We found 11 online brokers that are appropriate for Trading Sp 500.
Sometimes addressed as Standard & Poor's 500, the SP 500 or S&P 500 is the most heard term in the stock market. The S&P 500 is a list of the top 500 companies in the USA and is used to judge the health of the stock market in America.
The SP 500 index is float weighted. This means that the market cap of the corporations listed on the index is arranged relevant to the number of shares open for public trading.
The stock market index SP 500 holds a great value for traders, and it is tracked by the founding financial services firm. Other similar stock market indices include Dow Jones, US 500, and FTSE 100.
S&P 500 brokers are brokerages who help traders trade in either the whole S&P 500 index as a whole or the individual companies within the S&P 500.
SP 500 indices composite some selected stocks which are deemed as a representative of an industry or the financial market.
These selected stocks are used by traders as indications of the rise or fall and health of the financial market in the US.
It is important to note here that different stock market indexes differ in methodology and stocks. There's no standardization to it.
The SP 500 acts as a general benchmark for which portfolio performance can be assessed. The SP 500 index is weighted by market cap. That means that the value of a company specifies the influence it holds over the index’s performance.
Every corporation listed does not make up for 1/500th of the index. Prominent corporations like Amazon and Apple hold a stronger impact on the SP 500 index compared to smaller companies like Wholefoods and Macy’s.
One major point to be aware of is that even though these are five hundred big corporations, there is a wide range. A lot of the companies listed on the index have market capitalizations of over 1 trillion USD. They are also at least two hundred times greater compared to the smallest SP 500 components, i.e., ones having market capitalizations between 6 to 7 billion USD.
The SP 500 index value constantly goes up and down throughout the day, according to the weighted performance market data of its fundamental components.
SP 500 is used by traders and brokers to understand the health of the markets.
The S&P tracks some common stocks based on company performance and other selection criteria. Below are the parameters considered:
To trade the S&P 500, brokers can guide you exactly on how to proceed as it cannot be traded directly. Many reputable regulated brokerages can offer trading the S&P 500 with different trading types including using CFDs, which is a popular trading instrument.
There are advantages to trading with CFDs as SP 500 brokers do not charge fees or commission and allow traders to take advantage of leverage. Trading with CFDs your financial exposure is larger than your deposited amount.
CFD trading allows you to profit on both the rise and fall of the S&P 500 index market price while not owning any underlying assets. Be aware that will CFDs you may lose more than your deposited amount.
As nothing in actual is owned in CFD, no stamp duty tax is attached.
SP 500 brokers also help to trade S&P 500 through index funds, which mirrors certain selective stocks in each fund.
The index funds are considered an attractive investment opportunity with modest returns and safer risk.
As in the long term these beats smaller and actively managed funds, the SP 500 brokers will always suggest traders pay attention to such offerings.
If you are interested in stock market index investment, the S&P 500 is one of the most mature indexes to get into.
Wondering how to invest the S&P 500? You’ll find out the answers below.
The S&P 500 is one of the world’s largest and influential stock market indexes.
The S&P 500 tracks 500 of the largest US companies stock prices.
As the name suggests, the index will consistently track the stocks of the companies to report the performances of them.
Just like other stock markets, there will be risks and returns from the biggest companies that are included in the stock. Because the S&P 500 shows significant health of the overall market, investors use S&P 500 as the benchmark.
Other investments are compared with the S&P 500 before taking the appropriate actions. The S&P 500
S&P 500 focus on tracking capitalization of the most important five hundred companies in the US. The market cap is the total value of the stock.
The stock price which issues the number of shares will be the calculation. The index is measured by a market capitalization that is float adjusted. It will only weigh the shares which are available to the public.
It does not include the calculations for the control groups, government agencies, and other companies.
The committee includes the company in the S&P 500 based on these main variables: size, industry, as well as the company’s liquidity.
It is one of the most frequent reviewed stocks in the US. the committee will review the index every quarter of the year.
To participate in the index, the company must be operating on US soil its market cap should be a minimum of $8 billion.
Around 50% of the company’s stock should be available for the public. Stock price per share should be a minimum of $1.
What the SP 500 does is it tracks the market cap of the companies listed on its index. It is the total value of all stock shares a corporation has issued. It is determined by multiplying the shares released by the stock price.
A corporation having a market capitalization of 100 billion USD gets ten times the representation a corporation whose market capitalization is 10 billion USD. Since July 2020, the total market capitalizations of the SP 500 were 27.05 trillion USD.
A council selects each of the index’s five hundred companies based on their size, industry, and liquidity. The rebalances the index every quarter, i.e., March, followed by June, September, and December.
