This post is also available in Spanish: brokers para invertir en indices, Italian, Italy: broker trading indici azionari, German: broker fuer den handel indizes
| Broker | Features | More Details |
|---|---|---|
  FeaturedGo to XTB | Excellent 24-hour customer service. More than 3000 instruments to trade. Free webinars.(*) Warning: Your capital is at risk. 77% of retail CFD accounts lose money. Demo Account: Yes Minimum Deposit: 0 €/$ Trading Platforms: xStation5, iOS App, Android App. Execution: Market Maker / STP Regulation:  FCA, CNMV and IFSCWeb Page: https:/www.xtb.com | Broker: XTB Headquarters: London, United Kingdom Broker Type: Forex and CFDs Broker Trading Instruments: More than 3000 instruments such as CFDs on Forex, crypto-currencies, commodities, indices and stocks. In Europe spot stocks and ETFs. Payment Methods for Deposits and Withdrawals: Credit and Debit Cards, Bank Transfer, Paypal, Skrill (MoneyBookers), Neteller |
 FeaturedGo to Pepperstone | Spreads from 0 pips. Ultra fast execution (less than 30 milliseconds). Perfect for scalping and automatic trading. Demo Account: Yes Minimum Deposit: 100 €/$ Trading Platforms: MetaTrader 4, MetaTrader 5, cTrader. Execution: STP / ECN Regulation: FCA, ASIC, CySEC, DFSA, CMA and SCBWeb Page: https://www.pepperstone.com | Broker: Pepperstone Headquarters: London, United Kingdom Broker Type: Forex and CFDs Broker Trading Instruments: Wide range of Forex currencies with more than 180 pairs, crypto currencies, commodities, gold, silver, oil, a selection of American stocks, indices,... Payment Methods for Deposits and Withdrawals: Credit and Debit Cards, Bank Transfer, Skrill (MoneyBookers), Neteller |
 FeaturedGo to eToro | World leader in social trading. You can copy the best investors automatically.(*) Warning: 67% of retail CFD accounts lose money. Demo Account: Yes, unlimited Minimum Deposit: 200 $ Trading Platforms: WebTrader, iOS App, Android App. Execution: Market Maker Regulation: FCA, CySEC and ASICWeb Page: https://www.etoro.com | Broker: eToro Headquarters: Limassol, Cyprus Broker Type: Forex Broker, CFDs Broker and Social Trading Trading Instruments: Wide range of crypto currencies (more than 90 available), ETFs, shares of companies from different sectors and countries, raw materials (such as Gold, Silver, Oil), main stock exchange indexes (Spain, United States, Germany, France, United Kingdom, Switzerland,...) and more than 45 currency pairs in the Forex market. Payment Methods for Deposits and Withdrawals: Credit and Debit Cards, Bank Transfer, Skrill (MoneyBookers), Paypal, Neteller, Klarna |
 Go to XM Group | Bonus of $30 without deposit and bonuses of up to $5,000 per deposit.(*) Clients registered with XM Group's EU-regulated entity do not have access to the bonds. Demo Account: Yes, unlimited Minimum Deposit: 5 $ Trading Platforms: MetaTrader 4, MetaTrader 5. Execution: Market Maker Regulation: CySEC, IFSC and ASICWeb Page: https://www.xm.com | Broker: XM Headquarters: Limassol (Cyprus), Sydney (Australia) and Belize. Broker Type: Forex and CFDs Broker Trading Instruments: Over 1000 financial instruments such as major currency pairs in the Forex market (over 55 pairs available) and CFDs on a wide range of stocks, commodities, indices, precious metals and energies such as oil (Brent and WTI). Payment Methods for Deposits and Withdrawals: Credit and Debit Cards, Bank Transfer, Skrill (MoneyBookers), Neteller |
 Go to Plus500 | More than 2,000 CFD instruments to trade.(*) Warning: 72% of retail CFD accounts lose money. Demo Account: Yes, unlimited Minimum Deposit: 100 €/$ Trading Platforms: WebTrader, iOS App, Android App. Execution: Market Maker Regulation: FCA, CySEC, ASIC, FSCA and FSAWeb Page: https://www.plus500.com | Broker: Plus500 Headquarters: Israel Broker Type: CFDs Broker Trading Instruments: More than 2,000 instruments: CFDs on shares (wide catalogue of shares from the USA, Spain, Germany, the United Kingdom, France,...), stock market indices, currencies (more than 60 currency pairs on the Forex market), commodities (gold, silver, oil,...), the most popular cryptocurrencies, options and listed investment funds (ETFs). Payment Methods for Deposits and Withdrawals: Credit and Debit Cards, Bank Transfer, Skrill (MoneyBookers), Paypal |
