We found 11 online brokers that are appropriate for Trading Leveraged ETF Investment Platforms.
Love to hate leveraged ETF risk as many investment managers, analysts and traders do? Here's a simple suggestion. ETFs may not work as expected and these may also not reciprocate the associated terms like ultra short or ultra long.
Many reach a confused state when the ETF fails to perform as it is believed it should perform. We have compiled a few factors to consider while choosing an ETF and understanding leveraged ETF risk:
This is one of the most perfect questions to answer here. It is important to know why sometimes the leveraged ETFs work and sometimes they really don't work.
Most of the leveraged ETFs mention in their descriptions that they give twice or three times the return. Occasionally the promises come true. It is important to note here that the leveraged ETFs boost results by using swap combinations and other derivatives instead of borrowing money.
The popular ProShares Ultra S&P 500 ETF (ticker: SSO) promises to offer two times the return of the S&P 500. This means if the return of the S&P 500 is 1 percent, it would provide a return of 2 percent. Now, let us dig deeper with actual examples and find out the facts. The S&P 500 rose 1.8 percent in the first half of 2009 and the ETF was expected to go up by 3.6 percent, but in reality, it dropped to $26.14 from $26.27. This means the ETF was flat instead of providing a return of about 3.6 percent.
There is one more issue. The counterpart of SSO, ProShares Ultra Short S&P 500 (ticker: SDS), promises double the return in the opposite direction of the S&P 500. The S&P dropped about 30 percent over the period of 12 months ending 30th June 2009. This means the SSO would drop by about 60 percent, but the SDS dropped by 20 percent even though it was expected to rise by about 60 percent.
This is another good question that needs to be answered. By now we have understood that the ETFs are not guaranteed to work as expected. The ETFs are so designed that can track the movements of a corresponding index on a regular basis. It is a simple rationalisation that if tracked regularly, it would perform as expected. However, there are some reasons the ETFs don't work sometimes. The expense ratio is one of the primary reasons. Most of the leveraged ETFs have an approximately 0.95 percent expense ratio. A high expense ratio means fees collected by the management. This thereafter eats away a good percentage of the profits and hence can emphasise losses.
Many may not know that the leveraged ETFs are rebalanced on a daily basis as resetting of leverage is required. It is important to note that the greatest enemy is volatility though it may sound strange to many, as traders believe it to be a friend.
In leveraged ETFs volatility crushes traders due to the compounding effects of the daily returns that can zero up the math. It may turn up drastically. Suppose S&P 500 drops 5 percent, SSO should also drop by 10 percent. If the value of a unit of share is $10, the SSO should drop by $1 on the first day. Now, if the S&P 500 rises by 5 percent on the second day, the return of the S&P 500 over the period of two days would be -0.25 percent. If an investor is not aware of the calculation, he may believe the SSO should drop by 0.5 percent. The rise of 10 percent on the second day increases the price from $9 to $9.90. The SSO will be down by 1 percent. This is the reality and it is typically not understood.
So, it can be said that if benchmark volatility is higher, the leveraged ETF will lose over time. If the movement of a leveraged ETF is within 10 points in every two days, more than 50 percent loss of investment can be witnessed in a period of 60 days.
In this article titled Leveraged ETF Risk, we managed to explain a couple of significant factors which need to be considered when buying a leveraged ETF. Investors need to educate themselves and know the tool properly before risking capital. It is always said that a serious investor climbs the ladder of success faster.
We have conducted extensive research and analysis on over multiple data points on Leveraged ETF Risk to present you with a comprehensive guide that can help you find the most suitable Leveraged ETF Risk. Below we shortlist what we think are the best Leveraged ETF Investment Platforms after careful consideration and evaluation. We hope this list will assist you in making an informed decision when researching Leveraged ETF Risk.
Selecting a reliable and reputable online Leveraged ETF Investment Platforms trading brokerage involves assessing their track record, regulatory status, customer support, processing times, international presence, and language capabilities. Considering these factors, you can make an informed decision and trade Leveraged ETF Investment Platforms more confidently.
Selecting the right online Leveraged ETF Investment Platforms trading brokerage requires careful consideration of several critical factors. Here are some essential points to keep in mind:
Our team have listed brokers that match your criteria for you below. All brokerage data has been summarised into a comparison table. Scroll down.
When choosing a broker for Leveraged ETF Investment Platforms trading, it's essential to compare the different options available to you. Our Leveraged ETF Investment Platforms brokerage comparison table below allows you to compare several important features side by side, making it easier to make an informed choice.
By comparing these essential features, you can choose a Leveraged ETF Investment Platforms broker that best suits your needs and preferences for Leveraged ETF Investment Platforms. Our Leveraged ETF Investment Platforms broker comparison table simplifies the process, allowing you to make a more informed decision.
Here are the top Leveraged ETF Investment Platforms.
Compare Leveraged ETF Investment Platforms brokers for min deposits, funding, used by, benefits, account types, platforms, and support levels. When searching for a Leveraged ETF Investment Platforms broker, it's crucial to compare several factors to choose the right one for your Leveraged ETF Investment Platforms needs. Our comparison tool allows you to compare the essential features side by side.
