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Best Market Indices Forex Brokers

Marcus Taylor

Written by Marcus Taylor

Last updated September 08, 2022
Published May 09, 2022

What is a Stock Market Index?

A stock market index is a measurement of an established segment of the stock market. It is often used as a type of benchmark from which the performance of other stocks is measured and is used by investors as a gauge for building a portfolio. For example, the FTSE 100 is made up of the biggest 100 companies on the London Stock Exchange and provides a meter for the UK markets whilst the DAX index is made up of 30 of the top companies listed on the Frankfurt Exchange and is a meter of the German stock market.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 65% and 82% 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.

Best Forex Brokers for Trading Market Indices

Here are the best forex brokers for trading market indices.

  • IG - 9.7/10 Overall
  • Saxo Bank - 9.5/10 Overall
  • CMC Markets - 9.4/10 Overall
  • Interactive Brokers - 9.2/10 Overall
  • TD Ameritrade - 8.9/10 Overall
  • FOREX.com - 8.7/10 Overall
  • XTB - 8.7/10 Overall
  • City Index - 8.7/10 Overall
  • Swissquote - 8.5/10 Overall
Overall Rating
9.7 / 10
Minimum Initial Deposit
£250.00
Trust Score
Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Highly Trusted
Cost & Fundingexpand_moreexpand_less
Average Spread EUR/USD - Standard0.86 (September 2022)
All-in Cost EUR/USD - Active0.365 (May 2020)
PayPal (Deposit/Withdraw)Yes
Skrill (Deposit/Withdraw)No
Visa/Mastercard (Credit/Debit)Yes
Regulationexpand_moreexpand_less
Year Founded1974
Publicly Traded (Listed)Yes
BankYes
Tier-1 Licenses7
Tier-2 Licenses2
Investment Optionsexpand_moreexpand_less
Forex TradingNo
Trading - Forex or CFDsYes
Tradeable Symbols (Total)19537
Forex Pairs (Total)100
BitcoinYes
Trading Platformsexpand_moreexpand_less
Virtual Trading (Demo)Yes
MetaTrader 4 (MT4)Yes
MetaTrader 5 (MT5)No
Proprietary PlatformYes
Social Trading / Copy TradingYes
Charting - Indicators / Studies (Total)33
Apps & Toolsexpand_moreexpand_less
Android AppYes
Apple iOS AppYes
Has Education - Forex or CFDsYes
Daily Market CommentaryYes
Forex News (Top-Tier Sources)Yes
Economic CalendarYes


Overall Rating
9.5 / 10
Minimum Initial Deposit
$2,000
Trust Score
Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Highly Trusted
Cost & Fundingexpand_moreexpand_less
Average Spread EUR/USD - Standard0.8 (August 2020)
All-in Cost EUR/USD - Active0.6 (August 2020)
PayPal (Deposit/Withdraw)No
Skrill (Deposit/Withdraw)No
Visa/Mastercard (Credit/Debit)Yes
Regulationexpand_moreexpand_less
Year Founded1992
Publicly Traded (Listed)No
BankYes
Tier-1 Licenses6
Tier-2 Licenses1
Investment Optionsexpand_moreexpand_less
Forex TradingNo
Trading - Forex or CFDsYes
Tradeable Symbols (Total)40000
Forex Pairs (Total)182
BitcoinYes
Trading Platformsexpand_moreexpand_less
Virtual Trading (Demo)Yes
MetaTrader 4 (MT4)Yes
MetaTrader 5 (MT5)No
Proprietary PlatformYes
Social Trading / Copy TradingYes
Charting - Indicators / Studies (Total)62
Apps & Toolsexpand_moreexpand_less
Android AppYes
Apple iOS AppYes
Has Education - Forex or CFDsYes
Daily Market CommentaryYes
Forex News (Top-Tier Sources)Yes
Economic CalendarYes


Overall Rating
9.4 / 10
Minimum Initial Deposit
$0
Trust Score
Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Highly Trusted
Cost & Fundingexpand_moreexpand_less
Average Spread EUR/USD - Standard0.73 (August 2021)
All-in Cost EUR/USD - ActiveN/A
PayPal (Deposit/Withdraw)Yes
Skrill (Deposit/Withdraw)No
Visa/Mastercard (Credit/Debit)Yes
Regulationexpand_moreexpand_less
Year Founded1989
Publicly Traded (Listed)Yes
BankNo
Tier-1 Licenses5
Tier-2 Licenses1
Investment Optionsexpand_moreexpand_less
Forex TradingNo
Trading - Forex or CFDsYes
Tradeable Symbols (Total)11927
Forex Pairs (Total)158
BitcoinYes
Trading Platformsexpand_moreexpand_less
Virtual Trading (Demo)Yes
MetaTrader 4 (MT4)Yes
MetaTrader 5 (MT5)No
Proprietary PlatformYes
Social Trading / Copy TradingYes
Charting - Indicators / Studies (Total)86
Apps & Toolsexpand_moreexpand_less
Android AppYes
Apple iOS AppYes
Has Education - Forex or CFDsYes
Daily Market CommentaryYes
Forex News (Top-Tier Sources)Yes
Economic CalendarYes


