The best indices brokers let you speculate on the changing prices of the world’s global indices through futures, options, CFDs, spread betting and ETFs. We have ranked, compared and reviewed some of the best brokers for indices trading in the UK to help you choose the most appropriate account for your trading strategy.
Compare Index Brokers
| Index Broker | Indices Available | Average Spread* | CFDs | Spread Betting | DMA** | Founded | PLC? | More Info | Risk Warning |
|---|---|---|---|---|---|---|---|---|---|
 | 23 | 4.48 | ✔️ | ✔️ | ❌ | 1983 | ✔️ | Visit City Index | 70% lose money when trading with this provider. |
 | 13 | 0.005% | ✔️ | ❌ | ✔️ | 1977 | ✔️ | Visit IBKR | 60% lose money when trading with this provider. |
 | 82 | 3.28 | ✔️ | ✔️ | ❌ | 1989 | ✔️ | Visit CMC Markets | 66% lose money when trading with this provider. |
 | 28 | 5.43 | ✔️ | ✔️ | ❌ | 2010 | ❌ | Visit Pepperstone | 79.3% lose money when trading with this provider. |
 | 17 | 3.78 | ✔️ | ✔️ | ❌ | 1999 | ❌ | Visit Spreadex | 69% lose money when trading with this provider. |
 | 21 | 3.83 | ✔️ | ❌ | ✔️ | 1992 | ❌ | Visit Saxo Markets | 70% lose money when trading with this provider. |
 | 34 | 2.28 | ✔️ | ✔️ | ❌ | 1974 | ✔️ | Visit IG | 73% lose money when trading with this provider. |
 | 25 | 4.56 | ✔️ | ✔️ | ❌ | 2002 | ❌ | Visit XTB | 77% lose money when trading with this provider. |
 | 11 | na | ✔️ | ✔️ | ❌ | 2011 | ❌ | Visit FXTM | 77% lose money when trading with this provider. |
Use our index broker comparison to compare each provider by account types, what you can trade in, and fees. We only include providers that are authorised and regulated by the FCA where your funds are protected under the FSCS and where customers have voted for them in our awards survey.
* Average spread value is calculated based on the average spread of the top ten traded indices.
** DMA refers to if an index broker offers on-exchange futures and options.
Side-By-Side Comparison
Use our side-by-side index broker trading platform account comparison to compare the best index broker by pricing, market access, account types and services.
Best Indices Brokers
Our picks for the best brokers for indices are based on over 7,000 votes in our annual awards, our own experiences testing the accounts as well as an in-depth comparison of the features that make them stand out compared to alternatives.
- City Index – best indices broker for trading signals and post-trade analysis
- IG – wide range of indices to trade
- CMC Markets – very helpful client index sentiment indicators
- Pepperstone – best for trading indices on MT4/MT5
- Saxo Markets – trade index futures and options DMA
- Interactive Brokers – excellent for sophisticated index traders
- Spreadex – excellent customer service from a smaller index trading platforms
Indices Broker Reviews
In our index broker reviews, we highlight the pros and cons of each account, what markets you can trade in, how much it costs, and how they compare to the competition. We also explain what makes them different and tell you who they are most appropriate for so you can choose the best account for your trading.
City Index Index Trading
Pros
✔️ Trading signals
✔️ Post-trade analysis
✔️ Wide range of markets
✔️ UK based
Cons
❌ No DMA
❌ No investment options
❌ No futures & options
CMC Markets Index Trading
Pros
✔️ Excellent sentiment tools
✔️ Wide range of markets
✔️ Tights spreads and low costs
Cons
❌ No investment account
❌ Limited shares on offer
❌ No DMA equities trading
66% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider
Pepperstone Index Trading
Pros
✔️ Tight spreads
✔️ Fast execution
✔️ Good MT4/MT5 trader tools
Cons
❌ Limited shares on offer
❌ No investment accounts
❌ Major markets only
79.3% of retail investor accounts lose money when trading spread bets and CFDs with this provider
Saxo Markets Index Trading
Pros
✔️ Professional-grade trading platform
✔️ Integrated research and analysis
✔️ Excellent market range
✔️ Investment account options
Cons
❌ Maybe too advanced for beginners
❌ No investment accounts
❌ Major markets only
Markets.com Index Trading
Pros
✔️ Blends and sector trading
✔️ Hegde fund sentiment analysis
✔️ TipRanks Integrated
Cons
❌ No investment accounts
❌ Analysis limited to US stocks
❌ HQ not in the UK
Spreadex Index Trading
Pros
✔️ Excellent reputation and service
✔️ Sports trading also available
✔️ Smaller personal brokerage
Cons
❌ No investment accounts
❌ Some may be put off by sports
❌ Limited order types
69% of retail investors lose money when trading spread bets and CFDs with this provider
Interactive Brokers Index Trading
Pros
✔️ Institutional trading tools
✔️ Wide range of order types
✔️ Excellent research and analysis
✔️ Investment account options
✔️ Very low cost trading platform
Cons
❌ Desktop version too advanced for beginners
❌ Customer service slow
❌ US based
60% of retail investor accounts lose money when trading CFDs with this provider
What is an index broker?
