As market volatility has surged recently with the VIX reaching 26.56 (up 55.59% over the past 6 months) it’s more important that even to make sure you are trading with a broker that can handle big market moves and has the liquidity to handle fast markets. This is especailly true if you are a high networth investor, or high frequency trader with a large portfolio.
Way back in 2018, a reader wrote in and asked, “I need a reliable broker that offers the volatility index on MT4?”
Trading volatility indices is certainly possible though not necessarily on MT4 which is relatively limited in terms of the range of products that can be traded through it. Its big brother, MT5, offers more flexibility and a wider range of products, so you may have success here.
The key thing to consider here is that MT4 is just a platform and whilst it is one of the largest online trading platforms in the world, what makes it reliable is the brokers that the trades are being cleared through.
If you want to trade volatile markets on MT4, Pepperstone has consistantly won our award for “Best MetaQuotes Broker” as they offer a huge range of markets, great customer support from London and offices around the world, as well as personal account executives that can help you with any errors or issues.
I’m not just saying that because I’ve been to the tennis with them; just take a look at our Pepperstone customer reviews page. Plus if you want to know what is going on in the markets, you can hear what one of their Chief Market Strategists, Michael Brown, thinks in our weekly podcast.
Another excellent choice for volatile markets is IG. In many cases, according to their CEO when I interviewed her, they offer better liquidity then underlying exchanges in major markets.
IG does provide access to MT4, but to be honest their own platform, in my view anyway, offers better overall market access.
If you are a UK taxpayer, you may also wish to consider spread betting, with both Pepperstone and IG offer where your trades are structured as bets and therefore free from Capital Gains Tax.
If not, both of those brokers mentioned offer CFD trading, which is available to global clients. Other than those in the US, who can go long or short through margin trading on stocks of futures contracts on indices, commodities and forex.
Whether you are trading spreads or CFDs with IG there are a few key benefits of their service:
- IG has an order execution time of just 13ms and 98.99% fill rate
- IG Academy provides traders with specific volatility-focused trading guides
- IG allows trading on key indices and markets when major news breaks over weekends.
- IG maintains competitive pricing even during market turbulence.
In terms of trading specific volatility indices, the main index is the VIX which tracks the volatility (the level of investor greed and fear) within the constituents of the S&P 500 index. Once again, we have a guide dedicated to the best CFD brokers for trading volatility.
Richard is the founder of the Good Money Guide (formerly Good Broker Guide), one of the original investment comparison sites established in 2015. With a career spanning two decades as a broker, he brings extensive expertise and knowledge to the financial landscape.
Having worked as a broker at Investors Intelligence and a multi-asset derivatives broker at MF Global (Man Financial), Richard has acquired substantial experience in the industry. His career began as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson), following internships on the NYMEX oil trading floor in New York and London IPE in 2001 and 2000.
Richard’s contributions and expertise have been recognized by respected publications such as The Sunday Times, BusinessInsider, Yahoo Finance, BusinessNews.org.uk, Master Investor, Wealth Briefing, iNews, and The FT, among many others.
Under Richard’s leadership, the Good Money Guide has evolved into a valuable destination for comprehensive information and expert guidance, specialising in trading, investment, and currency exchange. His commitment to delivering high-quality insights has solidified the Good Money Guide’s standing as a well-respected resource for both customers and industry colleagues.
You can contact Richard at richard@goodmoneyguide.com
