HOW-TO Trade brCFD Stocks and ETFs
To trade CFD Stocks and ETFs, you are required to complete the W-8BEN form that is available in the Client Area.
To complete the W-8BEN Form follow these simple steps:
- Login to the Client Area.
- Click on the drop-down menu where your name is displayed.
- From the drop-down menu select ‘W-8BEN Form’.
- Complete the form and sign it (the name and signature of the account holder must match) and press ‘Submit’.
Once the form is successfully submitted, a pop-up window will notify you that you can trade stocks and you will view all the stocks that are available on the MT5 platform. When you next login to the MT5 trading platform, make sure to right-click in the ‘Market Watch’ window and select ‘Show All’ in order to be able to view all available CFD Stocks and ETFs.
*Corporate clients are required to complete the W-8BEN-E form available here and upload it through Document management in Client Area.
What are Stocks?
Stocks represent an asset class that allows an investor to own a part of a company and even have voting rights depending on the type of shares issued. Shareholders receive part of the company’s profits based on the amount of shares they hold.
Stocks are usually sold on the stock market. Companies go public and issue stocks as a means to build capital and grow their business. Investors on the other hand, buy stocks to diversify their portfolio and seek to gain profit from stock price movements.
By trading CFDs on Stocks with World MarketFx, you may go long or short on a range of individual stocks of renowned companies including Apple, Amazon, Goldman Sachs, Nike and McDonald’s and take advantage of market movement without owning the underlying asset.
What are Stocks ETFs?
ETFs (Exchange-Traded Funds) are investment funds which track the performance of multiple stocks or other financial products. That means that by trading CFD ETFs you can get immediate exposure to more stocks or even multiple sectors.
Many investors trade ETFs to get a better diversification, as trading baskets of different stocks doesn’t expose them to one single stock or sector, but to different stocks with different performances.
Some of the most popular ETFs include the SPY (SPDR S&P 500 ETF Trust), the QQQ (Invesco QQQ Trust, Series 1), and the TQQQ (ProShares UltraPro QQQ ETF). The first one is based on the S&P500 Index, while the other two are based on the Nasdaq-100 Index.