15 Best Forex Brokers and Platforms For Trading Indices – ( Reviewed ) 2020

Trading Indices

 

According to research in South Africa, trading indices is a balanced way of trading on the world’s top financial markets without having to analyse the performance of an individual company stock and trading online is an excellent way to speculate on the world’s top financial markets. Indices are financial derivatives that are calculated as a weighted average of share prices of top performing companies listed on the exchange.

 

Current Leading Indices Include –

 

  • S&P 500
  • DJIA
  • NASDAQ 100
  • FTSE 100
  • DJ EURO STOXX 50

 

A review of XM
 

 

XM Group

 

The XM Group provides the entire suite of MetaTrader platforms plus over 1300 tradeable instruments.

 

  • The XM Group is regulated in two tier-1 jurisdictions and one tier-2 jurisdiction, making it a safe broker (average-risk) for forex and CFDs trading.
  • Pricing at XM Group varies by account type.

 

XM Group is considered as an average-risk, and is not publicly-traded and does not operate a bank.

 

Offering of Investments

 

The XM Group offers traders CFDs on 1200 stocks, 30 indices, eight commodities, four metals, five energies, and 57 forex pairs.

 

Commissions & Fees

 

The commissions and fees at XM Group is depended on the type of account used.

 

Spreads: In the XM Zero account, average spreads on the EUR/USD stand at 0.1 pips (according to XM Group website data, and not including commission), compared to the commission-free Standard and Micro account, which had average spreads of 1.7 pips for the same pairs.

 

Commissions: Even after including the USD $3.5 per side commission ($7 per Round Turn), and average spreads of 0.1 pips on the EUR/USD, the all-in cost to trade is 0.8 pips (0.1 spread + 0.7 RT commission), making the XM Zero account the firm’s most competitively priced offering.

 

Platforms & Tools

 

XM Group is a MetaTrader-only broker offering the standard experience which includes both MT4 and MT5.

 

XM Group’s research offering consists of:

 

  • Content generated by an in-house team of analysts including:
  • Daily market recaps and
  • Technical and fundamental analysis articles and videos.
  • An economic calendar powered by Investing.com

 

 

Trading signals: The XM Group offers its trading signals hub to live account holders but, trading signals that can be automated are currently limited to the Signals Market available within the MetaTrader platform.

 

Technical analysis:  The XM Group offers Tradepedia, which provides educational Forex and CFD content.

 

Video news analysis:  The XM Group creates daily forex news videos with market analysis explained in a TV interview-style format.

 

Customer Service

 

  • Average Connection Time:<1 minute
  • Average Net Promoter Score:66 / 10
  • Average Professionalism Score:2 / 10
  • Overall Score:7 / 10
  • Ranking:24th out of 43 brokers

 

A review about Instaforex
 

InstaForex

 

InstaForex is a MetaTrader only broker.

 

Pros and Cons

 

Pros Cons
InstaForex TV videos are cleanly recorded, consistently delivered, and the broker’s in-house market commentary is relevant and timely Default MetaTrader platform offered with no premium features
While InstaForex is authorised by the FCA, it is not regulated by the FCA

 

Is Instaforex Safe?

 

Instaforex is considered high-risk and is not publicly traded and does not operate a bank. Instaforex is authorised by zero tier-1 regulators (high trust), one tier-2 regulator (average trust), and one tier-3 regulator (low trust).

 

Commissions & Fees

 

InstaForex offers users two main account types:

 

  • Standard (ECN / non-dealing desk)
  • Eurica (dealing desk).

 

Both above mentioned accounts have a 1 USD minimum deposit.

 

Research & Education

 

InstaForex provides a range of offerings which includes InstaForex’s daily market analysis blogs and technical analysis posts via MT5. Interviews, weekly reviews, and educational videos are also available.

Education primarily includes videos, a glossary, and a variety of text articles based on forex trading.

 

Platforms & Tools

 

InstaForex is a MetaTrader4-only broker – offering the MT4 platform suite from MetaQuotes Software Corporation, developer of the widely popular MT4 and MT5 platforms for desktop, mobile, and web.

 

  • InstaForex features only the default functionality
  • No other third-party platforms or plugins provided to traders

 

iOS and Android versions of the MetaTrader 4 mobile app come standard and are both available for download from the Apple iTunes store and Android Playstore, respectively.

