The world of trading is interesting and protean, having interfaces with different aspects of nowadays economy. Global, local, or industry forecasts would not be well-founded without conducting a detailed professional analysis of the relevant situation. It is here that the indices, which serve to track the overall industry performance, are of great help. Some of them are really indicative since they are affected by factors such as political crises, sectors’ ups and downs, economic shifts, and others.
Being one of the world’s biggest markets, the US has several stock indices related to local companies. While DJIA and S&P 500 extend over multiple industry sectors, US Tech 100 (NASDAQ 100) is somewhat more specialized as it comprises stocks of 100 well-performing companies outside the financial sector, with the prevailing part being major tech firms. TradingPedia compiled the current article with the aim to familiarize you with the basics of US Tech 100 trading as we also present to you ten top-rated trading brokers with their strengths and drawbacks, commissions, spreads, and applicable fees.
How US Tech 100 Trading Works for Traders and Brokers
The US Tech 100 index which is not to be confused with Nasdaq Composite Index falls within the group of modified market-capitalization weighted indices actively traded on the Nasdaq stock exchange. As per the definition given on Nasdaq’s official website, the weighting methodology
“is applied to the capitalization of each Index Security, using the Last Sale Price of the security at the close of trading on the last trading day in February, May, August and November and after applying quarterly changes to the total shares outstanding.”
Traders who wish to start operating with US Tech 100 must first set up an account with a brokerage company that has included the index in its products list. Before the actual trading starts, you have to fund your balance through any of the payment methods supported by the chosen broker. Take a look at the company’s T&Cs since minimum deposit requirements vary within very wide limits, usually between $0 and $300.
As with other indices, it is not possible to directly trade US Tech 100. Trading brokers provide their users with a specific “toolbox” comprising instruments like contracts for difference, futures, and exchange-traded funds through which trades are executed.
Contracts for Difference (CFDs)
CFDs on indices are probably the most broadly available US Tech 100 trading tool. They are an excellent option to invest in the price movement without owing part of the index constituents. If a trader’s judgment indicates that the price of US Tech 100 will go up, he can open a “Buy” position. Profit will come in case the index moves above the price level at which the position was opened. Logically, if the index value drops, the trader will suffer a loss.
Top US Tech 100 Trading Brokers
US Tech 100, sometimes referred to as Nasdaq 100, is an actively traded stock index that attracts the attention of lots of traders. Although it is considered quite a safe trading product, it does have some level of unpredictability which is why it is of utmost importance to have a thorough understanding of its specifics. Before selecting a trading broker we advise you to carefully examine the trading conditions it offers and decide if the imposed spreads, fees, and commissions are acceptable for you.
- Min Deposit$0FeesSwap rates visible through MT4 and MT5 accountsCommissionsFrom $0SpreadFrom 0.8Leverage EU20:1Leverage non-EU100:1Gleneagle Asset Management Limited (ABN 29 103 162 278) trading as Fusion Markets, is the issuer of the Fusion Markets Products described in this communication. Trading in Fusion Markets Products involves the potential for profit as well as the risk of loss which may vastly exceed the amount of your initial deposit and is not suitable for all investors. You should read all of these Financial Product Service Terms, the Product Disclosure Statement (PDS) and the Financial Services Guide (available on our website) carefully, consider your own financial situation, needs and objectives for investing in these Fusion Markets Products and obtain independent financial advice.
Fusion Markets is a low-cost Australian brokerage company that spreads its operations on indices, stocks, commodities, Forex, and some other highly sought-after asset classes. The trading broker has no minimum deposit requirement and allows for commission-free operations, which is why it is considered a perfect choice for retail traders. Another key advantage is the professional and friendly customer support team available via live chat, phone, and email.
Probably due to the fact that Fusion Markets is still a relatively young company, its operations are regulated by one top-tier regulatory body, the Australian Securities and Investments Commission (ASIC) as well as by the Vanuatu Financial Services Commission (VFSC) and the Financial Services Authority of Seychelles.
The index section of the brokerage comprises 10 indices including US Tech 100 (referred to as NAS100). Both minimum and average spread values are given while the respective swap rates can be seen only after logging in to your account on one of the supported platforms – MetaTrader 4 and MetaTrader 5. In addition to MT4 and MT5, Fusion Markets enables its clients to benefit from two copy trading services – Myfxbook AutoTrade and DupliTrade. Both have their separate communities of registered users which can be explored and filtered according to various indicators.
