The best brokers for trading indices online, according to our research, are:
- XTB
- Pepperstone
- eToro
- Plus500
- XM
- Oanda
- AvaTrade
- IC Markets
- NAGA
- FP Markets
The factors we have considered in compiling this list of the best brokerage firms for indices trading are listed below:
- The number of indices available
- The commissions involved
- The different derivatives and ways to trade indices offered by each broker
- The availability of mini-indices
- The overall trustworthiness of the brokers
Round-up
Below is a closer look at some of the key information for each major broker we have listed.
| Indices brokers | Total indices number | SPX500 spread | Mini-indices |
|---|---|---|---|
| XTB | 35+ | 0.3 pips | No |
| Pepperstone | 20+ | 0.4 pips | No |
| eToro | 10+ | 0.75 pips | No |
| Plus500 | 10+ | $0,89 (per contract) | Yes |
| XM | 13+ | 0.4 pips | No |
| Oanda | 15+ | 0.6 pips | No |
| AvaTrade | 30+ | 0,25% | No |
| IC Markets | 20+ | 0.2 pips | Yes |
| NAGA | 13+ | 0.7 pips | No |
| FP Markets | 12+ | 0 pips | No |
Warning
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
What are the best indices trading brokers?
Below is our curated list and review of the best brokers to trade indices, with details and information about features and characteristics.
XTB
XTB allows trading in over 35 indices with spreads starting at 0.3 pips. XTB provides leverage up to 1:20 for EU and FCA clients, and up to 1:200 for international traders.
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Regulations:
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Avg. EUR/USD Spread:
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Platforms:
About XTB
XTB is a global forex and CFD broker founded in 2002 and headquartered in Poland. XTB offers trading on over 2,000 instruments including currencies, stocks, indices, commodities, and cryptocurrencies. XTB provides the proprietary xStation platform and is regulated by multiple authorities including FCA, CySEC, and KNF. XTB is listed on the Warsaw Stock Exchange and serves over 897,500 clients worldwide. The XTB CEO is Omar Arnaout since March 2017.
XTB Features
The features of XTB are listed below.
XTB allows users to access and trade in more than 35 different indices around the world. These include major US and Australian indices as well as those from EU states.
Spreads start from 0.3 pips on the US500 and leverage of up to 1:20 for EU and FCA traders is available while leverage of up to 1:200 is possible for international and FSCA traders.
XTB Pros and Cons
Advantages of XTB
The advantages of XTB are listed below.
- No minimum deposit
- Wide selection of assets
- Competitive trading costs
Disadvantages of XTB
The disadvantages of XTB are listed below.
- Small withdrawal fee
- No social or copy trading
- XTB demo account is limited to 30 days
Pepperstone
Pepperstone offers more than 20 CFD indices and provides spread betting for UK traders. Pepperstone’s US500 spread is 0.4 pips.
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Regulations:
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Avg. EUR/USD Spread:
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Platforms:
About Pepperstone
Pepperstone is a global forex and CFD broker founded in 2010 in Melbourne, Australia. Pepperstone offers trading on currencies, commodities, indices, stocks, and cryptocurrencies through MetaTrader and cTrader platforms. Pepperstone is regulated by multiple authorities including ASIC, FCA, and CySEC. Pepperstone is known for competitive spreads, fast execution, and extensive educational resources. Pepperstone serves clients in over 160 countries worldwide. The Pepperstone CEO is Tamas Szabo.
Pepperstone Features
The features of Pepperstone are listed below.
Pepperstone has more than 20 CFD indices to choose from including major indices in the UK, US, and Europe.
Pepperstone also offers a spread betting service for UK traders where indices can be traded with no separate commission charges.
The spread on trading indices at Pepperstone depends on the index traded and the time. For example:
- The US500 has a spread of 0.4 pips from 16:30 to 23:00.
- The UK100 has a spread of 1 pip from 10:00-18:30.
- The SA40 has a spread of 8.6 pips.
Pepperstone Pros and Cons
Advantages of Pepperstone
The advantages of Pepperstone are listed below.
- Stable raw spreads (0,09 pips on EUR/USD on average)
- Caters for algorithmic trading
- Has won over 30 Forex industry awards
Disadvantages of Pepperstone
The disadvantages of Pepperstone are listed below.
