When you trade CFDs on ETFs through our platform, you don't buy or sell the underlying ETF. Instead, you're taking a position on whether you think the ETF price will go up or down.

With CFD trading, you buy or sell a number of units for a particular instrument. You gain for every point or unit that the price moves in your favour, and vice versa.

One of the advantages of CFD trading is that you only need to deposit a percentage of the full value of your position to open a trade, known as trading on leverage. Remember, trading ETFs on leverage can also amplify losses, so it's important to manage your risk.

As an example, let's say you want to put down a total of $1,000 on your ETF trade. Due to the leverage available with CFD trading (5:1 in this case), you would be able to enter this position with an initial outlay of $200, instead of $1,000. However, remember that your profits and losses are based on the full value of the trade ($1,000). As a retail client, you will never lose more than the amount in your account.

There are a number of costs to consider when trading on ETFs, including spread costs, holding costs (for trades held overnight) and guaranteed stop-loss order charges (if you use this risk-management tool). View our trading costs for more details.

ETF trading offers better value when compared with trading each individual constituent of an ETF. There’s no cost to opening an account with us, and no minimum deposit.

There's no cost when opening a live trading account with us. You can also view prices and use tools such as charts, Reuters news or Morningstar quantitative equity reports, free of charge. However, you'll need to deposit funds in your account to place a trade.

Yes, CMC Markets Canada Inc. is a member of the Canadian Investment Regulatory Organization (CIRO). CFDs are distributed in Canada by CMC Markets Canada Inc. acting as principal.

As a CMC client, your money is held separately from CMC Markets’ own money and is held on trust in segregated bank accounts with a Canadian bank. This account is opened and maintained in the name of CMC Markets Canada Inc. We do not use client money to hedge our positions or to meet the trading obligations of other customers. This offers you financial security and you can rest assured that your money with us is protected.

Our income primarily comes from our spreads, while other fees, such as overnight holding costs, make a minor contribution to our overall revenue.