Brokers with synthetic indices provide unique trading opportunities on products that emulate realistic market movements. Unlike a traditional index, a synthetic index often has no correlation to underlying assets and is not impacted by real events.
The leader in synthetic indices is undisputedly Deriv, with multiple proprietary indices that can’t be found elsewhere. However, they don’t accept traders from a long list of countries, including the US, Canada, UK and several others. Our list of top brokers with synthetic indices below will only show those that accept your location.
Best Synthetic Index Brokers 2026
We tested multiple brokers and found that these 6 platforms offer the best synthetic index trading products:
-
- Demo account
- Platforms: MT4, MT5, TradingCentral
- Min. deposit: $5
-
- Demo account
- Min. deposit: $100
- Min. trade: 0.01 Lots
-
- Demo account
- Regulator: ASIC, CySEC, FSA, SCB, CMA-Kenya
- Min. deposit: $200
-
- Demo account
- Min. deposit: $0
- Min. trade: 0.01 Lots
-
- Demo account
- Min. deposit: $10 (varies by account and payment method)
- Min. trade: 0.01 Lots
-
- Demo account
- Regulator: ASIC
- Platforms: MT5, TradeLocker
Learn how we test brokers and why you can trust our ratings.
Why Are These Brokers The Best For Synthetic Indices?
Here’s a quick rundown of why we think these are the top brokers for trading synthetic indices:
- XM is the best broker for synthetic index trading in 2026 in Ukraine 4.8/5 During our tests, XM offered synthetic indices like Volatility 75 (VIX75) via MT5, providing 24/7 trading. Spreads started at 0.08 with competitive costs. Execution was fast, with 99% of trades under one second.
- AvaTrade 4.9/5 AvaTrade offers synthetic indices from our tests, notably the Volatility 75 Index (VIX 75), through its MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms. These indices are algorithmically generated, providing 24/7 trading opportunities. Spreads for the synthetic index range from 0.15% to 0.21%, with trading costs at industry standard levels.
- IC 4.8/5 During our tests, IC offered synthetic indices like Volatility 75 and Volatility 100 via MT5 and cTrader, available 24/7. Spreads started from 0.5 pips with low trading costs. Execution was fast, averaging under 50 ms. Regulated by ASIC, CySEC, and FSA, IC provided a secure environment for algorithmically generated markets.
- IG 4.8/5 During our tests, IG offered synthetic indices, including the Volatility Index, via MT4 and TradingView. These algorithmically generated markets operate 24/7, simulating volatility with competitive spreads. Execution was reliable, with swap-free options for eligible traders. IG also offered advanced charting, flexible expiries, and diversified markets, providing a secure environment for synthetic index trading.
- Exness 4.1/5 In our latest tests, Exness offered synthetic indices like Volatility 75 (VIX75) via MT4 and MT5, available 24/7. Spreads started from 0.5 pips with fast execution. Regulated by FSCA, Exness also provided advanced charting tools, diverse account types, and competitive trading conditions for volatility-based strategies.
- Focus Markets 3.6/5 Focus Markets offers synthetic indices via its MT5 and TradeLocker platforms, providing 24/7 access to algorithmically generated markets that simulate real-world price movements. These indices are unaffected by real-world news or market volatility, allowing traders to engage in continuous trading. What we like is that the platform supports various synthetic indices, catering to different trading strategies and preferences.
