| Updated: November 5, 2025If you find individual stock trading to be too risky, consider trading indices to gain broader market exposure and reduce risk. An index combines multiple stocks, so its overall price depends on the performance of many companies rather than a single one. This diversification helps to mitigate the impact of poor performance by any single company.
The S&P 500 is one of the most widely traded indices and is available at most reputable brokerages. It tracks the performance of 500 of the largest publicly traded companies in the US, covering roughly 80% of the total market capitalisation. This makes it an excellent benchmark for the overall health of the US economy.
Plus500 USThis content applies only to Plus500 US and clients from the United States. Trading futures involves the risk of loss.- eToro61% of retail investor accounts lose money
- Fusion Markets74-89% of retail's CFD accounts lose money
- FP Markets73.85% of retail investor accounts lose money
- Global Prime74-89% of retail CFD accounts lose money
- Pepperstone75.5% of retail investor accounts lose money
Top S&P 500 trading brokers
Whether you are planning to invest in mutual funds or ETFs, take some time to select a trustworthy S&P 500 brokerage that meets your requirements and suits your trading style. The broker list below is not a ranking but rather a compilation of reputable trading platforms whose leverage ratios, spreads, commissions, and other features are examined by our team.
- 1. Global PrimeMin Deposit$0FeesNo fees on deposits and withdrawalsDeposit Methods
CommissionsNone for index CFDsSpreadEUR/USD: AVG 1.04 pips, GBP/USD: AVG 1.3 pips, USDJPY: AVG 1.32 pipsWithdrawal Methods Leverage EU1:20Leverage non-EU1:500 (ASIC | Pro Account), 1:30 (ASIC | Retail Account), 1:500 (VFSC)InstrumentsCommodities CFDs, Forex CFDs, Indices CFDs, Metals CFDsTrading derivatives is high risk. Losses can exceed your initial investment. You should only trade with money you can afford to lose. Any Information or advice contained on this website is general in nature and has been prepared without taking into account your objectives, financial situation or needs. Past performance of any product described on this website is not a reliable indication of future performance. You should consider whether you’re part of our target market by reviewing our Target Market Determination, and read broker's PDS and other legal documents to ensure you fully understand the risks before you make any trading decisions. We encourage you to seek independent advice if necessary. The information on this website is not intended to be an inducement, offer or solicitation to any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.When choosing a broker to trade the S&P 500, you should look for several key factors: a license from a reputable authority, transparent terms and conditions, no hidden costs, and a proven track record of reliable customer support. Our tests of Global Prime showed that it checks all these boxes.
Global Prime is a Melbourne-based broker regulated by the Australian Securities and Investments Commission (ASIC) and the Vanuatu Financial Services Commission (VFSC). While there is no specific minimum account requirement, the minimum deposit varies by payment method, ranging from $1 to $10. Regardless of your deposit amount, you can benefit from cost-effective S&P 500 trading with low spreads and zero commission on index CFDs. The spreads for the S&P 500 currently average 4.07 points.
Global Prime offers access to the widely used MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms. These platforms are considered industry standards for retail trading because of their user-friendly interfaces, customizable charts, and powerful algorithmic trading capabilities. Whether you prefer to trade from your browser, desktop, or mobile device, Global Prime provides a seamless experience across all three.
TRADE NOWREAD REVIEWRegulatorsCySEC (Cyprus, # 109/10), FCA (United Kingdom, # 583263), FRSA (United Arab Emirates, # 220073), FinCEN (United States, # 31000204884179), FINRA (United States, # 298361), FSAS (Seychelles, # SD076), GFSC (Gibraltar, # 1333B), AMF (France, # E2022-038), MFSA (Malta, # C97952), SEC (United States, # 0001753042), ASIC (Australia, # 491139)PlatformseToro App, eToro CopyTrader, eToro Investing2. eToroMin Deposit$50 or $100 based on country ($10 for the UK)FeesNon-Trading Fees:- $10 inactivity fee after 12 months
- $5 fee for withdrawals from USD investment accounts
Deposit Methods CommissionsNo commissions on index CFDsSpreadEUR/USD: AVG 1 pips, GBP/USD: AVG 2 pips, USDJPY: AVG 1 pipsWithdrawal Methods Leverage EU1:400 (CySEC | Pro Account), 1:30 (CySEC | Retail Account)Leverage non-EU1:400 (FSAS | Retail Account)InstrumentsCommodities CFDs, Crypto CFDs, ETF CFDs, Forex CFDs, Indices CFDs, Metals CFDs, Share CFDs, Stock CFDs, US Stock CFDs61% of retail investor accounts lose money when trading CFDs with this provider.The eToro platform features a wealth of educational content, market analysis, and a vibrant social community that make it easy for new traders to get started. For those who need a strategy to follow, the CopyTrader feature allows you to automatically replicate the trades of top-performing investors.
