We found 11 online brokers that are appropriate for Trading Indices Brokers.
Synthetic indices trading offers a unique opportunity for investors to gain exposure to various financial markets with enhanced flexibility and diversity. Unlike traditional indices, synthetic indices encompass a range of asset classes, including stocks, forex, and commodities, within a single instrument. Traders can engage in CFD trading of synthetic indices via user-friendly trading platforms.
Trading synthetic indices differs significantly from traditional stock or forex trading. Synthetic indices are derived from a combination of underlying assets, which can include stocks, commodities, and currencies. In contrast, traditional stock trading involves buying and selling shares of individual companies, and forex trading focuses on exchange rates between currency pairs. This compositional difference allows synthetic indices to offer broader exposure to various assets within a single instrument.
Moreover, synthetic indices provide built-in diversification by representing a basket of underlying assets. In contrast, trading individual stocks or currency pairs may lack this diversification, exposing traders to higher risks associated with single entities' performance. This diversification appeals to traders seeking to spread risk across multiple assets, potentially mitigating losses during market downturns.
Additionally, synthetic indices often exhibit consistent volatility, making them suitable for traders who prefer markets with predictable price movements. Traditional stock or forex trading may involve varying levels of volatility, highlighting synthetic indices' potential to provide a more stable trading environment. This stability can offer traders greater confidence in executing strategies and managing risk effectively.
Furthermore, trading synthetic indices typically involves leverage and margin, allowing traders to amplify gains or losses. This contrasts with traditional stock trading, where leverage is less commonly used, and forex trading, where leverage is prevalent but may have different margin requirements. It's crucial to remember that leverage can magnify both potential profits and losses, necessitating careful risk management strategies.
Overall, synthetic indices trading provides access to a broader range of markets and asset classes through a single instrument, whereas traditional stock or forex trading may require separate accounts or platforms, illustrating the convenience and efficiency of synthetic indices as a trading option.
Trading volatility indices, such as the CBOE Volatility Index (VIX), offers several advantages over other financial instruments. Volatility indices tend to rise during market turbulence, allowing traders to hedge against potential losses in their traditional portfolios. This hedging capability is valuable for long-term investors who wish to protect their holdings during market downturns.
Moreover, volatility indices often exhibit significant price swings, creating opportunities for speculative traders to profit from short-term market movements. Traders can capitalize on upward and downward volatility by going long or short on volatility index contracts. This speculative trading potential adds versatility to volatility indices, attracting traders seeking dynamic market opportunities.
Additionally, adding volatility indices to a portfolio can enhance diversification. Since volatility indices tend to have a low correlation with other asset classes, they can help spread risk and reduce portfolio volatility. This diversification benefit makes volatility indices a valuable component of a well-balanced investment strategy.
Furthermore, major volatility indices like the VIX are highly liquid, with active trading volumes and tight spreads. This liquidity ensures easy entry and exit for traders, even during market stress, enhancing trading efficiency and minimizing transaction costs. Additionally, volatility index futures and options are available on various trading platforms, providing accessibility to a range of investors.
By analyzing changes in volatility levels, traders can gain insights into investor sentiment, helping them make more informed trading decisions across different asset classes. This market sentiment indicator role adds an additional dimension to volatility indices, offering valuable insights into market dynamics and potential future trends.
While traditional indices track the performance of underlying assets like stocks or commodities, synthetic indices are not tied to a specific set of assets. Instead, they are designed to mimic specific market conditions or volatility. Some popular synthetic indices are crafted to reflect the performance of well-known volatility indices, with key differences. Here are a few examples:
This synthetic index is akin to the CBOE Volatility Index (VIX) but targets a volatility level of 75%. While the VIX measures expected volatility in the S&P 500 options market and is not directly tradable, synthetic indices like VIX 75 enable traders to speculate on changes in volatility.
CB 1000 simulates a market with significant price swings, either upwards (boom) or downwards (crash). This index is designed for traders seeking high-risk, high-reward opportunities.
