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If you’re looking to trade the DAX (Germany 30), we’ve compiled a list of the best brokers for trading the DAX. All brokers in this list are authorised and regulated by the FCA. Ensure that you are using the best platforms for trading indices and choose a brokers from our comparison list of the best brokers for trading the DAX (Germany 30):

Types of broker that offer DAX (Germany 30) Trading


Compare Index Brokers For Trading The DAX (Germany 30)

All the index brokers are authorised and regulated by the Financial Conduct Authority where client funds are segregated and protected under FSCS. Note: If you want to convert one currency to another and send money abroad you need a currency broker.

Featured Forex BrokerWhat Forex pairs can you trade?How much does Forex trading cost?CEO InterviewMore Info

IG

With IG, you can choose to trade more than 80 currency pairs – from majors, such as GBP/USD to exotics such as HUF/EUR. You can trade these forex pairs via CFDs or spread bets. Get spreads from just 0.6 points on pairs like EUR/USD with the UK’s No.1 FX provider.

June Felix, IG CEO

Read June Felix CEO Interview

Visit IG

IG Reviews
Your capital is at risk. 76% of retail CFD accounts lose money

CMC Markets

Trade forex on over 300 forex pairs, including EUR/USD, GBP/USD and AUD/USD, plus our customised range of 12 forex indices​. Spreads on EUR/USD, AUD/USD and USD/JPY start from just 0.7 points. CMC USD Index​ spreads from 0.25.

Read Peter Cruddas CEO Interview

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CMC Reviews

Pepperstone

Trade 61+ currency pairs with deep liquidity with pricing from multiple sources. Get some of the lowest forex spreads on the market with raw spreads from 0.0 pips on Razor accounts Tamas Szabo Pepperstone CEO Read Tamas Szabo CEO Interview Visit Pepperstone

Pepperstone Reviews
Fineco Trade 50+ Global Forex pairs Forex pairs with Fineco Fineco Forex spread are as low as, GBP/USD 1, EUR/USD 0.8, EUR/GBP 1

Paolo Di Grazia, Fineco General Manager Paolo Di Grazia, Fineco GM

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Fineco Reviews

Saxo Capital Markets

Access 182 FX pairs across majors, minors and exotics, plus spot metals, from only 0.4 pips Ultra-competitive FX spreads and trade major FX pairs from 0.4 pips. Competitive entry prices and even lower rates for active forex traders. Andrew Edwards Saxo Capital Markets UK CEO Read Andrew Edwards CEO Interview Visit Saxo

Saxo Reviews

XTB XTB Brokers

Trade 48 currency pairs, 24 hours, 5 days a week, micro-lot trading available Low forex spreads from 0.1 pips on EURUSD, 0.3 pips on GBPUSD and 0.02 on AUDUSD.

Arnaout Omar Omar Arnaout

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XTB Reviews

Spreadex Financials

Spreadex

Speculate on over 60 currency pairs with advanced technical analysis tools including Pattern Recognition, ProTrend Lines and advanced indicators plus drawing tools Low spreads from 0.6 pts on EUR/USD and 0.9 pts on GBP/USD with 24 hour trading on most FX markets

Jonathan Hufford

Visit Spreadex

Spreadex Reviews

Plus 500

Trade FX CFDs on 60+ Forex Pairs like EUR/USD, GBP/USD and EUR/GBP with up to 1:30 leverage Variable Forex spreads on currency markets. Plus500 does not charge additional Forex dealing commissions. Coming Soon Visit Plus 500

Plus 500 Reviews

City Index

Trade on 84 global FX pairs like EUR/USD, GBP/USD and USD/JPY at City Index with fast execution and tight spreads Trade forex CFDs, DFT or spread bets with tight spreads from 0.5pts on major FX pairs Coming Soon Visit City Index

City Index Reviews

eToro

Trade CFDs on 47 of the most popular currency pairs with trades based in USD with eToro Forex Forex spreads are variable and trading costs are built into the price. Daily finance is charged on overnight positions.

