How to Trade ETFs on DEGIRO?

Introduction of ETF

An ETF (Exchange-traded Fund) is a basket of securities including bonds, commodities, stocks, etc which you can buy or sell via a broker. It diversifies the mutual fund and provides the benefit of ease of trading stocks. ETFs do not work the same for all so a trader must evaluate them based on their merits and risk appetite.

ETF allows you to buy and sell the basket of assets without having to buy all the components individually. Though ETFs are designed in such a way that it tracks the value of an underlying asset or index, they trade at market-determined prices that differ from that asset.

An ETF provider keeps in mind all the assets including stocks, commodities, bonds, or currencies, and creates the basket of them with a special ticker. Investors buy shares of that basket like they do with the shares of a company. Traders trade in ETF throughout the day similar to a stock.

DEGIRO ETFs

Steps to Trade ETFs on DEGIRO:

To trade ETFs on DEGIRO, the 1st thing that you should do is log in to your account then search for the ETF in the search box. You can use both name or ticker to search for it. Then click on the name to land to the ETF page.

The ETF page will have all the current information about ETF and on the left, you will find the graph of the ETF price. On the right, you will see the current price information. On this page, you can also see your current position. You can also place an order outside the trading hours. Click on the buy or sell button to buy and sell new shares.

You also get fewer options for orders:

  1. Stop-loss Order: As and when your share reaches the loss price, the sell order is executed at the best possible price.
  2. Stop Limit Order: This is a little different than the stop-loss order. As your share reaches the loss price, a limit order is filled. It offers better control than the stop-loss order.
  3. Market Order: The order is executed at the current market price. A trader must be careful while placing such orders.
  4. Limit Order: Limit order is where you set a maximum price to buy a share or a minimum price to sell a share. The order is executed once your minimum or maximum is met.

DEGIRO also allows you to choose the duration of the order:

  1. Day Order: This order is valid until a trader executes it or until at the end.
  2. Good Till Cancel (GTC) Order: The order is valid as long as you want. However, it turns on the market like the US market allows orders lasting up to 90 days, and the European market permits orders for up to one year.

DEGIRO allows traders to make one operation free every month in one of the listed ETFs.

Conclusion

ETF is one of the simplest ways to invest in the stock market as it allows you to invest in several companies at one time. It reduces the risk of investing as the key indexes recover from the big drops. DEGIRO has made buying and selling of ETFs very hassle-free and seamless.