The Jump 75 Index represents a market with occasional large price movements, either up or down, but less frequently compared to Crash and Boom 1000. It offers a more moderate level of volatility, appealing to traders looking for balanced risk.
This synthetic index mimics a market experiencing significant price movement in one direction, followed by a period of consolidation (trading within a specific range). It caters to traders aiming to capitalize on breakout opportunities.
It's important to note that these are just a few examples. Different brokers or trading platforms may offer their own variations of synthetic indices, each with unique characteristics and opportunities.
Risk management is crucial when trading synthetic indices to mitigate potential losses and protect capital. Traders can effectively manage risk by implementing various strategies. One such strategy is maintaining a diversified portfolio by trading multiple synthetic indices representing different asset classes and market sectors. Diversification helps spread risk and reduces exposure to any single market or instrument.
Proper position sizing is also essential, allocating only a small percentage of total capital to each trade and avoiding over-leveraging positions. Utilizing stop-loss orders is vital for limiting losses and protecting capital. By setting predetermined exit points, traders can automatically exit losing trades before losses escalate.
Traders should exercise caution when using leverage, as it can amplify gains and losses. Avoiding excessive leverage and adhering to margin requirements set by the broker is vital to prevent margin calls and account liquidation. Maintaining a favorable risk-reward ratio for each trade is also essential, aiming for profits that significantly outweigh potential losses.
Continuous monitoring of synthetic indices and global market movements is crucial to staying informed about changing market conditions. Traders should regularly assess their risk management strategies and adjust them in response to evolving market dynamics. Remaining flexible and adaptable in risk management approaches is key, considering factors such as market volatility, liquidity, and economic events.
Price movements in synthetic indices are influenced by various factors, including the performance of underlying assets, market volatility, global market trends, investor sentiment, liquidity, trading volume, and risk appetite. Understanding these factors can help traders make more informed decisions and develop effective trading strategies.
Synthetic indices tracking market volatility are sensitive to changes in volatility levels. Increasing volatility often corresponds to rising synthetic index prices, reflecting heightened market uncertainty and risk aversion. Conversely, declining volatility may decrease synthetic index values.
Synthetic indices trading is influenced by global market trends and macroeconomic factors. Economic indicators, geopolitical events, and central bank policies can impact investor sentiment and drive price movements across various asset classes, affecting synthetic index performance.
Market psychology and investor sentiment play a significant role in synthetic indices trading. Bullish sentiment drives buying activity, pushing synthetic index prices higher, while bearish sentiment leads to selling pressure and declines.
Liquidity and trading volume in synthetic indices markets affect price discovery and execution quality. Higher liquidity and trading activity generally contribute to smoother price movements and tighter spreads, while low liquidity may increase price volatility and wider spreads.
Investor risk appetite influences demand for synthetic indices and riskier assets. During periods of risk aversion, investors may seek safer assets, leading to decreased demand for synthetic indices and potential price declines. Conversely, increased risk appetite can boost synthetic index prices.
Trading synthetic indices can significantly impact overall portfolio diversification by providing exposure to a broader range of asset classes and market sectors. Synthetic indices represent baskets of underlying assets from diverse sectors, including stocks, commodities, and currencies. This diversification helps spread risk across the portfolio, reducing overall portfolio volatility and enhancing risk-adjusted returns.
Moreover, synthetic indices often have a low correlation with traditional asset classes such as stocks and bonds, performing differently under various market conditions. This low correlation can help offset losses in other portfolio holdings during market downturns.
Furthermore, synthetic indices provide exposure to global markets and international economies, allowing investors to diversify geographically. Trading indices from different regions enables investors to capitalize on regional market trends and economic cycles, further enhancing portfolio diversification and reducing concentration risk.
Capitalizing on volatility in synthetic indices trading requires robust strategies tailored to dynamic market conditions. Here are some commonly used strategies:
Mean reversion strategies capitalize on the tendency of volatility indices to revert to their mean levels after periods of extreme volatility. Traders identify overextended moves and enter contrarian trades, betting on a return to average volatility levels.
