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Markets.com

Offers five ways to trade: Forex, Shares, Indices, Commodities, ETF and CFD

 
Markets.com
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Trust Score:

B

Established in:

2008

Regulated by:

CySEC, Financial Services Boar...

CFDs are leveraged products and can result in the loss of your capital. Rankings are influenced by affiliate commissions. All information collected on 1/11/2017.

The Ultimate Guide to

Choosing a Broker
For FTSE 350

Not sure which broker is right for you?

Don’t worry - we’ve got you covered. In this guide, you’ll learn:

Ready?

Part 1

Why Choose Markets.com
For FTSE 350?

Markets.com scored best in our review of the top brokers for ftse 350, which takes into account 120+ factors across eight categories. Here are some areas where Markets.com scored highly in:

  • 9+ years in business
  • Offers + instruments
  • A range of platform inc. MT4, Web Trader, Tablet & Mobile apps
  • 24/7 customer service
  • Tight spreads from 2.0 pips
  • Used by + traders
  • Allows hedging
  • 5 languages
  • Leverage up to 100:1

Markets.com offers five ways to trade: Forex, Shares, Indices, Commodities, ETF and CFD. If you wanted to trade FTSE100 through copy trading or other means, skip to part two.

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.

Markets.com have a B trust score, which is good. This is largely down to them being regulated by CySEC, Financial Services Board, segregating client funds, being established for over 9 years, and much more. For comparison:

Trust Score comparsion

Markets.com
Trust Score B
Year Established 2008
Regulated by CySEC, Financial Services Board
Uses tier 1 banks
Company Type Public Private Private
Segregates client funds

The second thing we look for is the competitiveness of the spreads, and what fees they charge. We've compared these in detail in part three of this guide.

Part 2

Who Markets.com is (& Isn’t)
Suitable For

As mentioned, Markets.com allows you to trade in five ways: Forex, Shares, Indices, Commodities, ETF and CFD.

Suitable for:

  • CFD Trading
  • Forex Trading

Not Suitable for:

To trade with Markets.com, you'll need a minimum deposit of $100. Markets.com offers a range of different account types for different traders including a mini account, vip account.

Finally, Markets.com isn't available in the following countries: AF, DZ, AS, AO, AU, BE, BA, BR, KH, CA, CN, CU, KR, GU, GY, HK, ID, IR, IQ, IL, JP, LA, MO, MY, MM, NZ, MP, PA, PG, PH, PR, RU, SG, KR, SD, SY, TW, TH, TR, UG, VI, VU, USA, VN, YE.

Part 3

A Comparison of Markets.com vs. vs.


Want to see how Markets.com stacks up against and ? We've compared their spreads, features, and key information below.



Spread & fee comparsion

The spreads below are illustrative. For more accurate pricing information, click on the names of the brokers at the top of the table to open their websites in a new tab.
Markets.com
Fixed Spreads
Variable Spreads
EUR/USD Spread 2.0
GBP/USD Spread 2.0
DAX Spread 2
FTSE 100 Spread 2
S&P500 Spread 1

Comparison of account & trading features

Markets.com
Spread type Fixed
EUR/USD Spread 2008
EUR/GBP Spread CySEC, Financial Services Board
Crude Oil Spread
Gold Spread Public Private Private
DAX Spread

Part 4

FTSE 350 Index

The FTSE 350 stock index represents the performance of the 350 largest companies which have their listing on the London Stock Exchange. The index is actually a combination of the FTSE 100 index and the FTSE 250 index. The FTSE 100 index is a listing of the 100 largest companies on the London Stock Exchange. The FTSE 250 index is a listing of the next largest 250 companies traded on the London Stock Exchange. The FTSE 350 began trading in October 1992.

FTSE is an acronym for Financial Times Stock Exchange. However, the acronym is slightly misleading as FTSE is not a stock exchange. Instead, “FTSE”, or FTSE International Limited, are a company which specialise in index calculation. They are owned by the London Stock Exchange Group and the components of the indices are traded on the London Stock Exchange (LSE).

The FTSE 350 covers 18 different supersectors, as classified by the Industry Classification Benchmark (ICB), over ten different industries. The industries represented are oil and gas, basic materials, consumer services, consumer goods, telecommunications, financials, healthcare, industrials, technology, and utilities. Financials constitute the largest industry within the index at 25.4%.

