Brokers for Trading in Stock Indices

Author: Eduardo Montero - Updated: 29 September, 2022

Broker	Features
Featured Go to XTB	Excellent 24-hour customer service. More than 3000 instruments to trade. Regulated broker. OPEN ACCOUNT (*) Warning: Your capital is at risk. 81% of retail CFD accounts lose money. With XTB you can invest in more than 35 indices from all over the world with low spreads (USA, Germany, China, Spain, France, Russia,...). Demo Account: Yes Minimum Deposit: 0 €/$ Trading Platforms: xStation5, iOS App, Android App. Execution: Market Maker / STP Regulation: FCA, CNMV and IFSC Web Page: https:/www.xtb.com
Featured Go to Pepperstone	Very low spreads on over 1,200 instruments. 24/7 support, fast execution and no requotes. OPEN ACCOUNT Pepperstone allows you to trade the 14 major stock indices in the Americas, Asia, Europe,... Demo Account: Yes Minimum Deposit: 200 €/$ Trading Platforms: MetaTrader 4, MetaTrader 5, cTrader, TradingView. Execution: STP / NDD Regulation: FCA, ASIC, CySEC, BaFin, DFSA, CMA and SCB Web Page: https://www.pepperstone.com
Featured Go to eToro	Buy stocks without commission. Automatically copy the best investors with the eToro CopyTrader tool. OPEN ACCOUNT (*) Warning: 78% of retail CFD accounts lose money. With eToro you can trade 13 stock indices manually or automatically copy the best strategies of other traders. Demo Account: Yes, unlimited Minimum Deposit: 200 $ Trading Platforms: WebTrader, iOS App, Android App. Execution: Market Maker Regulation: FCA, CySEC and ASIC Web Page: https://www.etoro.com
Go to XM Group	Bonus of $30 without deposit and bonuses of up to $5,000 per deposit. Trade Forex with ultra-low spreads. OPEN ACCOUNT (*) Clients registered with XM Group's EU-regulated entity do not have access to the bonds. With the XM broker you can trade the 10 major American, European and Asian indices. Demo Account: Yes, unlimited Minimum Deposit: 5 $ Trading Platforms: MetaTrader 4, MetaTrader 5. Execution: Market Maker Regulation: CySEC, FSC and ASIC Web Page: https://www.xm.com
Go to Exness	Low spreads as low as 0.0 pips. No swaps on most instruments. Instant withdrawals. OPEN ACCOUNT Exness allows you to trade on 10 US indices (SP 500, DJ 30 and NASDAQ 100), Euro Stoxx 50, Hong Kong 50, ASX 200, DAX 30,... Demo Account: Yes Minimum Deposit: 10 $ Trading Platforms: MetaTrader 4, MetaTrader 5. Execution: Market Maker / ECN Regulation: FCA, CySEC, FSCA, FSC, CBCS, FSA and SDL Web Page: https://www.exness.com
Go to AvaTrade	One of the most regulated brokers worldwide (in 9 different jurisdictions). OPEN ACCOUNT With AvaTrade you can buy or sell more than 30 world indices, as well as the Dollar Index and sector indices (airlines, eSports, batteries,...). 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 FSA Web Page: www.avatrade.com
CFD Service Go to Plus500	Broker with more than 23 million registered customers since its inception and a Trust Pilot Score of 4.2 out of 5. OPEN ACCOUNT (*) Warning: 79% of retail CFD accounts lose money. Plus500 allows you to trade more than 25 indices through its CFD platform: DAX 30, Nikkei 225, IBEX 35, CAC 40, FTSE 100, SP 500, DJ 30, NASDAQ 100, VIX,... Demo Account: Yes, unlimited Minimum Deposit: 100 €/$ Trading Platforms: WebTrader, iOS App, Android App. Execution: Market Maker Regulation: FCA, CySEC, ASIC, FSCA and FSA Web Page: https://www.plus500.com
Go to IC Markets	True ECN account with ultra-low spreads and ultra-fast execution designed for scalping and automated trading systems. OPEN ACCOUNT With IC Markets you can invest in more than 20 indices from around the world, including the Australian S&P 200, the UK FTSE 100, and the US S&P 500 and DJIA. Demo Account: Yes Minimum Deposit: 200 $ Trading Platforms: MetaTrader 4, MetaTrader 5, cTrader. Execution: ECN Regulation: ASIC, CySEC and FSA Web Page: https://www.icmarkets.com
