Hundreds and Hundreds of forex brokers are available right now, but which ones are the best forex brokers for indices? Looking for the best? Well, the choice of a forex broker has been a question for many traders. Beginners usually get around this question a lot, and even intermediate forex traders also look for a change sometimes due to spreads, swap fees, or other factors.
As a forex trader myself, index trading can be really fruitful for those who are well-versed in trading indices, one of the main reasons why traders get along with trading indices or commodities like XAUUSD is due to its volatility and high volume. For many forex traders, the trading strategies made by them might be best suitable to invest in indices. Almost all the brokers in the industry offer indices for trading, but which one is best for you? Before we hop into the list of best forex brokers for indices, below mentioned are some of the things you must choose before getting along with any forex broker.
How to choose a forex broker for trading indices?
If you look after any of the forex brokers in the market, you might encounter a list of pros and cons that make one better than one other, so let’s take a look at some of the factors you might want to look into.
There are numerous forex brokers who are regulated by different financial authorities. Basically, the forex broker can be categorized into regulated and unregulated brokers. Here are some of the differentiating factors between regulated and unregulated ones.
Why do trading Indices involve high risk?
Indices are a basket of stocks that represent a particular market or sector. When you trade an index, you are effectively buying or selling all the stocks in that basket. This means that your risk is higher than if you were just trading one stock because you are now exposed to the risk of the entire market or sector. If we look into this aspect as a beginner, indices are highly volatile, i.e, the high trading volume. In addition to that, in simple words, the point/pip/value works a bit differently for indices as compared to forex.
Best Forex Brokers for Indices
Here is the list of best brokers for trading indices that I find the right choice as brokers for index trading:
Moneta Markets
Moneta Markets has been a trusted choice among forex traders, well, one of the main reasons why traders choose Moneta markets for trading indices is due to low spread commissions and an appreciable amount of indices to trade forex. Moneta Markets can be counted among some of the best indices brokers in the forex ecosystem.
As a beginner-level forex trader, getting confused across forex brokers is quite obvious and you choose whichever online forex broker you come across or have referred from your known ones. If being practical, Moneta Markets offers to trade on over 23 indices with really competitive spreads and a good amount of leverage. Moneta Markets offer 2 different platforms for trading forex and index, the MT4 and Pro Trader.
| ASX S&P 200 | DAX40 (Cash) | Dow Jones 30 (Cash) | Dow Jones 30 (Futures) | ES35 | Euro Stoxx 50 Index | France 40 |
| BRAZIL 60 | DAX40 (Futures) | FTSE 100 | Hang Seng Index | India 50 | NAS 100 Index (Cash) | NAS 100 Index (Future) |
| CHINA 50 | Nikkei 225 | US SMALL CAP 2000 (Cash) | US SMALL CAP 2000 (Future) | Volatility Index | South Africa 40 |
In addition to that, they also keep you updated with economic news, free channels/trading signals, and much more. On the brighter side, they offer a 500:1 leverage as the highest, and 333:1 for most indices. For beginners, you can start with a $50 minimum deposit, but since you are trading indices I would recommend getting with a bare minimum of $350 to $500.
They also offer a rescue bonus, which is quite appreciable if we look into other brokers for forex trading or indices trading, a 25% rescue bonus is offered by Moneta Markets so that you don’t run out of fuel on your bad trading days.
OctaFX
If you are a non-USA resident, OctaFX can be counted among some of the best brokers that offer excellent services in online trading for forex. They are functional on trading platforms like MT4 & MT5, whereas also provide their own trading platform where you can execute trades accordingly. OctaFX has been awarded multiple awards and has gained quite a reputable name in the market.
| NASDAQ | US30 | London Stocks | Nikkei |
| ASX | Euronext | IBEX35 | DAX |
The leverage offered by OctaFX for indices is 50:1, which is pretty great in terms of forex trading. Well, OctaFX also offers trading news, free analysis, and much more which makes OctaFX a popular choice among people. As an overall overview, OctaFX can be an excellent choice for indices trading as you can have two platforms for your trading account MT4 and MT5. The low spreads combined with No swap and commission charges make OctaFX an excellent choice for CFD trading. If we look into the leverage for forex trading, you can check the image below.
