Forex Brokers with Nasdaq 100 Trading

The Nasdaq is an electronic and global marketplace where traders and investors can buy and sell securities of the largest non-financial companies listed on the Nasdaq stock exchange. It is featured by most forex brokers who offer indices trading alongside currency trading. The best Nasdaq 100 broker for you will largely depend on your individual needs. You need to consider things such as the other financial instruments they offer, trading fees, funding options, regulation and other important features.

What is the Nasdaq 100?

Nasdaq 100 was launched on 31 January 1985 and stands for ‘National Association of Securities Dealers Automatic Quotations’. The Nasdaq 100 Index is a basket of the 100 largest, most actively traded US companies listed on the Nasdaq stock exchange. It is one of the largest stock exchanges in the world.

The index includes companies from various industries except for the financial industry, like commercial and investment banks. To be included on the list, companies must publicly publish quarterly and yearly reports and maintain a daily trading volume of 200,000 shares.

The Nasdaq provides an alternative to the New York Stock Exchange for companies that want to list their stocks on a U.S.-based stock exchange.

One of the main advantages for a company listing on the Nasdaq exchange are lower listing fees and the minimum requirements that are needed to qualify for a listing. The fact that the Nasdaq features all-electronic trading is also considered an advantage by many traders as well.

There are many forces that impact the Nasdaq 100 and the companies that are listed on it. Profit, trader sentiment, economic strength, as well as other factors, all have the potential to move the price of this modified market-capitalization weighted index.

The Nasdaq 100 Index is important because it plays a large role in the local and global economy. It advises society and investors of the top companies outside of the financial sector. For companies, it is an extremely well-known, well-trusted exchange for them to list their shares on.

What is the difference between Nasdaq and Nasdaq 100?

The Nasdaq Composite Index comprises of all Nasdaq domestic and international stocks listed on the Nasdaq Stock Market while the Nasdaq 100 index is a large-cap growth index and includes 100 of the top domestic and international non-financial companies based on market capitalization.

Both are market capitalization-weighted indexes that are made up of both US based and international stocks that represent the Nasdaq Global Select Market Composite. These stocks need to meet the strict liquidity requirements and need to adhere to corporate governance standards.

Every quarter the Nasdaq will be reviewed, and the composition of the Nasdaq 100 index weightings are adjusted according to its components by means of a proprietary algorithm, and if the composites do not meet pre-defined weight distribution requirements they are excluded.

Nasdaq 100 vs S&P 500

The Nasdaq 100 and S&P 500 are two of the most popular equity indexes in the US. A number of large-cap companies overlap and form constituents of both Nasdaq 100 and S&P 500 indices.

The Nasdaq 100 is heavily allocated towards top performing industries such as Technology, Consumer Services, and Health Care. However, some might consider it more volatile because of the high risk and growth-oriented companies.

The Standard and Poor’s 500, or simply the S&P 500, is a stock market index tracking the stock performance of 500 large companies listed on stock exchanges in the United States. It is one of the most commonly followed equity indices. The S&P 500 is considered a better reflection of the market’s performance across all sectors compared to the Nasdaq Composite and the Dow.

Traders who are looking to own a more diversified basket of stocks, might consider the S&P 500 to be the right fit for them. However, those who are comfortable with the slightly higher risk that investing in Nasdaq 100 based fund might generate could consider the Nasdaq 100 as an alternative.

Nasdaq 100 vs Dow Jones

Nasdaq mainly comprises companies in the technology sector or the companies in the growth stages while Dow Jones is more about the stock price and is hence dependent on the earnings.

Dow Jones Industrial Average represents the companies that are based only in the US and is a barometer of the US economy, its businesses, and the consumption trends in the country.

Nasdaq 100 is referred to as the tech index of the world. Taking away the financial stocks, Nasdaq 100 is a large-cap growth index and includes 100 of the top U.S. and international companies based on market capitalization.

Who are the best forex brokers for trading the Nasdaq 100?

A Nasdaq broker allows buying and selling of Nasdaq listed companies or the Nasdaq indices themselves through use of their online trading platforms. Buyers and sellers submit Nasdaq trades electronically with their Nasdaq brokers, and those trades are routed through hundreds of computers to the Nasdaq exchange.

There are plenty of different forex brokers to choose from if you are looking to trade the Nasdaq 100 alongside currency pairs. Choosing the right one for you will include considering factors such as minimum deposits, trading account types, trading fees, platforms, tools and educational resources. You can see a selection of our best Nasdaq 100 forex brokers in the table below.

Broker
Rating
Regulated
Min. Deposit
Founded
Max. Leverage
1.
AvaTrade Review

ADGM FRSA, ASIC, BVIFSC, CBI, FFAJ, FSCA, IIROC, JFSA

$100

2006

1:400

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.
2.
IG Review

ASIC, BaFin, CFTC, DFSA, FCA, FINMA, FMA, FSA, FSCA, JFSA, MAFF, MAS, METI, NFA

$250

1974

1:200

76% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
3.
Pepperstone Review

ASIC, BaFin, CMA, CySEC, DFSA, FCA, SCB

$200

2010

1:400

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.
4.
IC Markets Review

ASIC, CySEC, FSA, SCB

$200

2007

1:500

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.
5.
XM Group Review

ASIC, CySEC, DFSA, IFSC

$5

2009

1:888

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.
6.
City Index Review

ASIC, FCA, MAS

$100

1983

1:200

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.
7.
Forex.com Review

ASIC, CIMA, CFTC, FCA, FSA, IIROC, JFSA, NFA, SFC

$100

2001

1:50

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.
8.
Markets.com Review

ASIC, BVIFSC, CySEC, FCA, FSCA

$/£/€100

2008

1:300

79.90% of retail investor accounts lose money when trading CFDs with this provider.
9.
BlackBull Markets Review

FMA, FSPR

$200

2014

1:500

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.
10.
FP Markets Review

ASIC, CySEC, FSCA, SVGFSA

$100

2005

1:500

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.

Trading the Nasdaq 100 pros & cons

Pros

  • Trade basket of companies at once
  • Invest in global companies
  • Trusted and well-known exchange
  • Access to some of the top companies

Cons

  • Poor company performance can bring others down
  • Might not include all of the companies you are looking for
  • Some companies might not be that well known

Conclusion: do I trade a Nasdaq 100 broker?

That really is up to you and depends on what you are looking for. If you are looking to diversify your portfolio into something other than the forex market, then the Nasdaq 100 is a popular choice. It can give traders exposure to the US non-financial sector with lots of liquidity which can results in tight spreads and quick execution when using a good Nasdaq 100 broker. You can trade or invest in lots of companies without needing to individually analyse each. Just make sure you do plenty of research and make sure you are using a safe broker that can be trusted.


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