 

A review on Plus500
 

Plus500

 

Plus500 is a trusted global brand with a user-friendly platform on offer.

 

Is Plus500 Safe?

 

Plus500 is considered low-risk, and is publicly traded but does not operate a bank.

 

  • Regulated
  • Licensed
  • Considered as a safe broker to trade forex and CFDs with.

 

Plus500 offers 2033 CFDs, together with on 50 currency pairs, which is a touch higher than most forex brokers.

 

Commissions & Fees

 

Plus500 has a minimum deposit of €100 and does not offer any discounts to active traders or VIP clients.

 

Platforms & Tools

 

The Plus500 platform is available for desktop, web, and mobile; but, MetaTrader is not offered. Plus500’s flagship platform includes:

 

  • The Plus500 WebTrader (browser-based) platform is perfect for beginners and both the desktop and web-based versions focus on simplicity.
  • The Plus500 WebTrader platform offers robust charting with over 100 optional technical indicators plus the ability to save chart templates.

 

The Plus500 mobile app is similar to the web and desktop versions, consistent in both look and feel.

 

A review about Pepperstone
 

Pepperstone

 

Pepperstone was founded in 2010 in Melbourne, and processes, on average, $12.55 billion of trades each day (October 2019) and is best known for its extensive selection of third-party trading platforms.

Pepperstone provides forex and CFD traders competitive pricing, outstanding customer service, and one of the largest selections of third-party platforms available.  Pepperstone also offers a small set of tradeable products but.

 

Is Pepperstone Safe?

 

Pepperstone is measured as average-risk and is not publicly traded and does not operate a bank. Pepperstone is authorised by:

 

  • Two tier-1 regulators
  • Zero tier-2 regulators
  • Zero tier-3 regulators

 

Pepperstone is authorised by the following tier-1 regulators: Australian Securities & Investment Commission (ASIC) and the Financial Conduct Authority (FCA).

 

Commissions & Fees

 

Pepperstone is an agency-execution broker and offers a decent range of options on pricing plans, with its commission-based Razor Account being the top choice.

 

Account types:

 

Pepperstone offers two pricing models which are dependent on the account type the user wishes to open, ranging from:

 

The Standard Account: Which incorporates commissions into the prevailing spreads. Fees may also slightly vary, depending on the platform the user choose to trade.  The standard account is commission-free but has higher spreads nd is not as competitive as the Razor Account.

 

Razor Account: The Razor Account can be used with either the MetaTrader (MT4) or cTrader platforms and follows a commission-based pricing structure in addition to prevailing spreads.

 

Active traders: Pepperstone’s active trader program offers discounts on the appropriate commission rates which helps to boost its ranking in the active trader category.

 

  • A minimum amount of 200 lots is required to qualify for the lowest tier
  • A rebate of $1.00 per standard lot
  • Applies only to Razor accounts.

 

Order-Routing: Pepperstone uses its EDGE infrastructure to help bridge the MetaTrader platform with liquidity providers and incorporates its Pepperstone Price Improvement (PPI) technology to help improve execution rates.

 

Platforms & Tools

 

Pepperstone offers an excellent third-party platform.

 

  • Platforms: Pepperstone offers the full MetaTrader and cTrader suites which includes a MT4 (desktop and web), MT4 Multi-terminal, MT5, cTrader (desktop and web), and cAlgo. Traders can use either account type, Razor, or Standard, with any platform.

 

Copy trading:  Pepperstone offers

 

  • The MirrorTrader and RoboX platform from Tradency
  • The ZuluTrade platform
  • MyFxbook for MT4

 

cTrader vs MT4: Both cTrader and MT4 support algorithmic trading, cTrader has an advantage with its web-based platform.

 

Broad range of third-party social copy-trading platforms and research tools:

 

  • Third-party tools:Pepperstone offers traders access to AutoChartist, which is a well-known, popular software provider of automated pattern recognition and trading signals.
  • Smart Trader Tools are also offered by Pepperstone which included an MT4 add-on with tools such as sentiment indicators.
  • Market analysis: Pepperstone offers content from third-party analysts. Trading Economics, a provider of market data, powers the firm’s economic calendar.
  • In-house commentary:  Pepperstone’s in-house research offers content such as “Daily Fix” and a “Chart of the Day” series.