Go to Eightcap	OPEN ACCOUNT With Eightcap you can trade 11 of the world's leading indices such as AUS200, HK50, UK100, US30, NDX100, JPN225,... Demo Account: Yes Minimum Deposit: 100 $ Trading Platforms: MetaTrader 4, MetaTrader 5, TradingView. Execution: STP / ECN Regulation: ASIC and SCB Web Page: https://www.eightcap.com
Go to Axi	OPEN ACCOUNT The Axi broker allows you to trade over 30 CFDs on indices in the US, UK, Europe, Asia and Australia. Demo Account: Yes Minimum Deposit: 0 €/$ Trading Platforms: MetaTrader 4. Execution: STP / ECN Regulation: FCA, ASIC, FSA and DFSA Web Page: https://www.axi.com
Go to RoboForex	$30 welcome bonus with a minimum deposit of $10 and bonuses up to $50,000 per deposit. OPEN ACCOUNT RoboForex allows its clients to trade more than 10 of the world's leading stock indices. Demo Account: Yes, unlimited Minimum Deposit: 0 €/$ Trading Platforms: WebTrader, MetaTrader 4, MetaTrader 5, cTrader, iOS App, Android App. Execution: STP / ECN Regulation: IFSC Web Page: https://www.roboforex.com
Go to FP Markets	OPEN ACCOUNT With FP Markets you can trade the 14 major stock market indices from all over the world (USA, Australia, China, Germany, Spain...) plus VIX and US Dollar Index. Demo Account: Yes Minimum Deposit: 100 €/$ Trading Platforms: MetaTrader 4, MetaTrader 5, IRESS. Execution: ECN Regulation: ASIC and CySEC Web Page: https://www.fpmarkets.com
Go to OANDA	Deposit bonus up to $5,000. OPEN ACCOUNT Oanda allows online trading of around 15 stock indices from countries such as the United States, France, Germany and the United Kingdom. Demo Account: Yes, unlimited Minimum Deposit: 0 $ Trading Platforms: MetaTrader 4, MetaTrader 5. Execution: Market Maker Regulation: FCA, ASIC, NFA, IIROC, MFSA, BVI FSC Web Page: https://www.oanda.com
Go to Capital.com	OPEN ACCOUNT (*) Warning: 81.40% of retail CFD accounts lose money. On the Capital.com platform you can trade over 20 stock indices such as the FTSE 100, S&P 500 and Euro Stoxx 50. Demo Account: Yes, unlimited Minimum Deposit: 20 €/$ Trading Platforms: WebTrader, TradingView, iOS App, Android App. Execution: Market Maker Regulation: FCA and CySEC Web Page: https://www.capital.com
Go to OctaFX	50% bonus on every deposit. OPEN ACCOUNT OctaFX allows trading on 10 major stock indices such as Nikkei 225, S&P 500, Nasdaq 100, Dow Jones 30, IBEX 35 or Eurostoxx 50. Demo Account: Yes, unlimited Minimum Deposit: 5 €/$ Trading Platforms: MetaTrader 4, MetaTrader 5. Execution: STP / ECN Regulation: FSA Web Page: https://www.octafx.com

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:

• Index trading
• What Is an Index?
• Quotation of the main world indices

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About the author: Emontero

I am Eduardo Montero. Computer scientist by profession and passionate about online trading with more than 10 years of experience in the financial markets. I publish articles on various financial websites and I have created this website in order to help those interested in the world of trading. The content is based on my personal experience as a trader, learning from the successes and above all the mistakes I have made over the years and always prioritising risk control of operations as, from my point of view, it is the only way to achieve sustainable results over time.

The content of this website is purely informative, it should not be considered as investment advice and we do not offer financial advisory services. You should bear in mind that you are the one who will make your financial decisions and you will be responsible for the outcome of those decisions.