The S&P 500 is one of the 31 indices available at eToro, alongside popular options like the FTSE 100, Nasdaq 100, and Dow Jones 30. The platform organizes key information in a unique way, with dedicated tabs for Feed, Stats, Charts, and News, making it easy to research potential trades. In addition to indices, eToro offers more than 6,200 stocks, 140+ cryptocurrencies, ETFs, commodities, and 56 currency pairs.
The broker offers two main account types: retail and professional. Retail clients have access to all financial assets and the CopyTrader functionality. While they are subject to certain trading restrictions, retail customers also benefit from features like negative balance protection. To qualify for a professional account, traders must meet specific criteria, including an investment portfolio valued at €500,000 or more, at least one year of professional experience in finance, and 10 large-size trades per quarter for the last four quarters.
- TRADE NOWREAD REVIEWRegulatorsCONSOB (Italy, # 211), FCA (United Kingdom, # 434413), SCB (Bahamas, # 199667 B), CMVM (Portugal, # 433), FSCM (Mauritius, # GB24203277), CVM (Brazil, # 43050.917/0001-03)PlatformsMetaTrader 4, MetaTrader 5, Proprietary Web, TradingView3. ActivTradesMin Deposit$0Fees
- 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 CommissionsNo commission on index CFDsSpreadEUR/USD: AVG 0.5 pips, GBP/USD: AVG 0.8 pips, USDJPY: AVG 0.5 pipsWithdrawal Methods Leverage EU1:20Leverage non-EU1:400 (CMVM | Pro Account), 1:30 (CMVM | Retail Account), 1:1000 (FSC), 1:200 (SCB)InstrumentsBonds CFDs, Commodities CFDs, Crypto CFDs, ETF CFDs, Forex CFDs, Indices CFDs, Share CFDsCFDs 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 is a global broker that caters to different types of traders, offering access to more than 1,000 CFD products. Fast order execution, tight spreads, and zero commissions are among the brand’s strongest features. The company is regulated by several authorities, including the FCA, CMVM, CVM, SCB, and FSC (Mauritius), underscoring its strong global presence.
At ActivTrades, you can gain exposure to seven major asset classes, including indices. Traders have the opportunity to speculate on the price fluctuations of leading U.S., U.K., and European indices by taking long or short positions. In the indices category, traders will find the S&P 500, which is tradable as a CFD. The symbol is available as both a cash index and an index future, meaning the price is based either on the S&P 500’s spot market price or its futures price. Additionally, trading index-futures products does not incur rollover fees for overnight positions.
You can trade the S&P 500 on all of the broker’s supported platforms. The order size ranges from 0.5 to 1,000 lots for the SP 500 cash index and from 0.01 to 100 lots for the SP 500 index future. The target spread for the cash index symbol is 0.23 points, while the futures version has a target spread of 0.25 points. The key difference between these two SP 500 derivative products lies in their point value. The SP 500 cash index has a point value of $1, whereas the futures symbol has a point value of $50. This difference significantly affects the spread cost for a standard lot, so it is important to consider it when choosing how to trade this derivative product.
