Xtrade group, a global online forex trading provider which features sister companies in Australia, Belize and Cyprus, has expanded its assets portfolio to include Exchange Traded Funds, or ETFs. This is the first time that Xtrade delves into the ETF space which is important to the firm’s long-term strategy as investors rotate in and out of various assets based on market sentiment.
The decision to add its newest product was initially due to client demand, noted the company, but it added that ETFs typically have higher daily liquidity and lower fees compared to mutual funds, making them an attractive alternative for individual investors.
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An ETF, or exchange traded fund, is a marketable security that tracks an index, commodity, bonds, or a basket of assets like an index fund. ETFs differ from mutual funds, in which the manager generally attempts to beat the market’s performance, which often comes with higher fees and taxes. The newly launched ETFs, meanwhile, target investors’ competing demands for higher-yielding instruments and lower margin requirements.
Xtrade made several headlines last month as it tapped the four-time Golden Boot winner Cristiano Ronaldo for an ambassadorial role for the firm. Through the partnership, the firm hopes to promote XTrade’s brand and expand its reach in the football industry. Earlier in July, Xtrade Russia Ltd, a subsidiary of Xtrade group, has received membership into Russia’s self-regulatory body, National Association of Forex Dealers (NAFD).
Last time Finance Magnates reported about Xtrade was yesterday when the Cyprus Securities and Exchange Commission (CySEC) imposed a fine of €225,000 on XFR Financial Ltd, owner of forex brokers XForex and XTrade, for a series of non-compliance issues in connection with the provision of trading services.
In an explanatory note, Paul Sirani, XTrade’s Chief Markets Analyst, said: “Our traders are excited about ETFs, which are cost-effective, transparent, and highly popular among traders who want to combine many trades into one simple transaction. I believe that management’s decision to offer trading on ETFs is a major development in retail online trading, as these financial instruments were previously available only to large institutional participants.”