We found 11 online brokers that are appropriate for Trading Index Funds.
For any trader, the best index funds mean a great opportunity to make a profit with lower risks on investment. Beginners often to trade in index funds instead of individual stocks.
Let us understand what is an index fund is. An Index fund is a pre-set basket of stocks created by a fund manager or a brokerage firm to minimize loss and maximize the potentiality of making a profit.
Index Funds are rising in popularity as trading index funds has become more accessible over the last decade.
You can choose from many index funds to add to your portfolio.
Whether you are planning to diversify your investments for your retirement or other plans, index funds are always a great options.
Index funds are a type of mutual fund or ETF. The index fund tracks the market and mirrors the index performance in the market.
ETF is short for exchange-traded fund.
As the investor, you will be investing in the shares of the index fund that tracks specific stocks you choose.
You can invest in all of the companies which make up that specific index.
For instance, you might be purchasing Vanguard 500 Index Funds, or VFINX which tracks the S&P 500 Index.
When the S&P 500 goes up, the Vanguard fund will go up too but keep in mind that this does not include the expense fees.
As the Index funds focus on the market indexes, it is not anything like regular mutual funds.
In regular mutual funds, the portfolio managers are actively purchasing and selling the investments with the funds and this can cause the high volatility in your investment.
It does not work like that in the Index funds as there will be less activities from the portfolio managers. As a result, index funds often come with low expense fees and are less risky compared to conventional mutual funds.
Index funds are low cost, low risk, and a straightforward way to diversify your resources into several investment types at once. If you are interested in low risk and low cost long-term investment, index funds can be a great choice for you.
Each individual portfolio is different. Your portfolio can be made of a combination of investment types which are different for one person to the other.
There are a lot of factors that can help you determine your requirement and the best way is to consult with the experts for the portfolio allocation recommendations.
There are asset classes that you should research the information on in advance, before deciding the types of your index funds.
As the name suggests, US stocks are associated with the American companies.
The index fund will track some companies on every financial scale. Whether it is small, mid-sized, to large companies, the choice is yours.
If you want to invest only in large companies, you should focus on the more mature companies.
This will give you exposure to the companies in other countries.
Index funds allow you to keep tracking on companies in other parts of the world such as China, Brazil, Japan, Korea, and so on.
Other than the top countries, you could also choose to follow index funds of developed countries.
The economy is growing rapidly in certain growing countries. It can be beneficial for your investment portfolio.
Real estate investment is associated with retirement.
Property and real estate is actually a complex investment, because there are many kinds of properties with different market segments to choose. You will get the exposure by following the right index such as the MSCI US REIT Index.
It will give you the opportunity to get exposure from investment-grade bonds traded in the US and other countries. This includes the securities, mortgage-backed bonds, government bonds, corporate bonds, as well as foreign bonds. Consult with your experts for the right bonds for you to choose.
So, where do you start?
Put simply, you will want your index funds investment to support the rest of your portfolio.
Stocks can be the great choice for long-term growth.
For the stable investment, you cannot go wrong with the bonds. If you already have a good portfolio, you must look for other items to balance it.
It is a great idea to balance between your US, UK and other international stocks.
Speaking of the size of the companies you are investing, you could also consider balancing large and small company stocks.
As mentioned, Index funds are low cost and thus you will want to stick to that principle.
The advantage of some index funds are the lower cost.
No matter how much experience you have in investing, it should not be a problem to start managing the index funds.
You should pay attention to index funds expense ratios and the best option is index funds which come with expense ratios lower than 0.1%. Most of the successful index funds are those with the lower expense ratios.
The index funds come in two main types, the mutual funds and exchange-traded funds.
The mutual funds trade once on a daily basis. They also come with fixed net asset value. In cases like this the assets are not a significant party.
Meanwhile, for exchange-traded funds, the assets could come with the dramatic impact.
If you are often trading, you should focus on high-asset funds.
If you are occasionally trading, consider selecting the ones with the lower expense ratio. It will give you a lot of advantages in the long run.
The exposure to your investments is also an important aspect to consider. You can find indexes that cover the part of the market that you desire.
From the broadest market benchmarks to the smaller niches, there are a lot of choices. This will be postive if you are working with a reputable and trustworthy investment firm and you could consult their professionals to help you pick the right index funds.
It is a fact that the index fund has clear objectives.
However, it does not guarantee 100% that it will achieve the specific goal. The index fund will provide a good return when the condition is inevitable.
Focus on the index funds which have a good track record to ensure much better results.
Best index funds are highly popular among traders as with a single purchase they can own several companies.
Suppose a share of Standard & Poor's 500 Index is bought. This, by default, means owning a share of 500 companies listed on S&P.
In today's financial scenario the S&P 500 index fund is one of the most popular ones as a high return is almost guaranteed over the longer term.
It is suggested to invest in Index funds for longer periods, about five years plus.
Apart from low risk there are several advantages of best index funds and few are as discussed below:
Compared to individual stocks the best index funds are less expensive. It is passively managed and so the charges are low compared to those which are actively managed.
The index funds comprise of top companies with respect to market capitalization and investors can reduce risk by investing in it.
It is best for such traders who want to invest for the long term.
It is also perfectly suited for such investors who have less time to constantly monitor the market.
The best index funds can mirror returns of the best exchanges.
It is best for those who wish to hold the investment for five years or longer period.
Index funds are less risky and to be considered investing in the long term.
The profit level relies on the choice of an index as well as the low volatility of the index.
The profit earned from index funds is a reflection of the index.
It is passively managed and so cannot outperform the market.
