What is an ETF?

ETF stands for „Exchange Traded Fund“. ETFs are index funds, which means they replicate the composition of an index 1:1. If the index rises, the value of the ETF also rises; if the index falls, the value of the ETF also falls. ETFs are managed purely passively. This means that the management does not actively try to beat the market, but simply tracks it.
The aim of an ETF is to generate the market performance minus the fund fees.
ETFs are now available for almost all asset classes:
Equities, commodities, bonds, money market, derivatives.
In addition, there are ETFs that pursue certain strategies, bet on falling prices or specialise in certain sectors and regions. Especially in the case of strategy ETFs and short ETFs (betting on falling prices), the question arises: Is this still passive or is a strategy already being actively pursued here? But other ETFs should also be treated with caution. The ETF boom of the last few years has produced some strange blossoms.

There are ETF Websites like IndexUniverse and read more about ETFs and follow for more:

Since when have ETFs existed?

The idea of an exchange-traded fund was born in the USA in the early 1970s. But it took until 1993 for the first ETF to be approved. The „Standard & Poor’s Depositary Receipt“ (SPDR for short, colloquially known as Spider), was launched on the market by the asset management company State Street Global Advisors and was a complete success. This success encouraged other providers to also launch ETFs, first in the USA and since 2000 also in Europe. In the last 14 years, ETFs have multiplied like the proverbial rabbits. Every provider wants a piece of the pie and throws the umpteenth me-too fund or a dubious niche ETF onto the market. Meanwhile, comparison platforms on the internet list almost 1,000 ETFs. Nobody needs them!
For you as an investor, this means: take a close look, study the small print and don’t fall for every slogan. ETFs still make you rich, you just have to choose the right ones. More on this later.

What distinguishes an ETF from a „normal“ fund?

Classically, you buy and sell fund shares from the fund company that also manages them. Once a day, the company creates a buying and a selling price. Investors can buy or sell new shares at these prices. Investors either buy directly from the fund company or process the transaction through a third party (bank, fund shop, broker). An issue surcharge of up to 5% is often due.

ETFs, on the other hand, are traded on the stock exchange like shares and bonds. You can therefore buy or sell them directly on the stock exchange – without going through an intermediary or the fund company. ETFs have no front-end load. The trading platforms earn money on the so-called spread, the difference between the buying and selling price.

What are the problems with ETFs?

The sore points of an ETF are called replication method, tracking error, tracking difference, securities lending and intransparency.

Replication method – what is that?
First of all, the index is only a theoretical construct, a plan, a „this is how it could be done“. Only replication turns an idea into a saleable product. There are three replication methods:

Pattern Trader Fees & Costs

Pattern Trader charges a commission of about 0.1% on cryptocurrency trading, as well asETF News Icon20 other fees, for example, a 15% commission on margin trading profits, a 0.1% commission on bank transfers, and a high withdrawal fee for most cryptocurrencies available on the platform.

Taken together, all these fees do not make Pattern Trader one of the most competitive brokers for cryptocurrency trading, especially considering that other platforms like eToro do not charge fees for buying and selling assets.

Pattern Trader experiences and user opinions in Germany.

Pattern Trader users are quite satisfied with the platform, especially lately, as the Pattern Trader trading environment works really well and offers rates that are within the realm of possibility. However, some of them express doubts about the suitability of a platform that has had so many problems, especially after the recent scandal about the use of Tether, which was very opaque.

Is Pattern Trader a scam?

Pattern Trader is a reputable platform for trading cryptocurrencies. Therefore, it is not a scam. However, it must also be said that Pattern Trader has been involved in controversies and has been a negative player in the cryptocurrency market for several years. In addition to the hacks in 2015 and 2016 – the latter, as mentioned, is considered one of the largest in history – there has been another recent controversy over the possibly illegitimate use of its users‘ Tether. As a result, Pattern Trader has lost the trust of most investors in the cryptocurrency market.

Pattern Trader Test Conclusion – Our Evaluation and Recommendation.

Pattern Trader’s trading platform has improved significantly in recent years and ETF news icon18 now offers its users a trading environment where it is quite easy to identify the best opportunities on the market. Moreover, the platform offers the possibility to buy more than 40 different cryptocurrencies at quite affordable rates.

However, Pattern Trader’s rates are not among the best on the market, nor is its reputation among investors good. The provider cannot escape the fact that it was hacked twice in 2015 and 2016. Moreover, it is once again involved in a controversy over the opaque use of Tether on its platform.

For all these reasons, Pattern Trader is still far behind eToro as a trading platform for cryptocurrencies. eToro not only offers more competitive rates and no commissions for cryptocurrency trading, but also access to instruments such as stocks, exchange-traded funds, indices, foreign currencies, and commodities. Moreover, this provider has a world-leading social trading service. And while Pattern Trader has been steadily losing users over the past few years, eToro has continued to grow and is now used by over 20 million investors, establishing itself as the best and most comprehensive online broker in the world.