If you’re looking to trade Dow Jones Industrials Average (US 30), we’ve compiled a list of the best brokers for trading the DJIA. 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 Dow Jones Industrials Average (US 30):

Featured Index BrokerIndex Account OptionsKey Index FactsStandard Index CostsMore Info

IG

CFDs: Yes
Spread Betting: Yes
DMA Index: Yes
Pro Account: Yes
Index Options: Yes
Indices Available: 34
Standard Margin: 5%
Pro Margin: 0.45%
Minimum Deposit: £250
Inactivity Fee: £12 pm
HQ: London, UK
UK 100: 1 point
Wall Street: 2.4 points
NASDAQ: 1 point
CAC 40: 1 point
DAX 30: 1.2 points
Overnight Financing: 0.0022%
See Offer
Your capital is at risk. 70% of retail CFD accounts lose money

CMC Markets

CFDs: Yes
Spread Betting: Yes
DMA Index: Yes
Pro Account: Yes
Forex Index: Yes
Indices Available: 22
Standard Margin: 5%
Pro Margin: na
Minimum Deposit: £100
Inactivity Fee: £10 pm
HQ: London, UK
UK 100: 1 point
Wall Street: 2.4 points
NASDAQ: 2 point
CAC 40: 1 point
DAX 30: 1 points
Overnight Financing: 0.0027%
See Offer
66% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider

Pepperstone

CFDs: Yes
Spread Betting: Yes
DMA Index: Yes
Pro Account: Yes
Index Options: No
Indices Available: 16
Standard Margin: 5%
Pro Margin: 0.5%
Minimum Deposit: £100
Inactivity Fee: £0
HQ: Melbourne, Australia
UK 100: 1 point
Wall Street: 2.4 points
NASDAQ: 1 point
CAC 40: 1 point
DAX 30: 1.2 points
Overnight Financing: Variable
See Offer
79.3% of retail investor accounts lose money when trading spread bets and CFDs with this provider

City Index

CFDs: Yes
Spread Betting: Yes
DMA Index: No
Pro Account: Yes
Index Options: Yes
Indices Available: 21
Standard Margin: 5%
Pro Margin: 0.25%
Minimum Deposit: $50
Inactivity Fee: $10 pm
HQ: London, UK
UK 100: 1 point
Wall Street: 2 points
NASDAQ: 1 point
CAC 40: 1.3 points
DAX 30: 1.2 points
Overnight Financing: Variable
See Offer70% of retail investor accounts lose money when trading CFDs with this provider

Markets.com

CFDs: Yes
Spread Betting: Yes
DMA Index: No
Pro Account: Yes
Index Options: Yes
Indices Available: 10+
Standard Margin: 5%
Pro Margin: 0.5%
Minimum Deposit: £100
Inactivity Fee: £0
HQ: Cyprus
UK 100: 2 points
Wall Street: 2 points
NASDAQ: 2 points
CAC 40: 2 points
DAX 30: 1.2 points
Overnight Financing: 0.0111%
See Offer
77% of retail investor accounts lose money when trading CFDs with this provider

Spreadex Financials

Spreadex

CFDs: Yes
Spread Betting: Yes
DMA Index: No
Pro Account: Yes
Index Options: No
Indices Available: 37
Standard Margin: 5%
Pro Margin: 0.45%
Minimum Deposit: £100
Inactivity Fee: £0
HQ: St Albans, UK
UK 100: 1 point
Wall Street: 2.4 points
NASDAQ: 2 points
CAC 40: 2 points
DAX 30: 1.2 points
Overnight Financing: Variable
See Offer 69% of retail investors lose money when trading spread bets and CFDs with this provider

Saxo Markets

CFDs: Yes
Spread Betting: No
DMA Index: Yes
Pro Account: Yes
Index Options: Yes
Indices Available: 23
Standard Margin: 5%
Pro Margin: 1.5%
Minimum Deposit: £500
Inactivity Fee: £25 pq
HQ: Copenhagen, Denmark
UK 100: 1 point
Wall Street: 3 points
NASDAQ: 1 points
CAC 40: 2 points
DAX 30: 1 point
Overnight Financing: Variable
See Offer 70% of retail investor accounts lose money when trading CFDs with this provider

What is Dow Jones Industrials Index?

