Top online Brokers For Trading Indices for 2022

We found 11 online brokers that are appropriate for Trading Indices.

Brokers for Trading Indices Guide

Updated December 02, 2022

Trading Indices

If you are considering trading financial instruments and want to learn more about Trading indices this guide will help.

You may want to cover all of the basics of trading Indices first, to fully understand them.

Indices are meant to assess the price movements and performance of a group of stocks found in a given exchange. These can track listed corporations in a stock exchange. For example, one of the world’s most prominent stock indexes, the FTSE 100 stock index, tracks a hundred of the most prominent corporations by market capitalization. While you are not directly trading the stocks, indices trading allows you to attain exposure to the sector. In this case, you will be open to a single position on an index as an indices trader, but the index will track multiple stocks.

The Usage And Importance Of Trading Indices

Trading Indices provide information on the movements of individual securities. Trading indexes are important in the world of exchange-traded markets, as they facilitate price determination between two traders or among many traders when viewing trends in the market. Trading indices are based on publicly available information in the markets. The primary uses of trading indices are to determine oversold or overbought conditions in the market and to facilitate the identification of trends. They can also be used to reduce margin requirements in stock market trading.

Trading indices are a kind of technical trading of an index that makes up the underlying index. An index is a measurement of a particular segment of the exchange-traded market. It is calculated by the prices of chosen individual stocks. It can also be called a composite group of various stock traded companies within a particular geographical region. Most of the time, trading indices are based on the price differences between the leading companies within any given industry. These companies are then traded in the exchange for smaller shares.

Index Brokers

Index brokers are financial institutions also known as Index trading platforms, that offer investors the ability to buy and sell into a wide variety of index funds. These brokers often offer commission-free trading, which is great for investors who want to minimize their costs.

Indices trading with a Index boker is the simplest way of trading the stock markets. It allows you to use a Index trading platform to trade a whole stock market index with a single order. The indices trading platforms are operated by companies that offer their clients to place buy and sell orders on stock market indices all over the world.

What Is The Difference Between Passive And Active Investing?

Passive investing is when you invest in a portfolio of securities that match an index such as the S&P 500 or the Russell 2000. If you invest in an S&P 500 index fund, you have essentially invested in every company listed in the S&P 500. Active investing refers to trying to beat an index by picking individual stocks or bonds.

How To Trade Indices

Following are the ways to trade indices:

Determine An Index You Are Comfortable With

Many brokers with indices offer indices from numerous continents and regions in the world, e.g., the US, UK, Europe, and Asia. While you decide which stock index to trade, it is crucial to opt for the one you are comfortable with or have prior information of. You may also refer to your indices broker for this. Research and analysis will help you to determine the type of trading opportunities different indices provide, aside from how volatile the price movements in these markets can be.

Choose Between Traditional Index Trading, Spread Betting Or Index CFD Trading

You may trade indices with your chosen indices broker in multiple ways, i.e., as a traditional buy order a Index CFD or a Idices spread bet. Determining the right trade type is crucial since there are minute differences between the two that may impact your trading decisions.

Establish Whether The Market Is Bearish Or Bullish

Once you are satisfied with your research and know that you have found a promising trading opportunity in your selected index, you must decide which direction you want to trade in. Whether it’s going long (Buy) or going short (Sell), both CFD trading and spread betting let you earn profits from rising and falling markets for increased flexibility.

Place Your Trade

When you begin trading indices, you must act to shield yourself against potential losses and volatility beyond your comfort level. Many index brokers provide clients with risk management tools such as limit orders and stop losses, to help them shield themselves from probable losses. Be sure to opt for a trade size that suits your budget and does not end up over-leveraging your account. Markets are liable to volatility, making them unpredictable, so guaranteeing that you are shielded from excessive losses is going to prove helpful for your long-term success.

Monitor And Close Your Trade

After you have opened a position on your preferred index, tracking market movements can help you secure your profits and lower any chances of losses. Many reputable indices brokers offer the latest platforms that can be accessed via all the well-known operating systems. Some also offer applications users can use on the go to monitor market movements and make wise trading decisions.

Trading Indices Indicators

Trading indices are useful indicators for market analysis because they show the direction of market movements. They show how the price of one particular stock is related to other stocks of the same company. Most of these stock indexes are highly correlated and use complex mathematical algorithms to calculate the movement of market prices over long-term periods. The index can represent one sector, or it can represent an overall industry. The trading indices are widely used in the financial services industry for market timing.

Stock charts provide information about the movement of underlying securities within the index through bar charts, line charts, candlestick charts and other types of charts. Each chart contains relevant information for an indices trader to make sound decisions. When a trader enters a trade, he must analyze the chart to decide which security to trade. Index trading indices are useful indicators for determining the entry and exit points for trades. It helps in developing a set of trade rules or strategies for the trader.

What Is Indices Trading?

