Top 10 Best Online Forex Brokers for Indices Trading in 2018

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CFDs in indices are very popular among traders. There is a wide range of indices from the world over for traders to choose from. They include the Australian S&P 200, UK’s FTSE 100, US E-mini S&P 500, and US DJIA. Stock indices provide a good indication of the performance of markets. 

A change in a constituent stock’s performance is reflected by a change in the value of the specific index. Indices provide a wider indication of a set of stocks instead of individual ones. Having said that here is a list of best forex brokers for indices trading in 2018:

Trusted Forex Brokers That Offer indices Trading

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#1: XM.com

Founded: 2009Number of Clients: 1,000,000Trust Score: 99Broker Type: Market MakerRegulation: FCA UK, CySEC, ASIC, IFSCSpread for indices: starting from 0.6 pointsMinimum Deposit: $5Platforms offered: WebTrader, MT4, Mobile AppsAccount Types: Micro, Standard, XM ZeroSpread Type: VariableFunding Methods: Credit/Debit Cards (Visa, Master, Maestro), Neteller, WebMoney, Skrill, FasaPay, Perfect Money, Bank Transfer, Bank Wire TransferCustomer Support: Phone, Email

#2: ThinkMarkets

Founded: 2010Number of Clients: 550,000Trust Score: 78Broker Type: ECNRegulation: ASIC, FCA UKSpread for indices: Starting from 0.1 pointsMinimum Deposit: $250Platforms offered: Trade Interceptor, MetaTrader 4, Mobile AppsAccount Types: Standard, Pro, Islamic AccountsSpread Type: VariableFunding Methods: Bank Wire Transfer, Credit/Debit Cards (Visa and Master), Neteller, Skrill, BitPayCustomer Support: Live Chat, Email, Phone

#3: eToro

Founded: 2006Trust Score: 82Number of Clients: 6,000,000Broker Type: Market MakerRegulation: CySEC, FCA UKSpread for indices: 100 pointsMinimum Deposit: $1000Platforms offered: WebTrader, Mobile AppsAccount Types: StandardSpread Type: FixedFunding Methods: Bank Transfer, Credit Cards, PayPalCustomer Support: Live Chat, Phone, Email

#4: Plus500

Founded: 2008Number of Clients: 155,000Trust Score: 79Broker Type: Market MakerRegulation: CySEC, ASIC, FCA UKSpread for indices: 0.02 percentMinimum Deposit: $100Platforms offered: WebTrader, Mobile AppsAccount Types: Micro, StandardSpread Type: VariableFunding Methods: Debit/Credit cards (Visa and Master), PayPal, Skrill, Bank transferCustomer Support: Live Chat, Email

#5: AvaTrade

Founded: 2006Number of Clients: 200,000Trust Score: 81Broker Type: Market MakerRegulation: Central Bank of Ireland; Financial Futures Association, Japan; FSB, South Africa; ASIC, Australia; and ISA, IsraelSpread for indices: 1.0 pointMinimum Deposit: $250Platforms offered: MetaTrader 4, WebTrader, Mobile AppsAccount Types: Micro, Standard, VIPSpread Type: Fixed and VariableFunding Methods: – Bank Wire, PayPal, WebMoney, Skrill, Credit Card, Neteller, Prepaid Master Card, etc.Customer Support: Live Chat, Phone, Email

#6: Pepperstone

Founded: 2010Trust Score: 82Broker Type: No Dealing DeskRegulation: ASIC, FCA UKSpread for indices: Starting from 0.3 pointsMinimum Deposit: $200Platforms offered: MT4, MT5, WebTrader, cTraderAccount Types: Standard, Razor, Swap Free, Active TradersSpread Type: Fixed and VariableFunding Methods: Credit/Debit Cards (Visa, Master), PayPal, POLI, China Union Pay, BPay, Skrill, Neteller, Qiwi Wallet, FasaPay, B2BCustomer Support: Live Chat, Phone, Email

#7: InstaForex

Founded: 2007Number of Clients: more than 7,000,000Trust Score: 80Broker Type: No Dealing DeskRegulation: CySEC, British Virgin IslandsSpread for indices: No SpreadMinimum Deposit: $1Platforms offered: MetaTrader 4 and 5, IFX Options Terminal, Multiterminal, Mobile AppsAccount Types: Mini, VIP, Swap Free, Institutional, and Managed AccountsSpread Type: FixedFunding Methods: RBKMoney, Qiwi, Skrill, Neteller, Yandex.Money, Visa/Master cards, Z-Payment, bank transfers, cash in broker’s officesCustomer Support: Phone, Email, Chat

#8: FXOpen UK

Founded: 2003, brokerage services started in 2005Trust Score: 76Broker Type: ECN/STPRegulation: FCA, UK, ASICMinimum Deposit: $300Platforms offered: MT4 Desktop, WebTrader, MT4 MobileAccount Types: ECN, STP, CryptoSpread Type: VariableFunding Methods: Bank Wire Transfer, Credit/Debit Cards (Visa, Master), China Union Pay, WebMoney, Neteller, Skrill, PayzaCustomer Support: Live chat, Email, Phone

#9: OctaFX

Founded: 2011Broker Type: ECNRegulation: FCA UK, FSASpread for indices: Starting from 0.9 pointsMinimum Deposit: $50Platforms offered: MT4, MT5, cTraderAccount Types: Micro, Pro, ECNSpread Type: VariableFunding Methods: Bank Transfer, Neteller, SkrillCustomer Support: Live Chat, Email, Phone

#10: Tickmill

Founded: 2015Trust Score: 72Broker Type: Market Maker/ECNRegulation: FCA UKSpread for indices: 0.01 pointsMinimum Deposit: $25Platforms offered: MT4, MT5, Mobile AppsAccount Types: Classic, PRO, VIPSpread Type: VariableFunding Methods: Barclays, Visa, and Master Debit/Credit Cards; PayPal; Skrill; Neteller; FasapayCustomer Support: Phone, Live Chat, E-mail

A country’s stock market index provides a measurement of the performance of an established stock market segment. It is often considered as the benchmark for gauging the performance of other financial markets. Investors use it as a gauge and build their portfolios.

For example, the UK’s FTSE 100 index consists of the 100 biggest firms on the London Stock Exchange. It provides an indication of the performance of the UK markets. Similarly, the DAX30 index which constitutes top 30 companies that have been listed on the Frankfurt Exchange provides indications about the performance of Germany’s markets.

The combined prices or capitalization of the constituent stocks determine the value of an index. It could be a price-weighted or market weighted average.

Most Commonly Traded Stock Indices

Dow Jones Industrial Average

Referred to commonly as “the Dow”, it consists of the stocks of 30 top companies, in terms of influence and size, in the US. It is price weighted and represents approximately 25 percent of the stock market’s value.

Standard and Poor’s 500

Five hundred of the most-traded US stocks are part of the S&P 500 index. It represents approximately 80 percent of the stock market. S&P 500 is a market-weighted index.

Wilshire 5000

This index is constituted by including the stocks of almost all of the publicly-traded companies with headquarters in the US.

Nasdaq Composite Index

This specialized, market-weighted index comprises all the technology stocks in the exchange.

Advantages/Disadvantages of Trading Indices CFDs

The first and foremost thing is that it allows margin trading and traders can benefit by using leverage. This enables traders to purchase more contracts with smaller amounts of money. Traders can make profit irrespective of the direction of the market. Though leverage is a good thing, it should be used with extreme caution.