Best DAX (Germany 40) Index 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: November 5, 2025

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Top DAX Trading Brokers
How DAX Trading Works for Traders and Brokers
FAQ

Our team of expert traders has tested several regulated and trustworthy DAX (Germany 40) brokers and compiled a shortlist of the best among them. Every platform allowing CFDs on the DAX (Germany 40) Index received a quality score based on several factors, including Trustpilot rating, regulation, fees and commissions, available trading platforms, customer service, and more.

Top DAX trading brokers

Profitable DAX trading requires you to find a reliable brokerage company that matches your level of expertise, trading goals, and preferred trading style. Of course, no broker can guarantee you returns, but the closer it is to your needs and preferences, the better your chances of executing profitable DAX trades. To facilitate your choice, TradingPedia has compiled a selection of ten trustworthy trading brokers, giving you useful information about their platforms and the applicable spreads, fees and commissions.

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Regulators
CySEC (Cyprus, # 371/18), FSAS (Seychelles, # SD130), FSCA (South Africa, # 50926), SCB (Bahamas), ASIC (Australia, # 286354), FSCM (Mauritius, # GB21026264)
Platforms
cTrader, IRESS, MetaTrader 4, MetaTrader 5, TradingView
1. FP Markets
Min Deposit
$50 (AU$100)
Fees
Overnight interest (Daily):
Sell: -0.75%
Buy: -1.14%
Deposit Methods
Commissions
None
Spread
EUR/USD: AVG 1.2 pips, GBP/USD: AVG 1.4 pips, USDJPY: AVG 1.5 pips
Withdrawal Methods

Leverage EU
1:500 (CySEC | Pro Account), 1:30 (CySEC | Retail Account)
Leverage non-EU
1:30 (ASIC | Retail Account), 1:500 (FSAS | Retail Account)
Instruments
Commodities CFDs, Crypto CFDs, Energy CFDs, Forex CFDs, Indices CFDs, Metals CFDs, Stock CFDs
Trade Responsibly: Derivative products are highly leveraged, carry a high level of risk and are not suitable for all investors.
FP Markets is a prominent online trading broker that provides its international clients with more than 10,000 CFD products on the GER40 and other major indices, as well as on metals, cryptocurrencies, commodities, forex, and bonds. A range of user-friendly trading platforms is available to traders via desktop, in-browser, and downloadable versions. The brokerage is regulated by ASIC and CySEC and maintains offices in Australia (Sydney), Cyprus (Limassol), and Saint Vincent and the Grenadines (Kingstown).
One of the highlights of FP Markets is its selection of reliable desktop and mobile trading platforms, allowing users, regardless of their experience level, to find a suitable option.
- MetaTrader 4 is often described as the preferred platform for CFD trading. It features pre-installed indicators, customizable charts, profile templates, and – last but not least – one-click trading.
- MetaTrader 5 is an enhanced version of MT4, with distinctive features that include algorithmic and automated trading, real-time market news, and analytical publications.
- IRESS is a platform with an intuitive layout designed for multi-product trading. News and alerts are delivered in real time by email, SMS, or directly through the platform.
Inexperienced users of FP Markets can take advantage of the brokerage’s copy-trading functionality. The system rates traders according to their profitability over a specified period, and all you have to do is select one or more top-performing users and follow their strategies.
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2. Axi
Min Deposit
$0
Fees
Swap long: -2.5
Swap short: -3.5
Commissions
From $0
Spread
From 1.0
Leverage EU
Up to 1:30
Leverage non-EU
Up to 1:500
Over-the-counter derivatives are leveraged products that carry a high level of risk to your capital. Trading is not suitable for everyone and may result in you losing substantially more than your initial investment. You do not own, or have any rights to, the underlying assets. You should only trade with money you can afford to lose.
Axi is a well-regulated trading broker with over 90% positive customer feedback. The company has focused its operations mainly on the UK and Australia but is gradually expanding its user base to include traders from different parts of the world. Currently, the brokerage is regulated by the Australian Securities & Investments Commission (ASIC), the Financial Conduct Authority (FCA) in the UK, the Financial Markets Authority (FMA) in New Zealand, and the Financial Services Authority (FSA) of Saint Vincent and the Grenadines.
The key advantages of trading with Axi are fast execution speeds, low spreads and commissions, and a selection of powerful trading tools. For a modern online trading broker that relies on third-party platforms, the absence of MetaTrader 5 is slightly perplexing. Axi has chosen to work exclusively with MT4, which is available for desktop use, as an in-browser app, and as a downloadable trading application.
Apart from the well-known and highly valued features of MetaTrader 4, Axi has ensured that its users have access to additional tools that come with the platform – Autochartist, PsyQuation, and MT4 VPS hosting. MT4 NexGen also falls within this category. Its features deserve a separate review, so for now we will simply say that MT4 NexGen is a unique set of plugins developed exclusively for Axi’s clients. As we know, a customer who feels special is a satisfied customer.
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Regulators
CONSOB (Italy, # 211), FCA (United Kingdom, # 434413), SCB (Bahamas, # 199667 B), CMVM (Portugal, # 433), FSCM (Mauritius, # GB24203277), CVM (Brazil, # 43050.917/0001-03)
Platforms
MetaTrader 4, MetaTrader 5, Proprietary Web, TradingView
3. ActivTrades
Min Deposit
$0
Fees
0.5% on deposits (EU/EEA cards)
1.5% on deposits (non EU/EEA cards)
$12.50 for bank transfer withdrawals in USD
£9 for bank transfers in GBP (SCB and FSC entities only)
A $10 inactivity fee after 50 weeks
Deposit Methods
Commissions
No commission
Spread
EUR/USD: AVG 0.5 pips, GBP/USD: AVG 0.8 pips, USDJPY: AVG 0.5 pips
Withdrawal Methods