Options strategies such as long straddles or strangles involve buying calls and puts to benefit from significant price swings. Conversely, selling options through strategies like iron condors or credit spreads can generate income from stable or declining volatility environments.
The volatility risk premium refers to the compensation investors receive for bearing volatility risk. Traders can capture this premium by selling volatility index futures or options contracts when implied volatility is elevated relative to historical volatility.
Events such as earnings announcements, economic releases, or geopolitical developments can trigger volatility spikes. Traders can anticipate these events and capitalize on volatility by entering trades before or immediately after the event.
Pairs trading involves trading synthetic indices against each other or related assets to exploit relative volatility differences. Traders identify pairs of indices with historically correlated price movements and enter long-short positions when the spread deviates from its mean.
Volatility indices can serve as effective hedges against market risk. Traders may use volatility index futures or options to hedge equity or currency positions during periods of uncertainty, protecting against adverse price movements.
Trading synthetic indices can be influenced by various market conditions, and specific environments may offer more favorable opportunities. Elevated market volatility tends to increase price fluctuations, providing ample trading opportunities. During periods of uncertainty or geopolitical instability, synthetic indices may serve as safe-haven assets, increasing trading volumes and liquidity.
Additionally, strong market trends provide favorable conditions for trend-following strategies. Events such as earnings announcements or central bank meetings can trigger significant price movements in synthetic indices. During market downturns, volatility indices tend to rise, offering hedging opportunities. Economic indicators and monetary policy decisions can also impact synthetic indices, influencing trading strategies.
Regulatory considerations significantly impact synthetic indices trading, particularly regarding leverage and margin requirements. Leverage restrictions vary across jurisdictions, with some regulators mandating maximum leverage ratios for retail accounts. Minimum margin requirements ensure traders maintain sufficient funds to cover potential losses, promoting market integrity.
Regulatory bodies also implement protection measures, including mandatory risk disclosures, client fund segregation, and oversight of brokers to ensure compliance. Providing educational resources and risk warnings helps traders make informed decisions. Regulatory changes can affect trading conditions, necessitating traders to stay informed and adjust strategies accordingly.
Algorithmic trading and automated strategies play a significant role in synthetic indices trading. Execution speed is critical, with algorithms executing trades in milliseconds, minimizing slippage and latency impact. Automated strategies provide liquidity, enhance market depth, and narrow bid-ask spreads.
Automated risk management algorithms monitor portfolio exposure and prevent adverse market impacts. These strategies enable systematic trade execution, reducing emotional biases and human errors. Quantitative analysis techniques identify trading opportunities, generate trade signals, and optimize strategies, ensuring data-driven decision-making.
Differentiating between synthetic indices involves analyzing market dynamics, asset composition, and trading characteristics. Evaluating underlying assets, volatility, and risk-return profiles helps traders align indices with their objectives and risk tolerance.
Analyzing historical volatility and price movements gauges suitability for trading objectives. Assessing trading characteristics like bid-ask spreads, trading volumes, and market depth determines tradability. Considering sector-specific trends, regional exposure, and economic outlooks further informs selection.
Synthetic indices trading offers a versatile avenue for market participation, allowing access to various financial instruments. However, it's crucial to acknowledge the inherent risks involved. Utilizing a robust trading platform with demo accounts allows traders to explore different strategies (like mean reversion or options strategies) and refine their approach before risking real capital.
Staying informed about market trends and effectively navigating various market conditions are key to success. While synthetic indices can offer diversification and potential returns, achieving consistent profitability requires dedication, knowledge, and a well-defined trading strategy. This approach ensures informed decision-making and helps mitigate the inherent risks associated with synthetic indices trading.
We have conducted extensive research and analysis on over multiple data points on Synthetic Indices Trading to present you with a comprehensive guide that can help you find the most suitable Synthetic Indices Trading. Below we shortlist what we think are the best Indices Brokers after careful consideration and evaluation. We hope this list will assist you in making an informed decision when researching Synthetic Indices Trading.