An index broker provides access to indices markets such as the FTSE, DAX, and S&P for the purposes of trading, speculation, and hedging. These indices are made up of the individual shares traded on stock exchanges. For example the FTSE 100 is a index of the biggest 100 publically listed shares traded on the London Stock Exchange.
By trading an index rather than the individual shares you can buy and sell the entire market in one go.
Here’s how to start index trading a comprehensive guide to getting started with indices trading
You can read about the major indices in our guide to the best indices for index trading.
Different types of index broker
Indices are listed on futures exchanges like the ICE (International Continental Exchange) for FTSE futures and the CME (Chicago Mercantile Exchange) for E-mini S&P 500 futures. These future provide the basis, or underlying asset on which Index brokers enable their clients to trade indices.
The actual on-exchange futures contracts are mainly for professional and institutional traders as the minimum contract size is often quite high. For example, the FTSE future contract is valued at £10 x the index value. So at the time of writing (4/11/21) where the FTSE Index is valued at 7200, a single FTSE future is worth £72,000.
So there are different types of index brokers for different clients who provide provide access to the market.
Index brokers provide access to stock market indices markets via:
- Index Futures Trading– these index brokers provide professional traders with direct market access to indices traded on exchange.
- Index Options Trading – these index brokers options trading to professional traders on-exchange. In some cases, stock brokers will offer index options for clients that want to hedge a portfolio.
- Index CFD Trading – these index brokers provide CFDs (contracts for difference) which are ideal for traders that want to trade in smaller size than index futures.
- Index Spread Bet Trading – these index brokers let their clients bet on the price movements of an index. As trades are structured as bets, there is no capital gains tax due on index spread betting profits
- Index ETF Investing – Index ETFs are listed on stock exchanges and can be bought and sold in a similar way to shares and can track the price of an index. They are useful for investors that want exposure to an indices’ overall performance but do not want to buy an actively managed index fund or index derivatives. As they are listed on stock exchanges they are available through share dealing platforms, CFD trading platforms and spread betting brokers.
Index Broker FAQ:
Can you make money trading indices?
Yes, you can make money trading indices, but Index trading is a high risk. To successfully make money trading indices you will either have to invest in indices in the long term or call the market right in the short-term. It is worth keeping in mind that only around 25% of non-professional traders make money. but some are easier to trade than others. We’ve assessed the different types of commodities and helped identify the best indices to trade and why.
How do you trade indices?
Here’s how to trade indices for insights into trading strategies and methods for both new and existing traders.
Is index trading regulated?
Yes, as a financial instrument in the UK index trading is regulated by the FCA.
What are the most popular index to trade?
The top three traded commodities are S&P, DAX & FTSE. We cover why these are so popular in our how-to-trade index guide.
How do index brokers make money?
Index brokers make money through fees and financing charges. Index broker costs can be broken down depending on how an index is traded.
The different types of index broker make money in these ways
- Futures index brokers – commission charge on a per lot basis
- Options index brokers – commission charged on a per lot basis
- CFD index brokers – the bid/offer spread is widened and overnight interest is charged on positions
- Spread Betting index brokers- the bid/offer spread is widened and overnight interest is charged on positions
- ETF index brokers – commission charge on buys and sells, plus an account maintenance charge
What are the most popular markets to trade with an index broker
Here is a list of the most popular stock markets to trade with an index broker. You can read more about each specific index, the pros and cons of trading and what economic factors move the market by either clicking on the below index links or reading our guide on the top ten stock market indices for trading and why.
Trading Platform ReviewsIG Reviews CMC Markets Reviews Pepperstone Reviews Saxo Markets Reviews Interactive Brokers Reviews Spreadex Reviews City Index Reviews Markets.com Reviews |
- Last updated by
- Richard Berry
- January 6, 2022
- 11:09 am