Overall Rating
9.2 / 10
Minimum Initial Deposit
$0
Trust Score
Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Highly Trusted
Cost & Fundingexpand_moreexpand_less
Average Spread EUR/USD - Standard0.6 (August 2022)
All-in Cost EUR/USD - Active0.6 (Aug 2022)
PayPal (Deposit/Withdraw)No
Skrill (Deposit/Withdraw)No
Visa/Mastercard (Credit/Debit)No
Regulationexpand_moreexpand_less
Year Founded1977
Publicly Traded (Listed)Yes
BankNo
Tier-1 Licenses8
Tier-2 Licenses1
Investment Optionsexpand_moreexpand_less
Forex TradingNo
Trading - Forex or CFDsYes
Tradeable Symbols (Total)8300
Forex Pairs (Total)91
BitcoinYes
Trading Platformsexpand_moreexpand_less
Virtual Trading (Demo)Yes
MetaTrader 4 (MT4)No
MetaTrader 5 (MT5)No
Proprietary PlatformYes
Social Trading / Copy TradingNo
Charting - Indicators / Studies (Total)127
Apps & Toolsexpand_moreexpand_less
Android AppYes
Apple iOS AppYes
Has Education - Forex or CFDsYes
Daily Market CommentaryYes
Forex News (Top-Tier Sources)Yes
Economic CalendarYes


Overall Rating
8.9 / 10
Minimum Initial Deposit
$0
Trust Score
Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Highly Trusted
Cost & Fundingexpand_moreexpand_less
Average Spread EUR/USD - Standard1.26 pips (August 2021)
All-in Cost EUR/USD - Active1.26 pips (August 2021)
PayPal (Deposit/Withdraw)No
Skrill (Deposit/Withdraw)No
Visa/Mastercard (Credit/Debit)No
Regulationexpand_moreexpand_less
Year Founded1955
Publicly Traded (Listed)Yes
BankYes
Tier-1 Licenses4
Tier-2 Licenses0
Investment Optionsexpand_moreexpand_less
Forex TradingYes
Trading - Forex or CFDsYes
Tradeable Symbols (Total)0
Forex Pairs (Total)73
BitcoinYes
Trading Platformsexpand_moreexpand_less
Virtual Trading (Demo)Yes
MetaTrader 4 (MT4)No
MetaTrader 5 (MT5)No
Proprietary PlatformYes
Social Trading / Copy TradingNo
Charting - Indicators / Studies (Total)360
Apps & Toolsexpand_moreexpand_less
Android AppYes
Apple iOS AppYes
Has Education - Forex or CFDsYes
Daily Market CommentaryYes
Forex News (Top-Tier Sources)Yes
Economic CalendarYes


Overall Rating
8.7 / 10
Minimum Initial Deposit
$100
Trust Score
Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Highly Trusted
Cost & Fundingexpand_moreexpand_less
Average Spread EUR/USD - Standard1.1 (US August 2021)
All-in Cost EUR/USD - Active1.1 (US August 2021)
PayPal (Deposit/Withdraw)Yes
Skrill (Deposit/Withdraw)No
Visa/Mastercard (Credit/Debit)Yes
Regulationexpand_moreexpand_less
Year Founded1999
Publicly Traded (Listed)Yes
BankNo
Tier-1 Licenses4
Tier-2 Licenses2
Investment Optionsexpand_moreexpand_less
Forex TradingNo
Trading - Forex or CFDsYes
Tradeable Symbols (Total)5500
Forex Pairs (Total)91
BitcoinYes
Trading Platformsexpand_moreexpand_less
Virtual Trading (Demo)Yes
MetaTrader 4 (MT4)Yes
MetaTrader 5 (MT5)Yes
Proprietary PlatformYes
Social Trading / Copy TradingNo
Charting - Indicators / Studies (Total)139
Apps & Toolsexpand_moreexpand_less
Android AppYes
Apple iOS AppYes
Has Education - Forex or CFDsYes
Daily Market CommentaryYes
Forex News (Top-Tier Sources)Yes
Economic CalendarYes


