This really depends on what size you trade as most brokers in our index broker comparison tables tend to operate on a hybrid basis, hedging larger clients and not smaller ones.
Brokers tend to take the other sides of a trade because (apart from the obvious commercial reasons) it’s hard to cost effectively hedge every singe small index trade.
If you are a small trader it shouldn’t really matter as all the brokers in our CFDs comparison tables have low latency execution. However, if you are a larger “professional” trader you may want to consider trading futures instead of CFDs.
With Index futures you can get direct market access to the exchange order books so you can work bids and offers inside the spread.
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Richard founded the Good Money Guide (previously Good Broker Guide) in 2015 and has been a broker for 20 years most recently at Investors Intelligence and previously a multi-asset derivatives broker at MF Global (Man Financial). Richard started his career working as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson) after interning on the NYMEX oil trading floor in New York and London IPE in 2001 & 2000.