Trading indices via CFDs has been gaining popularity for years, as traders and the general market have been focusing on sectors and overall market performance for some time. This is partly due to index and passive investing flows, and also due to the simplicity of betting on the market itself, instead of a particular company.
Our team has been reviewing hundreds of brokers for the last few years, and I have focused on index trading for this article. I looked at an extensive list of brokers, picking the best for traders that offer index trading, reasonable spreads and costs, user-friendly platforms, and helpful resources.
*AvaTrade doesn’t allow CFD trading in Spain; only Futures are available.
Our team of experts has identified each broker’s strengths and weaknesses using FXEmpire’s comprehensive methodology.
Now, let’s dive into the selected brokers.
IC Markets was founded in 2007 and is regulated by the FSA in the Seychelles. IC Markets offers over 2,200 instruments for trading. IC Markets offers 4 platforms, research platforms both in-house and third-party, and extremely low fees.
Key Indices Trading Features:
IC Markets offers 25 global indices, including spot indices and futures indices. This includes such indices that you would expect, such as the FTSE 100, S&P 500, and others like the VIX and ICE Dollar Index.
IC Markets index spreads are some of the best I have found in the industry. My live test showed the average spread for the Dow Jones 30 index at 1.4 pips, well below the 3.0 pip industry average.
IC Markets offers Metatrader 4 and 5 platforms, cTrader, and TradingView platforms. All of these platforms are well-known and tested by traders all over the world. There is a massive amount of indicators available, as well as a multitude of drawing tools for technical analysis. IC Markets also offers 20 exclusive trading tools not previously available on MetaTrader 4. These include Alarm Manager, Sentiment Trader, Market Manager, Correlation Trader, and more.
Trading.com is a New York-based broker that is licensed by several top-tier regulators around the world. This includes CySEC, FCA, ASIC, and CFTC/NFA. WebTrader and mobile app trading are available, as well as Metatrader 5. Trading.com offers over 1,400 assets, including 23 equity indices, and a total of 44, including thematic indices such as “Crypto 10” or “Electric Vehicles.”
Key Indices Trading Features:
Trading.com gives you access to 44 indices, as well as a total of 1,400 tradable assets. The indices include not only those you would expect, such as S&P 500, NASDAQ 100, or FTSE 100, but also theme-based indices like “LATAM Giants” and “Crypto 10.”
The premium web platform has TradingView charts integrated, allowing for very detailed technical analysis by traders. The mobile version is robust as well, and Metatrader 5 is also offered, a favorite platform of traders around the world.
I also found a wide selection of high-quality educational content, including articles and videos. These covered topics are suitable for traders of all experience levels. Customer support is offered 24/5 via live chat, email, or phone.
Capital.com has been around since 2016 and has a massive amount of assets for trading, with over 5,500 markets offered. They also offer not only 66 indices via CFD trading, but also “knock-out” options on indices. This allows exposure to both equity indices and thematic ones, such as “US FANG.”
Key Indices Trading Features:
Capital.com’s major index spreads are one of their strongest points, with the Dow Jones 30 offering a spread of 2.0, and the DAX in Germany being just 1.5 as well, driving down the costs for their traders.
The Web Trader platform is a strong point as well, with multiple functionalities and responsive charts. I found it very intuitive. Capital.com also offers MT$ and MT5, as well as the widely-loved TradingView platform to access the trading environment.
Capital.com also offers FIX API access, accommodating Direct Market Access trading. This allows lightning execution and raw spreads directly from the exchange order books.
FxPro is a huge global Forex and CFD broker regulated by the FCA in the United Kingdom, the SCB in the Bahamas, and the FSA in the Seychelles. FxPro has over 2,100 assets available for trading, spreading the global reach of its clients quite far. This allows professionals to take advantage of opportunities around the world. FxPro also offers multiple types of accounts, as well as multiple trading platforms.
Key Indices Trading Features:
FxPro offers three accounts for retail traders: the Standard, Raw+, and the Elite. The Raw+ and Elite accounts offer raw spreads, with a commission of $3.50 per lot, per side. Elite accounts allow traders to get rebates on commission up to $1.50 per lot, depending on volume.
FxPro offers a user-friendly WebTrader platform and mobile app that have plenty of features. FxPro also offers cTrader, MT5, MT4, and TradingView.
FxPro also offers Virtual Private Servers (VPS) to run automated strategies 24 hours a day without interruption. The cTrader copy trade feature allows professional investment managers to offer clients yet another option to allow clients to follow their investments.
IronFX, founded in 2010, is registered and regulated by the FSC (BVI). The broker offers 4 different trading accounts, with over 500 tradeable instruments. There are both commission-free and floating spread accounts. The account mixture also includes STP/ECN execution models.
Key Indices Trading Features:
IronFX offers 24 equity index CFD markets such as the US30CASH and Nikkei225 futures. There are plenty of other markets, such as commodities like oil and natural gas, as well as over 80 FX pairs. All are available on the live floating spread and fixed spread accounts, as well as the STP/ECN versions.