Yoni Assai Interview

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eToro Reviews

Best CFD Brokers For Trading The DAX (Germany 30)

Use our comparison tables to compare CFD brokers authorised and regulated by the FCA. Choose or switch to a CFD broker that offers the most markets, best pricing and client security.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% 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. 

Featured CFD BrokerWhat can you trade via CFDs?What are the CFD trading costs?CEO InterviewMore Info

IG

IG clients can trade a range of over 17,000 CFD markets Trade CFDs on interest rates, bonds, sectors, forex, indices, global shares, commodities and cryptocurrencies Opening an account is free, and charges are competitive. Trade spreads from 0.6 points on key FX pairs like EUR/USD, 1 point on major indices like the Germany 30 and FTSE 100, and 0.3 points on Spot Gold.

June Felix, IG CEO

Read June Felix CEO Interview

Visit IG

IG Reviews
Your capital is at risk. 76% of retail CFD accounts lose money

CMC Markets

Trade contracts for difference (CFDs) and access over 9,500 instruments with competitive spreads. Trade CFDs on forex, indices, cryptocurrencies, commodities, shares and treasuries. Trade CFDs on major forex pairs from 0.7 points and popular indices from 1 point. When trading UK shares a commission is charged from 0.1% or 2 cents per unit for US.

Read Peter Cruddas CEO Interview

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CMC Reviews

Pepperstone

150+ instruments across FX, indices, equities, cryptos, energy and commodities, and more, across three, free powerful platforms During liquid times, CFD spreads can go as low as 0 pips on the EURUSD on the Pepeprstone Razor account Tamas Szabo Pepperstone CEO Read Tamas Szabo CEO Interview Visit Pepperstone

Pepperstone Reviews
Fineco Trade Fineco CFDs on thousand of asset classes Equity, Indices, Commodities, bond and Interest Rates Share CFDs have no additional spreads, indices have spread as low as 0.4pips on S&P 500 and 0.6pip on Nasdaq 100 and FTSE 100. FX spreads on 50+ pairs from 0.8pips.

Paolo Di Grazia, Fineco General Manager Paolo Di Grazia, Fineco GM

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Fineco Reviews

Saxo Capital Markets

Access 9,000+ CFDs and trade CFDs on single stocks, indices, forex, commodities, options and bonds. Ultra-competitive pricing for trading UK stock CFDs from GBP 8, and US 30 Wall St. from 2 points. Andrew Edwards Saxo Capital Markets UK CEO Read Andrew Edwards CEO Interview Visit Saxo

Saxo Reviews

XTB XTB Brokers

Trade over 1500 global CFD markets including Forex, Cryptocurrencies, Indices, Commodities, Share CFDs and ETFs. Low forex spreads from 0.1 pips, stock CFD commission from 0.08%

Arnaout Omar Omar Arnaout

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XTB Reviews

Spreadex Financials

Spreadex

Trade one of the widest ranges of CFD markets including shares, indices, forex, commodities, bonds and interest rates. CFD spreads start from just 0.6 pts on EUR/USD, 1pt on UK 100 and 0.4 pts on Gold

Jonathan Hufford

Visit Spreadex

Spreadex Reviews

eToro

Trade CFDs in USD on eToro on a wide range of stocks, forex, indices, commodities and copy other CFD traders Cost are based in USD and eToro CFD trading costs are built into the spread.

Yoni Assai Interview

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eToro Reviews

Plus 500

Trade CFDs on a wide range of Indices, Forex, Commodities, Crypto, Shares, Options and ETFs Plus 500 CFD spreads are variable, yet competitive for new traders. There is no commission. Overnight funding is charged on positions. Coming Soon Visit Plus 500

Plus 500 Reviews

City Index

CFD Trading with City Index gives you access to over 4000 global markets including Indices, Shares, FX, Commodities and Bonds. Fixed and variable CFD spreads from 0.5 points with benchmark UK financing is LIBOR +/-2.5% Coming Soon Visit City Index

City Index Reviews

ETX Capital

Trade CFDs on ETX on over 5,000 instruments in all major asset classes including FX, Indices, Shares and Commodities.. Trade CFDs low commissions through ETX's pooled liquidity from a range of sources to deliver the best prices and narrowest spreads. Phil Adler CEO Interview ETX Reviews

Best Spread Betting Brokers For Trading The DAX (Germany 30)

Use our comparison reviews to compare spread betting broker costs, spreads, offers and features. Only Spread Betting Brokers authorized and regulated by the FCA where client funds are protected under the FSCS are featured.