- 2. AvaTradeMin Deposit$100FeesOvernight fees:
CommissionsNoneSpread1.0Leverage EU20:1Leverage non-EU200:1CFDs 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 reputable international brokerage that has 16 years of experience and multi-jurisdiction licensing. On the company’s website, you can find detailed information about the institutions that regulate its operation. Currently, AvaTrade holds licenses issued by the relevant bodies in Ireland, Australia, British Virgin Islands, South Africa, Japan, and Abu Dhabi. Given this diversity, we do not think the lack of a FCA license should be a major concern.
Proof of AvaTrade’s global approach is that the trading broker has developed over 20 language versions of its website. Thus, thousands of retail traders can access the platform in their native languages which is considered a major advantage. What is more, there are individual customer support phone numbers for 37 different countries which is a rare phenomenon.
As regards trading platforms offered by AvaTrade, there are desktop and mobile options, both proprietary and third-party. WebTrader is suitable for traders who prefer simplified platforms with an easy-to-use interface. It accommodates all basic functionalities including live chat. The ever-popular MT4 and MT5 platforms are also at traders’ disposal. They provide quite a few advanced characteristics including but not limited to professional analytic tools, algorithmic trading, and copy trading.
On-the-go trading is possible via the in-house mobile application AvaTradeGO. The award-winning app has Android and iOS versions that can be easily downloaded from Google Play and the App Store. Except for the other modern functionalities, the application enables using a risk-management tool called AvaProtectTM that allows traders to protect a particular trade against losses of up to $1,000,000.
- 3. eToroMin Deposit$10 - $10,000FeesOvernight fees:
CommissionsN/ASpread2.4Leverage EU20:1Leverage non-EUN/ACFDs 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.
- Buy - $ -1.51869589
- Sell - $ -0.77525206
It is no coincidence that eToro is present in various rankings for top-performing trading brokers. The company is known for its social and copy trading functionalities, rich portfolio, and superb educational content. These first three features make eToro the perfect choice when it comes to novice traders. Those who decide to set up their trading accounts with the brokerage can trade 15 indices, almost 3,000 stocks as well as cryptos, commodities, currencies, and ETFs.
A feature that is often underestimated is the unlimited free-to-use demo account that enables risk-free practicing and cottoning on with the trading platform. eToro has reasonable overnight fees which rank it among the brokers with the most favorable conditions. On the other hand, pay attention to some of the additional fees on the platform as they are quite significant. For example, $5 will be deducted from your account each time you request a withdrawal.
The research tab of eToro’s proprietary trading platform accommodates insights from leading experts in the field which are an excellent source of knowledge. Another perk to online traders is they can set a predetermined price point for closing an open position. Thanks to the Stop Loss functionality a position will be immediately closed if it reaches a certain loss threshold. Its extension is called Trailing Stop Loss and enables broker’s clients to keep the position open in case markets are moving in a favorable direction.
- 4. AdmiralsMin Deposit$25FeesSwap value:
Commissions$0 - $0.3 per lotSpreadFrom 1.0Leverage EU20:1Leverage non-EU500:1CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% 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.
- Long: -0.0105
- Short: -0.00617
Admirals is a leading provider of trading services with a continuously expanding network and multi-institution licensing. The regulatory bodies officially monitoring the brand’s operation are the Jordan Securities Commission (JSC), the Financial Conduct Authority (FCA), the Estonian Financial Supervision Authority, the Cyprus Securities and Exchange Commission (CySEC), and the Australian Securities and Investments Commission (ASIC). Among other products, the brokerage enables trading of 19 cash indices and 23 index futures.
This trading broker has not developed a proprietary platform, instead, it supports both MetaTrader 4 and MetaTrader 5, which are known by users from all over the world. The high popularity of MT4 and MT5 is due to their great customizability, an abundance of innovative instruments, an impressive selection of language versions, and last but not least, the possibility of using them on almost any type of modern device.
On-the-go traders have the option to use the in-house developed downloadable application of Admirals. It gives immediate access to CFDs on US Tech 100 and the other indices as well as ETFs, Forex currency pairs, stocks, commodities, and cryptocurrencies. Those who are not used to mobile trading apps, can first spend some time with the demo account and then move to a live account and real-money trades, respectively.
