Best Benchmark Index Guide
Benchmark Index
Regular traders will usually come across the terms S&P 500, Russell 2000 or the Dow Jones Industrial Average. These indexes are all a benchmark index for their specific collection of companies and organisations.
The financial industry uses the benchmark index extensively. The benchmark index is simply a term for a group of financial securities used to assess the performance of the group against other assets on the financial market.
With the help of the benchmark index, investors can easily evaluate their investment performance irrespective of characters and types like small cap, mid cap and large cap.
Benchmark Index and Fund Management
The Benchmark index is important in the investment industry. It helps investment managers as well as investors to understand the market performance before making an investment. They select the type of mutual funds, bonds and securities before investing.
In the benchmark index basically two strategies are involved - smart beta funds and passive investment funds. However, with innovations in the investment markets, the benchmark index has seen some changes.
Investors utilize the help of more a passive investment fund strategy to gain exposure. Benchmark indexes help detect good small cap, middle cap and large cap investments.
Benchmark Index Value
There is an ongoing debate involving the number of innovations catering around actual benchmark, thematic investing and fundamental investing.
Beating benchmarks is not easy and it is not a realistic goal. Benchmark Indexes need constant monitoring. Recently artificial intelligence is used.
Benchmark Index Error
If traders choose the wrong benchmark it is known as benchmark error. The move may lead to large dispersions.
It is sometimes confused with a tracking error even though distinctly different attributes are measured by the two.
Investors can avoid the error by using the appropriate market or benchmark in their calculations while creating a market portfolio.
Let’s take an example.
If a trader is seeking to create an American stocks portfolio using a capital asset pricing model, the person may not use the Japanese index Nikkei. Here, Nasdaq needs to be used.
Active Management
With more and more benchmark replication strategies the active management faces more challenges. Traders too come across challenges while seeking active managers.
S&P Index 500
S&P Index 500 is the most used benchmark and it helps in determining the overall economy of the state. It is limited to large caps and composed of 500 large-cap companies across several sectors.
However, it is alleged the index is mostly weighted toward larger companies and sharp price movement in any one company influence the overall index.
S&P Index 500 Verdict
The Benchmark index is like an important tool for traders who want to understand a market before investing. Investment managers and traders are benef ited as they can understand the market performance.
We've collected thousands of datapoints and written a guide to help you find the best Benchmark Index for you. We hope this guide helps you find a reputable broker that matches what you need. We list the what we think are the best benchmark index below. You can go straight to the broker list here.
Reputable Benchmark Index Checklist
There are a number of important factors to consider when picking an online Benchmark Index trading brokerage.
- Check your Benchmark Index has a history of at least 2 years.
- Check your Benchmark Index has a reasonable sized customer support of at least 15.
- Does the Benchmark Index fall under regulation from a jurisdiction that can hold a broker responsible for its misgivings; or at best play an arbitration role in case of bigger disputes.
- Check your Benchmark Index has the ability to get deposits and withdrawals processed within 2 to 3 days. This is important when withdrawing funds.
- Does your Benchmark Index have an international presence in multiple countries. This includes local seminar presentations and training.
- Make sure your Benchmark Index can hire people from various locations in the world who can better communicate in your local language.
Our team have listed brokers that match your criteria for you below. All brokerage data has been summarised into a comparison table. Scroll down.
Our brokerage comparison table below allows you to compare the below features for brokers offering Benchmark Index.
We compare these features to make it easier for you to make a more informed choice.
- Minimum deposit to open an account.
- Available funding methods for the below Benchmark Index.
- What you are able to trade with each brokerage.
- Trading Platforms offered by these brokers.
- Spread type (if applicable) for each brokerage.
- Customer support levels offered.
- We show if each brokerage offers Micro, Standard, VIP and Islamic accounts.
Top 15 Benchmark Index of 2020 compared
Here are the top Benchmark Index.
Compare Benchmark Index min deposits, regulation, headquarters, benefits, funding methods and fees side by side.
All brokers below are benchmark index. Learn more about what they offer below.