Spread betting carries a high level of risk and losses can exceed your deposits. Featured brokers appear first.

Featured Spread BettingBrokerWhat markets can you spread bet on?How much are the spread betting fees?CEO InterviewMore Info

IG

Go long or short and spread bet on more than 17,000 markets with with IG, the world’s No.1 provider Spread bet from 0.6 points on key FX pairs like EUR/USD, 1 point on major indices like the Germany 30 and FTSE 100, and 0.3 points on Spot Gold.

June Felix, IG CEO

Read June Felix CEO Interview

Visit IG

IG Reviews
Your capital is at risk. 76% of retail CFD accounts lose money

CMC Markets

Spread bet on the price movements of thousands of financial instruments, including indices, currencies, cryptocurrencies, commodities, shares and treasuries. Competitive spreads on our spread betting instruments, including major FX pairs from 0.7 points, major indices from 1 point and crude oil from 3 points.

Read Peter Cruddas CEO Interview

Visit CMC

CMC Reviews

Pepperstone

Spread bet on 150+ instruments across FX, indices, equities, cryptos, energy and commodities, and more, across three, free powerful platforms Spreads on our MetaTrader 4 and MetaTrader 5 platforms are variable, with prices coming from many providers and sources to ensure you're getting the best price. Tamas Szabo Pepperstone CEO Read Tamas Szabo CEO Interview Visit Pepperstone

Pepperstone Reviews

Spreadex Financials

Spreadex

Trade one of the widest ranges of spread betting markets including large and small cap shares, indices, forex, commodities, bonds and interest rates. Spread betting spreads start from just 0.6 pts on EUR/USD, 1pt on UK 100 and 0.4 pts on Gold

Jonathan Hufford

Visit Spreadex

Spreadex Reviews

City Index

Spread Betting with City Index provides a tax-free* way to trade over 8000+ global markets. Fixed and variable spreads from 0.5 points with benchmark UK financing is LIBOR +/-2.5% Coming Soon Visit City Index

City Index Reviews

ETX Capital

Trade over 5,000 markets with Profits exempt from both Stamp Duty and Capital Gains tax within the UK. ETX offer competitive spread betting costs with major FX pairs from 0.6 pips and spreads on major Indices from 1 pt. Phil Adler CEO Interview ETX Reviews

Best DMA Brokers For Trading The DAX (Germany 30)

Compare brokers that offer Direct Market Access (DMA) who are authorised and regulated by the FCA.  Use DMA to get inside the price and reduce your trading costs by getting better prices.

DMA BrokerDMA AccessDMA ExecutionAccount TypesCEO InterviewMore Info

IG

Stocks:
FX:
Index:
Commodities:
Voice:
Online:
Strategy:
Prime:
DMA:
Futures:
CFD
Spreadbetting:

June Felix, IG CEO

Read June Felix CEO Interview

Visit IG

IG Reviews
CEO Interview
Your capital is at risk. 76% of retail CFD accounts lose money

Saxo Capital

Stocks:
FX:
Index:
Commodities:
Voice:
Online:
Strategy:
Prime:
DMA:
Futures:
CFD
Spreadbetting:
Andrew Edwards Saxo Capital Markets UK CEO Read Andrew Edwards CEO Interview Visit Saxo

Saxo Reviews
Fineco Stocks:
FX:
Index:
Commodities:
Voice:
Online:
Strategy:
Prime:
DMA:
Futures:
CFD
Spreadbetting:

Paolo Di Grazia, Fineco General Manager Paolo Di Grazia, Fineco GM

Visit Fineco

Fineco Reviews
Interactive Brokers Interactive Brokers Stocks:
FX:
Index:
Commodities:
Voice:
Online:
Strategy:
Prime:
DMA:
Futures:
CFD
Spreadbetting:

Thomas Peterffy

IBKR Services

Best MT4 Brokers For Trading The DAX (Germany 30)

MT4 or MetaTrader 4 is currently offered by over 600 brokers worldwide. Compare the top MT4 brokers to ensure you get the best pricing, tools, analysis and features.