Best Brokers With Synthetic Indices 2026 Comparison
| Broker | Minimum Deposit | Minimum Trade | Platforms | Regulator |
|---|---|---|---|---|
| XM | $5 | 0.01 Lots | MT4, MT5, TradingCentral | CySEC, DFSA, FSCA, SCA, FSA, FSC-Belize, FSC-Mauritius, CMA-Kenya, CMA-UAE |
| AvaTrade | $100 | 0.01 Lots | WebTrader, AvaTradeGO, AvaOptions, AvaFutures, MT4, MT5, AlgoTrader, TradingView, TradingCentral, DupliTrade | ASIC, CySEC, FSCA, ISA, CBI, JFSA, BVI, FSRA/ADGM, AFM, CMA-Kenya, CIRO (via Friedberg Direct) |
| IC | $200 | 0.01 Lots | MT4, MT5, cTrader, TradingView, TradingCentral, DupliTrade, Quantower | ASIC, CySEC, FSA, SCB, CMA-Kenya |
| IG | $0 | 0.01 Lots | Web, L2 Dealer, MT4, TradingView, AutoChartist, TradingCentral, ProRealTime | CFTC, NFA, FCA, BaFin, ASIC, FINMA, MAS, JFSA, FMA, DFSA, BMA |
| Exness | $10 (varies by account and payment method) | 0.01 Lots | Exness Trade App, Exness Terminal, MT4, MT5, TradingCentral | FSCA, CMA-Kenya, FSA, CBCS, BVIFSC, FSC, JSC, FCA (B2B only), CySEC (B2B only) |
| Focus Markets | $100 | 0.01 Lots | MT5, TradeLocker | ASIC |
How Safe Are The Best Synthetic Index Brokers?
Synthetic indices are unique instruments, so regulation, fund security, and platform reliability are essential. Here’s how our top brokers safeguard your trading experience:
| Broker | Trust Rating | Guaranteed Stop Loss | Negative Balance Protection | Segregated Accounts |
|---|---|---|---|---|
| XM | ✘No | ✔Yes | ✔Yes | |
| AvaTrade | ✘No | ✔Yes | ✔Yes | |
| IC | ✘No | ✔Yes | ✔Yes | |
| IG | ✔Yes | ✔Yes | ✔Yes | |
| Exness | ✘No | ✔Yes | ✔Yes | |
| Focus Markets | ✘No | ✔Yes | ✔Yes |
Are The Best Synthetic Index Brokers Good For Beginners?
New to synthetic indices? We reviewed education tools, demo accounts, and user-friendly platforms to see which brokers are best for beginner traders:
| Broker | Demo Account | Minimum Deposit | Minimum Trade | Education Rating | Support Rating |
|---|---|---|---|---|---|
| XM | ✔Yes | $5 | 0.01 Lots | ||
| AvaTrade | ✔Yes | $100 | 0.01 Lots | ||
| IC | ✔Yes | $200 | 0.01 Lots | ||
| IG | ✔Yes | $0 | 0.01 Lots | ||
| Exness | ✔Yes | $10 (varies by account and payment method) | 0.01 Lots | ||
| Focus Markets | ✔Yes | $100 | 0.01 Lots |
Are The Top Synthetic Index Brokers Good For Experienced Traders?
Experienced traders need consistent pricing, reliable execution, and leverage flexibility. Here’s where our leading brokers excelled for advanced synthetic index trading:
| Broker | Automated Trading | VPS | AI | Pro Account | Leverage | Low Latency | Extended Hours |
|---|---|---|---|---|---|---|---|
| XM | Expert Advisors (EAs) on MetaTrader | ✔Yes | ✔Yes | ✘No | 1:1000 | ✔Yes | ✘No |
| AvaTrade | Expert Advisors (EAs) on MetaTrader | ✘No | ✔Yes | ✔Yes | 1:30 (Retail) 1:400 (Pro) | ✔Yes | ✘No |
| IC | Expert Advisors (EAs) on MetaTrader, cBots on cTrader, Myfxbook AutoTrade | ✔Yes | ✘No | ✘No | 1:5000 | ✔Yes | ✘No |
| IG | Expert Advisors (EAs) on MetaTrader, build your own on ProRealTime | ✔Yes | ✔Yes | ✔Yes | 1:30 (Retail), 1:250 (Pro) | ✔Yes | ✔Yes |
| Exness | Expert Advisors (EAs) on MetaTrader | ✔Yes | ✘No | ✔Yes | 1:Unlimited (via offshore entities) | ✔Yes | ✘No |
| Focus Markets | Expert Advisors (EAs) on MetaTrader | ✘No | ✘No | ✘No | 1:1000 | ✘No | ✘No |
Compare Detailed Ratings Of Top Synthetic Index Brokers
See how the top brokers for synthetic indices performed across critical categories in our tests:
| Broker | Trust | Platforms | Assets | Mobile | Fees | Accounts | Research | Education | Support |
|---|---|---|---|---|---|---|---|---|---|
| XM | |||||||||
| AvaTrade | |||||||||
| IC | |||||||||
| IG | |||||||||
| Exness | |||||||||
| Focus Markets |
Community Sentiment
See how users rate these brokers based on the average customer ratings submitted on DayTrading.com, plus ratings from Trustpilot, the Apple App Store and Google Play.