- The demo account is not unlimited
eToro
eToro offers 13 indices and enables real-time user interaction. eToro’s indices spreads start at 0.75 pips.
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Regulations:
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Avg. EUR/USD Spread:
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Platforms:
About eToro
eToro is a global multi-asset investment platform founded in 2007, offering trading on stocks, ETFs, Crypto CFDs, commodities, and forex. eToro provides a proprietary web and mobile platform with social trading features. eToro is regulated by multiple authorities including FCA, ASIC, and CySEC. eToro is known for its user-friendly interface, copy trading functionality, and commission-free stock trading. eToro serves over 30 million users worldwide. The eToro CEO and co-founder is Yoni Assia.
eToro Features
The features of eToro are listed below.
eToro is one of the biggest name brokers in the industry, particularly when it comes to social and copy trading. The broker also provides extensive trading opportunities in other areas and offers access to indices for trading.
On the eToro platform you can discuss with other indices traders in real time and share news with other users, and thus get insights from even the most experienced traders.
There are 13 indices available to trade, inluding chinese, european, american and australian indices.
The spread on these indices starts low with the typically S&P500 spread being 0.75 pips.
Leverage is available at eToro for trading indices.
eToro Pros and Cons
Advantages of eToro
The advantages of eToro are listed below.
- Great copy trading and social trading features
- Wide range of asset classes
- It allows to buy fractional stocks from $10
Disadvantages of eToro
The disadvantages of eToro are listed below.
- The eToro spreads can be high
- Offers only USD accounts
- Transferring cryptocurrencies to other platforms can be hard
Plus500
Plus500 trades 10 indices as futures, featuring SPX500 and NASDAQ. Plus500 provides mini and micro futures contracts.
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Regulations:
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Avg. EUR/USD Spread:
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Platforms:
About Plus500
Plus500 is a global fintech company founded in 2008, offering online Futures trading services in different markets such as Agriculture, Cryptocurrencies, Metals, Commodities, Forex, Interest Rates, Energy and Equity Indices. Plus500 provides proprietary web and mobile trading platforms. Plus500 is regulated by multiple top-tier authorities including FCA, ASIC, and CySEC. Plus500 is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index. The Plus500 CEO is David Zruia since April 2020.
Plus500 Features
The features of Plus500 are listed below.
Plus500 in the US makes available 10 indices to trade as futures.
At Plus500 you can trade mostly US indices, SPX500, NASDAQ, Russel 2000, Dow Jones, Mid Cap 400. The Japanese Nikkei index is also available to trade
Most indices available at Plus500 are tradable as mini futures contracts or micro futures contracts.
Fees at Plus500 start from $0.89 per standard contract, or $0.49 per micro contract.
Plus500 allows traders to start trading indices starting from $100.
Plus500 Pros and Cons
Advantages of Plus500
The advantages of Plus500 are listed below.
- Well-regulated Futures provider
- Wide range of Futures instruments
- Unlimited demo account offered
Disadvantages of Plus500
The disadvantages of Plus500 are listed below.
- Advanced technical analysis tools not available
- Doesn’t support automated trading options
- No Negative Balance Protection
XM
XM features 13 indices as CFDs with spreads from 0.4 pips. XM offers leverage up to 1:20 under specific regulations.
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Regulations:
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Avg. EUR/USD Spread:
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Platforms:
About XM
XM is a global forex and CFD broker founded in 2009, offering trading on currencies, commodities, indices, stocks, and cryptocurrencies. XM provides MetaTrader 4, MetaTrader 5, and proprietary platforms. XM is regulated by multiple authorities including CySEC, ASIC, and IFSC. XM is known for competitive spreads, extensive educational resources, and multilingual customer support. XM serves over 5 million clients from 196 countries. XM offers various account types and a no-requote policy.
XM Features
The features of XM are listed below.
At XM, more than 13 indices are available as CFDs, both spot and futures market.
The broker provides trading with no additional fees except the spread which starts as low as 0.4 pips on the spot market, and 0.8 pips on the futures market.
Leverage is also made available of up to 1:20 for traders under EU and ASIC regulation.
XM Pros and Cons
Advantages of XM
The advantages of XM are listed below.
- There’s a wide range of account types
- The demo account at XM is unlimited
- Wide range of educational resources
Disadvantages of XM
The disadvantages of XM are listed below.