All brokers below are Leveraged ETF Investment Platforms. Learn more about what they offer below.
You can scroll left and right on the comparison table below to see more Leveraged ETF Investment Platforms that accept Leveraged ETF Investment Platforms clients.
Broker | eToro | XTB | XM | Pepperstone | AvaTrade | FP Markets | SpreadEx | Plus500 | Admiral | Trading212 | IB |
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Regulation | FCA (Financial Conduct Authority) eToro (UK) Ltd (FCA reference 583263), eToro (Europe) Ltd CySEC (Cyprus Securities Exchange Commission), ASIC (Australian Securities and Investments Commission) eToro AUS Capital Limited ASIC license 491139, CySec (Cyprus Securities and Exchange Commission under the license 109/10), FSAS (Financial Services Authority Seychelles) eToro (Seychelles) Ltd license SD076 | FCA (Financial Conduct Authority reference 522157), CySEC (Cyprus Securities and Exchange Commission reference 169/12), FSCA (Financial Sector Conduct Authority), XTB AFRICA (PTY) LTD licensed to operate in South Africa, KPWiG (Polish Securities and Exchange Commission), DFSA (Dubai Financial Services Authority), DIFC (Dubai International Financial Center), CNMV (Comisión Nacional del Mercado de Valores), KNF (Komisja Nadzoru Finansowego), IFSC (Belize International Financial Services Commission license number IFSC/60/413/TS/19) | Financial Services Commission (FSC), Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC) | 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), 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), Central Bank of Ireland | Australian Securities and Investments Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC), FSCA (FSP Number 50926), Capital Markets Authority (CMA), Securities Commission of the Bahamas (SCB) | Financial Conduct Authority (FCA) | 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) FSA, 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, Plus500EE AS is authorised and regulated by the Estonian Financial Supervision and Resolution Authority (Licence No. 4.1-1/18), Plus500AE Ltd is authorised and regulated by the Dubai Financial Services Authority (F005651) DFSA | Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC) | Financial Conduct Authority (FCA) Firm reference number 609146, Financial Supervision Commission (FSC), Cyprus Securities and Exchange Commission (CySec) License number 398/21 | Financial Conduct Authority (FCA) |
Min Deposit | 100 | No minimum deposit | 5 | 200 | 100 | 100 | 1 | 100 | 200 | 1 | 10000 |
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Used By | 30,000,000+ | 1,000,000+ | 10,000,000+ | 400,000+ | 300,000+ | 10,000+ | 10,000+ | 24,000,000+ | 10,000+ | 15,000,000+ | 10,000+ |
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Platforms | Web Trader, Tablet & Mobile apps | MT4, Mirror Trader, Web Trader, Tablet & Mobile apps | MT4, MT5, Mac, Web Trader, Tablet & Mobile apps | MT4, MT5, TradingView, DupliTrade, myFXbook, Mac, Web Trader, cTrader, Tablet & Mobile apps | Web Trader, MT4, MT5, AvaTradeGo, AvaOptions, DupliTrade, ZuluTrade, Mobile Apps, ZuluTrade, DupliTrade, MQL5 | MT4, MT5, cTrader, IRESS, Mac, Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | MT4, MT5, Mac, Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | Web Trader, NinjaTrader, Tablet & Mobile apps |
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Risk Warning | 76% of retail investor accounts lose money when trading CFDs with this provider. | 76-85% 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. | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.89% 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 | 71% of retail investor accounts lose money when trading CFDs with this provider | Losses can exceed deposits | Losses can exceed deposits | 82% 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. | Losses can exceed deposits | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% 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. | Losses can exceed deposits |
Demo |
eToro Demo |
XTB Demo |
XM Demo |
Pepperstone Demo |
AvaTrade Demo |
FP Markets Demo |
SpreadEx Demo |
Plus500 Demo |
Admiral Markets Demo |
Trading 212 Demo |
Interactive Brokers 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, MG, MK, KZ, GD, FJ, PT, BB, BM, BS, AG, AI, AW, AX, LB, SV, PY, HN, GT, PR, NI, VG, AN, CN, BZ, DZ, MY, KH, PH, VN, EG, MN, MO, UA, JO, KR, | US, IN, PK, BD, NG , ID, BE, AU | US, CA, IL, IR | AF, AS, AQ, 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, VU, VG, EH, ES, YE, ZW, ET | BE, BR, KP, NZ, TR, US, CA, SG | US, JP, NZ | US, TR | MY, BE, CA, CN, ID, PH, TG, NG, DO, MA, ZW, PR, TZ, TN, UG, BW, AO | US, CA, JP, SG, MY, JM, IR, TR | US, CA | US |
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. 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.
Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.
Copy trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission.
Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Don't invest unless you're prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.
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 Leveraged 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 Leveraged ETF Investment Platforms for 2024 article further below. You can see it now by clicking here
We have listed top Leveraged 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. 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.
Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.
Copy trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission.
Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Don't invest unless you're prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.
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.