The DJ Industrials Index (the 'Dow', ticker: INDU) is one of the oldest stock market indices in the world. It was formulated in 1896 by Charles Dow. Currently, it has only 30 component stocks.

For half a century after its inception, the Dow was the most-followed index because of its history and prestige. But as the US economy expanded massively after 1950, Dow's thirty components gradually under-represented the economy. These days, investors tend to use the S&P 500 as the benchmark. Still, the Dow is a widely-quoted index.

Dow is not cap-weighted but price weighted.

Can you trade the Dow?

Of course, you can. There are multiple financial products derived from the underlying DJ Industrials Index that you can trade with, including:

  • Futures
  • Options
  • Exchange-Traded Funds (link)
  • Investment Funds
  • Spread trading

Read the GMG Guide on Index Trading.

The biggest ETF based on the DJ Industrials Index is the SPDR Dow ETF (ticker: DIA).

What is the attraction of Dow?

DJ Industrials is often seen as one of the barometers of Wall Street. Given its components, Dow is often seen as a 'Blue Chip' index. Investors and traders often like to trade this index:

  • Dow offers good liquidity
  • Dow has a long history, thus allowing investors to compare price movements easily
  • Dow has been a good performer since 2009.

This Index is volatile enough to attract traders. Thus add liquidity of the index.

What drives the DJ Industrials?

Stock markets are driven by a wide variety of factors, including some of the following:

  • Macro factors (e.g. GDP, unemployment, business indicators etc)
  • Monetary factors (e.g., Quantitative Easing, rates movements, yield curve etc)
  • Technical factors (e.g., new highs)

If you are trading INDU short term, you will need to pay attention to news flow and data announcements because they can have massive impact on the index over the short term.

Another area to watch out for are Federal Reserve meetings and the release of FOMC minutes. Any change in interest rates beyond market expectations can cause violent swings in the SPX. For example, if investors were expecting a 0.25% hike but the central bank raised it by 0.5% - this may cause prices swing massively after the announcement.

Studying the reaction of the market to these factors are important.

How to trade the Dow using technical indicators?

To trade the Dow profitably requires a good trading strategy, of which technical indicators may come in handy. Technical indicators include:

For example, you may use the moving averages to judge whether the index is still trending or due for a reaction.

Another favourite indicator is a break of resistance or support levels. Look at the DJ Industrials ETF (DIA) below. It was clear that the breakout above the 275 key resistance last month resulted in a rally into 280 (see below). This resistance, now broken, may even convert into resistance.

Bear in mind, however, the different traders will gravitate towards different trading styles. Therefore you must find the technical indicators that best support your trading objectives.

About The Author

DJIA Trading Platform Reviews

BrokerExpert & User Reviews

IG

IG Reviews See Offer
Your capital is at risk. 70% of retail CFD accounts lose money

CMC Markets

CMC Markets Reviews See Offer
67% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider

Pepperstone

Pepperstone Reviews See Offer
79.3% of retail investor accounts lose money when trading spread bets and CFDs with this provider

City Index

City Index Reviews See Offer
74% of retail investor accounts lose money when trading CFDs with this provider

ETX Capital

ETX Capital Reviews See Offer
69% of retail investors lose money when trading spread bets and CFDs with this provider

Spreadex Financials

Spreadex

Spreadex Reviews See Offer
69% of retail investors lose money when trading spread bets and CFDs with this provider

Saxo Markets

Saxo Markets Reviews See Offer
70% of retail investor accounts lose money when trading CFDs with this provider