Leverage EU
1:20
Leverage non-EU
1:400 (CMVM | Pro Account), 1:30 (CMVM | Retail Account), 1:1000 (FSC), 1:200 (SCB)
Instruments
Bonds CFDs, Commodities CFDs, Crypto CFDs, ETF CFDs, Forex CFDs, Indices CFDs, Share CFDs
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when trading CFDs with this provider.You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
ActivTrades‘ market offering encompasses seven financial asset classes, including forex, shares, indices, cryptocurrencies, ETFs, commodities, and bonds. The broker offers a robust indices trading section and is featured in our ranking of the top brokers for trading the Germany 40 Index, also known as the DAX 40.
Traders can gain exposure to the index, which tracks the performance of the 40 largest and most liquid companies listed on the Frankfurt Stock Exchange, through cash index trading or index futures. Both instruments entail different target spreads and trading costs, and the choice between them depends on one’s trading strategy.
The Germany 40 Index, traded as a cash index, features a target spread of 0.75 points, with each point valued at €1. The minimum and maximum trading volumes for this instrument range from 0.25 lots to 500 lots. Additionally, the DAX 40 Index Future features a target spread of 1.0 point, with each point valued at €25, and minimum and maximum volumes ranging from 0.01 lots to 50 lots. Cash indices incur overnight swap rates, whereas index futures do not. ActivTrades charges no commissions on either product.
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Regulators
CIRO (Canada), CySEC (Cyprus, # 347/17), FRSA (United Arab Emirates, # 190018), FFAJ (Japan, # 1574), FSCA (South Africa, # 45984), FSRA (Canada, # 190018), ISA (Israel, # 514666577), JFSA (Japan, # 1662), ASIC (Australia, # 406684), BVIFSC (Virgin Islands, British, # SIBA/L/13/1049), CBI (Ireland, # C53877)
Platforms
AvaOptions, DupliTrade, AvaSocial, MetaTrader 4, MetaTrader 5, AvaTadeGO, Proprietary Web, ZuluTrade
4. AvaTrade
Min Deposit
$100
Fees
Overnight fees:
Sell:-0.0100%
Buy:-0.0067%
Deposit Methods
Commissions
None
Spread
EUR/USD: AVG 0.8 pips, GBP/USD: AVG 1.2 pips, USDJPY: AVG 1.3 pips
Withdrawal Methods