- 5. FP MarketsMin Deposit$100FeesOvernight interest (Daily):
CommissionsNoneSpreadFrom 1.5Leverage EU20:1Leverage non-EU20:1Trade Responsibly: Derivative products are highly leveraged, carry a high level of risk and are not suitable for all investors.
- Sell: -0.69%
- Buy: -1.41%
FP Markets is a well-regulated global CFD broker that spreads out its operation on trading indices, Forex, metals, commodities, and cryptos. The company has won multiple awards, the last of which came only a few days before writing this article – “Best Trade Execution” at the Ultimate Fintech Awards 2022.
As regards the trading platforms available via FP Markets, we will start with MetaTrader 4 and MetaTrader 5. Their users can choose between two account subtypes, Standard and Raw that both come with a $100 minimum deposit requirement, ECN pricing, and a minimum trade size of 0.01 lot. The core difference lies in the fact that Raw account holders pay a commission of $3 per side in exchange for more favorable spreads. FP Markets also features Iress, a web-based trading platform operating with multiple product types but mainly focused on shares.
Users of FP Markets can take advantage of the Copy Trading functionality that allows them to replicate the practice of experienced top-performing traders. Steps are quite simple. The first condition is to open a MT4 or MT5 account and make a deposit through any of the supported payment solutions. Then, users must head to the Ratings Page section and choose a trader to follow. There are different trading modes with no restrictions on the number of traders to follow. The automatic essence of the service does not prevent you from using additional protective measures such as stop loss and take profit orders.
- 6. easyMarketsMin Deposit$25FeesVariable overnight feesCommissionsNoneSpreadFrom 0.65Leverage EU20:1Leverage non-EU100:1CFDs and Options are complex instruments and come with a high risk of losing money rapidly due to leverage. 61% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs and Options work and whether you can afford to take the high risk of losing your money.
EasyMarkets is an award-winning brokerage with over 20 years of experience. Established back in 2001, this company has earned a reputation of a highly trustworthy brand that enjoys one of the best customer review scores in the industry. A reference to the Trustpilot platform shows 97% (out of 1401 reviews) positive feedback, a fact that in itself worths your attention.
Apart from US Tech 100 and the other indices within the portfolio of easyMarkets, users can trade Forex, shares, cryptocurrencies, commodities, and metals. The relevant information is organized in an intuitive way, so you do not need much time to find the data you are looking for, whether it is about spreads, commissions, or leverage. Speaking of commissions, we were pleased to find that easyMarkets allows for commission-free US Tech 100 trading regardless of the particular platform. Keep in mind, however, that you will be charged some rollover fees if a position remains open after 22:00 GMT (easyMarkets web platform) or 0:00 GMT (MT4).
This brokerage company is a sought-after option even for complete novices in the online trading field since it has taken care to provide comprehensive educational and informative content. Traders can read numerous articles about trading basics, strategies, and even psychological issues. There are also some video tutorials and eBooks that can be downloaded after setting up a demo account.
- 7. PepperstoneMin Deposit$200 (recommended)FeesOvernight fees:
CommissionsFrom 0%Spread1.0 - 1.9Leverage EU20:1Leverage non-EU200:1CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.4% 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.
- 2.5% for CDFs
Pepperstone ranks among the best-rated online trading brokers due to the funds protection measures it applies as well as its diverse market coverage, favorable spreads, and user-friendly platforms. In 2021, the broker passed a threshold of 100,000 retail clients, a fact that makes it one of the largest players in the trading landscape nowadays. Such numbers would not be possible if Pepperstone was not providing safe and reliable services. Proof of that are the licenses issued by the Financial Conduct Authority, the Cyprus Securities and Exchange Commission, and the Australian Securities and Investments Commission.
Currently, there are 23 indices in Pepperstone’s portfolio sorted in three sections in accordance with their region coverage. As regards US Tech 100, its spreads are 1.0 for the period 16:30 – 23:00 and 1.9 for all other hours. Accordingly, the leverage is the usual 20:1 in European countries and 200:1 for most non-EU regions where the broker operates.
Given the variety of trading platforms provided by Pepperstone, we believe you will find a suitable option no matter what your manner of trading is. Those traders who decide to join the broker can choose between MetaTrader 4/5 and cTrader. The latter is an intuitive user-friendly platform that is accessible in a desktop version, as an in-browser application, and in the form of a dedicated trading application either for iOS or Android devices. Furthermore, holders of Pepperstone Razor accounts are allowed to connect the TradingView charting and social-networking software.