Featured MT4 BrokerWhat can you trade on MT4?How much does MT4 trading cost?CEO InterviewMore Info

IG

IG’s MetaTrader 4 package delivers instant access to 18 free add-ons and indicators, giving you an edge in your trading. You’ll also have the option to download thousands more from inside the MetaTrader 4 platform. Take advantage of minimum spreads of 0.6 on a host of forex pairs with IG. The minimum lot size on MT4 is 0.01 lots, helping you manage the risks of high-volume trading.

June Felix, IG CEO

Read June Felix CEO Interview

Visit IG

IG Reviews
Your capital is at risk. 76% of retail CFD accounts lose money

CMC Markets

Trade CFDs on 30 currency pairs including EUR/USD, GBP/USD and USD/JPY, major indices like the UK 100 and US 30, plus popular commodities such as Gold, Silver and Crude Oil Trade Forex from 0.7 pips on MT4, indices from 1 point and Gold from 0.3.

Read Peter Cruddas CEO Interview

Visit CMC

CMC Reviews

Pepperstone

Trade 85 pre-installed MT4 indicators available on the desktop app for greater insight into market trends During liquid times, MT4 spreads can go as low as 0 pips on the EURUSD through the Razor account Tamas Szabo Pepperstone CEO Read Tamas Szabo CEO Interview Visit Pepperstone

Pepperstone Reviews

XTB XTB Brokers

Trade over 1,500 markets through MT4. Test and optimise your trading strategies with the MT4 Strategy Tester Low forex spreads from 0.1 pips, stock CFD commission from 0.08%

Arnaout Omar Omar Arnaout

Visit XTB

XTB Reviews

ETX Capital

Trade over 60 FX pairs including majors, minors and a range of exotics currency pairs with ETX. ETX offer low FX trading costs on spread betting and CFDs with spreads on EURUSD from only 0.6 pips, and GBPUSD from 0.9 pips. Phil Adler CEO Interview ETX Reviews

City Index

With City Index’s MetaTrader4 platform, you can trade over 80 Forex pairs, including majors, minors and exotics. Ultra-tight spreads, fast trade executions and unique trading tools. Coming Soon Visit City Index

City Index Reviews

Best Options Brokers For Trading The DAX (Germany 30)

Use our comparison tables to compare the best UK based options brokers authorised and regulated by the FCA. Choose or switch to an option broker that offers the most markets, best pricing and client security.

Featured BrokerFutures & OptionsServicesAccount TypesCEO InterviewMore Info

Saxo Capital

Stocks:
FX:
Index:
Commodities:
Voice:
Online:
Strategy:
Prime:
DMA:
Futures:
Options:
CFD
Spreadbetting
Andrew Edwards Saxo Capital Markets UK CEO Read Andrew Edwards CEO Interview Visit Saxo

Saxo Reviews

IG

Stocks:DMA
FX:
Index:CFD
Commodities:CFDs
Voice:
Online:
Strategy:
Prime:
DMA:
Futures:
Options:
CFD
Spreadbetting

June Felix, IG CEO

Read June Felix CEO Interview

Visit IG

IG Reviews
Fineco Stocks:DMA
FX:
Index:CFD
Commodities:CFDs
Voice:
Online:
Strategy:
Prime:
DMA:
Futures:
Options:
CFD
Spreadbetting

Paolo Di Grazia, Fineco General Manager Paolo Di Grazia, Fineco GM

Visit Fineco

Fineco Reviews

Linear Investments

Stocks:
FX:
Index:
Commodities:
Voice:
Online:
Strategy:
Prime:
DMA:
Futures:
Options:
CFD
Spreadbetting

Jerry Lees

Linear Services
Interactive Brokers Interactive Brokers Stocks:
FX:
Index:
Commodities:
Voice:
Online:
Strategy:
Prime:
DMA:
Futures:
Options:
CFD
Spreadbetting

Thomas Peterffy

IBKR Services

Use our comparison tables to compare the best UK based DAX (Germany 30) futures brokers authorised and regulated by the FCA. Choose or switch to a futures broker that offers the most markets, best pricing and client security.