Indices Trading is a technique through which the investors can reap profits from the fluctuating price changes of different indices. There are various indices present in the global trading market for indices trading. They normally measure the performance of different financial markets, which presently include domestic or central banks, industrial, commercial, currency, stock, commodity, and index markets. It includes the stocks, shares, futures, options, securities, and agencies that trade in foreign exchange. Many factors influence the prices and movements of these indices.

If you wish to invest in the world of stocks and bonds but are clueless about the various indices and their usefulness, then I strongly suggest that you scout the market before making a move. Many indices brokers and financial institutions provide excellent index futures services, along with a host of other financial products such as CFDs. It often becomes difficult to choose between different providers and products as each one has its unique selling points and features. Once you understand the difference between various financial instruments and their utility, you will be able to invest intelligently in both the markets and enjoy significant profits.

Note that you will not have full ownership of the asset that you are trading. You can speculate on the prices of the indices, whether they are rising or falling in the future. Traders can conduct spread bets and make use of CFDs to gain leveraged exposure on Indices and make trades.

What Are Indices In Trading?

These stock indices are important for investing in the financial markets. However, stock trading indices are vastly different from stock indices. For starters, they are not derived from any particular index. Instead, they are designed to provide investors with information about specific companies. You can think of them as an electronic version of an index that tracks and compares different stocks of a particular sector or industry.

What Are The Advantages Of Trading Indices?

Trading indices comes with many upsides; a few of them are discussed below:

Indices Offer Flexibility

The advantage of Indices trading over other trading formats is that they offer a high level of flexibility. This means that the trader can choose between fixed time frames and multiple time frames. However, the drawback is that they are unable to provide a reliable signal of price movements. For instance, if an investor chooses to trade indices based on the U.S. dollar index, the investor will not know how the euro and dollar pair would fluctuate over the period.

They Offer High Liquidity, And Are Low Cost

The advantage of index futures and CFD trading format over other trading formats is that they offer high liquidity and low cost. One trade can dominate the other if the prices move quickly. However, at times it is possible for one trade to completely deplete its available capital. If an investor is unable to hold onto his CFDs, he would be faced with the loss of all his capital invested in CFDs.

Trading indices also let you get exposure to an entire market or industry sector, while only having to open a single trading position.

They Have Better Trends Than Currencies

The stock indices market moves in tandem with the stock market price movements. The stock market also tends to move in one singular direction. During times of economic development, stock prices constantly go up. That means that the stock indices tracking the prices of such stocks will also continue to move upward and continue that trend. Forex currency market movements may not be as noticeable as stock index market movements.

Trading Indices Is Ethical

As surprising as this may sound, index trading is considered ethical and that way, you have a completely neutral eco-footprint. By trading indices, you do not impact the share price at all. You also have zero impact on government debt, and raw materials, among other things. This is because directly investing in an index does not lead to any changes in stock prices.

They Have Fewer Consolidations

Contrary to how foreign exchange currencies go into consolidation phases for extended periods, consequently leading to many whipsaws, stock market indices are rarely consolidated for extended periods. Stock indices, instead, show a specific trend direction at any moment, i.e., upward, or downward. This results in less whipsaw when you trade stock indexes. Fewer whipsaws also mean increased odds of generating revenue.

Stock Indices Are Easier To Predict

The stock index market movements are mainly based on stock price movements. If stock prices go up, stock indices follow suit. If stock prices move downwards, stock indices also move downwards. This quality makes indices easier to predict than forex currencies.

Indices Profit From Global Economic Situations

You do not risk it all with indices like you do with cryptocurrency, forex trading, or stocks. Instead, you end you profiting from the international world economy since you are investing in multiple companies. If any of these companies go bust, that does not keep the index from rising.

Trading indices helps you smooth out any risk. You can profit from the positive and/or negative dynamics, based on whether you invest in or sell the index. If you do not have any short-term trading strategy, after gaining a bit of experience, you can identify the medium to long-term trends on indices.

Disadvantages Of Trading Indices

Following are the disadvantages of trading indices:

The Most Common Index In The World

The most common index in the world of finance is the cost of capitalization, also known as asset value or book value. It combines market price data on listed and unlisted stocks of varying stocks like treasury bills and government bonds. As such, it considers the assets and liabilities of businesses as well as the balance between retained earnings and free cash. While these two kinds of indices look similar in many ways, they are not the same. The cost of capitalization measures only the cost of buying shares, while the true market value takes into consideration the actual change in the value of stocks, which can be volatile. As such, the index cannot show a clear picture of economic data like balance sheets because it is affected by certain economic variables such as interest rates, inflation, profit margins, and market sentiment.

Why Trade Indices?

One of the most usual questions from beginner traders looking to trade Forex is 'Why trade indices?' Index trading is a broad term given to financial instruments designed to track prices. Traders can buy and sell global currencies as well as commodities like oil, gold, and other commodities. Because trading indices are sensitive to changes in world markets, they have traditionally been used as indicators of market activity. But with the rise of index trading platforms on the Internet and through automated Forex trading software, traders have been able to use the information available to make better-informed decisions on which currencies to trade, when to buy, and how to position their trades.