 

Mobile Trading

 

At Pepperstone, Mobile trading is conduct with either the MetaTrader 4 (MT4) or MetaTrader 5 (MT5) mobile app, or the cTrader app, all available directly from the developer.

 

Customer Service

 

  • Average Connection Time:<1 minute
  • Average Net Promoter Score:9 / 10
  • Average Professionalism Score:5 / 10
  • Overall Score:42 / 10
  • Ranking:4th of 22 brokers

 

A review on OctaFX
 

OctaFX

 

OctaFX is one of the very few forex brokers which offers Nigerian traders Metatrader and cTrader.

OctaFX offer Market execution with all their platforms and allows scalping & hedging, Expert Advisors and custom indicators.

VPS service is also available with their MT4 platform.

 

OctaFX Key Features:

 

  • Supports: MT4, MT5 & cTrader for desktop, web & mobile
  • Minimum deposit: $100 (₦36,000)
  • Leverage: 1:500 (variable based on account type)
  • Trading Instruments: 28 currency pairs, 3 Cryptocurrencies, CFDs on Indices, metals

 

A review about Forex.com
 

Forex.com

 

Forex.com is an online broker founded in 1999 and offers Forex trading, Indices trading, Commodities trading, Equities trading, and Cryptocurrencies trading.

 

Benefits

 

  • Regulated by: Financial Conduct Authority (FCA), Cayman Islands Monetary Authority (CIMA), Investment Industry Regulatory Organization of Canada (IIROC), National Futures Association (NFA)
  • Headquarters:United States
  • Foundation year:1999
  • Min Deposit:500
  • Used by over 40,000 traders

 

A review of AvaTrade
 

AvaTrade

 

AvaTrade is an online broker founded in 2006 offering Forex trading, CFDs trading, Spread Betting trading, and Social Trading.

 

Benefits

 

  • Regulated by: Central Bank of Ireland, Australian Securities and Investment Commission (ASIC), Financial Services Authority (FSA), Financial Stability Board (FSB), British Virgin Islands Financial Services Commission (BVI)
  • Headquarters:The British Virgin Islands
  • Foundation year:2006
  • Min Deposit:250
  • Used: by over 200,000 traders

 

A review about easyMarkets
 

EasyMarkets

 

EasyMarkets Is the Best Forex Broker for Beginners and is regulated by CSEC (Cyprus) and ASIC (Australia) and offers beginner forex traders:

 

  • Enhanced risk management tools as standard
  • Fixed spreads on all forex pairings
  • An easy to use forex trading platform

 

Risk Management Tools Offered by EasyMarkets

 

EasyMarkets offers traders three key risk management tools which are ideal to those new to currency trading:

 

Deal Cancellation

 

‘dealCancellation’, when activated allows a trader to cancel a trade within 60 minutes when the markets move in the wrong direction, which is perfect for beginners or those who are concerned about the high risk of leveraged products.

Note: Only certain currency pairings offer dealCancellation and the feature can only be activated at certain times and there is a small fee when this is activated.

 

Guaranteed Stop Loss Orders

 

Most forex brokers offer stop-loss orders which will exit a trader when a set profit or loss is made on any trade, but the issue exists that when a market has low liquidity or experience high turbulence the CFD provider won’t be able to exist the trader at the set price, this is known as slippage and can lead to unexpected losses exceeding traders’ expectations.

EasyMarkets make all stop-loss ordered guaranteed stops meaning the maximum losses set are guaranteed to be locked in or the FX broker will cover the difference.

 

Negative Balance Protection

 

Similar to stop losses, negative balance protection helps stop a trader’s losses before it exceeds their expectations, but in this case, rather than protecting losses exceeding the amount set on a single trade, this stops overall losses from exceeding deposits. EasyMarkets guarantees traders that they will not lose more than their balance and if this does occur, they will cover the difference.

 

Perfect Platform for Beginners

 

EasyMarkets has a trading platform which is perfect for Beginners and offer the choice of MT4 or their own online trading platform. The EasyMarkets features such as dealCancellation are only available through their online forex platform which also includes a mobile trading app for iPhone, Android and iPad devices.