Futures trading carries a high level of risk and can result in losses that exceed your deposits. Featured brokers appear first.

Here is a list of futures brokers based in the UK that are regulated by the FCA

Prime BrokerDMA AccessExecutionAccount TypesCEO InterviewMore Info

Saxo Capital Markets

Stocks:
FX:
Futures:
Options:
Voice:
Online:
Strategy:
Prime:
DMA:
Omnibus:
Liquidity
White Label:
Andrew Edwards Saxo Capital Markets UK CEO Andrew Edwards Visit Saxo

Saxo Services

IG

Stocks:
FX:
Futures:
Options:
Voice:
Online:
Strategy:
Prime:
DMA:
Omnibus:
Liquidity
White Label:

June Felix, IG CEO

Read June Felix CEO Interview

Visit IG

IG Services

Linear Investments

Stocks:
FX:
Futures:
Options:
Voice:
Online:
Strategy:
Prime:
DMA:
Omnibus:
Liquidity
White Label:

Jerry Lees

Linear Services
Interactive Brokers Interactive Brokers Stocks:
FX:
Futures:
Options:
Voice:
Online:
Strategy:
Prime:
DMA:
Omnibus:
Liquidity
White Label:

Thomas Peterffy

IBKR Services

What is the German DAX 30 Index?

The German Dax 30 index (Deutscher Aktienindex) is an equity index that tracks the performance of 30 of Germany's leading stocks. Launched in 1988 with an initial base value of 1000, the index has risen substantially since then and touched an all-time high of 13,596 in 2018.

The index is maintained by the Deutsche Börse Group.

Below is a snapshot of the Index constituents of the DAX Index. Remember that this index only contains thirty stocks, so it is not a wholly representative index of the entire German economy. The top three stocks in the index, by market capitalisation, are SAP, Linde, and Siemens.

A Snapshot of DAX 30 Companies

Source: Deutsche Bourse 

Can you trade the Dax Index?

Yes, you can. There are multiple financial products derived from the underlying DAX Index that you can trade with, including:

Read the GMG Guide on Index Trading.

The biggest ETF based on the DAX Index is the DAX 30 ETF (ticker: DAXEX). This ETF is gaining popularity because of the ease of trading, unlike futures or options where there are rollover costs and expiry dates.

On index futures, they usually expire on March, June, September, and December.

However, bear in mind that the DAX Index is Euro-denomiated. If you are trading in the UK with, say, spread trading, you may be using sterling.

What is the attraction of German Dax Index?

The German Dax 30 Index is closely watched. The index is attractive to investors and traders alike because:

  • DAX stocks are highly international and these companies derived their earnings globally
  • DAX 30 offers good liquidity - as some of these stocks are huge (e.g. SAP, Allianz, and Siemens)
  • DAX 30 offers a good exposure of leading industrial companies such as BMW and Linde.

Moreover, Germany companies are export oriented and they are hugely beneficial from firm global economic growth.

Remember that, with only 30 constituents, the DAX Index may be more volatile than broader equity index. Hence its popularity with traders.

What drives the Dax 30 Index?

Stock markets are often driven by a wide variety of factors. For the German stock market, the number one factor global growth. This is because these companies are global in nature and derive their earnings from many markets.

Other important factors include:

  • Monetary factors (e.g., Quantitative Easing, rates movements, yield curve etc)
  • Technical factors (e.g., new highs or lows)
  • Earning factors (e.g., profitability and earnings momentum)

Seven-Point Guide on trading the DAX 30

To trade the DAX 30 profitably requires a good trading strategy. The following tips may help you to maximise your chances of trading the DAX 30 successfully over the long term.