So, why would anyone want to buy and sell stock market indices? For one thing, trading indices are extremely accurate and up to date. They are based on proven economic principles and have been around since the early 1970s. Also, trading indices are easy to understand, fast to execute, and accurate. Traders looking to trade with an indicator are not trying to predict the direction of the stock market but attempting to follow it as it moves.

Traders use various types of index trading strategies to gain exposure to the financial markets. Some use long term trading, while others employ short term strategies. No matter how they do it, though, traders need to keep their money management in check, especially in volatile market conditions. If their money management falls into disrepair, then they could experience extreme losses. By learning about index trading and applying it to their investment portfolio, however, traders can avoid many of these potential losses. They will, at the very least, increase their overall knowledge of the market.

When you are Trading indices you are speculating the price movements of Dow Jones, DAX, FTSE 100, FTSE 250, NASDAQ 100, CAC 40, Nikkei 225, and other stock indices. Stock indices are a measurement of the stock market performance of a collection of the best individual company shares in certain markets. Indices are used to calculate the health and performance of a stock market.

Traders prefer trading indices as risk is spread across the shares in the index. However, a major shift in the fortune of one company may impact the performance of the other indices.

How Are Indices Calculated?

Indices are calculated in numerous ways, but most out of them use a specific type of measurement or formula founded on an individual stock’s size and its performance. Apple, for instance, is among the largest publicly traded firms in the entire world. The effect of said leading company’s index would be more noticeable compared to a smaller firm. If the price of Apple stocks falls, the total impact on the index may translate more drastically. Most stock market indices are calculated per the market capitalisation of the component companies.

This technique gives greater companies with larger market capitalisation have greater weight in these Indices.

However, some popular indices - such as the Dow Jones Industrial give greater weighting to businesses with higher share prices, meaning that changes in their values will have more of an effect on the overall price of a stock index.

Trading indices can be highly volatile. One will need extensive experience and a good set of trading skills to improve their opportunities to make profits and mitigate the risks when trading indices. And yes, it is a highly liquid market to join with. It also comes with flexible trading hours, which can give you many opportunities to make more money from trading.

The calculation of the stock market indices is relevant to the market capitalization of the companies listed in the indices. It is fair to say that the larger the cap of the companies, the better the performance, which impacts the value of the index.

What Moves Indices Markets?

What moves index markets? Index funds, that's what! In essence, they are stock funds that have been issued by large, diversified companies. The returns on these types of investments are usually based on the performance of the individual stocks within the fund. In many cases, this means that stock index funds have gone up or down, which means that the individual stocks in the index have either lost or gained value as a whole. Investors invest in index funds trade or invest their money constantly, allowing them to follow the movement of an ever-changing economy.

An index passes through several stages before it reaches its final destination, and each stage affects the market in question. For instance, the price/earnings ratio or P/E ratio of an index is affected by several external factors. However, the main contributors are macroeconomic data such as consumer sentiment, economic data on the balance sheets, and so on.

The Significance Of Moving Indices

The beauty of moving indices is that you can use them regardless of what's happening in the market. It is important to remember that they don't account for all the factors that can affect the market, and they don't provide any guarantees. However, they are an excellent tool for stock traders who want to become more informed about their positions. They can help you learn more about how the markets work and can even help you make better decisions about what stocks to buy or sell.

When compiling an index of corporations, it is crucial to evaluate them in a way that is practical for investors.

For instance, investors in 1984 were opting for tracking the top hundred companies that are were traded publicly on the stock exchange of London. FTSE (or Financial Times Stock Exchange), a privately held organization undertook the task of reviewing earning reports and accounting entries of each firm that was traded on the London Stock Exchange (LSE).

Their research efforts helped in understanding the market cap of each corporation on the exchange. They then chose the top hundred corporations based on market cap and compiled all of them into a list. Every fiscal quarter, FTSE members come together to evaluate new revenue reports to ascertain which firms may stay on the top hundred list, which firms are to be removed, and which firms can replace the ones removed.

The Most Popular Indices

Most traders start trading indices with the most popular stock indexes. After all, these indices are popular for good reason. All indices happen to go through phases of popularity and surge and fall from favour. However, the most popular global stock indices tend to remain the same over the years. The most Here are the most traded indices that you could consider checking:

Common Trading Indices

Following are the most common trading indices:

Dow Jones

Dow Jones is also referred to as Wall Street and comprises of the top thirty companies in the United States.

Dow Jones & Company was initially established by Edward Jones, Charles Dow, and Charles Bergstresser in the year 1882.

