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 understand how CFDs work and whether you can afford to take the high risk of losing your money.
Between 54-87% of retail CFD accounts lose money. Based on 69 brokers who display this data. *Availability subject to regulation.
As with most indices, although, it is not possible to trade the index directly, the DAX can be traded by a varied of methods, these include the use of Options, Futures and Contracts for Difference (CFDs)w.
A CFD is an instrument of trade that follows the movement of the asset it monitors (in this case, the DAX Index) and it represents the difference between when a contract is entered and exited.
The advantages of trading the DAX as a CFD include the larger variety of trading options, leverage, lower trading costs and global market access from the same platform.
This has the potential to amplify any successful trades however, it is important to remember leverage can work both ways and magnify gains and losses.
The DAX (an abbreviation of Deutscher Aktienindex) is a stock market index made up of 30 major German companies traded on the Frankfurt Stock Exchange – the largest of Germany’s stock exchanges and among the largest trading platforms for securities on the planet.
The DAX index components make up close to three-quarters of the market capitalization on the Frankfurt Stock Exchange1 and it was founded on the 1st of July, 1988 and is operated by the Deutsche Börse, a financial services company which serves as both a marketplace provider and financial services provider
The DAX serves as a counterpart to the UK’s FTSE 100 and the American Dow Jones Industrial Index and as it measures the performance of the 30 largest companies on the Frankfurt Stock Exchange, it serves a good indicator of the health of the German economy and the trend of investor sentiment.
The components of the DAX index, as previously mentioned, are the 30 largest companies on the market that are publically traded.
The board of the Deutsche Börse meet every quarter based on Fast Entry and Fast Exit rules, and every September based on Regular Entry and Regular Entry rules, in order to determine of companies should be added to the DAX index, or dropped from the index.
Companies to be added to the DAX index must meet the following requirements: they must be listed on the Prime Standard for at least 3 years prior to inclusion, 10% minimum free float and must have their legal or operating headquarters in Germany.
Foreign companies must have a registered office in Germany as well as have focus of trade on Xetra.
Potential components are assessed based on their free float market capitalisation, and order book volume in comparison to existing DAX Index components, availability of early opening prices and turnover.
1. Commerzbank AG
With a price of 8.29 and an increase of 5.83% over the previous day
2. Deutsche Bank
With a price of 18.26 and an increase of 2.13%
3. Deutsche Börse
With a price of 80.08, an increase of 1.32%
With a price of 101.10 an increase of 1.10%
With a price of 106.75, an increase of 0.85%5
The DAX is a capitalisation weighted index and the prices used in the calculation are taken from Xetra, an electronic trading system invented in Frankfurt, Germany.
Index weightings, as well as trading volume, are calculated using free float methodology, for detailed guide on how the DAX is caluculated, download the PDF here.
Forex.com scored best in our review of the top brokers for trading dax 30 , which takes into account 120+ factors across eight categories. Here are some areas where Forex.com scored highly in:
Forex.com offers one way to tradeForex . If you wanted to trade DAX30
The two most important categories in our rating system are the cost of trading and the broker’s trust score. To calculate a broker’s trust score, we take into account a range of factors, including their regulation history, years in business, liquidity provider etc.
Forex.com have a AAA trust score . This is largely down to them being regulated by Financial Conduct Authority, segregating client funds, being segregating client funds, being established for over 19
|Regulated by||Financial Conduct Authority|
|Uses tier 1 banks|
|Segregates client funds|
Want to see how Forex.com? We’ve compared their spreads, features, and key information below.
|GBP/USD Spread||0.9||DAX Spread||250.0|
|FTSE 100 Spread||150.0|
|Platform||MT4, Web Trader, NinjaTrader, Tablet & Mobile apps|
|Base currency options||USD, GBP, EUR|
|Funding options||Bank transfer, Cheque, DebitCard,|