You can scroll left and right on the comparison table below to see more benchmark index that accept benchmark index clients
| Broker |
eToro
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FP Markets
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Trading212
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XTB
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IC Markets
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Pepperstone
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Plus500
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FXPrimus
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EasyMarkets
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AvaTrade
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| Rating | ||||||||||
| Regulation | Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC) | Australian Securities and Investment Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC) | Financial Conduct Authority (FCA), Financial Supervision Commission (FSC) | Financial Conduct Authority (FCA), FCA number FRN 522157, Cyprus Securities and Exchange Commission (CySEC), CySEC Licence Number: 169/12, Comisión Nacional del Mercado de Valores, Komisja Nadzoru Finansowego | Australian Securities and Investment Commission (ASIC), Financial Services Authority (FSA), Cyprus Securities and Exchange Commission (CySEC) | Financial Conduct Authority (FCA), Australian Securities and Investment Commission (ASIC), Dubai Financial Services Authority (DFSA), Pepperstone Markets Limited is incorporated in The Bahamas (number 177174 B), Licensed by the Securities Commission of The Bahamas (SCB) number SIA-F217 | Plus500UK Ltd authorized & regulated by the FCA (#509909), Plus500CY Ltd authorized & regulated by CySEC (#250/14), Plus500AU Pty Ltd (ACN 153301681), ASIC in Australia AFSL #417727, FMA in New Zealand, FSP #486026 and Authorised Financial Services Provider in South Africa FSP #47546 | Cyprus Securities and Exchange Commission (CySEC), The markets in financial instruments directive (MiFID) | Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investment Commission (ASIC) | Central Bank of Ireland, Australian Securities and Investment Commission (ASIC), Financial Services Authority (FSA), Financial Stability Board (FSB), British Virgin Islands Financial Services Commission (BVI) |
| Min Deposit | 200 | 100 | 1 | No minimum deposit | 200 | 200 | 100 | 100 | 100 | 250 |
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| Used By | 12,000,000+ | 10,000+ | 14,000,000+ | 250,000+ | 60,000+ | 10,000+ | 15,500+ | 10,000+ | 142,500+ | 200,000+ |
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| Platforms | Web Trader, Tablet & Mobile apps | MT4, MT5, IRESS, Mac, Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | MT4, Mirror Trader, Web Trader, Tablet & Mobile apps | MT4, MT5, Mirror Trader, ZuluTrade, Web Trader, cTrader, Mac | MT4, MT5, Mac, ZuluTrade, Web Trader, cTrader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | MT4, Mac, Mirror Trader, Web Trader, Tablet & Mobile apps | MT4, Web Trader, Tablet & Mobile apps | MT4, Mac, Mirror Trader, ZuluTrade, Web Trader, Tablet & Mobile apps |
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| Learn More |
Sign
Up with etoro |
Sign
Up with fpmarkets |
Sign
Up with trading212 |
Sign
Up with xtb |
Sign
Up with icmarkets |
Sign
Up with pepperstone |
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Up with plus500 |
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Up with fxprimus |
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Up with easymarkets |
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Up with avatrade |
| Risk Warning | 75% of retail investor accounts lose money when trading CFDs with this provider. | Losses can exceed deposits | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. | 80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. | Losses can exceed deposits | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.6% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money | 80.5% of retail investor accounts lose money when trading CFDs with this provider.You should consider whether you can afford to take the high risk of losing your money. | Losses can exceed deposits | Your capital is at risk | 79% of retail investor accounts lose money when trading CFDs with this provider |
| Demo |
eToro Demo |
FP Markets Demo |
Trading 212 Demo |
XTB Demo |
IC Markets Demo |
Pepperstone Demo |
Plus500 Demo |
FXPrimus Demo |
easyMarkets Demo |
AvaTrade Demo |
| Excluded Countries | US, IR, KP, BE, CA, JP, SY, TR, IL, HK | US, JP, NZ | US | US, IN, PK, BD, NG , ID, BE | AF, GN, SL, BW, IR, SY, MM, IQ, TG, KH, LS, YE, CI , LR, ZW, CU, LY, TZ, CG, ML, BO, LR, NE, AO, GM, NG, AG, GH, KR, KG, GN, SN, NA | BR, KR, IR, IQ, SY, JP, US | BE, US, CA, CN, ID, PH, TG, NG, DO, MA, ZW, PR, TZ, TN, UG, BW, AO | AF, CI, CU, IQ, IR, LY, MM, KR, SD, PR, US, AU, SY, DZ, JP, EC. | US | BE, BR, KP, NZ, TR, US, CA, SG |
All Benchmark index in more detail
You can compare Benchmark Index ratings, min deposits what the the broker offers, funding methods, platforms, spread types, customer support options, regulation and account types side by side.
We also have an indepth Top Benchmark Index for 2020 article further below. You can see it now by clicking here
We have listed top Benchmark index below.