- TRADE NOWREAD REVIEWRegulatorsCFTC (United States, # 0516820), CySEC (Cyprus, # 120/10), DFSA (United Arab Emirates, # F003484), FSCA (South Africa, # 49976), IFSC (Belize, # 000261/27), FSCM (Mauritius, # GB23202700)PlatformsMetaTrader 4, MetaTrader 4 MultiTerminal, MetaTrader 5, Proprietary Mobile, Proprietary Web4. XM GroupMin Deposit$5Fees
- Free deposits and withdrawals
- $5 inactivity fee after 90 days
Deposit Methods CommissionsNo commission on index CFDsSpreadEUR/USD: AVG 1.2 pips, GBP/USD: AVG 1.5 pips, USDJPY: AVG 1.4 pipsWithdrawal Methods Leverage EU1:30 (CySEC | Retail Account)Leverage non-EU1:1000 (IFSC | Retail Account)InstrumentsBonds 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 OptionsCFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.12% 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.XM is a reputable international broker that offers spread-based and commission-free trading of the S&P 500 , along with extensive educational content, no hidden costs, and clear-cut trading conditions. Essentially, it is a group of licensed brokers operating in different jurisdictions under Trading Point of Financial Instruments Ltd., holding licenses from the relevant authorities in the UK, Australia, and Belize.
Apart from the S&P 500 and other indices, customers can speculate on price movements in other asset classes such as forex, stocks, commodities, precious metals, cryptocurrencies, and energies. As for supported platforms, traders can choose between MetaTrader 4 and MetaTrader 5, which are compatible with desktop computers, smartphones, and tablets. XM also offers a proprietary trading application that can be downloaded by scanning the QR codes on the website or directly from the App Store or Google Play.
Depending on their jurisdiction, traders can choose from Standard, Zero, and Ultra Low accounts. All accounts share a minimum deposit requirement of $5. The main difference lies in commissions: while Standard and Ultra Low accounts are commission-free, customers with Zero accounts pay a $7 round-turn commission per standard lot but benefit from spreads as low as 0.0 pips.
- TRADE NOWREAD REVIEWRegulatorsCIRO (Canada), DFSA (United Arab Emirates, # F000542), FCA (United Kingdom, # 446717), JFSA (Japan, # 2010401047199), MAS (Singapore, # 201130598R), HKSFC (Hong Kong, # BCQ152), ASIC (Australia, # 345646)PlatformsMetaTrader 4, Proprietary Mobile, Proprietary Web, TradingView5. City IndexMin Deposit$0 ($150 for Singapore and Australia)FeesNon-Trading Fees:
- Free deposits and withdrawals
- $15 inactivity fee after 12 months
Deposit Methods CommissionsNo commission on index CFDs, 1.8 cents per US share, with a $10 minimumSpreadEUR/USD: AVG 2.4 pips, GBP/USD: AVG 4 pips, USDJPY: AVG 8 pipsWithdrawal Methods Leverage EU1:400 (FCA | Pro Account), 1:30 (FCA | Standard Account)Leverage non-EU1:200 (ASIC | Pro Account), 1:20 (MAS | Standard Account)InstrumentsBond Spread Betting, Bonds CFDs, Commodities CFDs, Crypto CFDs, ETF CFDs, Forex CFDs, Indices CFDs, Interest Rate CFDs, Metals CFDs, Share CFDs, Stock Options, Thematic IndicesCFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% 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.Next on our list of S&P 500 trading brokers is City Index, founded in London in 1983. City Index offers services across three primary areas: CFD trading, spread betting, and forex trading. The platform provides a dedicated section for each, offering a wealth of useful information. You can find details on specific products, including their benefits and risks, costs, and comparisons of trading tools.
Minimum deposit requirements differ based on the payment method and entity. For example, customers registered through the FCA-regulated entity in the UK must deposit at least $100 when using their cards, but there is no minimum requirement for bank transfer transactions. Nevertheless, if you wish to trade the S&P 500 index or any other asset available at City Index, it is recommended to start with a deposit of at least $2,000.
City Index keeps up with the times and caters to smartphone users with dedicated mobile apps that they can easily download by scanning the relevant QR code on the broker’s website. Trades can also be executed through the TradingView and MT4 platforms.
Better results come with experience and through thorough analysis of your trading activity. For this purpose, the Performance Analytics tool is provided. It allows traders to track their behavior, analyze their strengths and weaknesses, and focus on areas where they achieve greater profitability.
