If you require any more information or have any questions about our privacy policy, please feel free to contact us by email at admin@forexonlinelearning.com.

At www.forexonlinelearning.com, the privacy of our visitors is of extreme importance to us. This privacy policy document outlines the types of personal information is received and collected by www.forexonlinelearning.com and how it is used.

Log Files
Like many other Web sites, www.forexonlinelearning.com makes use of log files. The information inside the log files includes internet protocol ( IP ) addresses, type of browser, Internet Service Provider ( ISP ), date/time stamp, referring/exit pages, and number of clicks to analyze trends, administer the site, track user

What is an ETF?

An ETF is simply a fund of holdings that trades openly like stocks and has a ticker for easy buying and selling. All told, ETFs are simply mutual funds that trade on the stock exchanges but are generally 2-3 times cheaper than mutual funds.

Currency ETF Advantages

Exchange-traded funds have an interesting tax treatment due to the fact they are trusts. Currency ETFs generate very little capital gains each year as the fund issuers buy and sell the holdings routinely to rid capital gains. Very few ETFs pass on tax bills to investors.

The biggest advantage might just be the selection of currency ETF options. ETF options are American options, which are different from most forex options on the market. In this case, currency ETFs most certainly win out to forex futures, as well as the spot forex market.

Currency ETF Disadvantages

There is some downsides to currency ETFs and that is that there are a limited number of choices, they charge an annual fee, and they do not offer the extreme leverage that forex platforms allow. In fact, most currency exchange-traded funds (ETFs) aren’t leveraged at all, with the highest leverage offered being 3:1. 3:1 is well under the 50:1 that many forex brokers allow.

Foreign Currency Vs Dollar, Non-Leveraged

• CurrencyShares Australian Dollar Trust (FXA)
• CurrencyShares British Pound Sterling Trust (FXB)
• CurrencyShares Canadian Dollar Trust (FXC)
• CurrencyShares Euro Trust (FXE)
• CurrencyShares Japanese Yen Trust (FXY)
• CurrencyShares Mexican Peso Trust (FXM)
• CurrencyShares Russian Ruble Trust (XRU)
• CurrencyShares Swedish Krona Trust (FXS)
• CurrencyShares Swiss Franc Trust (FXF)
• WisdomTree Dreyfus Brazilian Real Fund (BZF)
• WisdomTree Dreyfus Chinese Yuan Fund (CYB)
• WisdomTree Dreyfus Emerging Currency Fund (CEW)
• WisdomTree Dreyfus Euro Fund (EU)
• WisdomTree Dreyfus Indian Rupee Fund (ICN)
• WisdomTree Dreyfus Japanese Yen Fund (JYF)
• WisdomTree Dreyfus New Zealand Dollar Fund (BNZ)
• WisdomTree Dreyfus South African Rand Fund (SZR)

Leveraged Currency ETFs – Long and Short

• ProShares Ultra Euro ETF (ULE)
• ProShares Ultra Yen ETF (YCL)
• ProShares UltraShort Euro ETF (EUO)
• ProShares UltraShort Yen ETF (YCS)

Are Forex ETFs Good for Traders?

Ultimately, you’ll have to decide if foreign currency etfs are right for your portfolio. While they do offer the benefit of buying and selling foreign currencies through a brokerage account, they aren’t always suitable for everyone.

Most investors would be wise to instead open forex trading account to buy and sell currencies without buying and selling ETFs. Unlike ETFs, which are assessed a flat commission fee equal to the amount charged for buy/sell orders of stock, foreign currencies are bought and sold with only a spread cost. To buy $2000 of Euro with the FXE ETF would cost you $20 round-trip on the buy and sell, whereas a purchase of $2000 of Euro through a forex account would cost roughly $.40 with a 2 pip spread. Something to think about, small money investors!