Overall Rating
8.7 / 10
Minimum Initial Deposit
$0
Trust Score
Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Highly Trusted
Cost & Fundingexpand_moreexpand_less
Average Spread EUR/USD - Standard0.9 (Q3 2021)
All-in Cost EUR/USD - Active0.9 (Q3 2021)
PayPal (Deposit/Withdraw)Yes
Skrill (Deposit/Withdraw)Yes
Visa/Mastercard (Credit/Debit)Yes
Regulationexpand_moreexpand_less
Year Founded2002
Publicly Traded (Listed)Yes
BankNo
Tier-1 Licenses1
Tier-2 Licenses3
Investment Optionsexpand_moreexpand_less
Forex TradingNo
Trading - Forex or CFDsYes
Tradeable Symbols (Total)10000
Forex Pairs (Total)49
BitcoinYes
Trading Platformsexpand_moreexpand_less
Virtual Trading (Demo)Yes
MetaTrader 4 (MT4)Yes
MetaTrader 5 (MT5)No
Proprietary PlatformYes
Social Trading / Copy TradingYes
Charting - Indicators / Studies (Total)39
Apps & Toolsexpand_moreexpand_less
Android AppYes
Apple iOS AppYes
Has Education - Forex or CFDsYes
Daily Market CommentaryYes
Forex News (Top-Tier Sources)Yes
Economic CalendarYes


Overall Rating
8.7 / 10
Minimum Initial Deposit
£100.00
Trust Score
Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Highly Trusted
Cost & Fundingexpand_moreexpand_less
Average Spread EUR/USD - Standard1.1 (August 2021)
All-in Cost EUR/USD - Active1.1 (August 2021)
PayPal (Deposit/Withdraw)Yes
Skrill (Deposit/Withdraw)No
Visa/Mastercard (Credit/Debit)Yes
Regulationexpand_moreexpand_less
Year Founded1983
Publicly Traded (Listed)Yes
BankNo
Tier-1 Licenses3
Tier-2 Licenses1
Investment Optionsexpand_moreexpand_less
Forex TradingNo
Trading - Forex or CFDsYes
Tradeable Symbols (Total)12000
Forex Pairs (Total)84
BitcoinYes
Trading Platformsexpand_moreexpand_less
Virtual Trading (Demo)Yes
MetaTrader 4 (MT4)Yes
MetaTrader 5 (MT5)No
Proprietary PlatformYes
Social Trading / Copy TradingYes
Charting - Indicators / Studies (Total)139
Apps & Toolsexpand_moreexpand_less
Android AppYes
Apple iOS AppYes
Has Education - Forex or CFDsYes
Daily Market CommentaryYes
Forex News (Top-Tier Sources)Yes
Economic CalendarYes


Overall Rating
8.5 / 10
Minimum Initial Deposit
$1000
Trust Score
Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Highly Trusted
Cost & Fundingexpand_moreexpand_less
Average Spread EUR/USD - StandardN/A
All-in Cost EUR/USD - ActiveN/A
PayPal (Deposit/Withdraw)Yes
Skrill (Deposit/Withdraw)Yes
Visa/Mastercard (Credit/Debit)Yes
Regulationexpand_moreexpand_less
Year Founded1996
Publicly Traded (Listed)Yes
BankYes
Tier-1 Licenses4
Tier-2 Licenses1
Investment Optionsexpand_moreexpand_less
Forex TradingNo
Trading - Forex or CFDsYes
Tradeable Symbols (Total)466
Forex Pairs (Total)78
BitcoinYes
Trading Platformsexpand_moreexpand_less
Virtual Trading (Demo)Yes
MetaTrader 4 (MT4)Yes
MetaTrader 5 (MT5)Yes
Proprietary PlatformYes
Social Trading / Copy TradingYes
Charting - Indicators / Studies (Total)49
Apps & Toolsexpand_moreexpand_less
Android AppYes
Apple iOS AppYes
Has Education - Forex or CFDsYes
Daily Market CommentaryYes
Forex News (Top-Tier Sources)Yes
Economic CalendarYes


The value of an index at any point in time is determined by the combined prices or combined capitalization of stocks within that particular index. The index may be either a price-weighted average or a market-weighted average of all the stocks included in the index.

Each index essentially serves as a tracker of the overall performance of a particular portion of the market.