- 6. RoboForexMin Deposit$10 (Pro, ProCent, ECN, Prime accounts), $100 (R StocksTrader account)FeesFree deposits and withdrawalsCommissions$5 per $1 million traded with ECN accounts ($4 with Prime accounts)Spread0.02 average spreadsLeverage EU1:20Leverage non-EU1:100Risk Warning: There is a high level of risk involved when trading leveraged products such as Forex/CFDs. 58.42% of retail investor accounts lose money when trading CFDs with this provider. You should not risk more than you can afford to lose, it is possible that you may lose the entire amount of your account balance. You should not trade or invest unless you fully understand the true extent of your exposure to the risk of loss. When trading or investing, you must always take into consideration the level of your experience. Copy-trading services imply additional risks to your investment due to nature of such products. If the risks involved seem unclear to you, please apply to an outside specialist for an independent advice.
RoboForex is an award-winning international broker that provides access to eight distinct asset classes, including forex, stocks, indices, ETFs, commodities, metals, energies, and cryptocurrencies. The company is based in Belize, where it is licensed and regulated by the local Financial Services Commission (FSC). Over the past few years, RoboForex has earned numerous prestigious awards, among them the 2022 Best Stocks Broker Global at the London Trader Show Awards and the 2021 Most Profitable Broker of the Traders Union IAFT.
RoboForex distinguishes itself by offering an exceptionally diverse range of trading platforms. Traders can choose among the widely used MetaTrader 4 and MetaTrader 5 platforms, as well as the broker’s proprietary R WebTrader and R StocksTrader. All of these platforms are available as conventional desktop versions and as mobile applications for both iOS and Android devices, ensuring convenience and accessibility.
The broker also provides a variety of account types, allowing traders to select from five distinct options, each with its own features. The Prime account is marketed as having the most favorable conditions and can be used for trading 28 currency pairs, metals, various CFDs, and cryptocurrencies. The ECN account is RoboForex’s most popular option, known for its fast order execution and user-friendly conditions. It offers the same trading instruments as the Prime account but with 36 available currency pairs and a commission-based pricing model.
The R StocksTrader account, which requires a minimum deposit of just $100, enables trading in more than 12,000 instruments via the broker’s native web platform. For those making smaller investments in currency pairs, metals, and cryptocurrencies, the ProCent account is an ideal choice. Finally, despite its name, the Pro account is best suited for beginner traders. For example, customers can trade the S&P 500 Index with competitive average spreads of 0.02 points.
- TRADE NOWREAD REVIEWRegulatorsFCA (United Kingdom, # 190941)PlatformsProprietary Mobile, Proprietary Web, TradingView7. SpreadexMin Deposit$0FeesFree deposits and withdrawals, no inactivity feesDeposit Methods CommissionsNone on spread betting and CFDsSpreadEUR/USD: MIN 0.6 pips, GBP/USD: MIN 0.9 pips, USDJPY: MIN 0.7 pipsWithdrawal Methods Leverage EU1:200 (FCA | Pro Account), 1:30 (FCA | Retail Account)Leverage non-EU1:20 (retail), 1:200 (professional)InstrumentsBond 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 BettingSpread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% 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. For professional clients, spread betting and CFD trading can also result in losses larger than your initial stake or deposit.
Spreadex is a UK-based brokerage company with over 20 years of experience that is regulated by the Financial Conduct Authority. When preparing this short review, we were impressed to learn that the broker is a five-time winner of the Investment Trends Award for “Best Customer Service,” so we decided to test it. A live chat session was initiated with a question about commissions related to the S&P 500 index. A friendly representative of the customer care team replied in less than 30 seconds and explained everything we needed to know.
In addition to the S&P 500 and 30 other indices, Spreadex allows customers to engage in spread betting and CFD trading in shares, commodities, forex, ETFs, bonds, interest rates, options, and IPOs. Opening an account with the brokerage is free, and the minimum deposit required is £5.
Trading with Spreadex is possible only through its proprietary platform which offers dedicated mobile apps for iOS and Android. The trading application features price alerts that can be sent via SMS, email, and push notifications. The watchlists are another convenient feature. They enable traders to group markets into separate lists instead of wasting time searching and comparing numbers. Data security is ensured by SSL encryption and PIN login.