  1. Understand your requirements for trading the DAX 30. Are you an intra-day or positional trader? Do you invest for the long term? Are dividends important?
  2. Research various technical (or fundamental) indicators to support the trading objective. There are many technical indicators that you can use, including
  3. Backtest these indicators if they are profitable over time. Select a few that you can understand. Check their pitfalls and signal variations over time. Put these indicators into a trading software and backtest. Is it profitable? Can you withstand the drawdown?
  4. Select the indicators that best suit the objectives. Once the initial backtest research is completed, setup a mock testing period of, say, six weeks. Assess the results. Are they good? Which type of indicators works better?
  5. Include risk management factors in your assessment. Important factors like position sizing, leverage levels, stop loss levels and risk-reward ratios must be specified. Trading without risk management is like driving without brakes and safety belts.
  6. Select trading platforms that support your operations. Capital requirements, platform fees, and trading capability are all important factors to look for. See the comparison table above.
  7. Commit capital and go live. Make sure that you drip feed capital into new strategies because there may be many things to iron out before you're comfortable with it.

DAX Trading FAQ:

What is the Dax 30 and how can you trade and invest in it?

The Dax 30 index (Deutscher Aktien Index or German stock exchange in English) is an equity index which tracks the performance of 30 of Germany's leading stocks. These companies represent as much as 80% of the market cap, of the top tier, in German equity markets. The Dax or Germany 30 as its sometimes known was officially launched back in 1988 with an initial base value of 1000 index points, the index has risen substantially since then and touched an all-time high of 13,596 in 2018, the low point of the index was a value of 936 back in 1988. The maximum value fo the Dax 30 index being €971.8 billion (Feb 28, 2017) & GBP £885.1 billion.

Best brokers for trading the Dax

The best broker for you will depend very much on what you are looking for from your broker, if it's 24-hour pricing and tight spreads, plus access to thousands of other products. Then you will probably want to trade with one of the larger brokers such as IG Group or Saxo Bank. However, if you want a more personalised service, then you might prefer a smaller broker such as Spreadex.

Your choice of broker will also be influenced by the products you want to trade.

For example, if you're going to Spread bet rather than trade CFDs. Then, you 'll need to choose from those providers that operate as Financial bookmakers (spread betting brokers) as well as CFD brokers.

You can compare brokers and decide which one is the best fit for you by using our comparison tables, or if you are interested in investing through ETFs here.

You may also be interested in this article:

Dax 30 futures explained

Futures contracts are a form of derivative, through which traders can speculate on the future price of a commodity or financial instrument, in this case, the future value of the Dax 30 index.

Dax futures trade quarterly in a December, March, June and September cycle, and each contract reflects the market's expectations for the value of the Dax out to that point in time.

These contracts are traded on a rolling basis and as the front-month contract expires, so another contract is added to the end of the sequence to replace it.

Dax 30 futures are cash-settled meaning that buyers and sellers of the contract pay or receive money depending on the outcome of their trade as such there is no need to undertake or accept delivery of the stocks that make up the index.

Trades are cleared and settled through the clearing house that acts as the counterparty to all Dax futures trades. Futures trades are undertaken on margin. Traders place an initial margin or deposit at the inception of the trade and add variation or maintenance margin, as and when required, throughout the trades lifetime.

Dax 30 CFD trading explained

All contracts that are settled in cash are considered to be Contracts For Differences. Under which, the buyer and the seller are either credited or debited, at the settlement of their trade, based on their PnL performance, instead of making or taking delivery of the underlying asset.

A CFD on the Dax index works in precisely the same way, CFDs on the Dax are similar to the futures contracts we discussed above, though there are some key distinctions.

CFD contracts on the DAX trade off-exchange in what is called OTC or Over The Counter trading. Such CFD contracts are not settled through a dedicated clearing-house that means the counterparties to a trade are the customer and their CFD provider or broker.

Trading off-exchange or OTC allows for a higher degree of flexibility, for‌ ‌example, there are no fixed expiry dates for Dax CFDs or indeed fixed contract sizes, though there will be minimum trade sizes.

Futures contracts on the Dax have a contract size of €25 per point so that if the Dax index stands at 10,000 points one full Dax futures contract has an underlying value of €250,000.