Selecting a reliable and reputable online Indices Brokers 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 Indices Brokers more confidently.
Selecting the right online Indices Brokers 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 Indices Brokers trading, it's essential to compare the different options available to you. Our Indices Brokers 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 Indices Brokers broker that best suits your needs and preferences for Indices Brokers. Our Indices Brokers broker comparison table simplifies the process, allowing you to make a more informed decision.
Here are the top Indices Brokers.
Compare Indices Brokers brokers for min deposits, funding, used by, benefits, account types, platforms, and support levels. When searching for a Indices Brokers broker, it's crucial to compare several factors to choose the right one for your Indices Brokers needs. Our comparison tool allows you to compare the essential features side by side.
All brokers below are Indices Brokers. Learn more about what they offer below.
You can scroll left and right on the comparison table below to see more Indices Brokers that accept Indices Brokers clients.
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IC Markets
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Roboforex
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eToro
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XTB
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XM
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Pepperstone
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AvaTrade
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FP Markets
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EasyMarkets
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SpreadEx
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FXPro
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Regulation | Seychelles Financial Services Authority (FSA) (SD018) | RoboForex Lid is regulated by Belize FSC, License No. 000138/7, reg. number 000001272. 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 (UK) Ltd (FCA reference 583263), eToro (Europe) Ltd CySEC (Cyprus Securities Exchange Commission), ASIC (Australian Securities and Investments Commission) eToro AUS Capital Limited ASIC license 491139, CySec (Cyprus Securities and Exchange Commission under the license 109/10), FSAS (Financial Services Authority Seychelles) eToro (Seychelles) Ltd license SD076 | 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) | Financial Services Commission (FSC) (000261/4) XM ZA (Pty) Ltd, Cyprus Securities and Exchange Commission (CySEC) (license 120/10) Trading Point of Financial Instruments Ltd, Australian Securities and Investments Commission (ASIC) (number 443670) Trading Point of Financial Instruments Pty Ltd | 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 | Australian Securities and Investments Commission (ASIC) Ava Capital Markets Australia Pty Ltd (406684), South African Financial Sector Conduct Authority (FSCA) Ava Capital Markets Pty Ltd (45984), Financial Services Agency (Japan FSA) Ava Trade Japan K.K. (1662), Financial Futures Association of Japan (FFAJ),, FFAJ, Abu Dhabi Global Markets (ADGM)(190018) Ava Trade Middle East Ltd (190018), Polish Financial Supervision Authority (KNF) AVA Trade EU Ltd, Central Bank of Ireland (C53877) AVA Trade EU Ltd, British Virgin Islands Financial Services Commission (BVI) BVI (SIBA/L/13/1049), Israel Securities Association (ISA) (514666577) ATrade Ltd, Financial Regulatory Services Authority (FRSA) | CySEC (Cyprus Securities and Exchange Commission) (371/18), ASIC AFS (Australian Securities and Investments Commission) (286354), FSP (Financial Sector Conduct Authority in South Africa) (50926), Financial Services Authority Seychelles (FSA) (130) | Cyprus Securities and Exchange Commission (CySEC) (079/07) Easy Forex Trading Ltd, Australian Securities and Investments Commission (ASIC) (Easy Markets Pty Ltd 246566), British Virgin Islands Financial Services Commission (BVI) EF Worldwide Ltd (SIBA/L/20/1135), Financial Sector Conduct Authority South Africa (FSA) EF Worldwide (PTY) Ltd (54018), FSC (Financial Services Commission) (SIBA/L/20/1135), FSCA (Financial Sector Conduct Authority) (54018) | FCA (Financial Conduct Authority) (190941), Gambling Commission (Great Britain) (8835) | FCA (Financial Conduct Authority) (509956), CySEC (Cyprus Securities and Exchange Commission) (078/07), FSCA (Financial Sector Conduct Authority) (45052), SCB (Securities Commission of The Bahamas) (SIA-F184), FSA (Financial Services Authority of Seychelles) (SD120) |