- 8. OandaMin Deposit$0FeesFinancing charges or credits on overnight position calculated as per formulaCommissionsFrom $0SpreadFrom 1.9Leverage EU20:1Leverage non-EU20:1CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.3% of retail investor accounts lose money when trading CFDs with OANDA Europe Markets Ltd. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Oanda is a pioneering trading broker, one of the first to adopt automated trading in 2003 and fractional pips in 2004. The brokerage has been constantly expanding its operations and today it has offices in different parts of the world including the US, Japan, and Australia. Furthermore, Oanda is the proud winner of quite a few reputable awards, the last two being Most Popular Broker and Best Forex and CFD Broker 2020 (2020 TradingView Broker Awards) and Highest Mobile App Satisfaction and Third-Party Integrations (US FX Report 2020).
The broker’s portfolio consists of indices, Forex, metals, commodities, cryptocurrencies, and bonds. As regards US Tech 100 and the other indices, Oanda allows its users to perform CFD trades. The company has chosen not to maintain fixed spreads but has integrated an automatic pricing algorithm in its platform that makes calculations around the midpoint of each instrument. When it comes to US Tech 100, the spreads usually move between 1.9 and 2.6.
No matter if you are used to desktop platforms, web-based or downloadable applications, Oanda got you covered. This trading broker has one proprietary platform and two external options that represent quite a good choice when deciding how to perform trading. Oanda Trade is full of perks like more than 10 chart types and over 50 drawing tools, for example. The other two platforms are provided in collaboration with MetaTrader and TradingView.
- 9. IC MarketsMin Deposit$200FeesFrom 0%CommissionsFrom $0Spread1.0Leverage EU20:1Leverage non-EU200:1Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved and seek independent advice if necessary.
We continue our review of top US Tech 100 trading brokers with another reputable company that has a global footprint – IC Markets. According to the firm’s statement, one of the reasons to establish the brokerage in 2007 was to provide retail traders with solutions that were previously available only to professionals. However, IC Markets features such account types that it is capable of satisfying the requirements of both novices in the field and experienced actively operating traders.
The first group predominantly uses the Standard Account mostly due to the simplicity it offers in terms of pricing. Traders are not charged any trading commissions since all costs are embodied in the respective spread. In terms of US Tech 100, the minimum spread is 1.0 while the average value is currently 1.807. Scalpers and day traders, on the other hand, usually opt-in for the Raw Spread Account as its very law spreads allow for reducing trade expenses. The broker compensates for these favorable conditions by charging a $3.5 commission per lot.
IC Markets accepts transactions in 10 currencies – AUD, USD, EUR, CAD, GBP, SGD, NXD, JPY, HKD, and CHF. When it comes to payment methods, the brokerage supports credit and debit cards, wire transfers, PayPal, Neteller, Skrill, other digital wallets, and some local banking solutions. IC Markets charges transaction fees neither on deposits, nor on withdrawals.
- 10. XTBMin Deposit$0FeesSwap point:
Commissions$0 on Standard accountsSpreadFrom 0.8Leverage EU20:1Leverage non-EU200:1CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% 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.
- Long: -0.009088%
- Short: -0.004801%
XTB is a trusted multi-asset broker that attracts the attention of thousands of traders thanks to its competitive pricing, superb customer support service, and comprehensive educational content. The company has offices in more than 13 countries and holds a license issued by one of the most reputable regulatory bodies – FCA and is also regulated by CySEC and IFSC in Belize. XTB is a generic name for two more entities – X-Trade Brokers DM SA (Poland) and XTB Sucursal (Spain).
The main website of the brokerage has several language versions so that as many traders as possible get acquainted with the information provided in their native language. This is an approach that should be never underestimated as it surely provides for a greater user base. What is more, the brand has developed its own trading platform, which is not inferior in functionality and quality to the best third-party practices. XStation 5 is characterized by a particularly easy-to-use layout, customizable user interfaces, and advanced charting options. Among other perks, the platform features a one-click dealing system that provides for convenient and well-planned manner of trading.
XTB’s mobile application can be easily downloaded from the App Store (iOS 13.0 or later) or Google Play. The trading app gives access to more than 1,500 CFD markets including indices, commodities, stocks, and others. The application does not lack any functionality of the desktop version of the trading platform and offers watchlists, trading alerts, technical indicators, etc.