Dax CFD traders can usually deal in much smaller sizes, for example, in say €5.00 per index point, which is equivalent to one-fifth of the value of the exchange-traded futures contract.

Dax 30 Spread betting explained

A spread bet on the Dax index shares features with both the futures contract and Dax CFDs. However, there is a difference between the spread bet and the other two, and it's an important one.  The difference is that the spread bet is structured as a bet and not a trade.

When you Spread bet, you bet in pounds or pennies per point (or units of another currency), and you bet on the rise or fall of the Dax index, and your bookmaker is the counterparty to the bet.

Bookmakers offer their clients a range of bets with different life cycles, for example, daily, monthly or quarterly bets.

However, the crucial difference between a spread bet on the Dax and CFD trades on the index is how any profits you make are taxed. Under current UK legislation profits made from betting by individual UK taxpayers are not subject to tax. However, losses arising from spread betting are not able to be offset against capital gains made elsewhere.

Profits arising from CFD trades are subject to tax, though CFD trading losses can be offset against capital gains made elsewhere.

That tax treatment has made spread betting very popular among UK retail traders, however, you should note that as opposed to fixed-odds betting the potential losses in spread betting are not limited to your initial stake.

Dax 30 ETFs explained

ETFs or Exchange Traded Funds are open-ended funds designed to mirror the performance of a given index, a sector or even an investment strategy.

Most ETFs are what are known as passive investments that track a given benchmark rather than attempting to outperform it. ETFs can be traded just like individual shares; they have proved popular among investors as they offer a low-cost replication of an index or sector's performance. Added to which they allow traders to quickly gain exposure to groups of stocks or asset allocation themes.

The ETFs on the Dax 30, aim to mirror its performance and they are likely to own a basket of Dax constituent shares, or a series of derivative contracts over those, or similar assets, to do so.

If you're optimistic or bullish about the Dax then you would buy a Dax ETF, if you’re are pessimistic or bearish about the prospects for the index then would sell a Dax ETF.

ETFs can be shorted, that is selling something without owning it first, in the hopes of repurchasing the position, at a lower price, to make a profit at a later stage. It would be wise to check with your broker to find out if there are any restrictions on this before doing so, however.

There are many ETFs tracking the Dax index, one of the largest is the Core DAX UCITS ETF, managed by Blackrock, through its iShares division. This ETF was established back in December 2000, and according to recent data from the manager, it has captured cumulative returns of more than +85% since then.

Where to get live streaming Dax 30 charts

The trading platforms of most brokers offer users a Dax chart. However, you might want to consider an additional provision, and there are various resources available to do just this.

Google is an excellent place to start if you are just looking for a simple overview.

To access a Dax chart copy and paste the ticker INDEXDB: DAX into the google search bar and hit return.

You can plot line charts that range from current-day performance out to five years or more. You can also find Dax related news items and make comparisons between the Dax and other instruments.

Yahoo finance goes a stage further in its Dax coverage, showing you not only the changes in the index itself but also the prices of the component companies that comprise the equity benchmark. There are interactive charts that cover time frames from as low as one minute, and you can draw on or annotate these charts as well. What's more, you can download the historical end of day data if you prefer to crunch the numbers for yourself.

Other useful sources for Dax charts include TradingView as well as the Markets Insider and Marketwatch websites.

What is Dax 30 day trading & swing trading?

Swing trading is a trading style that works by spotting the beginning or end of a trend within the price action of an index or other instruments, in this case, the Dax 30 index and its derivatives.

Swing trading is often used as a day trading style without overnight positions. However, some swing traders do run positions for more than a single trading day, if the momentum in the trends they are trading justifies it.

The Dax swing trader looks for signals in the indices price action that can provide clues about what the next medium-term move in the index will be.

For example, if we see a series of higher highs and higher lows, on both the five and fifteen-minute charts, that appear soon after a period of consolidation, then that could suggest there is new upside momentum and that a fresh uptrend is emerging.

Alternatively, a series of lower highs and lower lows over various time frames could well mean that a move higher in the index has come to an end and a move lower is now likely.