Min Deposit | 200 | 10 | 50 | No minimum deposit | 5 | No minimum deposit | 100 | 100 | 25 | No minimum deposit | 100 |
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Used By | 200,000+ | 730,000+ | 35,000,000+ | 1,000,000+ | 10,000,000+ | 400,000+ | 400,000+ | 200,000+ | 250,000+ | 60,000+ | 7,800,000+ |
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Platforms | MT5, MT4, MetaTrader WebTrader, Mobile Apps, iOS (App Store), Android (Google Play), MetaTrader iPhone/iPad, MetaTrader Android Google Play, MetaTrader Mac, cTrader, cTrader Web, cTrader iPhone/iPad, cTrader iMac, cTrader Android Google Play, cTrader Automate, cTrader Copy Trading, TradingView, Virtual Private Server, Trading Servers, MT4 Advanced Trading Tools, IC Insights, Trading Central | MT4, MT5, R Mobile Trader, R StocksTrader, WebTrader, Mobile Apps, iOS (App Store), Android (Google Play), Windows | eToro Trading App, Mobile Apps, iOS (App Store), Android (Google Play), CopyTrading, Web | MT4, Mirror Trader, Web Trader, Tablet, Mobile Apps, iOS (App Store), Android (Google Play) | MT5, MT5 WebTrader, XM Apple App for iPhone, XM App for Android Google Play, Tablet: MT5 for iPad, MT5 for Android Google Play, XM App for iPad, XM App for iOS (App Store), Android (Google Play), Mobile Apps | MT4, MT5, cTrader,WebTrader, TradingView, Windows, Mobile Apps, iOS (App Store), Android (Google Play) | MT4, MT5, Web Trading, AvaTrade App, AvaOptions, Mac Trading, AvaSocial, Mobile Apps, iOS (App Store), Android (Google Play) | MT4, MT5, TradingView, cTrader, WebTrader, Mobile Trader, Mobile Apps, iOS (App Store), Android (Google Play) | easyMarkets App, Mobile Apps, iOS (App Store), Android (Google Play), Web Platform, TradingView, MT4, MT5 | Web, Mobile Apps, iOS (App Store), Android (Google Play), iPad App, iPhone App, TradingView | MT4, MT5, cTrader, FxPro WebTrader, FxPro Mobile Apps, iOS (App Store), Android (Google Play) |
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Risk Warning | Losses can exceed deposits | Losses can exceed deposits | 61% of retail investor accounts lose money when trading CFDs with this provider. | 69% - 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. | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.12% 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. | 75-95 % of retail investor accounts lose money when trading CFDs | 71% of retail investor accounts lose money when trading CFDs with this provider | Losses can exceed deposits | Your capital is at risk | 65% of retail CFD accounts lose money | 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 |
XTB Demo |
XM Demo |
Pepperstone Demo |
AvaTrade Demo |
FP Markets 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, MG, MK, KZ, GD, FJ, PT, BB, BM, BS, AG, AI, AW, AX, LB, SV, PY, HN, GT, PR, NI, VG, AN, CN, BZ, DZ, MY, KH, PH, VN, EG, MN, MO, UA, JO, KR, AO, BR, HR, GL, IS, IM, JM, FM, MC, NG, SI, | US, IN, PK, BD, NG , ID, BE, AU | US, CA, IL, IR | AF, AS, AQ, 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, VU, VG, EH, ES, YE, ZW, ET | BE, BR, KP, NZ, TR, US, CA, SG | US, JP, NZ | 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 Indices 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 Indices Brokers for 2025 article further below. You can see it now by clicking here
We have listed top Indices 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. 61% 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.
This communication is intended for information and educational purposes only and should not be considered investment advice or investment recommendation. Past performance is not an indication of future results.
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
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.
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