Benchmark Index Table of Contents
- Benchmark Index Explained
- 6 Factors to Consider when Choosing Benchmark Index
- Are Your Benchmark Index Trusted And Established?
- Are The Benchmark Index World Leading?
- What are the Benchmark Index Commissions and Fees?
- What are the Benchmark Index Funding and Withdrawl Methods?
- Find Benchmark Index with Round-the-clock support?
- Make sure the Benchmark Index Offer Comprehensive Trader resources?
- Why do Benchmark Index need to be regulated?
- Benchmark Index FAQ
- What are the best Benchmark index brokers?
- What is the best Benchmark index broker?
- Related Benchmark Index Reviews
- Related Benchmark Index Alternatives
- Related Benchmark Index Comparisons
Benchmark Index Explained
Trading the financial markets with Benchmark Index when conditions are volatile can be difficult, even for experienced traders.
Apart from the educational and other resources made available online, another important factor for traders to consider when looking for Benchmark Index is the platform that a Benchmark Index offer.
Choose Benchmark Index that's at the forefront of innovation and generally considered an industry-leader.
To gain access to the financial markets, you'll need Benchmark Index that you can rely on.
6 Factors to Consider when Choosing Benchmark Index
Follow these five rules for selecting a broker that's right for you:
Are Your Benchmark Index Trusted And Established?
Look for a broker that has a good track record/longevity in the market so that your strategy is your primary concern for navigating the markets. The top rated Benchmark Index broker is eToro. Established in 2006, and in operation for 12 years eToro have a head office in Cyprus, UK.
eToro is regulated. This means eToro are supervised by and is checked for conduct by Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC) regulatory bodies.
Another top rated broker is FP Markets.
FP Markets was established 2005, and in operation for 15 years FP Markets have a head office in Australia.
FP Markets is regulated. This means FP Markets are supervised by and is checked for conduct by Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC) regulatory bodies.
| Broker |
eToro
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FP Markets
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Trading212
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XTB
|
IC Markets
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Pepperstone
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| Year Established | 2006 | 2005 | 2006 | 2002 | 2007 | 2010 |
| Head Office | Cyprus, UK | Australia | UK | Poland | Australia | Australia |
| Regulation | Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC) | Australian Securities and Investment Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC) | Financial Conduct Authority (FCA), Financial Supervision Commission (FSC) | Financial Conduct Authority (FCA), FCA number FRN 522157, Cyprus Securities and Exchange Commission (CySEC), CySEC Licence Number: 169/12, Comisión Nacional del Mercado de Valores, Komisja Nadzoru Finansowego | Australian Securities and Investment Commission (ASIC), Financial Services Authority (FSA), Cyprus Securities and Exchange Commission (CySEC) | Financial Conduct Authority (FCA), Australian Securities and Investment Commission (ASIC), Dubai Financial Services Authority (DFSA), Pepperstone Markets Limited is incorporated in The Bahamas (number 177174 B), Licensed by the Securities Commission of The Bahamas (SCB) number SIA-F217 |
| Used By | 12,000,000+ | 10,000+ | 14,000,000+ | 250,000+ | 60,000+ | 10,000+ |
| Negative balance protection | No | Yes | Yes | Yes | Yes | Yes |
| Guaranteed Stop Loss | No | No | Yes | No | No | No |
| Learn More | Visit eToro | Visit FP Markets | Visit Trading 212 | Visit XTB | Visit IC Markets | Visit Pepperstone |
| Risk Warning | 75% of retail investor accounts lose money when trading CFDs with this provider. | Losses can exceed deposits | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. | 80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. | Losses can exceed deposits | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.6% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money |
Are The Benchmark Index World Leading?
Choose a broker that's at the forefront of innovation and generally considered an industry-leader. eToro Segregates clients funds and offers over 100 instruments. eToro offers both an online trading platform as well as a mobile platform giving clients easy access to markets.
In addition, eToro supports many popular third-party trading platforms enabling access to a variety of markets worldwide that can be traded with the assistance of expert advisors or a customizable automatic trading strategy. eToro is a world-leader when it comes to innovation and they are always looking at ways to improve and to maintain their competitive advantage.