To be eligible for the index, a corporation must be in the US and have an uncorrected market capitalization of 11.8 billion at the very least. At least 50 percent of the company’s stock must be accessible to the general public. Its stock value must be at 1 USD per share. It also has to file a 10-K yearly report. 50 percent of its revenue and assets must be in the US. Lastly, it must have four sequential quarters of favourable earnings.
Last but not least, the stock must be listed on the NASDAQ, Investors Exchange, New York Stock Exchange. Here are the top largest companies included in S&P 500 weighted market cap:
When you weigh the advantages of the S&P 500, it is obvious to compare it with other stock market indexes.
When the S&P 500 is compared with the NASDAQ, we can see from different points of view. Currently, the NASDAQ has more technology stocks than the S&P 500.
There were around 50% of NASDAQ allocations in the IT niche. Meanwhile, the S&P 500 only held 24.4%. The data was pulled out from June 2019. Although there are huge differences between the S&P 500 and other stock market indexes, these stock indexes are moving together.
Of course, it will be a great opportunity for the investors who focus on one stock market index. You don’t need to follow more than one stock market index to make profits.
The S&P 500 is a major stock market index that tracks the performance of the largest companies in the NYSE and NASDAQ, and other authorized US exchanges.
The S&P 500 is updated daily and a real-time indicator of the status of the US equity market. That explains why the world turns its eyes to the S & P 500 every time there is a huge event in the US.
In contrast to the S&P 500 index, the Dow Jones Industrial Average is a price-weighted index. This means that the corporations having the highest stock value influence the index, irrespective of their appraisals. The Dow Jones also happens to list only thirty corporations, each viewed as a leader in its corresponding industry, e.g., Amazon, Alphabet, and Apple.
Both indexes involve corporations that are considered the healthiest companies in the country. Both indexes have similar return rates over the long term.
The NASDAQ 100 keeps track of a hundred of the most actively traded – not to mention the largest – non-financial domestic and global securities on the NASDAQ Stock Market.
Similar to the S&P 500, the NASDAQ applies a market capitalization weighting formula, although other components influence the inclusion of stocks. To be listed on the NASDAQ, stocks have to have a daily trading volume of at least 100K shares. They also have to have been traded on the index for two years at the minimum.
In contrast to the SP 500 and the Dow Jones indexes, NASDAQ involves foreign corporations and is heavily inclined towards technology corporations. Due to that, the NASDAQ does not represent the overall US market. It rather represents how investors regard the tech industry.
Over the past decade, the NASDAQ has brought in an average of 42.6 percent yearly returns. SP 500 on the other hand, has ended up averaging 11.2 percent. The NASDAQ’s high returns in recent times are mainly because of its heavy technology weighting.
In terms of market cap, it does not necessarily include all of the top 500 companies. It is because several criteria should be met. Market cap is not the only variable that makes the corporates deserve to get included.
Before going any further, it is crucial to be aware of the benefits and drawbacks of index funds. Since index funds are managed passively – the fund follows the index – they tend to have reduced expense ratios, also called administrative charges. This quality lures in a lot of investors. It is also established that it is a rather diversified fund.
Where the SP 500 falls is in the return rate. It is best to invest in a fund that has the potential to beat the market average instead of matching it. That is because a good growth stock investment fund surpasses an index fund.
From 2009 to 2019, the SP 500 yield was only under 14 percent. Although that is not bad, it does not keep up with the growth stock trust fund. Even in 2019, which proved to be a bull market-heavy year, the SP 500 return was slightly better than 31 percent, all the while the best growth stock trust funds were yielding above 40 percent.
S&P 500 lists 500 large cap companies who are operating mainly in the US soil.
I am sure that you are familiar with some names such as Google, Apple, Microsoft, Amazon, as well as Facebook. the composition is not fixed because the committee has set certain criterions.
So, the market cap is not the only term to meet by the corporates. Here are the criteria:
The reviews are done at any time by the committee. That means you will see the updates of the index more often than you’d expect.
The event of review will usually be announced a few days in advance.
The calculation of the S&P 500 When it comes to the calculation of S&P 500, we can clearly see the “market capitalization weighting” method.
The key to the calculation here is the total value of the shares from each company. That means the companies with larger numbers of expensive shares will have bigger weightings than the companies with cheaper shares.
This takes place in real time. So, the updates are more often than other stock market indexes.
Towards the end of every day, the market caps for all the companies listed on the SP 500 are established. After that, the entire float-adjusted market cap of all SP 500 stocks is subsequently divided by an index divisor to then infer the index’s closing value. Due to this approach, the SP 500 is weighted to favour corporations with a higher market capitalization.
How the SP 500’s price moves involve stimuli like revenue, earnings per share, important news about the companies on the exchange, sociopolitical events, financial data, and interest rates. In addition to that, a bump in share price occurs whenever a corporation is added to the SP 500. This is because trust funds have to invest in the stock if they want the index to be depicted accurately.