 

A review about eToro
 

eToro

 

eToro is an online broker which was founded in 2006 and offers CFDs and Social Trading, with a head office based in Cyprus, UK.  eToro offers traders two ways to trade: CFDs, Social Trading and eToro traders will need to make a minimum deposit of $200 and the platform can accommodate various levels of traders from beginner to expert.

eToro is supervised by the Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC) regulatory bodies and has been in operation for over 14 years.

Traders can trade in a wide variety of over 100 instruments and over 50 currency pairs on eToro’s user-friendly custom trading platform which is available as a browser-based web application. eToro also offers traders mobile apps for Android and iOS, making it easier to keep an eye on and execute trades.

eToro trading accounts on offer include:  Demo, Micro, Mini, Standard, STP and Islamic.  eToro supports a wide range of languages including English, German, Spanish, French, and Italian.

 

A review of XTB
 

XTB

 

XTB is an online broker which was founded in 2002 and offers Forex, CFDs, and Cryptocurrency trading.  XTB is a global broker with their head office situated in Poland.

XTB have won numerous industry awards over the 18 years that they have been operating as a financial broker and traders can choose to trade in a wide variety of instruments over 1,500 instruments and over 50 currency pairs in fact.  XTB offer traders the popular MT4 forex trading platform alongside the award-winning Xstation5.

XTB also offers traders mobile apps for Android and iOS and customer support in a wide range of languages including English, Spanish, Czech, Chinese, German, French, Italian, Polish, Portuguese, Romanian, Slovenian, and Turkish.

 

A review about IQ Option
 

IQ Option

 

Founded in:                        2013

Headquarters:                   Cyprus

Regulation:                         CySEC

Platforms:                           In-House Platform

Leverage:                            1:30 and/or 1:1000

Minimum Deposit:          USD$10

 

IQ Option is a broker developed under the IQ Option Europe company which was founded in 2013. IQ Option contains a CySEC license Cyprus Securities and Exchange Commission from Cyprus, with permission to provide its financial services within the European Economic Area zone, with several licenses from other EU local jurisdictions. IQ Option offers its clients services in binary options, stocks and shares, currencies, and ETF trading.

The IQ Options trading platform and website are available to traders in thirteen different languages and allows traders to choose the currency to trade with. The selections of currencies are: GBP, RUB, EUR, IDR, USD, MUR, and Yuan.

 

Pros and Cons

 

Pros Cons
Regulated by the Cyprus Securities and Exchange Commission (CySEC) Does not provide MT4 and MT5 trading platforms
Easy and convenient method of opening an account Not available for traders in the US, Canada, Australia, Japan, and other countries
Wide range of trading instruments
No deposit and withdrawal fees

 

A review about CityIndex
 

City Index

 

City Index is an online broker which was founded in 1983 and offers Forex, CFDs and Spread Betting trading and traders can trade in over 12,500 instruments and over 100 currency pairs on the popular MT4 forex trading platform.  City Index also offer mobile apps for Android and iOS.

City Index is a global broker and has a head office situated in the UK and new traders will need to make a minimum deposit of $25 to make a start.

 

Benefits

 

  • Allows hedging
  • Offers STP
  • Low min deposit
  • Guaranteed stop loss
  • Offers Negative Balance Protection

 

City Index Trading Accounts on Offer include:

 

  • Demo account
  • Micro account
  • Mini account
  • Standard account
  • STP account
  • Managed account

 

City Index support a wide range of languages including English, Spanish, German, Arabic, Polish, and Chinese and has a triple AAA grade support rating.

 

A review of IG Group
 

IG

 

IG offers traders a wide-ranging list of tradeable products, outstanding trading and research tools, industry-leading education, and competitive rates.

 

Is IG Safe?

 

IG is considered low-risk, and is a publicly traded company which operates a regulated bank, and is authorised by six tier-1 regulators (high trust), three tier-2 regulators (average trust), and one tier-3 regulator (low trust). IG is authorised by the following tier-1 regulators.

 

Commissions & Fees

 

IG provides traders competitive pricing across the board, regardless of the product chosen to trade.

 

  • Average spreads:For small and standard size contracts, minimum spreads on the EUR/USD were 0.6 pips, average spreads were 0.73 pips, for the end of November, 2019.
  • Active traders:For volume traders who qualify as professionals under EU rules, IG offers even more competitive rates on its commission-based offering, Forex Direct.
  • Execution method:Forex Direct streams from interbank liquidity providers where IG acts as an agency broker – not adding on any additional spread. IG adds a commission to each trade made.

