Good Money Guide Home > Compare Index Brokers

Index trading brokers let you speculate on the changing prices of the world's global indexes so you could make a profit from correctly predicting the shift in value. Compare brokers so you can make a profit from the value shifts of the Dow Jones, DAX & FTSE 100 or the NASDAQ or other indexes.

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. 76% 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
73% 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

Trade Nation

CFDs: Yes
Spread Betting: Yes
DMA Index: No
Pro Account: Yes
Index Options: Yes
Indices Available: 10+
Standard Margin: 5%
Pro Margin: na
Minimum Deposit: £0
Inactivity Fee: £0
HQ: London, UK
UK 100: 0.4 points
Wall Street: 1 point
NASDAQ: 0.8 points
CAC 40: 0.8 points
DAX 30: 2 points
Overnight Financing: Variable
See Offer
57.1% 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

ETX Capital

CFDs: Yes
Spread Betting: Yes
DMA Index: No
Pro Account: Yes
Index Options: No
Indices Available: 34
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 Offers77.4% 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 Capital 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 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.

The different ways index broker provide access to the market

Index brokers provide access to stock market indices markets via:

The different types of index brokers

Index Future Brokers

Index futures are used by financial firms and speculators. Index futures allow traders to buy or sell a specific amount of a stock market indices at a specific date in the future. A portfolio manager may use them to lock in the current market price and to protect a portfolio against market moves, whereas a trader may use them to speculate on the price of an index moving higher or lower in the hope of making a profit.

A index futures broker will provide access through futures trading to commodities exchanges such as the CME or LSE. Our guide on how to trade futures explains the risks and rewards of futures trading.

Index Options Brokers

Index options are traded on exchange-like futures and can be used for physical trading or speculation. Index options differ from index futures in that you are trading the right to a certain amount of an index at a certain point in the future, not the obligation. For more information on how options work, read our guide to options trading.

CFD Index Brokers

Trading indices via CFDs enables traders to speculate on the price of stock market indices with leverage. Leveraged trading enables traders to enter into a "contract for difference" based on the opening and closing prices of a trade. The user of margin means that traders only need to deposit a small percentage of the value of the index they are trading through an indices broker which increases their exposure to the market.  Index CFDs are an OTC (over the counter) derivatives product which means that traders never actually own the underlying stock market, they are simply speculating on the price.

Spread Betting Index Brokers

Spread betting on indices is another form of OTC margin speculation and allows traders to bet on the price movement of stock market indices. The key advantages over CFDs are that in the UK there is no capital gains tax on spread betting profits. Because of this index spread betting is unique to the UK. Index spread betting should not be confused with futures spread trading which is speculating on the divergence between various different monthly futures.

Index ETF Brokers

Trading indices through ETFs can be done through most stockbrokers and investment platforms.  index ETFs are traded on stock exchanges like shares and can be held in normal accounts, ISAs and SIPPs. The price of index ETFs track the price of underlying indices so provide a simple way for investors to get exposure to stock markets without having to enter into traditional derivatives contracts or buy lots of individual share.

How 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 costs involved in trading with an index broker

  • Futures - commission charge on a per lot basis
  • Options - commission charged on a per lot basis
  • CFDs - the bid/offer spread is widened and overnight interest is charged on positions
  • Spread Betting - the bid/offer spread is widened and overnight interest is charged on positions
  • ETFs - commission charge on buys and sells, plus an account maintenance charge

Index Broker FAQ:

Index trading is high risk, but some are easier to trade than others. We've assessed the different types of commodities and helped identify the best indices to trade for profits each day.
Here's how to trade indices for insights into trading strategies and methods for both new and existing traders.
Use our index broker comparison table to compare the market access and index trading products offered by indices brokers to find an appropriate index broker.
Yes, as a financial instrument in the UK index trading is regulated by the FCA.
If you are looking for DMA, here is a list of index trading brokers based in the UK that are regulated by the FCA

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