Exchange Traded Funds (ETF)
Exchange Traded Funds (ETF)
BenchMark offers online trading on ETFs. Exchange Traded Funds (ETF) are offered as CFDs in the MetaTrader 5 platform. Trade without minimum commissions and at real-time prices without subscription requirement.
Online trading of ETFs gives the opportunity for trading both directions - rising or falling markets - and because CFDs are traded on margin (leverage), transactions can be made without the need to pay their full value.
Online ETF trading can be tested with a free demo account only on the MetaTrader 5.
| Min. trading volume | from 1 share (1 lot) |
| Margin requirement | 20% |
| Commissions | $0.05/share |
| Min. commissions | No min. commissions |
| Automatic execution | YES |
| Hedging without margin | YES |
| Long/Short positions | YES |
| Stop/Limit orders restrictions | NO |
| Expert Advisors | YES, without restrictions |
| Real-time quotes | YES, completely free |
This table shows trading conditions for the MetaTrader platform. Margin Pro column shows the margin applicable to professional clients. The minimum trading volume is 1 share (1 lot).
| Name | Code |
Currency |
Margin Pro | Margin retail | Commission¹ |
| САЩ | |||||
|
iShares Russel 2000 ETF |
#IWM |
USD | 10% | 20% | 0.05/share |
|
iShares 20-Year Treasury Bond ETF |
#TLT |
USD | 10% | 20% | 0.05/share |
|
Global X Uranium ETF |
#URA |
USD | 10% | 20% | 0.05/share |
|
ProShares Ultra Pro QQQ |
#TQQQ |
USD | 10% | 20% | 0.05/share |
|
Global X Lithium&Battery Tech ETF |
#LIT |
USD | 10% | 20% |
0.05/share |
¹ Commission is payed for every deal made - for opening and closing a position. The commission charged is in the account currency.
Trading hours
The trading hours depend on the working hours of the exchange, on which it is being offered.
| Exchange | Working hours (GMT) |
| US | 14:30 - 21:00 |
Quotes in real time
The quotes offered in MetaTrader 5 platform are in real time and they are completely free for clients of Benchmark.
Interest on CFD on ETFs
For positions in CFDs on ETFs, left open for each new working day, an interest is charged, depending on the type of the position. The interest is charged from the account if the client leaves a position open for the next exchange session:
- Regarding long position in CFD, an interest is owed, based on Inter-Bank Offer Rate for the currency in which the fund is traded, plus markup of around 2.5%;
- Regarding short position in CFD, an interest is received*, based on Inter-Bank Offer Rate for the currency in which the fund is traded, minus markup of around 2.5%.
If you open and close a position in CFD on ETF in the same trading session, the position is not subjected to the aforementioned debits.
*If Inter-Bank Offer Rate for the currency, in which the CFD on ETF is traded, minus the 2.5% markup, gives a negative value, interest for short CFD positions will be charged.
Dividends and other corporate actions when trading CFD on ETFs
Dividends are received from a client account, if he has long position in ETF CFD where the issuer of the fund pays dividend. The dividend payment is made on the "Ex dividend" date. Clients with short positions in ETF CFDs with a dividend payment, have to pay this dividend and the required amount will be debited from their accounts.
Accrual of dividends on CFD on ETFs(ETF)
If you have an opened position in ETF CFD where the issuer of the ETF pays dividends, at the beginning of the trading day that coincides with the "Ex dividend" date, a dividend will be applied to your account. If you have long position, you will receive the net amount of the dividend. If you have short position, you will be charged the gross amount of the dividend. The exact amount of the dividend is shown in Swap column in the platform, together with the daily interest. The actual value that will be credited/debited at the begging of the "Ex dividend" date, will be available in the MetaTrader 5 platform after 17:00 GMT on the previous day.
The accrual of dividends in CFDs on ETF in the MetaTrader 5 platform is perform as follows:
- For long positions - The Net amount of the dividend is credited to the client's account and is added in the Swap column. This amount is equal to the dividend that the issuer has payed, reduced with the tax due. Please notice that the tax on dividends might be different for every country;
- For short position - The Gross amount of the dividend is debited from the client's account and is added in the Swap column.
On the "Ex dividend" date, the ETF starts trading without the right for receiving a dividend. This circumstance is reflected in the price of the respective share.
Issue of Rights on CFD on ETFs
If an issuer announces ETF rights, a client holding CFD on ETF will not be able to exercise any rights in the MetaTrader 5 platform.
Verification of the daily applied dividends and swap rates
The applied daily swap rates for both long and short position in CFD on ETFs can be checked on this link.
Note: : Swap rates, which will be applied for the next day, are updated in the calculator after 16:00 GMT.
The rates are calculated at the beginning of the next business day (17:00 New York time). When opening and closing a position within the same business day, the position will not be swaped.