- No social trading features available
- The account availability changes depending on the location of the trader
- High minimum deposit to invest in securities ($10000 for the XM Shares account)
Oanda
Oanda competes with 16 indices, offering spreads from 0.6 pips and promoting its Advanced Trader Program for index trading benefits.
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Regulations:
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Avg. EUR/USD Spread:
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Platforms:
About Oanda
OANDA is a global multi-asset broker founded in 1996, offering trading on forex, CFDs, commodities, indices, and cryptocurrencies. OANDA provides proprietary platforms and API solutions. OANDA is regulated by multiple authorities including FCA, ASIC, and MAS. OANDA is known for competitive spreads, fast execution, and currency data services. OANDA serves both retail and institutional clients worldwide. The Oanda Chief Executive Officer is Gavin Bambury since August 2019.
Oanda Features
The features of Oanda are listed below.
The broker makes it possible to trade indices with 16 to choose from. The range includes major indices from the US, Australia, Singapore, Hong Kong, and Europe.
Oanda spreads on indices start from as low as 0.6 pips on the S&P500 while there are further benefits to those enrolled in the Oanda Advanced Trader Program, including reduced spreads, depending on tier. This applies to indices and other assets.
The first tier requires a balance of $10,000 and a monthly trade volume of less than $10 million, while the fourth tier requires a balance of more than $250,000 and a trade volume in excess of $500 million. In the fourth tier, there is a $15 per million rebate or commission reduction.
Spread betting is available for UK traders while leverage of up to 20:1 can be accessed by EU and Australian traders.
Oanda Pros and Cons
Advantages of Oanda
The advantages of Oanda are listed below.
- Comprehensive Platforms
- Robust Education
- Highly Regulatory Trust
Disadvantages of Oanda
The disadvantages of Oanda are listed below.
- Higher Spreads
- Proprietary Platform Limitations
- Inactivity Fees
AvaTrade
AvaTrade presents over 30 indices, offering spreads from a fixed 0.25%. AvaTrade includes synthetic indices like cannabis and FAANG.
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Regulations:
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Avg. EUR/USD Spread:
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Platforms:
About AvaTrade
AvaTrade is a global forex and CFD broker founded in 2006 and headquartered in Dublin, Ireland. AvaTrade offers trading on currencies, commodities, indices, stocks, bonds, ETFs, and cryptocurrencies. AvaTrade provides proprietary platforms alongside MetaTrader 4 and 5. AvaTrade is regulated by multiple authorities including CySEC, ASIC, and FSA. AvaTrade serves over 300,000 clients worldwide. AvaTrade is known for competitive spreads and extensive educational resources. The AvaTrade CEO is David Dryzin since 2016.
AvaTrade Features
The features of AvaTrade are listed below.
AvaTrade is another well-regulated and respected broker where indices can be traded and offers trading in more than 30 indices from the US, Europe, and Asia, among others.
There are also synthetic indices available including the cannabis index, Dollar Index, FAANG, and Gaming esports indices. Many of these can be traded through the MT5 platform.
AvaTrade spreads start from a fixed 0.25% on the US500 and leverage is available on indices for EU, ASIC, and FSCA traders on indices, as well as for Abu Dhabi traders. This leverage can be up to 20:1.
Spread betting is also available to UK and Ireland traders with more than 200 assets, including indices, to choose from.
AvaTrade Pros and Cons
Advantages of AvaTrade
The advantages of AvaTrade are listed below.
- Tight fixed spreads from 0.6 pips (0.9 pips for retail traders)
- The mobile apps are well designed
- Can be connected to ZuluTrade and Duplitrade
Disadvantages of AvaTrade
The disadvantages of AvaTrade are listed below.
- High inactivity fees
- The demo account is limited to 30 days
IC Markets
IC Markets supports over 20 indices with spreads from 0.2 pips. IC Markets offers leverage up to 20:1 or 200:1 based on regulatory jurisdiction.
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Regulations:
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Avg. EUR/USD Spread:
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Platforms:
About IC Markets
IC Markets is a global forex and CFD broker founded in 2007 and based in Sydney, Australia. IC Markets offers trading on over 2,250 instruments including currencies, commodities, indices, stocks, and cryptocurrencies. IC Markets provides MetaTrader 4, MetaTrader 5, and cTrader platforms. IC Markets is regulated by multiple authorities including ASIC and CySEC. IC Markets is known for its ECN execution model and low spreads. The IC Markets CEO is Andrew Budzinski.
