1. Choose a broker with reasonable commission.
You need to choose a brokerage firm to buy ETF. When choosing a brokerage firm, we should consider the commission and expenses. Some brokers offer low transaction fees, but may charge other fees, such as account maintenance fees or transaction stamp duty fees. Therefore, you need to read the broker's agreement and fee list carefully.
2. Identify trading opportunities
The price of ETF will fluctuate with the rise and fall of the market. Therefore, it is very important to determine the timing of the transaction. You can decide the time to buy ETF according to the market situation or your personal investment strategy.
3. Consider the order type
When buying an ETF, you need to consider the order type. If you want to buy an ETF right away, you can choose the market price list. If you want to buy something at a specific price, you can choose a limit order.
4. Understand the composition of ETF.
Before buying an ETF, you need to know the types of stocks, bonds or commodities it invests in. Because of the different composition of ETF, the risks and benefits will be different. If you are considering buying an ETF, you should carefully check its composition and historical performance.
5. Consider the stability of ETF.
The stability of ETF is very important. Some ETFs may involve high-risk industries, such as emerging technologies or biotechnology. Such ETFs are highly volatile and may be risky. Therefore, before buying ETF, we need to consider its stability.
6. Understand the trading time and liquidity of ETF.
The trading hours of ETFs are very important, because ETFs can only be traded on exchanges. So, if you want to trade when the market opens, please know the opening and closing times of the exchange. In addition, we must ensure the high liquidity of ETF to ensure that it can be traded when needed.