Another good choice when looking for Benchmark Index is FP Markets . FP Markets Segregates clients funds and offers over 100 instruments.
| Broker |
eToro
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FP Markets
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Trading212
|
XTB
|
IC Markets
|
Pepperstone
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| Instruments Available | 100 | 100 | 3000 | 1,500 | 232 | 100 |
| Platforms | Web Trader, Tablet & Mobile apps | MT4, MT5, IRESS, Mac, Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | MT4, Mirror Trader, Web Trader, Tablet & Mobile apps | MT4, MT5, Mirror Trader, ZuluTrade, Web Trader, cTrader, Mac | MT4, MT5, Mac, ZuluTrade, Web Trader, cTrader, Tablet & Mobile apps |
| Excluded Countries | US, IR, KP, BE, CA, JP, SY, TR, IL, HK | US, JP, NZ | US | US, AU, CA, JP, KR, KP, SG, MU, IL, TR, IN, PK, BA, ET, UG, CU, SY, BD, NG, ID, BE, LY, MO, KE, YE, VU, GY, CD, CG, AF, LA, MZ, IQ, IR | US | BR, KR, IR, IQ, SY, JP,US |
| Forex pairs offered | 50 | 60 | 177 | 50 | 65 | 70 |
| Forex pairs offered | 50 | 60 | 177 | 50 | 65 | 70 |
| Major forex pairs | Yes | Yes | Yes | Yes | Yes | Yes |
| Minor forex pairs | Yes | Yes | Yes | Yes | Yes | Yes |
| Exotic forex pairs | Yes | Yes | Yes | Yes | Yes | Yes |
| Cryptocurrencies | Yes | Yes | Yes | Yes | Yes | Yes |
| Commodities Offered | 0 | 18 | 14 | 21 | 19 | 16 |
| Metals | Yes | Yes | Yes | Yes | Yes | Yes |
| Energies | Yes | Yes | Yes | Yes | Yes | Yes |
| Agricultural | Yes | Yes | Yes | Yes | Yes | No |
| Stocks Offered | 957 | 10000 | 1731 | 1696 | 100 | 60 |
| UK Shares | Yes | Yes | Yes | Yes | No | No |
| US Shares | Yes | Yes | Yes | Yes | Yes | No |
| German Shares | Yes | Yes | Yes | Yes | Yes | Yes |
| Japanese Shares | Yes | Yes | Yes | Yes | Yes | No |
What are the Benchmark Index Commissions and Fees?
Ensure that your broker is transparent with fees and those dues are competitive.
The best rated Benchmark Index broker eToro offers competitive offers for Stocks, Commodities, Forex, CFDs, Social Trading, Indices, Cryptocurrency. eToro minimum deposit is 200.
Another top rated Benchmark Index broker FP Markets offers Forex, CFDs. FP Markets minimum deposit is 100.
| Broker |
eToro
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FP Markets
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Trading212
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XTB
|
IC Markets
|
Pepperstone
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| Min Deposit | 200 | 100 | 1 | 0 | 200 | 200 |
| Withdrawl Fees | Yes | No | No | varies | No | No |
| Inactivity Fees | Yes | No | No | No | No | Yes |
| Deposit Fees | No | Yes | No | No | Varies | No |
| CFD Commission Fees | No | Yes | No | Yes | Yes | Yes |
What are the Benchmark Index Funding and Withdrawal Methods?
When dealing with Benchmark Index having convenient funding and withdrawl facilities makes the trading process and your trading experience smoother.
| Broker |
eToro
|
FP Markets
|
Trading212
|
XTB
|
IC Markets
|
Pepperstone
|
| Bank transfer | Yes | Yes | Yes | Yes | Yes | Yes |
| Credit Cards | Yes | Yes | Yes | Yes | Yes | Yes |
| Paypal | Yes | Yes | Yes | Yes | Yes | Yes |
| Skrill | Yes | Yes | Yes | Yes | Yes | Yes |
| Payoneer | Yes | No | No | Yes | Yes | |
| Neteller | Yes | Yes | No | Yes | Yes | Yes |
Find Benchmark Index with Round-the-clock support?
Customer service is very important when dealing with Benchmark Index.
When investing and dealing with brokers customer support can be a range of customer services to assist customers in making cost effective and correct use the brokers services. It can include assistance in installation, training, troubleshooting, upgrading, and cancelation of a product or service.
