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Best Indices Trading Brokers

Written by Miro Nikolov
Miro Nikolov is the co-founder of TradingPedia.com and BestBrokers.com. His mission is to help people make profitable investments by giving them access to educational resources and analytics tools.
, | Updated: December 1, 2025

Stock indices have become an essential part of modern trading, offering individuals the opportunity to trade on the collective performance of an entire market or specific sectors. Moreover, with the proliferation of online trading platforms, indices trading is more accessible than ever.

However, the sheer number of trading brands that include indices in their catalogues makes finding the best one a challenge. Recognising the struggle faced by aspiring indices traders, our team of experts tested several regulated indices brokers and compiled a top list of the best among them. Each brokerage received a quality score based on several factors, including, but not limited to, its Trustpilot rating, regulation and available trading platforms.

  1. Plus500 US
    Rating: 4
    This content applies only to Plus500 US and clients from the United States. Trading futures involves the risk of loss.
  2. eToro
    Rating: 4.2
    61% of retail investor accounts lose money
  3. Fusion Markets
    Rating: 4.8
    74-89% of retail's CFD accounts lose money
  4. FP Markets
    Rating: 4.9
    73.85% of retail investor accounts lose money
  5. Global Prime
    Rating: 4.7
    74-89% of retail CFD accounts lose money
  6. Pepperstone
    Rating: 4.4
    75.5% of retail investor accounts lose money

Stock trading is not limited to individual equities; on the contrary, indices have emerged as an excellent way to engage with the stock market and are now particularly popular among traders interested in diversification. Indices offer a range of advantages, but for those new to this instrument type, let us first take a look at what they actually are.

In general, indices represent the cumulative value of a batch of stocks. Grouping can be region-based, industry-sector-based, or focused on companies’ market capitalisation. Stock indices vary in size; the more constituents an index has, the more representative it is considered to be.

Some of the most popular indices at the time of writing include the Dow Jones Industrial Average, S&P 500, Nikkei 225 and FTSE 100.

Although there are several methods for calculating the value of a stock index, the following are most commonly used:

  • Market capitalisation-weighted method: The constituent stocks are weighted according to their relative total capitalisation in the market. This means the overall value of the index is influenced predominantly by the performance of the biggest companies it comprises.
  • Price-weighted method: Here, the price of individual stocks is decisive. The movement of such indices can be affected even by the smallest component if, for example, its price rises dramatically. That is why price-weighted indices are not considered truly indicative of the region’s economic state or the performance of the respective industry sector.

How indices trading works for traders and brokers

Dow Jones tradingLong gone are the days when trading was an activity reserved strictly for institutions and entities with huge capital. Today, there are hundreds of online trading brokers whose range of services and instruments is so diverse that there is something for everyone interested in the field. The fact that brokerages often allow commission-free accounts to be opened further contributes to the field’s accessibility.

A distinctive feature of indices trading is that buying and selling a specific stock market index does not involve owning a physical underlying asset. Instead, traders speculate on the price of the particular index going up or down.

If fundamental or technical analysis suggests that the price is about to rise, traders will rush to buy before that happens and capitalise on the ensuing price difference.

Since direct investment in stock indices is not possible, a number of derivative instruments can be used for trading instead. Their availability in the portfolio of brokerage companies is not uniform, so always undertake quick research before joining a certain trading platform. Usually, the choice comes down to the following:

  • Contracts for difference (CFDs) – these enable trading on the price movements of indices. With CFDs, you can speculate on both rising and falling markets.
  • Exchange-traded funds (ETFs) – ETFs resemble mutual funds that are traded like stocks. Unlike mutual funds, however, the price of this basket of assets fluctuates throughout the day depending on the interest shown by buyers and sellers.
  • Index options – options enable buying or selling an underlying stock index within a predetermined period. Remember, this is a right, not an obligation. As an underlying asset of options, index futures are often used.

Top indices trading brokers

choosing a brokerTo trade indices profitably, you need a brokerage that suits your trading style, preferences and budget. Moreover, the brokerage should be fully regulated and authorised to operate in your country of residence. Other key factors to consider include spreads, commissions, other fee types, available trading platforms and supported payment solutions, among others.

If browsing through the plethora of trading brands currently available on the market seems cumbersome, you are welcome to check out the following section. Below, we offer an overview of the top 10 reliable brokers suitable for indices trading.

Related topics

Indices Trading FAQ

1. Which is better to trade, indices or stocks?

Both have their advantages and drawbacks. Indices are generally low-cost and less volatile than individual equities. They are excellent for diversification, but the opportunities to accumulate substantial profits quickly may be less frequent. Trading stocks, on the other hand, offers the potential for higher returns. However, stock prices are much more susceptible to fluctuations by comparison and are therefore riskier. An index, for instance, cannot go bankrupt or be sued - situations that could immediately tank the price of a given stock.

2. Is an index with more constituents better for trading?

Here, once again, how much risk you are willing to take matters. If five companies from the S&P 500 encounter difficult times, this will probably cause only a minor downward movement in the index price. However, if the same occurs with five entities that are components of the NL25 (Netherlands Stock Market Index), the consequences for the overall index would be far more severe.

3. What affects the price of indices?

The principle of supply and demand fully applies to index trading. If many traders buy shares of the companies that constitute an index, its price will rise; if they sell, it will decline. Interest in individual stocks can be affected by factors such as new products or services, changes in management, mergers, geopolitical unrest, and the overall health of the industry.

4. What is the difference between technical and fundamental analysis?

Fundamental analysts consider every aspect of a business, as well as the local and global environments. In other words, they analyze companies' assets, revenue, and overall performance, along with broader factors such as inflation, interest rates, and geopolitical events. Technical analysis, meanwhile, focuses on market sentiment, chart patterns, moving averages, and other indicators.

5. How to minimize the risk of significant losses?

Despite its relatively low volatility, index trading is not risk-free, and losses are still possible. This is why most reputable brokerages have integrated various risk-management tools to support their clients. These features include stop-loss orders and negative balance protection. Additionally, avoid allocating your entire trading budget to a single index. Instead, consider diversifying the assets you trade.