Home > Trading > Index Brokers

Indices brokers provide trading platforms 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.

Best Indices Brokers 2022

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.

CFDs and spread bets are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 65% and 82% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

City Index

City Index: Best for index trading signals and analysis

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.

Pros:

  • Smart index trading signals
  • Post-trade index analytics
  • Good education and analysis program

Cons:

  • No DMA index trading
  • Limited index options as CFDs & spread bets

74% of retail investor accounts lose money when trading CFDs with this provider

Interactive Brokers: Best for on-exchange index traders

With transparent, low commissions and financing rates equity indices can be traded in lots as small as 1X the index level. Unlike the related futures, Index CFDs do not expire, saving rollover-related costs and risks.

Pros:

  • Low cost index trading
  • On exchange index futures & options
  • Excellent trading platform & apps

Cons:

  • US-based
  • Desktop platform too complex for beginners

 

60% of retail investor accounts lose money when trading CFDs with this provider

CMC Markets

CMC Markets: Best for low-cost index trading

Trade on over 80 cash and forward global indices based on the FTSE 100 and more, with leverage, on an award-winning spread betting and CFD platform. Trade indices with tight spreads, lightning-fast execution and the highest-rated customer service in the industry.*

Pros:

  • Excellent client index sentiment indicators
  • Tight pricing
  • Very good trading platform

Cons:

  • No investing ETFs
  • No DMA index trading

76% of retail investor accounts lose money when trading CFDs with this provider

Pepperstone

Pepperstone: Best for MT4 & MT5 index trading

Razor sharp pricing, from multiple Tier 1 banks and Liquidity Providers, with competitive fixed spreads as low as 1 point on UK100, 0.9 on GER40, with no commissions. 99.95% fill rate*, fast execution and no dealing desk intervention. Quick and easy account opening. Apply for your trading account in few minutes.

Pros:

  • Good for automated index trading
  • Lots of indices on MT4/MT5
  • Tight index pricing

Cons:

  • No DMA index trading
  • No index options

74% of retail investor accounts lose money when trading CFDs with this provider

IG: Best for index liquidity and large traders

Trade over 80 indices with the world’s No.1 spread betting and CFD provider. Trade with deep liquidity on spreads from 1 point on the FTSE 100, 1.2 on the Germany 40 and 0.4 on the US 500. IG also offers indices trading on the weekend when the main markets are closed.

Pros:

  • Excellent index liquidity
  • Wide range of indices to trade
  • Good signals & analysis

Cons:

  • No index futures
  • Index options only as a CFD and spread bet

73% of retail investor accounts lose money when trading CFDs with this provider

Saxo Markets: Best for DMA indices traders

Trade 29 index-tracking CFDs with fast and reliable access to the markets from your phone, tablet, laptop or multi-screen desktop setup. The award-winning, multi-device SaxoTraderGO partners seamlessly with SaxoTraderPRO, giving a professional-grade platform for advanced traders.

Pros:

  • DMA index trading
  • Tight pricing
  • Excellent analysis and data

Cons:

  • No index spread betting

70% of retail investor accounts lose money when trading CFDs with this provider

Markets.com

Markets.com: Good index analysis tools

Trade indices as a CFD or spread bet on stock markets 24/5 with the most powerful tools, lower spreads and expert analysis. With Markets.com you can trade the Germany 30 with spreads from 0.8 points with competitive out-of-hours pricing on cash and futures indices markets.

Pros:

  • Good for US indices

Cons:

  • Limited range of indices

77% of retail investor accounts lose money when trading CFDs with this provider

Spreadex Financials

Spreadex: Best for customer service

Spreadex offers 24 hour indices trading via financial spread betting or Contracts For Difference on the world’s major stock indices – with spreads on the most popular markets from 1pt on UK 100, 1pt on Germany 40 & 1.7pts on Wall Street.

Pros:

  • Easy-to-use platform
  • Low minimum deposit

 

Cons:

  • Limited index options
  • No DMA index trading

69% of retail investor accounts lose money when trading CFDs with this provider

XTB

XTB: Good range of markets

XTB offers CFD indices trading on over 20 Indices from all over the World including the UK USA, Germany, China with competitive spreads and transparent rollovers visible directly on the chart and leverage up to 20:1.

Pros:

  • Intuitive index trading platforms
  • Tight pricing
  • Wide range of indices

Cons:

  • Not UK based

77% of retail investor accounts lose money when trading CFDs with this provider

eToro

eToro: Best for copy traders

With eToro you can trade index CFDs or buy index-tracking ETFs. The social trading platform is easy to use and offers traders and investors the opportunity to trade a wide range of major stock indices as well as see and copy other traders positions.

Pros:

  • Simple to use
  • Copy and social trading
  • Set your own index leverage

Cons:

  • USD only accounts
  • High FX conversion fees
  • Spreads can be wide

77% of retail investor accounts lose money when trading CFDs with this provider

Compare Index Trading Accounts

How to choose the best index broker:

The main things to consider when choosing an index broker are:

  1. Are they right for your level of experience?
  2. How many indices do they offer?
  3. What are the commissions and fees?
  4. How can you trade indices?
  5. What sort of added value does the broker offer?
  6. What trading platforms and mobile apps do they have?

In this guide to the best brokers for trading indices we will go through each point, highlight which broker is best for each point so you can make the best choice for the specific type of index trading you do.

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.

What are indices?

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.

Best index brokers for beginners

City Index is a good broker for beginners as they have a simple trading platform with 40 major indices to trade as CFDs and spread bets. They also provide a lot of educational material, and have trading signal on indices which show potentially good times to buy and sell through two signal providers.

Best index broker for experienced traders

Saxo Markets is the best broker for sophisticated and high-net-worth index traders as their platform is geared towards professional traders placing large orders. They also have some complex order functionality and direct markets access to global exchanges through futures and options.

What index broker offers the most indices?

IG and CMC Markets both offer over 80 indices for trading as a spread bet or CFD.

Which is the cheapest broker for trading indices?

CMC Markets is one of the cheapest brokers for indices, with some of the tightest spreads for CFDs and spread betting on the major exchanges.

Which index broker provides the most ways to trade indices?

Saxo Markets provides the most ways to trade indices as they offer index CFDs as well as on exchange traded futures, options and ETFs. The only type of index trading Saxo Markets does not offer is spread betting, where profits are tax free in the UK. If you would like to trade indices as a spread bet IG also offer spread betting, CFDs and physical ETFs, although no DMA futures and options.

Index brokers provide access to stock market indices markets via:

  • Index Futures– these index brokers provide professional traders with direct market access to indices traded on exchange.
  • Index Options– 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 CFDs – 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 Betting – 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 ETFs – 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. 

Is index trading regulated?

Yes, as a financial instrument in the UK index trading is regulated by the FCA.

Can you trade stock market volatility?

Yes, you can compare the best brokers for trading volatility here.

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.

Scroll to Top