Often known as “the Dow,” the DJIA (or the Dow Jones Industry Average) is among the most popular indexes in the entire world. It contains large firms such as Boeing, Coca Cola, and Microsoft. The DJIA was first established with only twelve firms based in the industrial fields. It did, however, later grow to involve a total of 30 companies. The first companies originally operated in oil, tobacco, gas sugar, and cotton. The performance of industrial firms is often viewed as similar to that of the wider economy. This makes DJIA the main measure of broader economic development. Even though the health of the economy is associated with numerous other sectors, the DJIA is, regardless, viewed as an important indicator of the US economy’s welfare.

The first ever index fund was based on the Dow Jones 30 Index (DJI 30). It was registered on July 31, 1972.

Instead of weighing by market capitalization – like the S&P 500 – it is weighed by price. The composition of the index only includes thirty corporations across industries in the US. The Dow is seen as a more precise measure of the welfare of the US stock market. That is due to its tighter set of included firms.

Dow Jones Index is calculated as follows: a person needs to add up all stock prices of the 30 largest companies (American blue chips) and divide the sum by the Dow divisor. Initially, the Dow divisor equalled the number of companies, so it modified the formula into the arithmetic average. Today the Dow divisor is calculated considering different factors, and it is less than one (meaning the index is larger than the sum of components’ prices).

FTSE 100

The FTSE 100, informally referred to as the Footsie, is also commonly called the UK 100 and comprises the top hundred companies.

If you are interested in trading in a European country, then FTSE 100 could be one of the best options. This index follows 100 UK blue-chip companies which are registered on the London Stock Exchange. The top 100 companies that are followed in the FTSE 100 have the highest capitalizations in the UK financial market.

The FTSE was launched the year 1984. Despite its popularity, the FTSE is considered to be among the younger foreign stock indices.

The size of index companies is evaluated via market cap. It is measured by multiplying a firm’s current stock price by the number of shares in issue, i.e., issued shares, before multiplying this value by said firm’s “free-float factor” which shows the number of shares to be traded on the market. This ultimately leads to the value that shows much that the company is worth based on the market.

Ultimately, the top hundred, which includes some multinational firms and British corporations, are then listed in the FTSE 100 and are referred to as “blue chip” firms. Blue-chip firms are usually mature corporations.

As a firm’s share price fluctuates, its market cap will fluctuate as well. This means that the whole index will shift in value, going up and down as the share prices of its constituent firms do. How much it fluctuates is based on the firm’s influence on the index.

In September 2021, the industrial goods and services sector was the largest in the index with a weight of 11.5%, followed by the financial sector with 11.3% and the health care sector in third place with 9.9%. The top 10 companies had a combined weight of 41% in the total market capitalization of all index participants.

NASDAQ 100

The NASDAQ 100 holds some of the world’s largest technologies companies. This index follows the values of the 100 largest tech companies in the US.

The capitalization-weighted index is also commonly called the US Tech 100. It comprises only top-performing technology companies in the United States.

The NASDAQ has fairly strict standards that firms are required to reach to be featured on their market. These standards include being strongly associated with NASDAQ in other the Global Market or Global Select tiers, not being involved in bankruptcy charges, and having an average day-to-day volume of 200K shares. Companies could only have one stock class in the NASDAQ before 2014. Since then, policies have changed and firms can include multiple classes, granted they are in line with the NASDAQ requirements.

DAX Germany 30

The DAX 30, also referred to as the Deutscher Aktien Index is composed of the top thirty companies in Germany and is also addressed as Germany 30. The DAX index is believed by numerous analysts to be a measure for the welfare of the German economy. The firms included in the DAX index are international companies that affect the local German and international economy as well. The prosperity of such firms has significantly added to what is referred to as Wirtschaftswunder, or the “economic miracle.”

These indices track the performance of 30 companies listed on the Frankfurt Stock Exchange. The DAX 30 tracks the top-performing and largest companies i.e., German companies only.

CAC 40

Forty biggest companies in France are categorized under CAC 40 and commonly also referred to as France 40.

CAC 40, i.e., Cotation Assistée en Continu, basically means “continuous assisted quotation”. It is used as a reference index for capital investment in the stock market of France. It also offers a basic idea of the course of Euronext Paris. Euronext Paris is the most prominent stock exchange in France. It was previously called the Paris Bourse.

The index constitutes a capitalization-focused measure of the 40 most prominent estimates among the 100 highest-ranking market capitalizations on the exchange. The index is very similar to DJIA.

Nikkei 225

The Nikkei 225 is a prominent stock market index that includes the 225 largest firms by price weighting on the TSE (or Tokyo Stock Exchange). Due to the size of Japan’s economy, the Nikkei 225 acts as a significant gauge of stock market activity within Asia. Traders need to pursue the index to determine where the stocks in Japan are headed. It also gives them an idea of price action as well as sentiments all across East Asia.

DJIA Wall Street

This index tracks 30 largest stocks in the US stock market.

Is Indice Trading Right for You?

Trading indices can be long or short based on the price movements across major financial markets like the US, UK, Europe, Australia, and Asia.