Passive management means less expense ratio and so the charges are less compared to actively managed ones.
It provides broad market exposure.
The best way to make use of the index funds in your portfolio is to focus on the index funds that meet your needs and capability.
Investing in one of the best index funds means it is cost-efficient. This is one of the primary reasons why investors are interested in Index funds.
Index funds do not require active management and hence are perfect for investors who have less time to monitor the market.
Investing in index funds offers lots of benefits at a minimal cost. It has gained popularity in recent years for long term investors.
Consult with professionals and make full use of the brokers educational resources and research tools for more informative decisions.
We've collected thousands of datapoints and written a guide to help you find the best Index Funds 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 index funds below. You can go straight to the broker list here.
There are a number of important factors to consider when picking an online Index Funds trading brokerage.
Our team have listed brokers that match your criteria for you below. All brokerage data has been summarised into a comparison table. Scroll down.
We compare these features to make it easier for you to make a more informed choice.
Here are the top Index Funds.
Compare Index Funds min deposits, regulation, headquarters, benefits, funding methods and fees side by side.
All brokers below are index funds. Learn more about what they offer below.
You can scroll left and right on the comparison table below to see more index funds that accept index funds clients
Broker |
eToro
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IC Markets
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XTB
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AvaTrade
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Roboforex
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Plus500
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Pepperstone
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EasyMarkets
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XM
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FXPrimus
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SpreadEx
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Rating | |||||||||||
Regulation | Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC), Markets In Financial Instruments Directive (MiFID), Australian Securities and Investments Commission (ASIC) | Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), Cyprus Securities and Exchange Commission (CySEC) | 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, Belize International Financial Services Commission (IFSC) under license number IFSC/60/413/TS/19, Polish Securities and Exchange Commission (KPWiG) | Central Bank of Ireland, Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), South African Financial Sector Conduct Authority (FSCA), Financial Stability Board (FSB), Abu Dhabi Global Markets (ADGM), Financial Regulatory Services Authority (FRSA), British Virgin Islands Financial Services Commission (BVI) | Cyprus Securities and Exchange Commission (CySEC) | 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 | Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC), Federal Financial Supervisory Authority (BaFin), Dubai Financial Services Authority (DFSA), Capital Markets Authority of Kenya (CMA), Pepperstone Markets Limited is incorporated in The Bahamas (number 177174 B), Licensed by the Securities Commission of the Bahamas (SCB) number SIA-F217 | Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC) | International Financial Services Commission (IFSC), Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC) | Cyprus Securities and Exchange Commission (CySEC), Markets In Financial Instruments Directive (MiFID) | Financial Conduct Authority (FCA) |
Min Deposit | 200 | 200 | No minimum deposit | 250 | 1 | 100 | 200 | 100 | 5 | 100 | 1 |
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Used By | 20,000,000+ | 180,000+ | 250,000+ | 200,000+ | 10,000+ | 15,500+ | 10,000+ | 142,500+ | 3,500,000+ | 10,000+ | 10,000+ |
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Platforms | Web Trader, Tablet & Mobile apps | MT4, MT5, Mirror Trader, ZuluTrade, Web Trader, cTrader, Mac | MT4, Mirror Trader, Web Trader, Tablet & Mobile apps | Web Trader, MT4, MT5, AvaTradeGo, AvaOptions, Mac, Mobile Apps, ZuluTrade, DupliTrade, MQL5 | MT4, MT5, Mac, Web Trader, cTrader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | MT4, MT5, Mac, ZuluTrade, Web Trader, cTrader, Tablet & Mobile apps | MT4, Web Trader, Tablet & Mobile apps | MT4, MT5, Mac, Web Trader, Tablet & Mobile apps | MT4, Mac, Mirror Trader, Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps |
Support |
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Risk Warning | 67% of retail investor accounts lose money when trading CFDs with this provider. | Losses can exceed deposits | 79% 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. | 72% of retail investor accounts lose money when trading CFDs with this provider | Losses can exceed deposits | 72% 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. | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79.3% 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 | Your capital is at risk | Your capital is at risk | Losses can exceed deposits | Losses can exceed deposits |
Demo |
eToro Demo |
IC Markets Demo |
XTB Demo |
AvaTrade Demo |
Roboforex Demo |
Plus500 Demo |
Pepperstone Demo |
easyMarkets Demo |
XM Demo |
FXPrimus Demo |
SpreadEx Demo |
Excluded Countries | IR, KP, BE, CA, JP, SY, TR, IL, BY, AL, MD, MK, RS, GN, CD, SD, ZW, ET, GH, TZ, LY, UG, ZM, BW, RW, TN, SO, NA, TG, SL, LR, GM, DJ, CI, PK, BN, TW, WS, NP, SG, VI, TM, TJ, UZ, LK, TT, HT, MM, BT, MH, MV, KZ, GD, FJ, BB, BM, BS, AG, AI, AW, LB, SV, US, PY, HN, GT, PR, NI, VG, AN, | 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 | US, IN, PK, BD, NG , ID, BE | BE, BR, KP, NZ, TR, US, CA, SG | US, JP | MY, BE, US, CA, CN, ID, PH, TG, NG, DO, MA, ZW, PR, TZ, TN, UG, BW, AO, AE | BR, KR, IR, IQ, SY, JP, US | US | US, CA, IL, KR, IR, MM, CU, SD, SY | AF, CI, CU, IQ, IR, LY, MM, KR, SD, PR, US, AU, SY, DZ, JP, EC. | US, TR |
You can compare Index Funds 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 Index Funds for 2021 article further below. You can see it now by clicking here
We have listed top Index funds below.