Which companies are listed on the FTSE 350?

The ten largest companies in the FTSE 350 include HSBC Holdings, British American Tobacco, Royal Dutch Shell (A shares), BP, GlaxoSmithKline, Royal Dutch Shell (B shares), AstraZeneca, Vodafone Group, Diageo and Unilever. These ten companies represent 35.8% of the entire index. The largest company, HSBC Holdings, represents 6.4% of the index.

Source: FTSE 350 Index Factsheet 30 June 2017

How is the value of the FTSE 350 derived?

The FTSE 350 is reviewed on a quarterly basis in order to determine if the index needs to be changed or adjusted. The quarterly changes are announced after the close of business on the first Friday of March, June, September, and December. If required, implementation occurs on the third Friday of March, June, September, and December.

Companies are added or removed from the index based on market capitalisation. The formula for market capitalisation involves multiplying the stock price by the number of shares outstanding.

More specifically, the FTSE 350 is an arithmetic weighted index based on the market capitalisation of each company within the index. The value of the FTSE 350 is the summation of the capitalisation of all companies within the index divided by a divisor. Therefore, the price movement of a larger company will have a greater effect on the index versus a smaller company.

The divisor used in the daily calculation is periodically adjusted for any capital changes in the companies which comprise the index. For example, if a company increases the number of its outstanding shares, the market capitalisation of that company will increase. Consequently, the index divisor is adjusted to maintain a constant index value.

In order to ensure the FTSE 350 index daily values remain comparable over time, a base starting date is chosen along with an arbitrary value. Specifically, the starting date for the FTSE 350 index is December 30, 1983. The beginning arbitrary value is 100.

The daily adjustments used by all FTSE indices are based on the Paasche formula. In layman’s terms, essentially it adjusts the divisor for the index in order to reflect any changes that may have occurred as a result of an increase in a corporation’s outstanding shares. The Paasche formula is also known as a current-weighted formula.

How to trade the FTSE 350

The most popular FTSE indices are FTSE 100, FTSE 250 and FTSE 350. However, only the FTSE 100 and 250 are available for trading as a stock index futures contract. All FTSE index products were originally traded on the London International Financial Futures & Options Exchange (more popularly known as LIFFE). Today, FTSE index products are traded on the Intercontinental Exchange. FTSE products moved to the Intercontinental Exchange in 2013 as a result of the purchase of NYSE Euronext by the Intercontinental Exchange. In 2014, the name was changed to ICE Futures Europe.

CFDs are fairly similar to a futures contract. The major similarity between the two instruments is the amount of leverage involved. Both contracts offer a great degree of leverage. CFDs tend to be slightly more leveraged than a futures contracts. For example, the required initial investment for a CFD can be approximately 2% of the value of the underlying index or asset, whereas a futures contract can be approximately 5%.

Advantages of trading FTSE 350 as a CFD

CFD transactions allow the trader to speculate on an asset without actually owning or taking delivery of the asset. Additionally, traders are allowed to “sell short” an asset using CFDs. If the trader believes an asset will decline in value, he/she can simply sell the asset through a CFD transaction. Later, the trader can buy back the position in order to offset the trade.

Brokers collect their fee on a CFD transaction through the spread price, which is the difference between the buy price and the sell price. There are usually no commissions associated with CFDs.

CFD transactions are particularly popular in the UK because the trading product does not carry stamp duty. Additionally, for tax purposes, CFD losses can be offset against any returns.

Traders and speculators should always remember that CFD transactions are highly leveraged instruments. Therefore, both gains and losses will be magnified. Traders who want to learn more about CFD products should contact a regulated brokerage firm.

There are, however, very few brokers that offer a CFD that uses the FTSE 350 as the underlying. Traders can spread bet on the FTSE 350 sectors – IG offer a Daily Funded Bet (DFB) or a futures bet (which is quarterly). IG also offer shares in all of the companies that make up the index.

Alternatively, CFDs, ETFs (exchange traded funds), futures and other products can be traded on the FTSE 100, and the FTSE 250.

Regulated brokers offering such products include eToro and LCG.

Current Value of FTSE 350

Source: Google Finance – 27th July 2017


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