IC Markets Features
The features of IC Markets are listed below.
IC Markets provides trading in more than 20 indices. These include the Australian S&P 200 Index, UK FTSE 100 Index, and mini indices such as the US E-mini S&P 500 and US DJIA Index.
IC Markets spreads start from 0.2 pips on the US500 index and both spot and futures indices are offered.
Leverage is also available of up to 20:1 for ESMA and ASIC traders while those trading with the Raw Trading Ltd. entity of IC Markets can access leverage of up to 200:1 on indices.
IC Markets Pros and Cons
Advantages of IC Markets
The advantages of IC Markets are listed below.
- Low-latency trading environment
- Institutional level liquidity
- MT4, MT5, cTrader platforms are all available
Disadvantages of IC Markets
The disadvantages of IC Markets are listed below.
- Small amount of educational tools for new traders
- Small range of tradable assets compared to other CFD/Forex brokers
NAGA
NAGA includes 13 major indices with spreads from 0.7 pips. NAGA supports leverage up to 500:1 under specific entities.
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Regulations:
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Avg. EUR/USD Spread:
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Platforms:
About NAGA
NAGA is a German fintech company founded in 2015, offering social trading and investing services across forex, stocks, cryptocurrencies, commodities, and indices. NAGA provides a proprietary trading platform alongside MT4 and MT5. NAGA is regulated by CySEC and listed on the Frankfurt Stock Exchange. NAGA is known for its social trading features and copy trading functionality. The NAGA CEO is Michael Milonas since 2024.
NAGA Features
The features of NAGA are listed below.
NAGA has 13 major indices from around the world on offer including the popular NAS100, UK100, US30 which have some of the highest trading volumes and liquidity.
Spreads at NAGA on indices start low with the SPX500 spread from 0.7 pips.
Leverage is also available of up to 20:1 for those trading under the NAGA Markets Europe LTD entity while up to 500:1 leverage is available under the NAGA GLOBAL LLC entity.
The broker also has a VIP program for signal providers that unlocks certain benefits if you reach a certain level with the copy trading service.
NAGA Pros and Cons
Advantages of NAGA
The advantages of NAGA are listed below.
- User-Friendly Platform
- Social and Copy Trading Features
- Diverse Asset Selection
Disadvantages of NAGA
The disadvantages of NAGA are listed below.
- High Spreads
- Limited Account Types
- No US Clients
FP Markets
FP Markets showcases over a dozen indices with spreads from 0 pips and provides leverage up to 200:1 for international traders.
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Regulations:
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Avg. EUR/USD Spread:
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Platforms:
About FP Markets
FP Markets is an Australian-based global forex and CFD broker founded in 2005. FP Markets offers trading on over 10,000 instruments including forex, stocks, indices, commodities, and cryptocurrencies. FP Markets provides MetaTrader 4, MetaTrader 5, and proprietary platforms. FP Markets is regulated by multiple authorities including ASIC, CySEC, and FSA. FP Markets is known for tight spreads, fast execution, and extensive educational resources. The FP Markets CEO is Craig Allison.
FP Markets Features
The features of FP Markets are listed below.
FP Markets provides more than a dozen CFD indices from around the world including the US, UK, Australia, and Europe.
Spreads at the broker start from 0 pips on the US500 with an average of 0.6pips.
Leverage is also available of up to 20:1 for EU and ASIC regulated traders while leverage of up to 200:1 is available to other international traders.
FP Markets Pros and Cons
Advantages of FP Markets
The advantages of FP Markets are listed below.
- Broad Instrument Offering
- Competitive Spreads
- Multiple Trading Platforms
Disadvantages of FP Markets
The disadvantages of FP Markets are listed below.
- High Fees for International Withdrawals
- Outdated Platform Design
How much money is needed to trade indices?
To trade indices you should have at least $2,500 in your account. In fact, considering that you should not risk more than 2% of your capital per trade, and that $50 is generally the minimum amount of money needed to open an order on indices, $2,500 gives you some degree of flexibility.
This amount varies from broker to broker according to three factors:
- The contract: the amount of money needed to open a “full” position on the index.
- The volume: how many contracts the broker needs to execute the order.