IC Markets
IC Markets offers over 20 different indices to trade, including the Australian S&P 200 Index, UK FTSE 100 Index, and mini indices like the US E-mini S&P 500 and US DJIA Index. Spreads start as low as 0.2 pips on the US500 index, and both spot and futures indices are offered. Leverage is available up to 20:1 for ESMA and ASIC traders, while those trading with the Raw Trading Ltd. entity of IC Markets can access leverage of up to 200:1 on indices.
XM
XM offer over 13 indices, with both spot and futures markets. The broker provides trading with tight spreads starting from 0.4 pips on the spot market, and 0.8 pips on the futures market. Leverage of up to 20:1 is available for traders under EU and ASIC regulation, or as much as 100:1 for those trading under IFSC regulation. Well, if we consider the leverage and the regulations XM can be an excellent choice to move on with.
AVA Trade
AvaTrade has been a popular choice among forex traders and is a broker that is well-respected and well-regulated. They offer trading on more than 30 indices from the US, Europe, Asia, and more. They also have synthetic indices which include the cannabis index, Dollar Index, FAANG, and Gaming esports indices. Many of these can be traded on their MT5 platform.
AvaTrade offers competitive spreads, with a starting rate of 0.25% on the US500. Leverage is available on indices for EU, ASIC, and FSCA traders, as well as for Abu Dhabi traders, with a maximum ratio of 20:1.
Spread betting is also available to UK and Ireland traders, with a wide range of forex and CFD trading and indices and over 200 assets to choose from, well, having more than 200 assets can be an excellent thing as well as a con for new traders, but on the brighter side have more and more opportunities to move on with.
Why do a lot of traders lose money trading indices?
There are a number of reasons why traders may lose money when trading indices.
- Firstly, the markets are extremely complex and dynamic, making it difficult to predict which way they will move.
- Secondly, there is a lot of competition among traders, meaning that it can be difficult to make profits.
- Finally, indices can be very volatile, meaning that prices can move quickly and unpredictably. This can make it hard to protect your capital.
What is an Unregulated Broker in Forex Trading?
An unregulated broker in forex trading is a company that is not subject to the same rules and regulations as a regulated broker. These brokers are not required to meet the same standards as regulated brokers, and they may not follow the same practices. Unregulated brokers may not be held to the same standards of service and regulations, and they may not provide the same level of protection for your money.
One of the most important points to consider over here is that unregulated brokers do not comply with some of the rules and regulations set under a certain country. Are all the unregulated brokers going to run with your money, NO!! Sometimes even the best brokers might need to get along with being considered unregulated ones, this might be a result of taxes and flexibility around some of the rules. The segregated depository account might be one of the important factors, years in the forex market for that certain online broker can also be considered as well.
Here are some of the components that one should be looking forward to while choosing regulated and unregulated brokers:
- Regulation compliances: Foreign exchange regulatory bodies insist that registered brokers adhere to the rules and regulations they have been given. Non-regulated brokers, by contrast, are exempt from this requirement.
- Monetary Safety (Trusted in terms of trading with real money): Brokers who are licensed are better equipped to protect their customers than those who are not licensed. Those who are not licensed or regulated are not exempt from following the rules just because they are not licensed or regulated.
- Quality Control: The main difference between registered and unregulated brokers is the presence of quality control measures. Quality control is a process that ensures a certain level of quality in a product or service. It comprises a set of procedures that are followed in order to ensure that the product or service meets the required standards. Quality control is important because it helps to ensure that the product or service is fit for purpose and meets the needs of the customer.
- Transparency between brokers and traders: Transparency is important for regulated brokers in order to maintain their license from the market regulator. This transparency allows both beginner and advanced traders to know where they stand. Unregulated brokers, however, are not held to the same rules and regulations and can hide vital information from traders, which may not be discovered until it is too late.
These were some of the forex brokers that can be some of the best index trading brokers, feel free to contact info@forexronin.com for any queries or business inquiries.
