City Index, the UK-based margin trading and spread betting business owned by US-listed StoneX has launched a new index basket based on the Magnificent Seven stocks. The basket, which contains a “who’s who” of US tech and growth stocks, will allow City Index’s clients to get instant exposure to this influential grouping, in a single trade. This means that you can take long or short positions on the Mag 7 stocks in one trade with equal ease.
Named after the protagonists in the classic Western of the same name, the Magnificent Seven are seven US based Technology, Communication Services and Consumer Discretionary stocks which have dominated global equity markets since the pandemic.
The Mag 7 group comprises Alphabet, Apple, Amazon, Meta Platforms, Microsoft, Nvidia and Tesla.
These are all household names and account for around 30% of the market cap of the S&P 500 index, which represents some 80% of the total US market cap, and as much as 60% of the total global market cap.
Looking back at the historic performance of the Magnificent Seven we find that they have had an annualised return of almost 31.0% over the last five years.
How is the City Index Magnificent Seven index constructed and traded?
City’s Magnificent Seven index benchmarks the BITA US Magnificent Seven index.
BITA is a German fintech and index solutions provider.
Their Magnificent Seven index is a free-float market cap-weighted benchmark with quarterly rebalances.
The City Index Magnificent Seven basket is traded as an index product during the regular session of the US market, which is open between 14.30 and 21.00 London time.
The product can be traded as a CFD or a spread bet utilising any of City Index’s trading platforms, whether desktop or mobile.
The index will have a 6.0 point spread and margin rate of 10.0%
It could be argued that the influence of the Magnificent Seven has waned recently.
However, they are some of the largest companies in the world and they are intimately connected to globally important themes, such as cloud computing, artificial intelligence and the energy transition.
Being able to trade these stocks in a single deal should be very advantageous for City Index clients, as price movements in the group reflect changes in trading sentiment and Risk-on/Risk-off behaviour in the equity market.
City Index Indices Trading Review
Name: City Index Indices Trading
Description: Trade major global indices at City Index like the UK 100, Wall Street and Germany 40. Choose a spread betting or CFD trading account and get tight spreads on European, US, Asian and Australian indices. City Index also provide trading signals through and post trade analytics to provide trading ideas and improve your performance.
70% of retail investor accounts lose money when trading CFDs with this provider
Is City Index good for indices trading?
Yes, you can trade around 40 indices with City Index, which is more than the majority of trading platforms. As the name suggests City Index started out as an indices broker, as remarkably indices have always been more popular than forex trading with UK traders. City Index are towards the top of the range when it comes to indices on offer, mid-range when it comes to index spreads and one of the best brokers for index trading signals (as they provide their own rather than buying them in from a firm like Acuity Trading).
- Indices available: 40
- Minimum deposit: £100
- Account types: CFDs & spread betting
- Index pricing: FTSE 1, DAX 1, Dow 3.5, NASDAQ 1, S&P 0.4
Pros
- Index trading signals
- Post-trade index analytics
- Good education and analysis program
Cons
- No DMA index trading
- Limited index options as a CFD or spread bet
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Pricing
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Market Access
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Online Platform
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Customer Service
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Research & Analysis
(4.5)
Overall
4.1- Expert opinion: City Index reviewed & rated
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