Following Finra warnings to investors and advisers on leveraged and inverse ETFs in 2009, discount brokers such as Charles Schwab Corp. in San Francisco and Boston-based Fidelity Investments, which cater to do-it-yourself investors, made it more difficult for self-directed investors to trade those products.

‘Educated Investors’

Users of Fidelity’s online trading platform can’t find leveraged and inverse ETFs on the default list of products. If they insist on trading them, they must define themselves as “very aggressive” investors and acknowledge extra warnings about the products’ risks. They also are presented with additional education material.

Customers don’t hit similar hurdles with ETFs focused on illiquid markets. The platform also doesn’t provide current premium and discount data when customers look up individual ETFs. Premiums and discounts listed are from the previous day’s market close.

The firm makes a significant amount of educational material, including tutorials on how to trade effectively, available to clients, Stephen Austin, a spokesman, said in an interview. He said clients also can always get live assistance on the phone or online from Fidelity advisers.

“We’re committed to keeping our investors educated and continuously enhance the research available to them,” Austin said. “In the coming months they’ll see further enhancements to research on ETF structure.”

‘Complex’ Trades

While Schwab doesn’t raise alerts when customers trade, it has “a robust ETF education offering,” said Erin Montgomery, a spokeswoman. Schwab’s lineup of commission-free ETFs is designed to help investors build long-term holdings, she said.

“All of the ETFs are from well-established providers and we took a close look at AUM, spreads and tracking error when selecting ETFs for the program,” she said. “In addition, Schwab’s trading desk supports advisers and investors with execution of large or more complex ETF trades.”

Cokie Berenyi, whose firm, Red Triangle LLC, in Charleston, South Carolina, manages $40 million, said proper education may be more important than legally mandated fund disclosures, which typically are unhelpful.