Leverage EU
1:20
Leverage non-EU
1:400 (Pro Account), 1:30 (Standard Account)
Instruments
Bonds CFDs, Commodities CFDs, Crypto CFDs, Crypto Options, Energy CFDs, ETF CFDs, Forex CFDs, Forex Options, Index Options, Indices CFDs, Metals CFDs, Share CFDs, Stock CFDs, Stock Options, US Stock Options
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
AvaTrade is a well-known name in the trading world, as it was one of the first brokerage entities made available to retail traders. Over more than 15 years of existence, the company has gained a reputation as a reliable trading broker that puts individual customer needs at the forefront. Add the fact that its customer care service is available in almost 40 different languages, and it’s no wonder AvaTrade ranks highly in end-user reviews.
Regarding newcomers to retail trading, this broker has a lot to offer. It provides a huge selection of educational tools, guides, and explanations, as well as video tutorials, analytical articles, and a specialized blog. We also took a quick look at AvaTrade reviews on the Trustpilot platform. The broker holds an overall score of 4.8 out of 5.0, with most users praising its flawless communication with customer support.
AvaTrade allows its clients to trade on a platform that suits their preferences and requirements by offering several options. The company has developed a proprietary platform, WebTrader, which does not need to be downloaded and runs smoothly on most modern devices. WebTrader offers a simple, easy-to-use interface with all crucial functionalities incorporated. However, experienced traders usually opt for MT4 or MT5, as these platforms offer a greater number of indicators, order types, charting features, and more.
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Regulators
CySEC (Cyprus, # 331/17), FSCA (South Africa, # 50885), IFSC (Belize, # 000102/31), ASIC (Australia, # 426359)
Platforms
MetaTrader 5
5. FBS
Min Deposit
Cent accounts: $10; AU$50 (ASIC accounts)
Fees
Swap long: -77.51
Swap short: -137.45
Deposit Methods
Commissions
0%
Spread
EUR/USD: AVG 0.7 pips, GBP/USD: AVG 1.2 pips, USDJPY: AVG 1.3 pips
Withdrawal Methods

Leverage EU
1:30 (CySEC)
Leverage non-EU
1:30 (ASIC), 1:3000 (FSC), 1:500 (Pro Account), 1:30 (Retail Account)
Instruments
Energy CFDs, Forex CFDs, Indices CFDs, Metals CFDs, Share CFDs
Risk warning: ᏟᖴᎠs are complex instruments and come with a high risk of losing money rapidly due to leverage.76.5% of retail investor accounts lose money when trading ᏟᖴᎠs with this provider.You should consider whether you understand how ᏟᖴᎠs work and whether you can afford to take the high risk of losing your money.
Having united quite a few independent companies under its umbrella, FBS is now a truly global trading brokerage. In 2019, it was named the “Most Progressive Forex Broker Europe” by International Business Magazine. The brand boasts of serving 23,000,000 traders residing in more than 150 countries. However, when it comes to regional coverage, some notable markets are absent – Japan, the US, Canada, and the UK, among others.
Given the profusion of account types provided by FBS, we can safely say that the broker has something to offer any type of trader, whether retail, professional, or a complete newbie. The full set of FBS accounts includes Cent, Standard, Crypto, Micro, Zero Spread, and ECN. Of these, only the first three in the list are available to EU-based traders. Each option has a demo version so you can first familiarize yourself with the specifics of trading and then move to a real account.
If you are hesitant about which account to choose, look at the respective pricing and decide if it is acceptable for you. The required minimum initial deposit ranges from $1 (Standard) to $1,000 (ECN), and all accounts except the Zero Spread come with floating spreads.
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Regulators
CFTC (United States, # 0516820), CySEC (Cyprus, # 120/10), DFSA (United Arab Emirates, # F003484), FSCA (South Africa, # 49976), IFSC (Belize, # 000261/27), FSCM (Mauritius, # GB23202700)
Platforms
MetaTrader 4, MetaTrader 4 MultiTerminal, MetaTrader 5, Proprietary Mobile, Proprietary Web
6. XM Group
Min Deposit
$5
Fees
Swap long: -0.87
Swap short: -1.29
Deposit Methods
Commissions
None
Spread
EUR/USD: AVG 1.2 pips, GBP/USD: AVG 1.5 pips, USDJPY: AVG 1.4 pips
Withdrawal Methods