The SP 500 is constantly float-adjusted. It recalculated every time new shares are issued or whenever a business removes shares off the market via a repurchase initiative. The public shares of each listed corporation are thus multiplied by the market price of an individual share to ascertain the company market capitalizations. After that, the market capitalizations are accumulated to determine the index market cap.
Adjustments to company market capitalizations are also considered via adaptations to the index divisor, i.e., a proprietary value. The index market cap is divided by the index divisor and that creates the index level. The index level is easier to report compared to company market capitalizations. The index divisor acts as the base value, which is used to define any changes that must be made to rationalize outstanding shares in any of the companies listed on the index.
The value of the companies will be the real time factor of the S&P 500 price.
But it is important to understand that the value of the companies can be affected by some of the factors below:
The policies affect the borrowing, spending, and investment by the businesses and consumers.
The stocks will rise if there are increasing spending capabilities.
Strong US dollar gives companies power to enforce the imports. Weak US dollar will make the exports more challenging
Stocks prices can heavily influence the commodity prices. There are tons of them. Some of the most popular commodities are corn, soybean, wheat, gold, etc.
Small traders or who want to trade with smaller account sizes and use leverage should investigate CFD trading the S&P 500.
However, do understand that as leverage amplifies profits it can also amplify losses. Take advantage of the many educational resources offered by S&P 500 brokers before trading.
We have conducted extensive research and analysis on over multiple data points on Sp 500 Brokers to present you with a comprehensive guide that can help you find the most suitable Sp 500 Brokers. Below we shortlist what we think are the best sp 500 brokers after careful consideration and evaluation. We hope this list will assist you in making an informed decision when researching Sp 500 Brokers.
Selecting a reliable and reputable online Sp 500 trading brokerage involves assessing their track record, regulatory status, customer support, processing times, international presence, and language capabilities. Considering these factors, you can make an informed decision and trade Sp 500 more confidently.
Selecting the right online Sp 500 trading brokerage requires careful consideration of several critical factors. Here are some essential points to keep in mind:
Our team have listed brokers that match your criteria for you below. All brokerage data has been summarised into a comparison table. Scroll down.
When choosing a broker for sp 500 trading, it's essential to compare the different options available to you. Our sp 500 brokerage comparison table below allows you to compare several important features side by side, making it easier to make an informed choice.
By comparing these essential features, you can choose a sp 500 broker that best suits your needs and preferences for sp 500. Our sp 500 broker comparison table simplifies the process, allowing you to make a more informed decision.
Here are the top Sp 500 Brokers.
Compare sp 500 brokers for min deposits, funding, used by, benefits, account types, platforms, and support levels. When searching for a sp 500 broker, it's crucial to compare several factors to choose the right one for your sp 500 needs. Our comparison tool allows you to compare the essential features side by side.
All brokers below are sp 500 brokers. Learn more about what they offer below.
You can scroll left and right on the comparison table below to see more sp 500 brokers that accept sp 500 clients.
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IC Markets
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Roboforex
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eToro
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XM
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XTB
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AvaTrade
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Pepperstone
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Trading212
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EasyMarkets
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SpreadEx
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FXPro
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Regulation | Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), Cyprus Securities and Exchange Commission (CySEC) | RoboForex Ltd is regulated by the FSC, license 000138/437, reg. number 128.572. RoboForex Ltd, which is an (A category) member of The Financial Commission, also is a participant of its Compensation Fund | FCA (Financial Conduct Authority) Etoro (Europe) Limited FCA reference 523775, eToro (UK) Ltd FCA reference 583263, ASIC (Australian Securities and Investments Commission) eToro AUS Capital Limited ASIC license 491139, CySec (Cyprus Securities and Exchange Commission under the license 109/10), MiFID (Markets In Financial Instruments Directive), FSAS (Financial Services Authority Seychelles) eToro (Seychelles) Ltd license