As well MT4 offering clients access to the Forex Markets it is also one of the best independent platforms our there for trading indices.
Index trading (second to FX) is one of the most heavily traded asset classes in the world. As with FOREX trading, the market is pretty much open all the time, there is great liquidity and news flow and there is plenty of money to be made (and lost!) from trend and chart trading.
Fortunately for traders, MT4 is offered by over 600 MetaTrader 4 brokers worldwide – but unfortunately, not all brokers are the same. So we’ve put together a top three brokers to open an MT4 account with. But first a little about the three main indices – we’ve left out the Asian indices because even though they are great markets to trade the most liquidity is when the UK is sleeping.
The FTSE 100 is the major benchmark index in the UK and consists of around 100 of the largest publicly listed companies on the LSE. Because of copyright, some brokers call it the UK 100 or the UKX. It’s mainly traded via spread betting, CFDs and MT4 with brokers like ETX Capital.
The DAX consists of the largest 30 listed companies on the German exchange and is one of the most popular indices to trade. It has a good dialy range and plenty of liquidity. Trading via spread betting and CFDs on MT4 is more popular now as the contract size on the futures contract is quite large. The margin alone for one contract is abour EUR13,000 and the tick size is EUR25 per point. Using MT4 means you can trade in smaller size.
The DOW and S&P are the major US index benchamarks (as well as the NASDAQ). The DOW has the top 30 US companies and the S&P has around 500. Both are good lead indicators overnight for the UK and European markets. They also provide a good switch after 2:30pm when the UK markets calm down – opening markets are generally more volatile and fun.
Here are three of the better FCA regulated MT4 Brokers in the UK for index (DAX, DOW/SP & FTSE) trading.
ETX have been around since 1965 and rebranded in 2008 as ETX Capital. The ETX stands for Electronic, Telephone Execution. They are regulated by the FCA and are constantly rating among the best MT4 brokers in the annual Investment Trends report. They also offer a nice £5,000 welcome bonus for new customers. Clients get at top up on their account straight away, but can only withdraw it after putting a certain amount of trades on.
IG was founded in 1974 by Stuart Wheeler as a way for his mates to bet on the price of gold. OVer the years the firm has grown to be one of the largest brokers in the UK. They offer MT4 as well as their own excellent platform and are listed on the LSE with a current market cap of over £2bn.
XTB offer a pretty decent range of MT4 markets and were founded in 2002 is one of Europe’s leading brokers. XTB provide CFD and Forex trading on over 1,500 instruments and have (as a group) over 21,000 active clients. Regulated by the FCA, have 12 offices globally including the UK. XTB is headquartered in Poland and listed on the Warsaw Stock Exchange WSE:XTB.
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Richard founded the Good Broker Guide (now Good Money 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.