Traders can take advantage of market movement across various companies from different sectors. This lowers the risk of exposure to volatility.

You can benefit from trading indices if you have larger capital.

Popular Trading Indices

There are several popular indices such as Dow Jones, DAX, FTSE 100, FTSE 250, NASDAQ 100, CAC 40, and Nikkei 225. We will here discuss just a few of these:

Dow Jones

Launched in 1885, the Dow Jones is incredibly popular and comprises some iconic companies like Apple, Coca-Cola, Nike, Walt Disney, Visa, Microsoft, McDonald's, Intel, and Boeing. The Dow traditionally is less sensitive to volatile financial markets.

FTSE 100

It is one of the most popular indices in the world and comprises brands and companies like HSBC, Vodafone Group, Royal Mail, Just Eat, Tesco, Burberry, Barclays, and Glencore.

FTSE 100 started operation in 1984 and it is managed by London Stock Exchange's subsidiary the FTSE Group.

NASDAQ

Launched in 1971, it is the third major stock index in the US. It comprises the top 100 companies but mainly focuses on technology firms. The popular companies listed on it include Apple, Cisco, Seagate, Tesla, NVIDIA, Netflix, and Intel.

Germany 30

It is a European index and the top 30 companies listed on the Frankfurt Stock Exchange is included in the Germany 30, which was founded in 1988.

The popular companies which comprise Germany 30 include BMW, Deutsche Bank, SAP, Volkswagen Group, Adidas, Daimler, and Allianz.

Factors that Drive Index Price

Index price can change from time to time depending on numerous factors. Here are the most common factors which can affect the index’s price.

Economic Events

Economic events can have a direct impact on the prices of indexes. The news and events revolve around economic indicators such as investor sentiment, news from central banks and financial institutions, and so on.

Trading Indices Company Finances

Each company in the list has a direct impact on the prices of an index. Whenever companies in the indexes make profit or losses, these will cause the share prices to change. When the share prices increase or decrease, it will directly affect the price of the index.

Company Events

The events which can affect the company body and structure can also contribute to the indices prices changes. For instance, the change of CEO of a company, mergers, bankruptcy, joint venture, or other events will indeed affect the prices exponentially. So, it is safe to assume that the events can have positive or negative effects on the index price.

The Changes In The Indices

There could be a possibility that the indices can change. Over time, there could be new companies added to the indices list and when there are new companies added, there are some which are removed. The adjustment in the positions can also affect the prices of indexes.

The Prices Of The Commodities

The prices of commodities can change from time to time and as these prices affect the operation and economy of the companies in the list, these factors can also have a direct impact on the index prices. As we see from commodities natural characteristics, the fluctuations in the market can be a relevant factor that drives the prices of the index.

Index price can change from time to time depending on several factors. Here are the most common factors which can affect the index’s price.

Trading Stock Market Indices

Stock market indexes across the world are used by financial analysts to understand the health of markets. Each stock market index helps analysts understand the performance of each specific section of the global and regional market sectors. We have listed the world’s most well-known and traded stock market index exchanges.

Trading Indices Through CFD Trading

Traders can trade in stock market indices with a contract for difference (CFD) brokers. CFD's are based on margin and leverage. With a CFD the transaction is based only on the price movement of the share without owning any underlying indices assets.

NASDAQ100 Traders

NASDAQ 100 traders can purchase contracts with smaller account sizes. A low margin CFD requires less financial outlay for the trade.

Trading NASDAQ 100 indices through a contract for difference trading (CFD) may amplify your financial return because of the leverage on that trade but be careful. The leverage with a contract for difference (CFD) trade equally amplifies the risk.

Index CFDs are considered leveraged products. This means that traders must only place a minute margin to manage a larger trading position in the stock market. Leverage guarantees magnified profits; however, it can also give rise to trade losses.

When trading indices via CFDs, investors gain revenue by forecasting the direction in which prices go. This means that revenue can be collected irrespective of whether prices are going up or down.

Stock Indices Vs Stocks

When looking at traditional stocks and index trading side by side, there are plenty of reasons why traders would choose index trading.

When you invest in stocks, you are liable to the risks their relevant company faces. In contrast, investing in stock indexes helps you become automatically diversified. That is because as already mentioned, your investment represents numerous stocks (from tens up to several hundred).

Additionally, studies have led to the fact that investing in indices is a lot more advantageous than choosing stocks to invest in individually. Indice trading can let you diversify to a great extent, even geographically.

Stock indexes paired with CFDs also let you benefit from leverage, meaning you can trade by depositing a small percentage of your investment’s value. One thing to note is that although leverage multiplies your gains, it may have the same effect on your losses.

While you can buy and hold a share to sell it for a greater price, a stock index CFD can be traded long, or short (where you sell with the aim that the index will go down in value, closing your trade at a lowered price and profiting on the price difference.

