We found 11 online brokers that are appropriate for Trading What Is A Stock Index.
If you are wondering what a stock index is or not sure about the definition, you can read this article thoroughly for clarity.
In short, the stock index is the measure of the stock market. This allows the traders to compare price levels in the present time with the records from the past to find out real market performance. The stock market indexes can guide the traders because they are the real indicators of the current value of the stocks.
With such measurement, traders can compare the current and past index levels. Stock indexes vary in size.
Depending on the indexes the traders are working with, some indexes might come with a handful of stocks.
Some major stock indexes can contain thousands of companies. This will also depend on the brokerages you choose as well. As a trader, the rules allow you to invest indirectly. You can only invest your money in index funds which track a specific indexes performance.
The performance of those indexes will determine your profit or losses.
When the indexes go up, you will receive profit.
Stock Indexes can be traded as mutual funds or ETFs. Following an index gives you a heads up and updates you on how well the stock market is doing.
As time goes by, you will be able to enhance your trading research and prediction skills so that you make more informative decisions in the future. Following a specific index also provides you with insight on how the part of the market is performing in micro to smaller scale compared to the wider markets.
The stock index can also be a great alternative for those who are not up for the individual stocks. Index funds which track the stock market indexes can give you more chances to attain the solid return of your investment. As mentioned, by following stock indexes, it will be easier for you to know the current condition of the market.
That means you do not need to waste time tapping on every individual stock. If you are striving for longer-term investment, stock indexes indeed offer good potential for you.
To be successful in your investment portfolio, you will need to read the index correctly. Professional traders will look at how the index value can change from time to time.
The new stock market index has its own system. To earn more, you have to know how the stock market index works.
The new stock index always starts with the fixed value based on the stock prices. Then future index values measure the ups and downs of the prices of these stocks. Stock indexes starting values may differ.
It is true that reading the stock index is not an easy thing to do but it is also not hard. It requires commitment of time and effort to attain what you want to achieve.
A single stock index is not always a good measure of the overall market.
From these indexes, you can judge how a small section effects the larger index.
To get you on the right track, you will need to know the most important stock market indexes to follow.
The first thing to know is The Dow Jones Industrial Average. It is the pioneer of the stock market index in the United States.
Back in the 19th century, traders were still using the conventional means of transactions to finalize their trading activities.
This stock index tracks 30 stocks which come from many different niches.
Keep in mind that this index excludes transportation and utility companies. According to the experts, it has been part of Dow Jones authority commitment in managing the quality of the index.
It is true that the 30 component stocks in the Dow Jones Industrial Average stock market index remains the same.
They have been doing this to maintain the index’s reputation. Therefore, it is not an exaggeration to say that they only focus on top quality companies stocks.
Then there is also the S&P 500 Index. Compared to the previous one, it is a much broader index since it includes around 500 large company stocks.
It is contradicted with the Dow Jones Industrial Average stock market index.
Rather than maintaining the formation of company stocks, this index replaces the companies list more frequently. However, the index includes a mix of companies which are only contributing to the US economy.
So, you will likely see the top companies in the US only.
The last but not least is the NASDAQ Composite. Investors use NASDAQ to make big changes in the technology sector.
If technology is your interest, it is probably the best stock index for you.
The moment you use your favourite search engine, you will be surprised with the number of the stock indexes available out there. It has never been easy to decide on which stock index you will choose.
Depending on your interests, you can pick the indexes which give an exposure to the performance of the stocks in a certain country.
Or, perhaps, you are interested on specific business niches like technologies and agriculture.
Usually, the stock indexes would separate the companies group in different categories based on their sizes.
Left alone between the choice of the mutual funds and ETFs, you will also need to decide amongst the many types of the stock indexes. It is going to be an interesting experience for traders at all levels.
We've collected thousands of datapoints and written a guide to help you find the best What is a Stock Index for you. We hope this guide helps you find a reputable broker that matches what you need. We list the what we think are the best what is a stock index below. You can go straight to the broker list here.
There are a number of important factors to consider when picking an online What Is A Stock Index trading brokerage.
Our team have listed brokers that match your criteria for you below. All brokerage data has been summarised into a comparison table. Scroll down.
We compare these features to make it easier for you to make a more informed choice.
Here are the top What Is A Stock Index.
Compare What Is A Stock Index min deposits, regulation, headquarters, benefits, funding methods and fees side by side.
All brokers below are what is a stock index. Learn more about what they offer below.
