MM, NZ, NI, KP, PS, PR, RE, KN, LC, VC, WS, SO, GS, KR, SS, SD, SR, SY, TJ, TN, TM, TC, US, UY, VU, VG, EH, YE, ZW | US, JP, NZ | US, CA | MY, BE, US, CA, CN, ID, PH, TG, NG, DO, MA, ZW, PR, TZ, TN, UG, BW, AO, AE | US, IL, BC, MB, QC, ON, AF, BY, BI, KH, KY, TD, KM, CG, CU, CD, GQ, ER, FJ, GN, GW, HT, IR, IQ, LA, LY, MZ, MM, NI, KP, PW, PA, RU, SO, SS, SD, SY, TT, TM, VU, VE, YE |
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results.
Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.
You can compare Inverse ETF Investment Platforms ratings, min deposits what the the broker offers, funding methods, platforms, spread types, customer support options, regulation and account types side by side.
We also have an indepth Top Inverse ETF Investment Platforms for 2022 article further below. You can see it now by clicking here
We have listed top Inverse ETF Investment Platforms below.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results.
Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.