 Go to AvaTrade | 5 international regulations. 4 trading platforms to choose. Demo Account: Yes Minimum Deposit: 100 €/$ Trading Platforms: WebTrader, MetaTrader 4, MetaTrader 5, iOS App, Android App. Execution: Market Maker Regulation: Central Bank of Ireland, ASIC, BVI, FSCA and FSAWeb Page: www.avatrade.com | Broker: AvaTrade Headquarters: Dublin, Ireland Broker Type: Forex and CFDs Broker Trading Instruments: Forex market with more than 50 currency pairs Crypto-currencies such as Bitcoin, Ethereum,... CFDs on indices from more than 20 countries. Commodities. More than 100 popular shares of companies listed on the NYSE, NASDAQ, DAX, IBEX and many more. ETFs. Government bonds from the US, Japan and European countries. Payment Methods for Deposits and Withdrawals: Credit and Debit Cards, Bank Transfer, Skrill (MoneyBookers), Neteller, Klarna |
 Go to IC Markets | Spreads from 0 pips. Real interbank liquidity (up to 50 sources). Perfect for high volumes, scalping and robots. Demo Account: Yes, unlimited Minimum Deposit: 200 $ Trading Platforms: MetaTrader 4, MetaTrader 5, cTrader. Execution: ECN Regulation: ASIC, CySEC and FSAWeb Page: https://www.icmarkets.com | Broker: IC Markets Headquarters: Australia Broker Type: Forex and CFDs Broker Trading Instruments: 60 Forex currency pairs. Crypto-currencies. CFDs on 17 stock indices, commodities and shares. Futures. Bonds issued by governments around the world. Payment Methods for Deposits and Withdrawals: Credit and Debit Cards, Bank Transfer, Skrill (MoneyBookers), Neteller, Paypal, Klarna, Bitcoin |
 Go to RoboForex | Demo Account: Yes, unlimited Minimum Deposit: 0 €/$ Trading Platforms: WebTrader, MetaTrader 4, MetaTrader 5, cTrader, iOS App, Android App. Execution: STP / ECN Regulation: IFSCWeb Page: https://www.roboforex.com | Broker: RoboForex Headquarters: Belize Broker Type: Forex Broker Trading Instruments: 36 Forex currency pairs, crypto-currencies, CFDs on US stocks, indices, metals, oil. Payment Methods for Deposits and Withdrawals: Credit and Debit Cards, Bank Transfer, Skrill (MoneyBookers), Neteller, WebMoney, Perfect Money, Bitcoin, Ethereum |
 Go to FP Markets | Demo Account: Yes Minimum Deposit: 100 €/$ Trading Platforms: MetaTrader 4, MetaTrader 5, IRESS. Execution: ECN Regulation: ASIC and CySECWeb Page: https://www.fpmarkets.com | Broker: FP Markets Headquarters: Sidney, Australia Broker Type: Forex and CFDs Broker Trading Instruments: Over 50 most popular Forex currency pairs and CFD on shares, stock indices, metals, commodities, energies and crypto-currencies. Payment Methods for Deposits and Withdrawals: Credit and Debit Cards, Bank Transfer, Paypal, Skrill (MoneyBookers), Neteller, FasaPay |
 Go to OANDA | Demo Account: Yes, unlimited Minimum Deposit: 0 $ Trading Platforms: MetaTrader 4. Execution: Market Maker Regulation: FSCWeb Page: https://www.oanda.com | Broker: OANDA Headquarters: Toronto, Canada Broker Type: Forex and CFDs Broker Trading Instruments: More than 120 instruments: Major Forex currency pairs, indices, gold, silver and commodities. Payment Methods for Deposits and Withdrawals: Credit and Debit Cards, Bank Transfer, Skrill (MoneyBookers), Neteller |
 Go to Libertex | (*) Warning: 83% of retail CFD accounts lose money. Demo Account: Yes, unlimited Minimum Deposit: 100 €/$ Trading Platforms: MetaTrader 4, WebTrader, iOS App, Android App. Execution: Market Maker Regulation: CySECWeb Page: https://www.libertex.com | Broker: Libertex Headquarters: Limassol, Cyprus Broker Type: Forex and CFDs Broker Trading Instruments: More than 50 currency pairs in the Forex market, main world stock exchange indexes (from the United States, Europe, Asia, the Middle East and Latin America), more than 100 shares of large companies worldwide and other instruments such as crypto currencies, oil, gas, gold, silver, copper, platinum, agricultural commodities,... Payment Methods for Deposits and Withdrawals: Credit and Debit Cards, Bank Transfer, Skrill (MoneyBookers), Neteller |
 Go to Axi | Demo Account: Yes Minimum Deposit: 0 €/$ Trading Platforms: MetaTrader 4. Execution: Market Maker Regulation: FCA, ASIC, FSA and DFSAWeb Page: https://www.axi.com | Broker: Axi Headquarters: Sydney, Australia Broker Type: Forex and CFDs Broker Trading Instruments: More than 140 instruments: Forex currency pairs, crypto currencies, CFDs on commodities, gold and silver, oil, indices,... Payment Methods for Deposits and Withdrawals: Credit and Debit Cards, Bank Transfer, Skrill (MoneyBookers), Neteller |