Leverage EU
1:30 (CySEC | Retail Account)
Leverage non-EU
1:1000 (IFSC | Retail Account)
Instruments
Bonds CFDs, Commodities CFDs, Crypto CFDs, Energy CFDs, ETF CFDs, Forex CFDs, Forex Options, Index Options, Indices CFDs, Metals CFDs, Share CFDs, Stock CFDs, Stock Options, US Stock Options
*Deposit and withdrawal methods depend on availability and client’s country of residence.*Trading bonus are not eligible for clients registered under Trading Point of Financial Instruments Ltd.*CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.07% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please consider our Risk Disclosure.
It was impossible to overlook XM when compiling this list of reliable DAX trading brokers. The brand is among the few brokerages that offer commission-free and/or zero-spread trading. What is more, XM requires a minimum deposit of just $5 for all its account types, which makes it one of the most affordable entities in the online trading landscape. Users can fund their accounts in USD, EUR, GBP, JPY, CHF, AUD, HUF, PLN, RUB, SGD, and ZAR – a level of currency diversity rarely seen among competing brands.
In addition to Germany 40 and the other thirteen indices on the platform, XM’s clients can trade stocks, commodities, precious metals, energy products, and more. Traders can access the full set of financial instruments regardless of which of the three account types they choose – Micro, Standard, or XM Zero. Standard accounts are the most widely used option among XM’s retail customers. These, as well as Micro accounts, come with no commission, while holders of XM Zero accounts pay a commission of $3.5 per lot in exchange for spreads as low as 0 pips.
Like an increasing number of trading brokers around the globe, XM offers its clients the option to open an Islamic account. These accounts are designed to comply with the Muslim faith; i.e., there is no accumulation or payment of interest fees.
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Regulators
CySEC (Cyprus, # 092/08), FSCA (South Africa, # 46860)
Platforms
MetaTrader 4, MetaTrader 5, Proprietary Web, TradingView
7. Markets.com
Min Deposit
$100
Fees
Overnight interest:
Buy: -0.0104%
Sell: -0.0104 %
Deposit Methods
Commissions
None on CFDs
Spread
EUR/USD: AVG 0.9 pips, GBP/USD: AVG 1.1 pips, USDJPY: AVG 0.9 pips
Withdrawal Methods

Leverage EU
1:294 (CySEC | Pro Account), 1:30 (CySEC | Retail Account)
Leverage non-EU
1:300 (FSCA)
Instruments
Bonds CFDs, Commodities CFDs, Crypto CFDs, ETF CFDs, Forex CFDs, Indices CFDs, Metals CFDs, Share CFDs
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
If you are in search of a reliable index trading broker with a wide range of trading platforms and competitive spreads, Markets.com is definitely an option worth considering. The company was established in 2008 as part of Finalto Ltd. and has since built a reputation as a competent and innovative brokerage.
A highly valued aspect of Markets.com’s operation is that the brand has implemented several protective measures so clients can rest assured their deposited funds are secure. Retail traders’ money is held in independent trust accounts, with zero possibility of being merged with the broker’s assets. In addition, a dedicated customer support team monitors for irregular payments and other unusual activities.
Markets.com offers diverse CFD trading opportunities on indices, currencies, commodities, bonds, shares, ETFs, blends, and cryptocurrencies. The indices section is divided into Cash and Futures subsections, with the Germany 40 index available only in the Cash category. Upon joining Markets.com, you can choose from the proprietary Web Trader platform, MetaTrader 4, and MetaTrader 5. Keep in mind that the in-house platform is not available to users outside the EU. Fortunately, this restriction does not apply to the broker’s mobile applications, which can be used regardless of your location.
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Regulators
CIRO (Canada), DFSA (United Arab Emirates, # F002740), FCA (United Kingdom, # 173730), FMA (New Zealand, # FSP41187), MAS (Singapore, # 200605050E), ASIC (Australia, # 238054), BaFin (Germany, # 154814), BMA (Bermuda)
Platforms
CMC Next Generation, MetaTrader 4, TradingView
8. CMC Markets
Min Deposit
$0
Fees
Holding costs:
Buy: 0.0066%
Sell: 0.0098%
Deposit Methods
Commissions
None on indices
Spread
EUR/USD: MIN 0.5 pips, EUR/USD: AVG 0.6 pips, GBP/USD: MIN 0.9 pips, GBP/USD: AVG 1.1 pips, USDJPY: MIN 0.7 pips, USDJPY: AVG 1.3 pips
Withdrawal Methods