The Most Traded Stock Market Indices

Although there are many stock market indices, there are a few that are more regularly traded across the financial markets. Some of these indices are:

  • The Dow Jones Industrial Average – Commonly referred to as “the Dow”, this index includes stocks of the top 30 companies in the United States in terms of size and influence. The Dow is price-weighted which means that it derives its value from the weighted average of the prices of these 30 stocks. The value of the Dow represents approximately 25% of the value of the US stock market.
  • The S&P 500 Index – Standard and Poor’s 500 index is a portfolio of the 500 most traded stocks in the US stock market. Since the value of this index represents as much as 80% of the US stock market, it gives a good indication of the performance of the entire stock market. The S&P 500 is market-weighted rather than price-weighted. The value, therefore, depends on the market capitalization of the relevant stocks included.
  • The Wilshire 5000 index includes stocks of almost every publicly-traded company headquartered in the USA. Because of this, it is also referred to as the “total market” index.
  • The Nasdaq Composite Index – This index is more specialized than the others because it is comprised solely of technology stocks. It is market-weighted and includes all the stocks that are traded on the Nasdaq stock exchange. Not all stocks in the Nasdaq, are of companies that are headquartered in the US.

Advantages and Disadvantages of Trading Indices Through CFD Trading

Stock market indices are often traded through CFD trading. Trading indices via CFDs will allow the trader to trade on margin and to benefit from leverage. This means that the trader may purchase a certain number of contracts with a smaller account size, compared to what would be required to purchase each individual stock included in the index.

CFD brokers often offer margin to trade indices such as London Capital Group who offer margins as low as 0.20%. In addition to trading with leverage, a trader can both buy and sell contracts, giving the opportunity to benefit regardless of how the market is moving. Below are some of the trading conditions for Index futures with London Capital Group. For more details visit the LCG website.

BN%20Trading%20Indices.png

*All information collected from https://www.lcg.com/uk/, see website for full terms and conditions. The example is for illustrative purposes only. Your capital is at risk. Last updated on February 1, 2017.

Another advantage of trading indices with a CFD broker like London Capital Group is that they usually do not charge a commission on the trades. The broker instead makes their profit from the spread.

One of the advantages of trading indices through CFD trading is also a disadvantage. Traders who decide to take advantage of the margin offered by brokers will have increased the upside when the trade goes in favor of the trader, however, the risks will also be magnified if a trade goes against them. Traders should therefore not trade more than they can afford to lose since they could lose 100% or more of their original investment.

Conclusion

Stock market indices are a statistical representation of a portion of the stock market. They may be price-weighted or market-weighted and often act as benchmarks of the performance of the market. A stock market index may be traded through CFD trading which may magnify returns, but may also magnify the risks.

BrokerNotes.co 2022 Overall Rankings

To recap, here are our top forex brokers for 2022, sorted by Overall ranking.