Stock Indices Vs Forex Stocks

Both markets have their benefits and the correct one for you depends on your trading strategy. Foreign exchange trading can be a challenge since you are required to predict the movements (whether upward or downward) of a currency pair. The movements can be influenced by numerous factors and can be extremely volatile. On the other hand, with index trading, you can conduct trades based on predictions about the movements of the market.

Foreign exchange trading works best for short-term scalpers who capitalize on high volatility and low spreads. However, index trading (especially indices with much wider spreads) may be better for longer-term traders, such as swing traders.

One more thing to consider is your comprehension of the market. Although some traders can successfully conduct trades in a certain sector or economy (suitable for index trading), others are better with currency movements, which means foreign exchange trading may work better for them.

DAX30 is one of the most popular stock indices in trading. It represents the thirty most prominent countries on the Frankfurt stock exchange by market cap.

Synthetic Indices Brokers

Synthetic indices refer to simulated markets not impacted or altered by world news and events. However, they do function as real financial markets and are contingent on a cryptographic randomized number generator. Such types of indices are also audited by outside third parties so that they are not tampered with or manipulated.

In the synthetic index market, indices traders must be aware of three states: the Trend Higher state where prices bounce back, taking a bullish direction, the Trend Lower state, where all upward price movements are sold off with the market heading in a bearish direction, and the Sideways Range where negligible movement occurs in both ranges. Look for synthetic indices brokers that allow their clients to not only deal in range markets, but bullish and bearish ones as well.

Boom And Crash Brokers

Newer traders must have heard of Boom 500 and Crash 500, and Boom 100 and Crash 500. Put simply, Boom and Crash are synthetic indices. With the Boom 1000 (or 500) index, there is an average of one upsurge determined in the price movement that occurs at any moment within 1000 (or 500) ticks. With the Crash 1000 (or 500) Index, there is an average decline in price movement that occurs at any moment within 1000 (or 500) ticks.

When you compare boom and crash brokers, opt for a broker that lets clients trade shares and stocks with 7.5 percent volatility for every indice.

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Volatility Index Brokers

Volatility indexes refer to real-time market indicators that display expected volatility over a set period. Investors use such indicators to determine market sentiment and take advantage of any potential swings in price.

Traders may stumble upon Volatility 75 index brokers at one point or another. The Volatility 75 Index makes up the CBOE (or the Chicago Board Options Exchange), the most well-established index for determining volatility and predictions. Numerous top VIX75 brokers offer the index which displays the implied volatility of the S&P 500 (over thirty days).

Volatility Index Brokers: The Advantages

The possibility to earn more revenue increases as volatility in the stock market goes up. Traders take advantage of this very movement when they invest in volatility indices. Brokers with volatility indexes provide access to assets that are not as common as others, which helps to diversity trader portfolios.

Brokers with volatility indexes are also extremely helpful for understanding and determining when markets have touched extreme positions (in any direction).

Volatility Index Brokers: The Disadvantages

Volatility indexes reveal only a bit more than what is accessible at present. For instance, a lot is already shown in the past and present performance of the S&P 500 Index. The everyday changes in the volatility index display past and current movements. It is a known fact that past price performance does not assure future trends. Hence, brokers with volatility indexes can only offer restricted intel.

Everyday fluctuations in price are also challenging to keep track of. Regularly evaluating a volatility index can prove tedious since it is so repetitive. Depending on this can end up wasting a trader’s time if the rewards are not as fruitful.

Traders are also prone to pay more attention to a short-term number, instead of the long-term. On a day-to-day basis, monitoring the volatility index may not be as advantageous. However, traders may gain more by monitoring the volatility index on a month-to-month basis.

MetaTrader 4 Indices

Trading MetaTrader 4 Indices is said to be a lot more convenient compared to other indices trading platforms. That is because all the trading indices provided by MetaTrader 4 are CFDs. Index CFDs are relatively more accessible for trading than other kinds of indices since they consider the agreement between the seller and the buyer.

MT4 provides a vast variety of indices for trading. From national to international indices, MetaTrader 4 is considered the most reliable platform by indices traders. Through MetaTrader 4, indices traders are free to trade indices out of the trading hours. They can also trade inflexible daily contracts, deal in Forex indices, and more. MT4 is among the most easy-to-use, and reliable platforms for index trading.

Trading Indices Verdict

Indices trading are mostly preferred by traders who have larger capital as risk is low and chances of profit increase. The larger market indices are well established and considered more stable than some other investments.

We've collected thousands of datapoints and written a guide to help you find the best online Brokers For Trading Indices for you. Our aim is that this information helps you choose a trustworthy, reputable and professional broker who can satisfy your trading needs online. We have compiled a list of what we consider the best Trading Indices brokers below.

Reputable Brokers for Trading Indices Checklist

There are a number of important factors to consider when picking an online Trading Indices 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.

Our brokerage comparison table below allows you to compare the below features for brokers offering Trading Indices Brokers.

We compare these features to make it easier for you to make a more informed choice.