Leverage EU
1:500 (FCA | Pro Account), 1:30 (BaFin | Retail Account), 1:30 (FCA | Retail Account)
Leverage non-EU
1:500 (ASIC | Pro Account), 1:30 (ASIC | Retail Account), 1:20 (MAS | Retail Account)
Instruments
Commodities CFDs, Crypto CFDs, Energy CFDs, ETF CFDs, Forex CFDs, Indices CFDs, Metals CFDs, Share CFDs, Stock CFDs, US Stock CFDs
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
Established in 1989, CMC Markets is a competent and well-regulated broker that provides high-quality services in two main areas – CFDs and spread betting. Among the assets tradable through the brokerage’s desktop and mobile platforms are more than 80 cash and forward indices, including the DAX. Spreads for Germany 40 start from 1.0, with the margin rate set at 5%, the same as for most other indices.
One reason CMC Markets ranks high in end-user reviews is its focus on customer service and a wide range of educational offerings. Its LEARN division features separate sections for forex, cryptocurrency, and CFD trading, accompanied by additional trading guides and frequently conducted webinars and other events.
Traders who open accounts with CMC Markets can trade either on the in-house-developed Next Generation platform or on the still-popular third-party option, MetaTrader 4. The proprietary platform includes a client sentiment feature that shows how many traders have bought or sold a given product, helping you gauge overall expectations. If you want to follow the best-performing traders, you can filter the data by using the “Top Clients” view. Other tools provided by the Next Generation platform include pattern recognition and price projection.
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Regulators
FCA (United Kingdom, # 190941)
Platforms
Proprietary Mobile, Proprietary Web, TradingView
9. Spreadex
Min Deposit
$0
Fees
None
Deposit Methods

Commissions
None
Spread
EUR/USD: MIN 0.6 pips, GBP/USD: MIN 0.9 pips, USDJPY: MIN 0.7 pips
Withdrawal Methods

Leverage EU
1:200 (FCA | Pro Account), 1:30 (FCA | Retail Account)
Leverage non-EU
1:200
Instruments
Bond Spread Betting, Bonds CFDs, Commodities CFDs, Commodity Spread Betting, Crypto Spread Betting, ETF CFDs, ETF Spread Betting, Forex CFDs, Forex Spread Betting, Index Spread Betting, Indices CFDs, Interest Rate CFDs, Metals CFDs, Options Spread Betting, Share CFDs, Stock Spread Betting
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68.8% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
SpreadEx is an award-winning European brokerage company with extensive market coverage, including indices, shares, Forex, commodities, and other assets. The information about the DAX index is clearly presented, so you do not need much time to assess whether the pricing and other conditions suit your preferences and trading style. A review of the broker’s website shows that there is no minimum deposit requirement, no index-related commissions, and spreads for the Germany 40 index ranging between 1.4 and 6.0.
Although SpreadEx’s proprietary platform is not difficult to use, it is probably not the best choice for novice traders because it does not offer a demo account, which is the easiest way to familiarize yourself with a trading broker. However, several protective features help you manage risk when trading with the company – “Stop Losses” and “Guaranteed Stop Losses.” In short, these features enable you to close a position if the market moves against you.
The three main currencies accepted by SpreadEx are GBP, USD, and EUR. However, this does not mean it is impossible to open an account in your local currency. The brokerage states that it will consider such requests on a case-by-case basis. For further details on the matter, you can contact customer support by phone or email.
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Regulators
CFTC (United States, # 0509630), DFSA (United Arab Emirates, # F001780), FCA (United Kingdom, # 944492), FFAJ (Japan), FINMA (Switzerland, # IG Bank S.A.), FMA (New Zealand, # 684191), FSCA (South Africa, # 41393), JFSA (Japan, # 9010401051715), MAS (Singapore, # 1489), ASIC (Australia, # 515106), BaFin (Germany, # 148759), BMA (Bermuda, # 54814)
Platforms
L2 Dealer, MetaTrader 4, Proprietary Web, ProRealTime, TradingView
10. IG
Min Deposit
$50
Fees
Overnight funding admin fees: 2.5 - 3%
Guaranteed stop premium: 1.5
Deposit Methods
Commissions
From 0%
Spread
EUR/USD: AVG 1.13 pips, EUR/USD: MIN 0.6 pips, GBP/USD: AVG 2.38 pips, GBP/USD: MIN 0.9 pips, USDJPY: AVG 1.8 pips, USDJPY: MIN 0.7 pips
Withdrawal Methods

