There are many types of funds, and there are many markets that can be traded. However, investors always need to think twice before they decide to buy a fund. Nowadays, as far as etf funds are concerned, investors can choose to trade on or off the market. So, what's the difference between OTC etf and OTC etf?

What is the difference between OTC etf and OTC etf?

1 has different subscription methods. Buying etf funds on the market requires opening a stock account, but investors do not need to open a stock and securities account when buying through off-site means.

Trading places is different. On-exchange etf investors can trade directly in the secondary market, and off-exchange etf funds can apply for redemption through fund companies, banks and other consignment agencies.

3 different trading methods. On-market ETFs adopt T+ 1 trading method, and the funds bought on the same day need to wait until the next trading day to be sold. Generally, Etf funds in the market can only be sold after the fund share is confirmed.

Generally speaking, the difference between on-site etf and off-site etf funds is mainly in the way of subscription, trading place and trading method, and investors need to pay attention before buying. In addition, etf funds in the market generally only charge trading commissions. OTC etf funds can charge a certain subscription fee, management fee, custody fee and sales service fee.