Benchmark Index customer support can include Phone answering services, Live chat support and Email customer service support.
eToro support a wide range of languages including English, German, Spanish, French, and Italian
FP Markets support a wide range of languages including English, Spanish, Portuguese, Romanian, Bulgarian, Arabic, Russian, French, Italian, Greek, Philippines, Latvian, Polish,Indonesian, Thai, Malay, German, Vietnamese
eToro and FP Markets offer support where clients are able to call or contact the helpdesk via email or a chat service.
| Broker |
eToro
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FP Markets
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Trading212
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XTB
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IC Markets
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Pepperstone
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| Support |
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| Languages | English, German, Spanish, French, and Italian | English, Spanish, Portuguese, Romanian, Bulgarian, Arabic, Russian, French, Italian, Greek, Philippines, Latvian, Polish,Indonesian, Thai, Malay, German, Vietnamese | English, Deutsch, Nederlands, Espanol, Francais, Italiano, Polski, Srpski, Norsk, Svenska, Cesky, РУССКИЙ, Romana, Turkce, العربية, 中文 | English, Spanish, Czech, Chinese, German, French, Italian, Polish, Portuguese, Romanian, Slovenian, and Turkish | English, Japanese, Chinese, Polish, Afrikans, Danish, Dutch, German and more | English, Spanish, Polish, Chinese, Japanese, Korean, Vietnamese, and Arabic |
| Learn More | Visit eToro | Visit FP Markets | Visit Trading 212 | Visit XTB | Visit IC Markets | Visit Pepperstone |
| Risk Warning | 75% of retail investor accounts lose money when trading CFDs with this provider. | Losses can exceed deposits | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. | 80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. | Losses can exceed deposits | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.6% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money |
Make sure the Benchmark Index Offer Comprehensive Trader resources?
Make sure your broker offers free resources like analysis, education and risk-management tools. With a wealth of knowledge from top analysts, eToro and FP Markets work together to bring the latest news and insights to traders.
For most traders, the first – and sometimes only – concern is pursuing their 'edge'. While that is surely important, along with sound money management habits, to navigating the markets; that step alone does not represent the full preparation. As each trader dives into this important venture, it is important not to forget the most rudimentary yet crucial steps such as selecting the best broker to access the markets.
Why do Benchmark Index need to be regulated?
A regulated Benchmark Index broker lowers your risk.
Broker regulation protects consumers. Too little broker regulation can lead to poor services and possibly financial harm.
Benchmark Index brokers are regulated to stop fraud. The agent's working capital and clients funded account have to be separated. This amounts to fraud if client money is used to conduct the business. Regulation is required to make sure this does not happen.
Benchmark Index List
Funding methods
Bank transfer Credit Card PaypalPlatforms
Web Trader, Tablet & Mobile appsCustomer support
Live chat Phone support Email supportAccount Types
Micro account Standard account Islamic account VIP account
Funding methods
Bank transfer Credit Card PaypalPlatforms
MT4, MT5, IRESS, Mac, Web Trader, Tablet & Mobile appsCustomer support
Live chat Phone support Email supportAccount Types
Micro account Standard account Islamic account VIP account
Funding methods
Bank transfer Credit Card PaypalPlatforms
Web Trader, Tablet & Mobile appsCustomer support
Live chat Phone support Email supportAccount Types
Micro account Standard account Islamic account VIP account
Funding methods
Bank transfer Credit Card PaypalPlatforms
MT4, Mirror Trader, Web Trader, Tablet & Mobile appsCustomer support
Live chat Phone support Email supportAccount Types
Micro account Standard account Islamic account VIP account
Funding methods
Bank transfer Credit Card PaypalPlatforms
MT4, MT5, Mirror Trader, ZuluTrade, Web Trader, cTrader, MacCustomer support
Live chat Phone support Email supportAccount Types
Micro account Standard account Islamic account VIP account
Funding methods
Bank transfer Credit Card PaypalPlatforms
MT4, MT5, Mac, ZuluTrade, Web Trader, cTrader, Tablet & Mobile appsCustomer support
Live chat Phone support Email supportAccount Types
Micro account Standard account Islamic account VIP account
Funding methods
Bank transfer Credit Card PaypalPlatforms
Web Trader, Tablet & Mobile appsCustomer support
Live chat Phone support Email supportAccount Types
Micro account Standard account Islamic account VIP account
Funding methods
Bank transfer Credit Card PaypalPlatforms
MT4, Mac, Mirror Trader, Web Trader, Tablet & Mobile appsCustomer support
Live chat Phone support Email supportAccount Types
Micro account Standard account Islamic account VIP account
Funding methods
Bank transfer Credit Card PaypalPlatforms
MT4, Web Trader, Tablet & Mobile appsCustomer support
Live chat Phone support Email supportAccount Types
Micro account Standard account Islamic account VIP account