- 8. CMC MarketsMin Deposit$0FeesFree deposits and withdrawals, no inactivity fees for EU customersDeposit Methods CommissionsNone on index CFDsSpreadEUR/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 pipsWithdrawal Methods Leverage EU1:500 (FCA | Pro Account), 1:30 (BaFin | Retail Account), 1:30 (FCA | Retail Account)Leverage non-EU1:500 (ASIC | Pro Account), 1:30 (ASIC | Retail Account), 1:20 (MAS | Retail Account)InstrumentsCommodities CFDs, Crypto CFDs, Energy CFDs, ETF CFDs, Forex CFDs, Indices CFDs, Metals CFDs, Share CFDs, Stock CFDs, US Stock CFDsSpread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% 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.
The spread-bet and CFD trading platform provided by CMC Markets allows customers to trade more than 80 indices, including the S&P 500, as well as share baskets, commodities, bonds, cryptocurrencies, and forex. The broker holds multiple licenses from reputable regulatory bodies, including the Financial Conduct Authority (FCA) in the UK, the Australian Securities and Investments Commission (ASIC), the Monetary Authority of Singapore (MAS), and the relevant authorities in Canada, Germany, and New Zealand.
CMC Markets is highly regarded as an LSE-listed broker known for its extensive market access and powerful proprietary platform, NextGeneration. The broker primarily offers two account types, a standard CFD trading account and an FX Active account, with no minimum deposit requirement, making it accessible to new traders.
Beyond its award-winning proprietary platform, CMC Markets supports popular third-party options such as MetaTrader 4 and TradingView. This gives traders access to advanced charting tools, analysis, and automated trading features. Other key features include a selection of over 12,000 tradable markets – from forex and indices to shares and cryptocurrencies – along with robust educational resources and dedicated customer support.
- TRADE NOWREAD REVIEWRegulatorsCFTC (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)PlatformsL2 Dealer, MetaTrader 4, Proprietary Web, ProRealTime, TradingView9. IGMin Deposit$50FeesA 0.8% currency conversion fee, $40 per month for advanced charting in ProRealTimeDeposit Methods CommissionsNo commissions on index CFDsSpreadEUR/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 pipsWithdrawal Methods Leverage EU1:222 (BaFin | Pro Account), 1:30 (BaFin | Retail Account), 1:30 (FCA | Retail Account)Leverage non-EU1:30 (ASIC | Retail Account), 1:200 (BMA | Retail Account)InstrumentsBond 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 BettingSpread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72% 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.
IG Markets is a highly regulated online broker known for its extensive range of markets and products. It is particularly well suited to more experienced traders, but it also provides a robust platform for beginners through its educational resources and a demo account.
The broker offers a vast selection of markets, with over 17,000 instruments, including forex, indices, cryptocurrencies, shares, and commodities. The product range is comprehensive, featuring spread betting for UK and Irish customers, CFDs, and direct stock investing. More advanced instruments, such as barriers and vanilla options, are also available in some regions.
IG is a public company listed on the London Stock Exchange and is regulated by top-tier watchdogs, including the UK’s Financial Conduct Authority (FCA). Trading costs are primarily based on spreads, which vary by market, with a minimum of 0.4 points on the S&P 500 index. For share CFDs and share dealing, a commission is charged. There is no minimum account opening requirement, although a deposit is needed to start trading.
The company supports multiple robust trading platforms to accommodate different preferences. Traders can use its award-winning proprietary web platform and mobile apps, which are known for their functionality and user-friendly design. For those who prefer advanced charting and automated trading, IG also offers integration with popular third-party platforms like MetaTrader 4 (MT4) and TradingView.
- 10. XTBMin Deposit$0Fees$10 for withdrawals below $100, $10 inactivity feeCommissionsNo commission on index tradesSpreadFrom 0.3Leverage EU1:20 for major indices and 1:10 for non-major indicesLeverage non-EU1:200CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% 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.
With over two decades of experience, XTB has earned an excellent reputation in the global online trading community. The company operates worldwide with licenses from respected financial regulators such as CySEC and the FCA, and it delivers competitive trading conditions to more than 1.7 million customers.
The broker currently offers over 30 index CFDs, including the S&P 500, Nikkei 225 and FTSE 100, among others. Spreads for the S&P 500 index start at just 0.3 points, and there are no commissions on CFD positions. Trades are executed through the broker’s proprietary platform, xStation 5, which is suitable for both novices and experienced traders. The platform features an intuitive interface and provides a variety of useful tools, including market sentiment indicators, investment calculators and several types of pending orders.