Top 15 Trading Indices Brokers of 2022 compared

Here are the top Trading Indices Brokers.

Compare Trading Indices Brokers min deposits, regulation, headquarters, benefits, funding methods and fees side by side.

All brokers below are Trading Indices brokers. Learn more about what they offer below.

You can scroll left and right on the comparison table below to see more Trading Indices brokers that accept Trading Indices clients

Broker IC Markets Roboforex AvaTrade Pepperstone XM XTB FP Markets Trading212 EasyMarkets SpreadEx FXPro
Rating
Regulation Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), Cyprus Securities and Exchange Commission (CySEC) Cyprus Securities and Exchange Commission (CySEC) Central Bank of Ireland, 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) 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 Services Commission (FSC), Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC) 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), Dubai Financial Services Authority (DFSA), Dubai International Financial Center (DIFC),Financial Sector Conduct Authority (FSCA), XTB AFRICA (PTY) LTD licensed to operate in South Africa Australian Securities and Investments Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC) Financial Conduct Authority (FCA), Financial Supervision Commission (FSC) 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 1 100 200 5 No minimum deposit 100 1 100 1 100
Funding
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
Used By 180,000+ 10,000+ 300,000+ 89,000+ 3,500,000+ 250,000+ 10,000+ 15,000,000+ 142,500+ 10,000+ 1,866,000+
Benefits
  • Allows scalping
  • Allows hedging
  • Low min deposit
  • Offers Negative Balance Protection
  • Allows scalping
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Allows scalping
  • Allows hedging
  • Low min deposit
  • Allows scalping
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Offers Negative Balance Protection
  • Allows scalping
  • Allows hedging
  • Low min deposit
  • Offers Negative Balance Protection
  • Allows scalping
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Offers Negative Balance Protection
  • Allows scalping
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Offers Negative Balance Protection
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Guaranteed stop loss
  • Offers Negative Balance Protection
  • Allows scalping
  • Allows hedging
  • Low min deposit
  • Guaranteed stop loss
  • Offers Negative Balance Protection
  • Allows scalping
  • Allows hedging
  • Low min deposit
  • Guaranteed stop loss
  • Allows scalping
  • Allows hedging
  • Low min deposit
  • Offers Negative Balance Protection
Accounts
  • Demo account
  • Mini account
  • Standard account
  • Zero spread account
  • Raw Spread account
  • Islamic account
  • Demo account
  • Micro account
  • Mini account
  • Standard account
  • Zero spread account
  • ECN account
  • Islamic account
  • Demo account
  • Micro account
  • Mini account
  • Standard account
  • Managed account
  • Islamic account
  • Demo account
  • Standard account
  • Zero spread account
  • ECN account
  • Islamic account
  • Demo account
  • Micro account
  • Standard account
  • Zero spread account
  • Islamic account
  • Pro account
  • Demo account
  • Micro account
  • Mini account
  • Standard account
  • Islamic account
  • Demo account
  • Micro account
  • Mini account
  • Standard account
  • Zero spread account
  • ECN account
  • Managed account
  • Islamic account
  • Demo account
  • Demo account
  • Standard account
  • Islamic account
  • Demo account
  • Standard account
  • Demo account
  • Mini account
  • Islamic account
Platforms MT4, MT5, Mirror Trader, Web Trader, cTrader, Windows, Mac, iOS, Android MT4, MT5, Mac, Web Trader, cTrader, 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 MT4, MT5, Mac, Web Trader, Tablet & Mobile apps MT4, Mirror Trader, Web Trader, Tablet & Mobile apps MT4, MT5, IRESS, Mac, Web Trader, 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
Support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
Learn More Sign Up with
icmarkets
Sign Up with
roboforex
Sign Up with
avatrade
Sign Up with
pepperstone
Sign Up with
xm
Sign Up with
xtb
Sign Up with
fpmarkets
Sign Up with
trading212
Sign Up with
easymarkets
Sign Up with
spreadex
Sign Up with
fxpro
Risk Warning Losses can exceed deposits Losses can exceed deposits 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. 77.74% 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. 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. 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. 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
AvaTrade
Demo
Pepperstone
Demo
XM
Demo
XTB
Demo
FP Markets
Demo
Trading 212
Demo
easyMarkets
Demo
SpreadEx
Demo
FxPro
Demo
Excluded Countries US, IR, CA, NZ, JP US, JP, IR 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, YE, ZW US, CA, IL, KR, IR, MM, CU, SD, SY US, IN, PK, BD, NG , ID, BE, AU US, JP, NZ 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


All Trading Indices brokers in more detail

You can compare Trading 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 Trading Indices Brokers for 2022 article further below. You can see it now by clicking here

We have listed top Trading Indices brokers below.

Brokers for Trading Indices List

IC Markets
(4/5)
Min deposit : 200
IC Markets was established in 2007 and is used by over 180000+ traders. Losses can exceed deposits IC Markets offers Forex, CFDs, Spread Betting, Share dealing, Cryptocurrencies. Cryptocurrency availability with IC Markets is subject to regulation.

