CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 51% and 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.
The Nikkei 225 Constituents
The 225 components of the Nikkei Index as at February, 2017 include 11 food companies, 10 automotive companies, 5 textiles and apparel companies, 5 precision instrument companies, 3 pulp and paper companies, 3 manufacturing companies, 17 chemical companies, 2 fishery companies, one mining company, 9 construction companies, 7 trading companies, 8 pharmaceutical companies, 8 retail companies, 2 oil and coal product companies, 11 banks, 2 rubber product companies, 8 glass and ceramic companies, 3 securities companies, 6 steel product companies, 6 insurance companies, 12 non ferrous metal companies, 5 real estate, 1 other financial service company, 8 railway companies, 16 machinery companies, 2 other land transport companies, 3 marine transport companies, 1 air transport company, 1 warehousing company, 28 electrical machinery companies, 6 communication companies, 3 electrical power companies, 2 gas companies, 9 services companies and 2 shipbuilding companies.2
Due to the large number of components, the Nikkei Index can be used as a reliable indicator of the state of the Japanese economy and as a measure of investor sentiment.
Nikkei 225 Selection Criteria
Components could be changed during an annual review called a Periodic Review, or upon delisting of a component company through an Extraordinary Replacement. The constituents of the Nikkei are reviewed on an annual basis every autumn and if a change is decided, it normally takes place in October.
The selection criteria is based on two main factors:
Additionally, to be considered for selection, the constituent must be listed on the Tokyo Stock Exchange First Section and must be an ordinary share.
The top 5 performing stocks in the Nikkei Index:
1. T&D with a price of 1924, an increase of 5.02%
2. Alps Electric with a price of 3490, an increase of 3.87%
3. Sony with a price of 3661, an increase of 3.65%
4. Nomura with a price of 767, an increase 3.58%
5. All Nippon Airways with a price of 348.90, an increase of 3.56% 5
*as at time of writing: April 2017
How Is The Nikkei 225 Calculated
The Nikkei Index is price weighted, which means that each stock proportionately affects the value of the index according to its price.
The index value is calculated by adding up the prices of the components and dividing them by the total number of components, in this case, 225.
How To Trade The Nikkei 225
While it is not possible to trade directly on the Nikkei Index, investors can make use of either Futures, Options, Contract for Difference (CFDs) or by charting the market.
Trading Nikkei 225 With A CFD Broker
CFDs are tradable instruments that represent the difference between when a contract is entered and when it is exited, this allows for gains or losses when the underlying index (in this case, the Nikkei Index) moves.
The advantages of trading the Nikkei Index as a CFD include, a higher leverage as CFDs traditionally have lower margin requirements than other methods of trade, access to a variety of markets on the same platform, a variety of trading options and little or no brokerage fees.
This means that a trader would only require an account size 65.62 to purchase one contract of the Nikkei 225 Index. (19,686/300=65.62)
It is important to note however that leverage can go both ways and amplify both losses and profits.
In summary, trading the Nikkei 225 as a CFD has one the lowest capital requirements for a trader.
BrokerNotes.co 2025 Overall Rankings
To recap, here are our top forex brokers for 2025, sorted by Overall ranking.
Popular Forex Guides
More Forex Guides
Popular Forex Reviews
Methodology
At BrokerNotes.co, our data-driven online broker reviews are based on our extensive testing of brokers, platforms, products, technologies, and third-party trading tools. Our product testing extends to the quality and availability of educational content, market research resources, and the accessibility and capabilities of mobile platforms and trading apps. We also dive into each broker’s trading costs, such as VIP rebates, inactivity fees, custody fees, bid/ask spreads, and other fee-based data points.
Steven Hatzakis, an industry veteran with decades of experience in the forex market, leads the BrokerNotes research team. All BrokerNotes content is researched, fact-checked, and edited by the research team.
All websites and web-based platforms are tested using the latest version of the Google Chrome browser. Our Desktop PCs run Windows 11, and we use MacBook Pro laptops running the latest version of macOS to test trading on the go. We test mobile apps and products using iPhones running iOS 17 and Samsung devices running Android OS 14.
Note: The online brokers on our site provide the ability to trade forex in one or more ways, such as non-deliverable spot forex (i.e., rolling spot contracts), contracts for difference (CFD), or other derivatives such as futures. The availability of specific markets or features will depend on your country of residence and the broker's applicable brand or entity that services your account(s).
Forex Risk Disclaimer
There is a very high degree of risk involved in trading securities. With respect to margin-based foreign exchange trading, off-exchange derivatives, and cryptocurrencies, there is considerable exposure to risk, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or related instrument. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable, or that they will not result in losses. Learn more about foreign exchange risk.
About the Editorial Team
Founded in 2014 and acquired in 2021, BrokerNotes.co provides unbiased forex broker reviews and ratings to help traders and investors find the best broker for their needs. With over 60 brokers reviewed, our editorial team has published thousands of words of research to help our readers make informed choices.
Capital.com
Swissquote
OANDA
AvaTrade
Plus500
FXCM
Pepperstone
XM Group
Admirals
FP Markets
IC Markets
FxPro
Tickmill
Markets.com
BlackBull Markets
Fineco
Vantage
ThinkMarkets
DooPrime
HYCM (Henyep Capital Markets)
HFM
Trading 212
Questrade
ActivTrades
Trade Nation
Moneta Markets
BDSwiss
TMGM
Eightcap
Spreadex
MultiBank
ACY Securities
easyMarkets
Exness
VT Markets
IFC Markets
RoboForex
Octa
IronFX
Axi
Earn
ATFX
iFOREX
FXPrimus
FXOpen
Markets4you
GBE brokers
Alpari
FXGT.com
Xtrade
Libertex (Forex Club)
TopFX
LegacyFX