Swing traders try to identify these trend changes as they happen, though they will also use indicators to provide confirmation and avoid false breakouts. Swing traders make good use of stop losses to help manage their risk and often trail these stop losses behind their profitable positions; they may also add to or scale into positions as the strength of a trend develops.

Dax 30 trading systems  - any good?

There is much debate about trading systems and whether they genuinely work or not? Moreover, if they are worth the money you can spend on buying them? After all, if you had developed a system that regularly made money in the markets, wouldn't you keep that edge or advantage to yourself rather than trying to sell it to others?

That said, having a rules-based approach to trading is a good idea though it's arguably better to build your own set of rules, or system if you can.

Many such approaches revolve around trend-following or momentum-based systems that look to mimic or improve on the swing trading strategy outlined above. Such systems often use sophisticated indicators such as MACD (moving average convergence/divergence) and Stochastics to highlight and confirm trading opportunities. Interpreting what these indicators are telling us can seem quite daunting at first, but it gets easier with practice and familiarity.

One of the good things about the Dax is that it is made up of just thirty stocks and seven principal sectors which account for just under 80% of the Dax market cap, as we can see in the graphic below.

The Composition of the Dax

composition_of_dax

Source Deutsche Borse

What happens to these stocks and sectors directly affects the valuation of the index, of course. For trend followers keeping tabs on thirty stocks and associated sectors is much easier, than it is in a broader index such as the FTSE 100 or S&P 500. In theory, at least then a system for the Dax which has fewer variables should be easier to build and monitor.

How to invest in the Dax 30

We need to distinguish between trading and investing in answering this question. Investing in the Dax implies the long term ownership of assets related to the index. Whereas trading in the Dax, or indeed any other financial instrument or commodity, suggests short term speculation. Perhaps through spread bets or CFDs, that don't confer ownership of the underlying assets, just an interest in the rise and fall of the index value.

To invest in the Dax, you'll probably want to consider one of two routes. The first would be to buy an ETF or mutual fund that specifically tracks the Dax or large-cap German equities. As discussed above the ETF will try to replicate the performance of the Dax, both on the upside and downside.  Investing in this way should provide you with the index return. The mutual fund may try to do the same, but it could also try to outperform the benchmark, through active stock selection, though this is becoming harder to achieve as passive investments grow in popularity.

Alternatively, you could invest directly into a basket of German equities selecting from the constituents of the Dax, for example owning the five stocks highlighted in the graphic above, would expose you to approximately 42% of the Dax by market cap. However, it's always best to seek professional advice to make sure that any investment is suitable and matches your particular requirements before you jump in.

Dax 30 trading hours

The Dax effectively trades around the clock through a combination of index futures and prices that are derived from them and the moves in other significant indices. Many of the larger Bookmakers and CFD providers quote 24 hours prices in the Dax. However, spreads may widen and volumes traded be lower, the further we move away from German market hours, simply because there are fewer active participants in the market at these times.

Dax 30 liquidity & volatility

The Dax is one of the most actively traded equity indices in the world, representing as it does both Germany and the broader export-led Eurozone economy. The front-month futures contract often trades in well in excess of 100,000 lots per day and has open interest in the tens of thousands of contracts. The liquidity in CFD and Spread betting contracts reflect this, of course, we need to bear in mind that when you trade or bet with your bookmaker of CFD broker/provider you are going to be trading on their price and their liquidity and not that of the exchange.

Being actively traded, with only 30 constituents, the Dax index certainly does move around and often does so more quickly than broader equity indices, which is why it is so popular with traders. However, the average level of volatility in the index since October 2017 is just 16.54 percent on a scale that runs between zero and one hundred. So while that's a higher level of volatility than some peers, it's still relatively low over the longer-term.

Compare the best brokers for trading the DAX 30 (or as brokers like to call it the Germany 30). All brokers in this list are authorised and regulated by the FCA.

CFDs & spread betting carries a high level or risk and losses can exceed your deposits.

For trading Dax 30 and Germany 30 shares, make sure you are getting the best return. Our list of the country's best brokers for trading the Dax 30 or Germany 30 will help you pick one that is right for you:

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