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, MT5, Mirror Trader, Web Trader, cTrader, Windows, Mac, iOS, Android

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account ECN account
Islamic account VIP account
Regulated by Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), Cyprus Securities and Exchange Commission (CySEC)
Roboforex
(4/5)
Min deposit : 1
Roboforex was established in 2009 and is used by over 10000+ traders. Losses can exceed deposits Roboforex offers Forex, CFDs.

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, MT5, Mac, Web Trader, cTrader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account ECN account
Islamic account VIP account
Regulated by Cyprus Securities and Exchange Commission (CySEC)
AvaTrade
(4/5)
Min deposit : 100
AvaTrade was established in 2006 and is used by over 300000+ traders. 71% of retail investor accounts lose money when trading CFDs with this provider AvaTrade offers Forex, Cryptocurrencies, Commodities, Indices, Stocks, Bonds, Vanilla Options, ETFs, CFDs, Spread Betting, Social Trading . Cryptocurrency availability with AvaTrade is subject to regulation.

Funding methods

Bank transfer Credit Card Paypal

Platforms

Web Trader, MT4, MT5, AvaTradeGo, AvaOptions, DupliTrade, ZuluTrade, Mobile Apps, ZuluTrade, DupliTrade, MQL5

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account ECN account
Islamic account VIP account
Regulated by Central Bank of Ireland, 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)
Pepperstone
(4/5)
Min deposit : 200
Pepperstone was established in 2010 and is used by over 89000+ traders. 74-89 % of retail investor accounts lose money when trading CFDs Pepperstone offers Forex, CFDs, Social Trading.

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, MT5, TradingView, DupliTrade, myFXbook, Mac, Web Trader, cTrader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account ECN account
Islamic account Pro Account VIP account
Regulated by 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
XM
(4/5)
Min deposit : 5
XM was established in 2009 and is used by over 3500000+ traders. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77.74% 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. XM offers Forex Trading, Stocks CFDs, Commodities CFDs, Equity Indices CFDs, Precious Metals CFDs, Energies CFDs.

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, MT5, Mac, Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account ECN account
Islamic account XM Zero account VIP account
Regulated by Financial Services Commission (FSC), Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC)
XTB
(4/5)
Min deposit : 0
XTB was established in 2002 and is used by over 250000+ traders. 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. XTB offers Forex, CFDs, Cryptocurrency. Cryptocurrency availability with XTB is subject to regulation.

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, Mirror Trader, Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account ECN account
Islamic account VIP account
Regulated by 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), Dubai Financial Services Authority (DFSA), Dubai International Financial Center (DIFC),Financial Sector Conduct Authority (FSCA), XTB AFRICA (PTY) LTD licensed to operate in South Africa
FP Markets
(4/5)
Min deposit : 100
FP Markets was established in 2005 and is used by over 10000+ traders. Losses can exceed deposits FP Markets offers Forex, CFDs.

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, MT5, IRESS, Mac, Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account ECN account
Islamic account VIP account
Regulated by Australian Securities and Investments Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC)
Trading212
(3/5)
Min deposit : 1
Trading 212 was established in 2006 and is used by over 15000000+ traders. 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. Trading 212 offers Stocks, Forex, Commodities, Indices.

Funding methods

Bank transfer Credit Card Paypal

Platforms

Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account ECN account
Islamic account VIP account
Regulated by Financial Conduct Authority (FCA), Financial Supervision Commission (FSC)
EasyMarkets
(4/5)
Min deposit : 100
easyMarkets was established in 2001 and is used by over 142500+ traders. Your capital is at risk easyMarkets offers CFD, Forex, Commodities, Indices, Shares, Crypto. Cryptocurrency availability with easyMarkets is subject to regulation.

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, MT5, Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account ECN account
Islamic account VIP account
Regulated by Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), British Virgin Islands Financial Services Commission (BVI)
SpreadEx
(4/5)
Min deposit : 1
SpreadEx was established in 1999 and is used by over 10000+ traders. Losses can exceed deposits SpreadEx offers Forex, CFDs, and spread betting.

Funding methods

Bank transfer Credit Card Paypal

Platforms

Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account ECN account
Islamic account VIP account
Regulated by Financial Conduct Authority (FCA)
FXPro
(4/5)
Min deposit : 100
FxPro was established in 2006 and is used by over 1866000+ traders. 75.78% of retail investor accounts lose money when trading CFDs and Spread Betting with this provider FxPro offers Forex trading, Share Dealing, Spot Indices, Futures, Spot Metals and Spot Energies.

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, MT5, cTrader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account ECN account
Islamic account VIP account
Regulated by Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC), Financial Sector Conduct Authority (FSCA), Securities Commission of the Bahamas (SCB)

Learn more Learn more about IC Markets.
Losses can exceed deposits
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Losses can exceed deposits