Below we list the top platforms for trading indices online. One of the reasons people choose to trade indices is to broaden their positions to help to mitigate the volatility that is often associated with discrete assets such as commodities or equities. It is just as important to appreciate that not every online broker will offer the same advantages and tools when entering into the world of index trading. We provide a closer look at some of the top platforms as well as the unique amenities that each has to offer.
One aspect which can be frustrating is that traders may not be able to open a position after the closing time of a specific index. As ETX Capital offers the possibility of rolling trades, indices can be accessed even if they are currently closed (any spreads are based off of future values as opposed to present rates). ETX capital also enables index trades to be carried out with platforms such as Meta Trader 4, Trader Pro and Binary. This adds a further sense of flexibility to any position. Mobile-friendly platforms are possible for those who require access while out and about. Some of the indices offered include the DAX 30, the S&P 500 and the Dow Jones Industrial Average. Other benefits include 400:1 leverages, automated trading, market commentaries and segregated accounts.
AvaTrade is another leading platform for those who wish to open a position within various indices. A handful of the sectors which are offered include (but not limited to):
- The NASDAQ 100
- The FTSE 100
- The DJ EURO STOXX 100
- The S&P 500
Both long and short positions are available while leverages of up to 200:1 are possible. However, always note that leverages can incur massive losses and should only be employed by those who are completely familiar with the risks involved. Meta Trader 4 as well as proprietary AvaTrade software platforms are available for laptops, tablets and mobile devices.
Plus500 is located out of London and was first founded in 2009. This broker charges no commissions in regards to index trading (fees are included within a breakdown of their payout structure). Healthy leverages of up to 294:1 are offered to those who wish to enjoy healthy profits and are not averse to potentially significant fluctuations. Please note that CFDs are offered for the majority of all index trades. Real-time streaming data as well as the Plus500 trading platform are provided. Trailing stops, mobile alerts and guaranteed limit orders are a few other instruments at the disposal of the trader. Indices include the IBEX, the CAC 40, the DAX and the EURO STOXX 50.
Otherwise known as LCG, London Capital Group was founded in 1996. It is therefore one of the oldest and most respected online trading platforms. Users can employ both the Meta Trader 4 system as well as LCG Trader. One interesting feature in regards to index trading here is that spreads as low as 0.9 pips are available for the FTSE 100 alongside only 1 pip when opening a position through the Dow Jones Industrial Average. All data is updated in a real-time fashion while mobile software is available for both Windows and Android operating systems. Some useful tools offered by London Capital Group include:
- Automated trading signals.
- Chart-based opens and closes.
- Trailing stops.
- One-click execution of index trades.
Intuitive platforms as well as customisable layouts are other benefits provided by this online broker.
The platform at eToro offers no less than 12 indices to trade from. Colour-coded movement indicators enable clients to appreciate the direction of any sector within seconds. The software packages currently available are all designed by eToro. These include OpenBook, Mobile Trader and WebTrader. Leverages are quite high; up to 400:1 for experienced investors. Social trading is also stressed by this provider. Thus, eToro may be ideal for those who have just entered into the world of indices. This is primarily found through their OpenBook system. Market commentaries, the ability to follow top traders and demonstration accounts are a few other advantages not to be overlooked.
Over 20 different stock indices are offered through XM. As leverages as high as 888:1 are possible, XM is ideally suited for those who are looking to maximise their profits through both long- and short-term positions. Android Trader, Meta Trader 4, an iPhone application and WebTrader are all possible platforms to employ. Chart-based trading as well as automated strategies can be catered to thanks to the tools at XM. Speculation in reference to market trends is likewise able to further refine one’s strategies. No extra fees or commissions are included within any profit. This enables the individual to better appreciate his or her future positions.
Pepperstone boasts positions in 13 major stock indices from around the world. The CFD technology utilised by this broker ensures minimum slippage and negligible latency rates. It is also worthwhile mentioning that Pepperstone is partially designed with the needs of the institutional trader in mind. Extremely large positions can quickly be accommodated thanks to the ability to place massive orders through what they refer to as a “Liquidity Aggregator”. Both Meta Trader 4 and cTrader terminals are available. Some popular indices include:
- Japan 225
Flexible leveraging and real-time prices further round out the benefits provided through Pepperstone.
These are thought to be some of the most effective platforms for those who wish to trade indices. It is still important to recall that every trade involves a certain amount of risk; particularly those associated with leverages. Prudence should always be embraced in order to mitigate losses and maximise profits.
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