 

Platforms & Tools

 

IG provides an outstanding offer of trading platforms and tools.

 

Flagship platform: IG’s main trading platform is its proprietary web-based platform with usability at the centre of the experience.

 

Charting: The default charts within the platform offers traders advanced functionality including the ability to add an alert on a specific indicator, with a total of 28 studies available to select.

 

Additional platforms:  IG offers the MetaTrader4 (MT4) platform and a L2 Dealer platform where Forex Direct and Direct Market Access (DMA) are available for share trading.

 

ProRealTime charts:   Via the ProRealTime premium charting more advanced charting with nearly 100 indicators is provided.

 

Customer Service

 

  • Average Connection Time:<1 minute
  • Average Net Promoter Score:7 / 10
  • Average Professionalism Score:2 / 10
  • Overall Score:17 / 10
  • Ranking:8th in 23 brokers

 

IG provides traders a large selection of quality market research from both in-house and third-party providers plus, a mobile app that comes packed with plenty of features.

 

Mobile app features include:

 

  • Tools:Alerts, sentiment readings, an economic calendar, watch lists, detailed market information and a well-designed layout.
  • Charting:The charting function is loaded with 28 technical indicators and drawing tools.
  • Research:News content and signals from AutoChartist.
  • MetaTrader:MetaTrader is also available for traders who prefer the MT4 mobile app.

 

IG offers traders powerful research tools, competitive spreads and over 17,000 tradeable assets.

 

A review of ThinkMarkets
 

ThinkMarkets

 

ThinkMarkets is an online broker which was founded in 2010 and offers both Forex and CFDs trading with over 100 instruments and over 40 currency pairs which can be traded on the popular MT4 forex trading platform.  ThinkMarkets also offer mobile apps for Android and iOS.

ThinkMarkets is a global broker with a head office based in Australia and a minimum deposit of $250 will be needed to make a start.   ThinkMarkets doesn’t charge neither withdrawal or inactivity fees.

 

Benefits

 

  • Allows scalping
  • Allows hedging
  • Offers STP
  • Low min deposit

 

ThinkMarkets Trading Accounts Include:

 

  • Demo account
  • Mini account
  • Standard account
  • ECN account
  • STP account
  • Islamic account

 

ThinkMarkets support a wide range of languages including English, Chinese, and Japanese and has a double AA grade support rating.

 

A review about FXOpen
 

FxOpen

 

FxOpen group accepts clients from all over the world, excluding USA and some countries where restrictions apply and distinctive features on offer includes:

 

  • FxOpen AU and SKN has own pool of PAMM accounts.
  • Upon request, a prepaid card may be issued for you.
  • FxOpen is compatible with ZuluTrade and MyFxBook.
  • Tight spreads on major currency pairs.
  • Cryptocurrency funding accepted.

 

Trading instruments on offer include:

 

50+ Currency Pairs Based on major and minor world currencies.
43 Crypto Pairs Based on Bitcoin, Litecoin, Ethereum, Dash, Emercoin, Namecoin, Peercoin, Ripple, Monero, EOS, IOTA, NEO, OMNI.
13 Indices CFDs Based on baskets of different blue-chip stocks.
2 Metal Spot CFDs Based on Gold and Silver.
3 Energy Spot CFDs Based on Crude Oil (WTI, Brent) and Natural Gas.

 

In Conclusion

Stock market indices are a statistical representation of a portion of the stock market and they may be either price or market-weighted and often act as standards of the performance of the market. A stock market index may be traded through CFD trading which may enlarge returns, but may also amplify the risks, according to research in South Africa.

 

Frequently Asked Questions

 

What are the 5 most traded indices?

Standard and Poor’s 500, Dow Jones Industrial Average & Nasdaq composite, FTSE 100 & DAX 30

Which indices are most volatile?

Nasdaq 100.

Who are the best forex brokers for trading indices?

Here is a list of the 15 Best Forex Brokers and Platforms for trading indices

How do you trade indices?

The most popular way is via CFDs (Contracts for Difference).

What is the largest stock index?

S&P 500

 

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