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eToro
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IC Markets
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XTB
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Roboforex
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Trading212
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Plus500
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Pepperstone
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EasyMarkets
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XM
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FXPrimus
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SpreadEx
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Regulation | Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC), Markets In Financial Instruments Directive (MiFID), Australian Securities and Investments Commission (ASIC) | Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), Cyprus Securities and Exchange Commission (CySEC) | Financial Conduct Authority (FCA), FCA number FRN 522157, Cyprus Securities and Exchange Commission (CySEC), CySEC Licence Number: 169/12, Comisión Nacional del Mercado de Valores, Komisja Nadzoru Finansowego, Belize International Financial Services Commission (IFSC) under license number IFSC/60/413/TS/19, Polish Securities and Exchange Commission (KPWiG) | Cyprus Securities and Exchange Commission (CySEC) | Financial Conduct Authority (FCA), Financial Supervision Commission (FSC) | Plus500UK Ltd authorized & regulated by the FCA (#509909), Plus500CY Ltd authorized & regulated by CySEC (#250/14), Plus500AU Pty Ltd (ACN 153301681), ASIC in Australia AFSL #417727, FMA in New Zealand, FSP #486026 and Authorised Financial Services Provider in South Africa FSP #47546 | Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC), Federal Financial Supervisory Authority (BaFin), Dubai Financial Services Authority (DFSA), Capital Markets Authority of Kenya (CMA), Pepperstone Markets Limited is incorporated in The Bahamas (number 177174 B), Licensed by the Securities Commission of the Bahamas (SCB) number SIA-F217 | Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC) | International Financial Services Commission (IFSC), Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC) | Cyprus Securities and Exchange Commission (CySEC), Markets In Financial Instruments Directive (MiFID) | Financial Conduct Authority (FCA) |
Min Deposit | 200 | 200 | No minimum deposit | 1 | 1 | 100 | 200 | 100 | 5 | 100 | 1 |
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Used By | 17,000,000+ | 60,000+ | 250,000+ | 10,000+ | 14,000,000+ | 15,500+ | 10,000+ | 142,500+ | 70,000+ | 10,000+ | 10,000+ |
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Platforms | Web Trader, Tablet & Mobile apps | MT4, MT5, Mirror Trader, ZuluTrade, Web Trader, cTrader, Mac | MT4, Mirror Trader, Web Trader, Tablet & Mobile apps | MT4, MT5, Mac, Web Trader, cTrader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | MT4, MT5, Mac, ZuluTrade, Web Trader, cTrader, Tablet & Mobile apps | MT4, Web Trader, Tablet & Mobile apps | MT4, MT5, Mac, Web Trader, Tablet & Mobile apps | MT4, Mac, Mirror Trader, Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps |
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Risk Warning | 67% of retail investor accounts lose money when trading CFDs with this provider. | Losses can exceed deposits | 82% 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. | 76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79.3% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money | Your capital is at risk | Your capital is at risk | Losses can exceed deposits | Losses can exceed deposits |
Demo |
eToro Demo |
IC Markets Demo |
XTB Demo |
Roboforex Demo |
Trading 212 Demo |
Plus500 Demo |
Pepperstone Demo |
easyMarkets Demo |
XM Demo |
FXPrimus Demo |
SpreadEx Demo |
Excluded Countries | IR, KP, BE, CA, JP, SY, TR, IL, BY, AL, MD, MK, RS, GN, CD, SD, ZW, ET, GH, TZ, LY, UG, ZM, BW, RW, TN, SO, NA, TG, SL, LR, GM, DJ, CI, PK, BN, TW, WS, NP, SG, VI, TM, TJ, UZ, LK, TT, HT, MM, BT, MH, MV, KZ, GD, FJ, BB, BM, BS, AG, AI, AW, LB, SV, US, PY, HN, GT, PR, NI, VG, AN, | AF, GN, SL, BW, IR, SY, MM, IQ, TG, KH, LS, YE, CI , LR, ZW, CU, LY, TZ, CG, ML, BO, LR, NE, AO, GM, NG, AG, GH, KR, KG, GN, SN, NA | US, IN, PK, BD, NG , ID, BE | US, JP | US | MY, BE, US, CA, CN, ID, PH, TG, NG, DO, MA, ZW, PR, TZ, TN, UG, BW, AO, AE | BR, KR, IR, IQ, SY, JP, US | US | US, CA, IL, KR, IR, MM, CU, SD, SY | AF, CI, CU, IQ, IR, LY, MM, KR, SD, PR, US, AU, SY, DZ, JP, EC. | US, TR |
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