XTB has a low barrier to entry, allowing new customers to begin with any deposit amount. Deposits generally do not incur processing fees, while withdrawals below $100 incur a $10 charge. Customers can move funds to and from their trading accounts using convenient payment methods such as Visa, Mastercard, Skrill, PayPal and bank transfers. The broker assesses a $10 monthly fee after 90 days of inactivity.
S&P 500, which stands for Standard and Poor’s 500, is a stock market index reflecting the performance of 500 of the largest American companies. Unlike the Dow Jones, which is a price-weighted index, the US500 is calculated by adding the float-adjusted market capitalisation of all constituent companies. For this reason, many trading professionals define the S&P 500 as the true indicator of the US economy, although it is not as widely known to the general public as the DJIA.
The S&P 500 has very specific requirements for companies to be included in the index, which are based on objective criteria. As of 1 July 2025, a company’s market capitalisation must be at least $22.7 billion, and its stock needs to have traded a minimum of 250,000 shares in each of the six months before evaluation. While market capitalisation rules are updated for new additions to the S&P 500, they do not automatically remove existing companies whose market cap dips below the new threshold. At the time of writing, the five largest companies in the S&P 500 by market capitalisation are NVIDIA, Microsoft, Apple, Amazon, and Alphabet. The top companies on this list can change as their stock values fluctuate.
How S&P 500 trading works for traders and brokers
The widespread interest in the S&P 500 results from its role as a key benchmark for the US stock market. The companies within the index, including major names like NVIDIA and Microsoft, represent approximately 80% of total market capitalisation. This makes the S&P 500 a powerful tool for investors, as it provides exposure to a large market segment through a single investment.
Traders who want to gain exposure to the S&P 500 have several options. They can buy shares in exchange-traded funds (ETFs) or mutual funds that track the index, allowing them to own a small piece of all the companies without having to buy each stock individually. These funds are available through a variety of brokers, from full-service to discount brokers. Another option is to speculate on the price fluctuations of the index with contracts for difference (CFDs).
Contracts for difference are an option for those who want to profit from the price movements of the index without owning any underlying shares. A CFD is a financial contract that pays the difference between the opening and closing price of the S&P 500, allowing traders to profit from both rising and falling markets. While the S&P 500 is a US index, there are no country restrictions that limit who can trade it. Traders and brokerage firms from around the world can offer and access these investment products.
Trading the S&P 500 through mutual funds is a popular way for investors to gain broad market exposure. A mutual fund pools money from many investors, enabling them to collectively trade a diversified collection of stocks that would be difficult for a single person to acquire on their own.
The price of a mutual fund is known as its net asset value (NAV), which is calculated by taking the total value of all the fund’s assets and dividing it by the number of outstanding shares. When you invest in a mutual fund, you do not directly own the stocks within the S&P 500, but you do own a portion of the fund’s shares.
It is important to note that index mutual funds, while convenient, do have operating costs. These costs, which are managed by the fund, often result in fees that are passed on to investors. Unlike stocks, which can be traded throughout the day, mutual fund shares are typically bought and sold only once a day at the closing price, which is based on the day’s final NAV.
Trading the S&P 500 through exchange-traded funds (ETFs) is a popular and efficient method. Similar to mutual funds, ETFs offer a way to gain exposure to all the stocks in the index. However, a key difference is that ETFs trade on an exchange throughout the day, just like individual stocks. Their price can fluctuate, sometimes trading at a slight discount or premium to the fund’s NAV. ETFs are generally known for their low costs, high liquidity, and passive index replication, making them a very accessible investment option.
An index future is a contract that obligates a trader to buy or sell the S&P 500 at a predetermined price on a specific date in the future. Futures trading allows investors to speculate on the future value of the index. You may encounter “fractional” index futures, which are often offered to retail traders and allow them to trade smaller contract sizes compared to those used by large institutions.
Index options are similar to futures, but there is one major difference. An options contract gives a trader the right, but not the obligation, to buy or sell the S&P 500 at a set price before a certain date. This flexibility is what distinguishes options from futures and makes them a versatile tool for traders who want to either capitalise on price movements or hedge their existing positions.