Which brokers offer sector and thematic ETF trading?
Verdict
- Pepperstone is our pick for sector or thematic trading as a UK trader: it lists 80+ ETF CFDs alongside more than 1,100 share CFDs and 20+ indices, so a theme can be traded through a fund, a basket of stocks or an index from one account.
- Pepperstone does not group its ETF list by sector or theme on the pages we checked, so search the platform for the exact fund before you open an account.
- CMC Markets also offers ETF CFDs (margin from 20%), and eToro lists real ETFs; we could not confirm Capital.com's ETF range from its own pages.
- For UK traders the wrapper matters as much as the fund: CFDs pay capital gains tax but no stamp duty, while Pepperstone says spread betting profits are exempt from CGT.
Sector ETFs follow one industry; thematic ETFs follow a trend that cuts across industries. Both let you trade an idea without picking single stocks. Here is who offers them, what we could and could not confirm, and how to build the same exposure when your fund is missing.
Where we would trade a sector or theme in the UK
Pepperstone is our top pick. Its UK markets page lists 80+ ETFs, its account table counts 95 ETF CFDs, and the same account holds share CFDs on US, UK, European, Australian and Hong Kong stocks plus 20+ stock indices. That breadth matters for theme trading: if the fund you want is not listed, you can build a basket from the companies inside it. US ETF CFDs cost $0.02 per share each side. The limit to know: Pepperstone does not publish its ETF list by sector or theme, so we cannot promise any particular fund is there.
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Sector ETF or thematic ETF: what you are trading
The labels describe how the fund chooses its holdings. Through a CFD you never own fund units: you take a leveraged position on the fund's price, with margin and overnight fees.
- Sector ETF: companies from one industry, usually tracking a sector index; traders use them to rotate between, say, energy and healthcare.
- Thematic ETF: companies linked to a trend such as robotics or clean energy, drawn from several industries, so holdings can be narrower and more concentrated.
- Either way, a CFD lets you go short as easily as long, which is how many traders hedge exposure to one part of the market.
Who offers ETF trading, from the brokers' own pages
Capital.com remains our second choice for UK traders overall, for its spread betting and guaranteed stop-losses; check its instrument list for your fund before you rely on it for ETFs.
| Broker | What we could confirm | UK regulator |
|---|---|---|
| Pepperstone | ETF CFDs: 80+ (markets page), 95 (account table); US ETFs $0.02 per share per side | FCA 684312 |
| CMC Markets | ETF CFDs, with margin from 20% on shares and ETFs | FCA 173730 |
| eToro | Real ETFs, named on its fee pages alongside real stocks and crypto | FCA 583263 |
| Capital.com | ETF range not confirmed in our data | FCA 793714 |
No fund for your theme? Build it at Pepperstone
If the ETF you want is not on the list, these are the building blocks Pepperstone does publish:
- A share basket: take the main holdings of a thematic fund from Pepperstone's 1,100+ share CFDs and size each leg yourself. UK shares cost 0.10% per side, US shares $0.02 per share.
- A broad index: NAS100, US500 or GER40 give market-wide exposure; NAS100 has a published minimum spread of 1 point on Razor.
- Out-of-hours US exposure: 100+ US share CFDs trade 24 hours a day, five days a week, through the -24 suffix (for example AAPL.US-24).
- Single-stock perpetual CFDs on names such as NVDA and TSLA exist, but Pepperstone offers perpetual CFDs in the UK to Professional clients only.
Tax and margin checks before you choose a fund
- CFD: no stamp duty, but CGT on profits, with losses available to offset, according to Pepperstone's UK account page.
- Spread bet: no CGT or stamp duty in Pepperstone's words, though tax depends on your circumstances and can change.
- Margin: expect 20%. CMC quotes 20% for ETFs and Pepperstone's UK retail table sets shares at 1:5, so a £5,000 position ties up about £1,000.
- Currency: a dollar-priced fund in a GBP account means converted profits; Pepperstone's UK accounts can also be held in USD, EUR or CHF.
Sources
Product ranges as each broker describes them.
Can I hold a thematic ETF in an ISA through Pepperstone?
No. Pepperstone's UK account types are spread betting, Standard and Razor, all leveraged products. For an ISA you need a share-dealing provider; Trading 212, for example, lists a Stocks ISA among its account types.
Are thematic ETF CFDs riskier than sector ones?
The leverage is the same. The difference is concentration: a narrow theme can hold only a few companies, so a sharp move in one or two of them moves the whole fund. Size the position on the margin you can afford to lose.
Can I trade sector ETFs outside US market hours at Pepperstone?
Pepperstone's 24-hour service covers 100+ US share CFDs, not ETFs as far as its pages show. For out-of-hours exposure, a basket of those 24-hour shares or an index CFD is the practical route.
CFDs and spread bets are leveraged and complex, and you can lose money quickly. Consider whether you understand how they work and can afford the high risk of losing your money. This is general information, not investment or tax advice; check each broker's current terms before opening an account.