Feature IG logoIG Saxo Bank logoSaxo Bank CMC Markets logoCMC Markets Interactive Brokers logoInteractive Brokers TD Ameritrade logoTD Ameritrade FOREX.com logoFOREX.com XTB logoXTB City Index logoCity Index Swissquote logoSwissquote eToro logoeToro AvaTrade logoAvaTrade Plus500 logoPlus500 FXCM logoFXCM Admiral Markets logoAdmiral Markets IC Markets logoIC Markets OANDA logoOANDA Capital.com logoCapital.com Markets.com logoMarkets.com XM Group logoXM Group Pepperstone logoPepperstone FP Markets logoFP Markets FxPro logoFxPro Tickmill logoTickmill HYCM (Henyep) logoHYCM (Henyep) DooPrime logoDooPrime Fineco Bank logoFineco Bank HFM logoHFM BDSwiss logoBDSwiss Vantage logoVantage Trading 212 logoTrading 212 Moneta Markets logoMoneta Markets Trade Nation logoTrade Nation ACY Securities logoACY Securities Eightcap logoEightcap ThinkMarkets logoThinkMarkets BlackBull Markets logoBlackBull Markets VT Markets logoVT Markets easyMarkets logoeasyMarkets TMGM logoTMGM Exness logoExness Spreadex logoSpreadex IronFX logoIronFX RoboForex (RoboMarkets) logoRoboForex (RoboMarkets) Trade360 logoTrade360 AxiTrader logoAxiTrader GKFX logoGKFX Vestle logoVestle TeleTrade logoTeleTrade FXOpen logoFXOpen OctaFX logoOctaFX Forex4you logoForex4you LegacyFX logoLegacyFX FXPrimus logoFXPrimus Alpari logoAlpari GBE brokers logoGBE brokers TopFX logoTopFX ATFX logoATFX UFX logoUFX Libertex (Forex Club) logoLibertex (Forex Club) Xtrade logoXtrade Tradeo logoTradeo
Overall Rating 9.7 9.5 9.4 9.2 8.9 8.7 8.7 8.7 8.5 8.4 8.2 8.2 8.3 8.1 8 8 8.1 8.1 8 8 7.9 7.8 7.8 7.7 7.7 7.7 7.6 7.6 7.4 7.4 7.3 7.1 7.2 7.2 7.3 7 7.2 7.3 7 7.2 7.2 7.1 7.1 7 7 7 7 7 7 6.8 6.9 6.8 6.8 6.8 6.7 6.5 6.6 6.5 6.5 6.5 6.4
Minimum Initial Deposit £250.00 $2,000 $0 $0 $0 $100 $0 £100.00 $1000 $10-$200 $100 €100 Starts from $50 $100 $200 $0 $20 $100 $5 $200 $100 AUD $100 $100 $100 $100 $0 $5 $100-$5000 (depending on account type) $200 EUR 10 $50 $0 $50 $100 $250.00 $50 $200 $100 $100 $1 $0 $50 $100 $250 0 $0 -1 $100 $100 $25 $0 $500 $100 $20 $500 Depends on payment method $500 $100 $10 $250 $200
Average Spread EUR/USD - Standard 0.86 (September 2022) 0.8 (August 2020) 0.73 (August 2021) 0.6 (August 2022) 1.26 pips (August 2021) 1.1 (US August 2021) 0.9 (Q3 2021) 1.1 (August 2021) N/A 1 (August 2021) 0.91 (Aug 2020) 0.6 (as of Aug 2018) 1.4 (Q2 2020) 0.8 (July 2021) 0.62 (August 2021) 1.26 (5/22-5/27/22) 0.6 (July 2021) 1.9 (as of Oct 2019) 1.6 (Aug 2020) 0.77 (November 2021) 1.2 (August 2022) 1.51 (August 2020) 0.27 (September 2021) 0.6 (Sept 2021) -1 N/A 1.2 (August 2021) 1.6 (08/10/22) 1.22 (August 2021) N/A 1.22 (August 2021) 0.6 1.2 (Sept 2021) N/A N/A 0.845 (October, 2021) 1.2 (September 2021) 0.9 (as of Mar 2020) 0.96 (July 2021) 0.9 (as of May 19) -1 1.2 1.4 (Jan 2022) N/A N/A N/A -1 -1 N/A 0.6 (August 2021) -1 0 N/A N/A -1 N/A -1 3 (Jan 2021) -1 -1 -1
Trust Score 99 99 99 99 99 99 95 99 99 93 93 99 96 87 86 92 77 98 90 93 82 90 82 86 84 92 85 83 83 77 83 83 75 87 86 74 83 84 79 74 70 84 69 75 83 66 79 67 80 67 62 75 69 67 69 67 70 67 67 80 67
Trust Score Highly Trusted Highly Trusted Highly Trusted Highly Trusted Highly Trusted Highly Trusted Highly Trusted Highly Trusted Highly Trusted Highly Trusted Highly Trusted Highly Trusted Highly Trusted Trusted Trusted Highly Trusted Average Risk 98 Trusted Highly Trusted Trusted Highly Trusted Trusted Trusted Average Risk Highly Trusted Trusted Trusted Trusted Average Risk Trusted Trusted Average Risk Trusted Trusted Average Risk Trusted Trusted Average Risk Average Risk Average Risk Trusted High Risk Average Risk Trusted High Risk Average Risk High Risk Trusted High Risk High Risk Average Risk High Risk High Risk High Risk High Risk Average Risk High Risk High Risk Trusted High Risk
Tradeable Symbols (Total) 19537 40000 11927 8300 0 5500 10000 12000 466 3056 1260 1896 276 8425 3583 124 6000 2179 1372 1200 9790 2175 295 245 10000 126 3500 1081 257 1785 266 601 1600 326 1674 23000 168 199 12000 112 2000 340 12000 1062 175 354 750 500 87 52 150 425 140 105 500 655 150 619 300 142 256
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About the Author

Marcus Taylor
Marcus Taylor

BrokerNotes was founded in 2014 by Marcus Taylor, founder and CEO of Venture Harbor, a venture studio in Oxford that develops innovative online tools & technology across a range of sectors.


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