The STP/ECN account allows direct access to liquidity providers, which makes for faster executions in general and better pricing at times. The Dow Jones 30 Index CFD spread averages about 3.0 pips, which is in line with CFD markets overall.
AvaTrade has been around since 2006, and is a well-known and well-regulated broker, including in the EU, Australia, British Virgin Islands, Japan, South Africa, Abu Dhabi, Israel, and Colombia. AvaTrade offers zero-commission trading accounts, a massive amount of indices, including thematic ones. There is a massive range of educational materials fit for beginners as well.
Key Indices Trading Features:
AvaTrade offers a wide range of index CFD markets, not only the ones you expect, but also many thematic indices, such as “Airlines” or “China Internet.” This allows traders to get a wide exposure to not only markets like the S&P 500 or FTSE 100, but also to take advantage of hot sectors.
Beginners will love the large range of educational materials that AvaTrade offers, such as courses on Short Selling, Derivatives, Strategies, and more. The courses are often text-based, but the material is solid.
The live testing I did showed the spread for the Dow Jones 30 Index CFD was 4.0 pips, a bit higher than the industry average of 3.0 pips.
OANDA was founded in 1996 and has long been a leader in retail online trading of CFD markets. OANDA is regulated across the world, offering plenty of protection for traders. There are almost 20 equity indices, but this can vary depending on your country of residence. These all have tight spreads and zero commissions.
Key Indices Trading Features:
In my live test, the spread for the Dow Jones 30 Index CFD averaged 1.75 pips, much better than the industry average of 3.0 pips. Other indices also had tight spreads, such as the DAX 40 with 1.7 pips. This is better than the industry average of 2.0 pips.
OANDA is more than just competitive spreads. It also offers strong trading platforms, with the proprietary one offering user-friendly tools and options. However, the MetaTrader 4 platform is one that people will know and love, and of course, TradingView is very popular for its excellent range of tools and charting options.
OANDA also provides an order book on its platform, providing the trader with the depth of liquidity, and allows them to get a read on sentiment as far as clients are concerned. The platform also has a news aggregator that works well and is timely. The trader performance analytics were also excellent as well.
Plus500 was founded in 2008 and is listed on the London Stock Exchange. Since 2022, Plus500 has offered futures trading to Americans. Plus500 offers a large range of futures contracts, with no platform fees and small commissions.
Key Indices Trading Features:
When I tested Plus500, I found that there are a total of 11 index futures contracts, including E-Mini contracts and Micro E-mini contracts. While the main focus in this article is index trading, Plus500 offers futures contracts in energy markets, agricultural markets, metals, Forex, crypto, and interest rate markets.
There are eleven equity indices available with different contract sizes: micro, E-Mini, and Standard in the case of the Nikkei. Micro contracts were introduced several years ago to facilitate smaller accounts, and will have the smallest fees and margin requirements. Nine out of the eleven contracts are based on US indices, with the other two being the Micro Nikkei and Standard Nikkei in Japan.
Plus500 offers the Futures Trading Academy on its site, which has both video and article-based education. The range of topics covered was broad, including all of the key terms, tips, and some trading strategies that traders can explore. I found the educational area in-depth enough to add value for beginner traders, and felt it was a good resource.
The forex and CFD analysts and editors at FXEmpire bring together seasoned trading professionals and experienced financial journalists. Many of our experts have been featured in leading publications such as Investopedia and Forbes, and all of them combine strong industry credentials with hands-on trading experience.
Dan Blystone began his career in the trading industry in 1998 on the floor of the Chicago Mercantile Exchange. Later, Dan gained insight into the forex industry during his time as a Series 3 licensed futures and forex broker. He also traded at a couple of different prop trading firms in Chicago. Dan is well-equipped to recommend the best forex brokers due to his extensive experience and understanding of the brokerage industry.
Jitan Solanki is a professional trader, market analyst, and educator. He day trades major currency and index markets and focuses on swing trading US equities and commodities. A qualified Market Technician, Jitan also works with trader education and brokerage companies on various projects. These include market analysis, live trading events, and broker reviews. As an experienced trader and educator, Jitan brings all his qualities in action when reviewing and recommending brokers.
Having been a retail trader since 2013, Plamen has gained an in-depth understanding of the challenges that novice traders face today. His expertise is swing trading and day trading with a heavy emphasis on psychological and fundamental analysis. Plamen’s favourite trading instruments include FX majors and gold. He earned a Bachelor's degree in Economics and International Relations. Plamen's broad experience has equipped him with the expertise to recommend the best forex brokers.
In more than 15 years of trading in the financial markets, Vladimir dealt with a wide range of brokers and financial instruments. His career as a day-trader at a proprietary trading firm goes back to 2007. Later, Vladimir turned to longer time frames and became an independent trader and analyst managing his own portfolio. Using his experience, he helps traders find the best broker in his reviews.
Jitan Solanki is a professional trader, market analyst, and educator. He day trades major currency and index markets and focuses on swing trading US equities and commodities. A qualified Market Technician, Jitan also works with trader education and brokerage companies on various projects. These include market analysis, live trading events, and broker reviews. As an experienced trader and educator, Jitan brings all his qualities in action when reviewing and recommending brokers.
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