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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 Russell 3000

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 Russell 3000?

Markets.com scored best in our review of the top brokers for russell 3000, 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 SXP500 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

The Russell 3000 Index

The Russell 3000 stock index is weighted by market capitalisation and encompasses the 3,000 largest, publicly listed companies on the United States stock market. All companies listed on the Russell 3000 are incorporated in the United States and derive the majority of their annual revenue from the US economy. The Russell 3000 is one of the largest stock indices in the United States and the index aims to act as a benchmark for the US stock market.

The Russell family of stock indices began rather modestly in 1936 when Frank Russell opened a small retail brokerage operation in Seattle, Washington under the name of Russell Investments. The Russell 3000 was the first stock index formed by the Russell family in January 1984. The Russell 1000 (the top 1000 companies in the Russell 3000 by market cap) and the Russell 2000 (the smallest 2000 companies by market cap) followed shortly thereafter. The Russell 1000 and 2000 are therefore subsets of the Russell 3000.

Today, Russell Investments along with its family of stock indices are part of FTSE International Limited. FTSE joined forces with Russell in 2014. FTSE International Limited is a British provider of stock market indices and associated data services.

Which companies are listed on the Russell 3000 Index?

The Russell 3000 represents 10 different sectors of the US economy. These sectors include basic materials, consumer goods, consumer services, financial services, healthcare, industrials, oil & gas, technology, telecommunications, and utilities. Financials constitute the largest industry within the index at 19.1%.

The ten largest companies in the Russell 3000 include Apple, Alphabet Inc (C shares), Microsoft, ExxonMobil, Berkshire Hathaway, Facebook, Amazon, Johnson & Johnson, JP Morgan Chase, and Wells Fargo. These ten companies represent 15.4% of the entire index. The largest company, Apple, represents 2.6% of the index.

Source: 2017 Russsell US Index reconstitution

How is the value of the Russell 3000 Index derived?

The vast majority of stock indices are reviewed on a quarterly basis in order to determine if the index needs to be changed or adjusted. However, the Russell 3000 Index is rebalanced on an annual basis. The rebalancing occurs each year during the last week of June.

Russell refers to its annual rebalancing as “reconstitution.” The annual reconstitution involves a complete overhaul of the index. Essentially, the entire Russell 3000 Index is rebuilt on an annual basis.

The initial phase of the rebalancing actually begins in May, when all securities are ranked by their total market capitalisation. Upon completion of the rebalancing, the largest 3,000 securities become the “new” Russell 3000 Index.

The companies that make the top 3,000 are added to the index. Conversely, the companies that fall off the list are removed from the index. The new list is announced to the financial community each year in May. However, Russell does not add or remove companies until the following year.

Companies which are involved in an initial public offering (IPO) are treated in a different manner in regards to the Russell 3000 Index. IPOs are reviewed on a quarterly basis as opposed to an annual basis. The companies are added to the index on the third Friday of March, September, and December.

The Russell 3000 Index is a market capitalisation weighted index. The formula for market capitalisation involves multiplying the stock price by the number of shares outstanding. All share classes are included when calculating the index.

In terms of market capitalisation, Apple is the largest company, with a market capitalisation of $814 billion. JG Wentworth is the smallest company in the index at $14.2 million. The total market capitalisation for the entire Russell 3000 Index is $27.2 trillion.

How to trade the Russell 3000 Index

The most popular Russell indices for trading are the Russell 1000, Russell 2000 and Russell 3000. In regards to trading these indices, some traders prefer to use a stock index futures contract or an exchange traded fund (ETF). However, only the Russell 2000 is available for trading as a stock index futures contract. This index is listed on the Chicago Mercantile Exchange and the Intercontinental Exchange. In terms of an ETF, only the Russell 3000 is tradeable within the Russell family of indices. More specifically, the Vanguard Group, iShares and SPDR offer an ETF product tracking the Russell 3000.

For those who prefer a more leveraged approach to tracking the index, speculators can trade using a contract for difference (CFD). CFDs are a popular form of derivative trading. The most popular Russell index to trade as a CFD is the Russell 2000 – the small cap index.

As an example, if a trader was to take a minimum buy trade out on the Russell 2000 CFD offered by regulated brokers, London Capital Group (Russ 2K), a calculation for the minimum margin required would be: (Minimum spread of 0.3) x (minimum trade size 0.1 lot) x (value of one lot of $100) x price of stock at time of buying – in this case 1429.45) x Margin requirement of 0.20%) = $8.58.

*All information collected from LCG as at 30th July 2017. Please refer to the LCG website for full terms and conditions.

Advantages of trading the Russell as a CFD

CFD transactions allow the trader to speculate on an asset without actually owning or taking delivery of the asset. Traders can also go short on a CFD, if they believe the index will decline.

There are usually no commissions charged by brokers when trading a CFD. Brokers collect their fee through the spread price – the difference in pips between the buy and the sell price.

The Russell 2000 index is available for CFD trading with leading authorised and regulated CFD brokers such as Plus500, AvaTrade and the London Capital Group (LCG). The latter were established in 1996, and are publicly listed on the London Stock Exchange. As well as the Russell indices, clients using the platforms provided by these brokers have full access to a wide range of other financial markets and financial instruments.

The current price of the Russell 3000

Russell 3000 - Google Finance

Source: Google Finance – 30th July 2017


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