Best Indices Brokers
Richard Montana | October 21, 2022
Indices trading is a popular choice for active investors who would like to trade some of the biggest companies grouped together rather than individual stocks. Usually, each stock is given a weighted average in the index in relation to their market capitalisation which determines their level of influence over the index price. The stock index price is calculated using the live prices of the enlisted stocks, and any fluctuations affect the index price according to the weighting.
An index price usually reflects the average performance of individual stocks that make up that index. When the price of an index goes up, it means that most of its constituent stocks have increased in value compared to a minority that has dragged it lower. The variety of indices means that there is ample opportunity to look for trades in different categories. Indices trading can be suitable for scalping, day trading and swing trading.
Because there is no underlying physical asset to exchange when trading indices, most indices trading is done with financial derivatives like CFDs. When you trade indices CFDs, you can speculate on the price the price of an index falling or rising without needing to take ownership of the underlying asset. This makes indices trading accessible to anyone with an internet connection. You just need an account with an indices broker.
However, it can seem like a daunting task to find a suitable broker with so many brokers offering indices trading. That is why we have compiled this indices trading broker guide, to help you discover some of the best brokers for trading indices online. Having the best indices brokers according to our findings listed in one place, can help you save time when looking for the best indices broker for your own individual needs.
Top 10 Indices Brokers
ASIC, BaFin, CFTC, DFSA, FCA, FINMA, FMA, FSA, FSCA, JFSA, MAFF, MAS, METI, NFA
AvaTrade offers one of the largest ranges of stock indices of any online broker, covering markets around the globe. You could consider using AvaTrade for online index trading with competitive spreads, leveraged trading and reliably fast execution. There are numerous eBooks and guides on indices trading strategies as well as market analysis videos and regularly updated blog posts. They also offer scheduled weekly webinars conducted by top industry professionals and investors as well as real-time stock market indices in-chart technical analysis updates by the fantastic Trading Central. AvaTrade have everything you need to trade indices CFDs with precision.
IG are one of the best brokers overall, and this is no exception when it comes to trading indices. You can take your position on an impressive selection of over 80 indices with more index trading hours than their nearest competitors. This means you can find more opportunities and open or close positions when other traders cannot. You can even hedge your weekday positions with a weekend one on the same market. You can act on breaking news, macroeconomic events and earnings reports as they happen.
Pepperstone are one of the most established online brokers having been around since 2010 and are well regulated in multiple jurisdictions. With them, you can trade on the movement of major stock market indices around the world with no commission, low spreads and fast execution. You can also stay up to date with market news, analysis and insights on indices from the brokers inhouse team of expert analysts. It’s quick and easy to get started. You can apply in minutes with a simple application process and start trading indices right away.
IC Markets has a large range of indices from around the world to choose from, including the Australian S&P 200 Index, UK FTSE 100 Index, US E-mini S&P 500 and US DJIA Index. The world’s most popular indices are available on all IC Markets trading platforms, including the user-friendly MetaTrader platforms and the powerful cTrader. You can gain exposure to the basket of instruments making up the index in just one trade. The broker offers competitive spreads across all of their cash indices, including the E-mini S&P 500 Index from 0.4 points, the FTSE 100 Index from 1 point, Xetra DAX Index from 1 point and S&P 200 Index from 1 point. In addition to equity indices, IC Markets also offers Futures Indices: ICE Dollar Index and VIX Index.
At XM, you can trade over 20 stock indices (equity indices) with them on the popular and user-friendly MT4 and MT5 platforms with no commissions and no hidden fees. XM offer cash and futures index CFDs. The cash index CFDs are undated transactions that aim to replicate the cash price of the underlying index, and so they are adjusted for interest and dividends. Index futures CFDs expire on specific future dates and are cash-settled on the expiry date. You can buy and sell a good selection of indices with lots of handy trading tools to assist with your market analysis and managing your positions. They have intuitive yet powerful platforms for desktop and mobile devices.
XTB offer superior execution on a reliable, award-winning platform, being one of the largest stock exchange-listed Forex and CFD brokers in the world – dedicated to helping you at every stage of your trading journey.
Axi is an award winning, regulated online broker created by traders for traders. They offer tight spreads, low commissions, rapid trade execution speeds and a range of different markets. Advanced platforms and trading tools ensure an excellent trading experience.
FXTRADING.com is a regulated trading brokerage firm that provides traders around the globe with access to trade thousands of financial instruments with competitive trading conditions such as tight spreads, low fees, flexible payment options and easy to use platforms for multiple devices.
Trade Republic Bank GmbH is a German online broker founded in Munich and based in Berlin. As a credit institution, the company offers its customers the opportunity to trade listed securities and cryptocurrencies via a modern and intuitive mobile trading app.
FXOpen were one of the first online brokers and remain one of the most established today. They are a regulated ECN broker offering some of the best possible trading conditions with low spreads, fast trade execution speeds and competitive commissions.
Here you will find our best indices brokers, based on thousands of hours of extensive research, testing and analysis across hundreds of brokers. Upon conclusion of each of our broker reviews, we have assigned each broker with a rating.
Some of the most important factors that contribute towards a good broker for trading indices online have been considered including things such as the available indices, other financial instruments, platforms, apps, tools, spreads, execution, liquidity, fees, education, funding options, regulation, customer service and more.
Each of our best brokers for trading indices have undergone and passed our stringent broker reviews with flying colours, based on what we consider to be amongst the most important considerations when choosing a indices broker for trading online. These brokers are well-established within the online trading industry, providing top indices trading conditions to traders and investors of all experience levels.
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