SD076 | Financial Services Commission (FSC), Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC) | FCA (Financial Conduct Authority reference 522157), CySEC (Cyprus Securities and Exchange Commission reference 169/12), FSCA (Financial Sector Conduct Authority), XTB AFRICA (PTY) LTD licensed to operate in South Africa, KPWiG (Polish Securities and Exchange Commission), DFSA (Dubai Financial Services Authority), DIFC (Dubai International Financial Center), CNMV (Comisión Nacional del Mercado de Valores), KNF (Komisja Nadzoru Finansowego), IFSC (Belize International Financial Services Commission license number IFSC/60/413/TS/19) | Australian Securities and Investments Commission (ASIC), ASIC (406684), Financial Services Authority (FSA), South African Financial Sector Conduct Authority (FSCA), Financial Stability Board (FSB), The Financial Services Agency (JAPAN FSA), Financial Futures Association of Japan (FFAJ), Abu Dhabi Global Markets (ADGM), Financial Regulatory Services Authority (FRSA), Polish Financial Supervision Authority (KNF), Israel Securities Association (ISA), British Virgin Islands Financial Services Commission (BVI), BVI (SIBA/L/13/1049), Central Bank of Ireland | Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC), 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 | Financial Conduct Authority (FCA) Firm reference number 609146, Financial Supervision Commission (FSC), Cyprus Securities and Exchange Commission (CySec) License number 398/21 | Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), British Virgin Islands Financial Services Commission (BVI) | Financial Conduct Authority (FCA) | Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC), Financial Sector Conduct Authority (FSCA), Securities Commission of the Bahamas (SCB) |
Min Deposit | 200 | 10 | 50 | 5 | No minimum deposit | 100 | 200 | 1 | 100 | 1 | 100 |
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Used By | 180,000+ | 1,000,000+ | 30,000,000+ | 3,500,000+ | 581,000+ | 300,000+ | 400,000+ | 15,000,000+ | 142,500+ | 10,000+ | 1,866,000+ |
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Platforms | MT4, MT5, Mirror Trader, Web Trader, cTrader, Windows, Mac, iOS, Android | MT4, MT5, Mac, Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | MT4, MT5, Mac, Web Trader, Tablet & Mobile apps | MT4, Mirror Trader, Web Trader, Tablet & Mobile apps | Web Trader, MT4, MT5, AvaTradeGo, AvaOptions, DupliTrade, ZuluTrade, Mobile Apps, ZuluTrade, DupliTrade, MQL5 | MT4, MT5, TradingView, DupliTrade, myFXbook, Mac, Web Trader, cTrader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | MT4, MT5, Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | MT4, MT5, cTrader, Tablet & Mobile apps |
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Learn More |
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Up with fxpro |
Risk Warning | Losses can exceed deposits | Losses can exceed deposits | 74% of retail investor accounts lose money when trading CFDs with this provider. | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.33% 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. | 81% 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. | 71% of retail investor accounts lose money when trading CFDs with this provider | 74-89 % of retail investor accounts lose money when trading CFDs | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 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. | Your capital is at risk | Losses can exceed deposits | 75.78% of retail investor accounts lose money when trading CFDs and Spread Betting with this provider |
Demo |
IC Markets Demo |
Roboforex Demo |
eToro Demo |
XM Demo |
XTB Demo |
AvaTrade Demo |
Pepperstone Demo |
Trading 212 Demo |
easyMarkets Demo |
SpreadEx Demo |
FxPro Demo |
Excluded Countries | US, IR, CA, NZ, JP | AU, BE, BQ, BR, CA, CW, CZ, DE, ES, EE, EU, FM, FR, FI, GW, ID, IR, JP, LR, MP, NL, PF, PL, RU, SE, SJ, SS, SL, SI, TL, TR, DO, US, IT, AT, PT, BG, HR, CY, DK, FL, GR, IE, LV, LT, MT, RO, SK, CH | ZA, ID, IR, KP, BE, CA, JP, SY, TR, IL, BY, AL, MD, MK, RS, GN, CD, SD, SA, 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, PT, BB, BM, BS, AG, AI, AW, LB, SV, PY, HN, GT, PR, NI, VG, AN, CN, BZ, DZ, MY, KH, PH, VN, EG, MN, UA, JO, KR, | US, CA, IL, KR, IR, MM, CU, SD, SY | US, IN, PK, BD, NG , ID, BE, AU | BE, BR, KP, NZ, TR, US, CA, SG | AF, AS, AQ, AR, AM, AZ, BY, BE, BZ, BT, BA, BI, CM, CA, CF, TD, CG, CI, ER, GF, PF, GP, GU, GN, GW, GY, HT, VA, IR, IQ, JP, KZ, LB, LR, LY, ML, MQ, YT, MZ, MM, NZ, NI, KP, PS, PR, RE, KN, LC, VC, WS, SO, GS, KR, SS, SD, SR, SY, TJ, TN, TM, TC, US, UY, VU, VG, EH, ES, YE, ZW, ET | US, CA | US, IL, BC, MB, QC, ON, AF, BY, BI, KH, KY, TD, KM, CG, CU, CD, GQ, ER, FJ, GN, GW, HT, IR, IQ, LA, LY, MZ, MM, NI, KP, PW, PA, RU, SO, SS, SD, SY, TT, TM, VU, VE, YE | US, TR | US, CA, IR |
You can compare Sp 500 Brokers 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 Sp 500 Brokers for 2023 article further below. You can see it now by clicking here
We have listed top Sp 500 brokers below.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% 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.
Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.
Copy trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission.
Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.