 Go to OctaFX | Demo Account: Yes, unlimited Minimum Deposit: 5 €/$ Trading Platforms: MetaTrader 4, MetaTrader 5, cTrader. Execution: STP / ECN Regulation: FSAWeb Page: https://www.octafx.com | Broker: OctaFX Headquarters: Saint Vincent and the Grenadines Broker Type: Forex Broker Trading Instruments: 28 Forex currency pairs, crypto currencies, gold and silver, CFDs on stock indices and shares. Payment Methods for Deposits and Withdrawals: Perfect Money, Bitcoin |
What are the best brokers for trading in stock indices?
A stock index is an average of a selection of stocks listed on a particular stock exchange. They are used to capture the general tone of the market. In addition, it is possible to invest in them. Stock indices are very popular investment instruments for traders around the world (both professional and novice). Derivatives such as CFDs, options or futures are used to invest on a stock index.
It is not possible to trade directly on an index as it is not a product in itself but a set of securities or companies representing a specific market or sector. The performance of stock market indices is determined by the share price of the companies that make up the index. The only way to invest in a stock index without the use of financial derivatives is to buy the securities that make up the index in the same proportion.
An example of a stock market index is the Ibex 35, made up of the 35 companies with the highest liquidity and the largest capitalisation that are listed on the Spanish continuous market. There are other very popular indices such as the Dax 30 (Germany), the Nikkei 225 (Japan); the S&P 500, the Nasdaq or the Dow Jones ( United States); the FTSE 100, of the London Stock Exchange, the CAC 40 ( France), the EURO STOXX 50, with the main companies of the Eurozone, etc.
Some of the main advantages of investing in stock market indices with an online broker are:
- The price of an index does not depend on a single company: a stock index is referenced to a group of companies, therefore, it is a more stable and less risky security. A company’s share price can fall significantly, and can even be suspended in the event of any financial news or because of the financial situation of that company. Meanwhile, an index, being an average of several companies, is much more spread out and generally has less volatility. Investing in indices means diversifying our position.
- Indices are a way of speculating on the evolution of a country’s economy or the market they represent in general, rather than on each of the companies that make up the index. Generally we will have many sources of financial news that affect each index and that allow us to make our trading decisions in the short, medium or long term. An example: do you think that the Spanish stock market will go down or up in the face of a new political decision? By investing in the Ibex 35 we will have a position on the Spanish stock market as a whole. It is easier to make decisions as we do not have to go into detailed stock analysis. If you are interested in investing in individual stocks here is a comparison table of stock brokers.
- By investing in indices with an online broker we can do so with low capital requirements, as we have the leverage (typical of derivative instruments such as CFDs) offered by the broker. In this way, by depositing only a small amount as a guarantee, we will be trading with a larger capital and can obtain much higher profits.
- With an online CFD broker, you can make a profit whether the price of the stock index goes up or down. For example, if you believe that the index is going to rise, you can open a position to buy and close it later with a sale (this is called “going long”). Conversely, if you think the index will go down you can open a position to sell and close it later with a purchase at a lower price (this is called “going short”). CFDs (like all derivatives) are very versatile investment products, we can profit from even the slightest fluctuation in the market in either direction (up or down).
It is possible to trade indices through any strategy and with any investment style, we only need to open an account with an online broker that offers the possibility to trade these financial assets. After having tested and analysed numerous online brokers, in the table above you can see what we consider to be the best brokers for trading stock indices.
References and sources:
This post is also available in Spanish: brokers para invertir en indices, Italian, Italy: broker trading indici azionari, German: broker fuer den handel indizes