- The leverage: multiplier of funds you have available in your account.
For example, if a contract is worth $10,000 and the minimum volume is 0.1, that means you will need $1,000 to open a position.
Leverage can then be applied to further reduce the amount required. With a 1:20 leverage, it will be possible to open a position with $50 ($1000/20).
However, the higher the leverage, the higher the risk. In fact, investing $50 at 1:20 leverage would mean that a 1% change in the index would correspond to a $10 change in the position (1% of $1000 is $10).
A solution are brokers that offer mini-indices such as IC Markets, which are based on smaller contracts. These allow traders to open positions on indices with less money than their standard counterparts.
(74-89% of retail CFD accounts lose money)
For this reason, it is not recommended to deposit little money and use high leverage when trading indices.
If you are going to trade with leverage, you need to make sure that you have the necessary margin to absorb any natural market swings.
For example, on a daily basis, the S&P value fluctuates about 500 points, which translates to $5 or $0.5 if we take the previous example with the trade of 0.1 contracts. So in case of 1:20 leverage (which can be even higher), we can expect a maximum daily fluctuation of $10 which would wipe a low-budget trading account in a few days if everything goes wrong.
Index investing vs Index trading
There are two main ways to invest in indices. The first is to speculate on their value, or the second is to invest in them for the long term.
- In speculation , the risk involved is high, as you will have to use leverage and know how to manage your trading positions.
- In long-term investing , on the other hand, the focus is on the fact that historically indices tend to increase in value. So a long-term investment may be less risky.
However, you should be aware that long-term investing with derivatives may not be ideal, as there are a number of daily fees called rollovers, which slowly reduce the potential margin or earnings. In this case, it is best to learn about brokers that offer equity ETFs such as DEGIRO.
(Investing involves risk of loss)
Although they are a more flexible and economical way to invest in indices, it must be remembered that they are more or less faithful replicas of the performance of indices, and not real indices.
Keep in mind also, that by investing in ETFs indices, you will generally not be able to trade futures since all ETFs are based on spot index prices.
Trading Indices vs stock trading
Investing in indices is a good way to diversify your portfolio as it is a basket of stocks.
The stock market, while requiring less money to open a position in most cases, exposes us more to risk since we have to pick individual stocks.
However when it comes to short-term speculation, both come with a high level of risk
What are synthetic indices?
Synthetic indices are ETF-like assets that replicate certain features of particular financial markets in real-time.
The most well-known of these tradable assets is the VIX also known as the fear and greed index. This index monitors volatility in the market and is often used by experts to assess the sentiment or emotional state of the market.
The Boom 1000 Index is another such synthetic index that also measures volatility over a set period of time.
Useful tips for beginners to trade indices
Here are some useful tips for those new to trading indices:
- Consider that under ESMA, FCA, and ASIC guidelines, the maximum leverage on indices is 20:1
- Practice with a demo account before depositing real money
- Read content published on specialized websites to study the index trading market
- Learn how to set stop losses and take profits for effective risk management
Resources to get started and learn index trading
DailyFX is more aimed at general trading, but there is specific data about indices. Under ‘Market Data’ you can find the basics about Indices. Navigating through the site, you’ll find market news, educational materials, and more, including ones about indices.
At Money Control, you’ll find global indices and some data (current value, change, etc). In general, the site deals with many topics but features a lot about trading and finance. Under ‘Markets’ you can find useful information about different topics, including indices.
With Investopedia, under the category “Index Trading Strategy”, you’ll find different guides and articles on index trading. This is helpful for both experienced indices trading and for those newer to trading and who want to expand their knowledge.
Indexology has different sections, including ‘Indices’ with all the information you need about Indices. The ‘Research and Insights’ area leads to Blog, Education, Performance Reports, and Commentary sections. All have information relating to Indices.
Investing.com is one of the most famous websites about finance and investing. You’ll find summary information and technical analysis on all of the world’s indices, live graphs of indices, and more.
FAQs
What is the difference between spot and futures indices?
A spot index refers to its price: it is the current price in the market at which the index can be bought or sold immediately. Index futures are futures contracts that allow traders to buy or sell an index today to be set at a future date.
Is it risky to trade indices?
Online trading, in general, is risky, and while indices are less volatile than other markets, they are no exception. Open a demo account to practice before depositing real money.