Leverage EU
1:222 (BaFin | Pro Account), 1:30 (BaFin | Retail Account), 1:30 (FCA | Retail Account)
Leverage non-EU
1:30 (ASIC | Retail Account), 1:200 (BMA | Retail Account)
Instruments
Bond Futures, Bond Options, Bond Spread Betting, Bonds CFDs, Commodities CFDs, Commodity Futures, Commodity Options, Commodity Spread Betting, Crypto CFDs, Crypto Options, Crypto Spread Betting, Currency Futures, Energy CFDs, Energy Futures, Energy Options, Energy Spread Betting, ETF CFDs, ETF Options, ETF Spread Betting, Forex CFDs, Forex Options, Forex Spread Betting, Index Futures, Index Options, Index Spread Betting, Indices CFDs, Interest Rate Futures, Metal Futures, Metal Options, Metals CFDs, Metals Spread Betting, Share CFDs, Stock CFDs, Stock Options, Stock Spread Betting, US Stock CFDs, US Stock Options, US Stock Spread Betting
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Options and turbo warrants are complex financial instruments and your capital is at risk. Losses may be extremely rapid.Professional clients can lose more than they deposit.The value of shares, ETFs and ETCs bought through a share dealing account, can fall as well as rise, which could mean getting back less than you originally put in. All trading involves risk.
IG is a trustworthy brokerage brand with almost 50 years of experience. With the ambition of maintaining a legitimate global operation, the IG group of companies has ensured it is regulated by several reputable authorities. Currently, its active licenses are issued by the Financial Conduct Authority, the Bundesanstalt für Finanzdienstleistungsaufsicht and Deutsche Bundesbank, the Finansinspektionen, and the Commodity Futures Trading Commission.
IG’s portfolio is among the most varied in the industry. The broker offers five different ways to trade the DAX – Turbo24s, spread betting, barriers, CFDs, and vanilla options. With so many alternatives, you will surely find at least one that fits your level of expertise.
We also observed a wide range of trading platforms provided by IG. Regarding desktop trading, clients can use the MetaTrader 4 platform, the advanced ProRealTime charting package, the DMA platform L2 Dealer, and a progressive web app (PWA). On-the-go traders are not neglected, as they can use IG’s proprietary mobile trading application, which supports spread betting, CFDs, and share trading. The application was named Best Finance App at the 2021 ADVFN International Financial Awards.

DAX, or GER40 as it is also known, is one of the most actively traded European indices. It tracks the performance of the 40 biggest blue-chip companies listed on the Frankfurt Stock Exchange (FSE). As the index takes into account market capitalisation and liquidity, it is considered a reliable gauge of the current state of the German economy. Unlike pure price-weighted indices, the DAX includes information about dividends, cash outflows and capital income, and does not disregard corporate distributions.

The DAX index is calculated using a free-float methodology. The market capitalisation of the constituent companies equals the equity price multiplied by the number of readily available shares. In other words, non-tradable shares, such as those held by governments, are excluded.

How DAX trading works for traders and brokers

Given the constituents of the DAX and the way it is computed, it is not surprising that the index attracts great interest from retail and professional traders alike, as well as from major trading brokers operating worldwide. It is in the latter’s interest to provide their customers with as many options as possible in terms of account types and trading platforms.

It is common for a brokerage to offer a standard account and at least one more specialised option. The first type usually comes with zero commissions, as all trading costs are incorporated into the respective spreads. Due to their simplicity and convenience, these are the accounts used by the largest number of traders. Conversely, professionally oriented traders who operate daily prefer tighter spreads and are prepared to pay additional fees and commissions in return.

How to trade the DAX index?

In this respect, DAX40 does not differ much from other popular stock indices. Theoretically, it is possible to invest in or trade the individual components of the index. However, this approach involves more difficulties and inconveniences than benefits. For this reason, derivative products have been developed that allow traders to deal with a basket of stocks simultaneously, rather than executing separate trades on individual shares. DAX trading brokers offer three main ways to trade the index:

DAX Futures – futures contracts oblige the buyer and the seller to transact the underlying at a predetermined price on a specified date. The price is non-negotiable, i.e., even if the current market value is more favourable, you must buy or sell at the price stated in the contract.
DAX CFDs – with CFDs, the traded instrument is the difference between the settlement prices of the opening and closing trades. When traders expect the price to rise, they buy the CFD; conversely, if they anticipate a fall, they sell.
DAX ETFs – essentially, exchange-traded funds are pooled investment securities that track the index’s performance. They are so named because ETFs can be traded on exchanges in the same way as shares. In most cases, exchange-traded funds carry lower average fees than mutual funds.

Best DAX (Germany 40) Index Trading Brokers

Top DAX trading brokers

How DAX trading works for traders and brokers

How to trade the DAX index?

Related topics

DAX (Germany 40) FAQ

1. What does DAX index family mean?

2. What happened with the GER30 index?

3. When can I trade the DAX (Germany 40)?

4. How do I start trading the DAX index?

5. Which are the Top 5 DAX companies?