| Broker | Our Users' Rating | Trustpilot Score | Trustpilot Reviews | iOS App Rating | Android App Rating |
|---|---|---|---|---|---|
| XM | 3134 | ||||
| AvaTrade | 13590 | ||||
| IC | 2 | ||||
| IG | 10153 | ||||
| Exness | 33558 | ||||
| Focus Markets | - | 6 |
How Popular Are The Top Synthetic Index Brokers?
Synthetic indices are gaining traction with traders worldwide. We looked at which brokers are attracting the most users
Why Trade Synthetic Indices With XM?
With a low $5 minimum deposit, advanced charting platforms in MT4 and MT5, expanding range of markets, and a Zero account offering spreads from 0.0, XM provides all the essentials for active traders, even earning our ‘Best MT4/MT5 Broker’ award in recent years.
Christian Harris, Reviewer
XM quick facts
- Demo Account
- ✔Yes
- Instruments
- CFDs, Forex, Stocks, Commodities, Indices, Thematic Indices, Precious Metals, Energies
- Regulator
- CySEC, DFSA, FSCA, SCA, FSA, FSC-Belize, FSC-Mauritius, CMA-Kenya, CMA-UAE
- Platforms
- MT4, MT5, TradingCentral
- Minimum Deposit
- $5
- Minimum Trade
- 0.01 Lots
- Account Currencies
- USD, EUR, GBP, JPY, ZAR
Pros
- XM’s Zero account is ideal for day trading with spreads from 0.0 pips, 99.35% of orders executed in <1 second, and no requotes or rejections.
- XM has rolled out platform upgrades with integrated TradingView charts and an XM AI assistant, delivering faster execution, smarter analysis, and a sleeker, more intuitive trading experience.
- XM’s customer support has delivered over years of testing, with 24/7 assistance in 30 languages, response times of under 2 minutes and a growing Telegram channel.
Cons
- XM is falling behind the curve by not offering cTrader, which is favored over MetaTrader by some serious traders for its smoother user experience and superior charting package.
- While the XM app stands out for its usability and exclusive copy trading products, the selection of technical analysis tools needs to be improved to meet the needs of advanced traders.
- Although trusted and generally well-regulated in some regions, XM also has global entities registered with the weak regulators like FSC (Belize) and FSA (Seychelles), whilst UK clients are no longer accepted, reducing its market reach.
Why Trade Synthetic Indices With AvaTrade?
AvaTrade offers active traders everything they need: an intuitive WebTrader, powerful AvaProtect risk management, a smooth 5-minute sign-up process, and dependable support you can rely on in fast-moving markets.
Jemma Grist, Reviewer
AvaTrade quick facts
- Demo Account
- ✔Yes
- Instruments
- CFDs, Forex, Stocks, Indices, Commodities, ETFs, Bonds, Crypto, Spread Betting, Futures
- Regulator
- ASIC, CySEC, FSCA, ISA, CBI, JFSA, BVI, FSRA/ADGM, AFM, CMA-Kenya, CIRO (via Friedberg Direct)
- Platforms
- WebTrader, AvaTradeGO, AvaOptions, AvaFutures, MT4, MT5, AlgoTrader, TradingView, TradingCentral, DupliTrade
- Minimum Deposit
- $100
- Minimum Trade
- 0.01 Lots
- Account Currencies
- USD, EUR, GBP, CAD, AUD, ZAR
Pros
- AvaTrade launched AvaFutures to offer low-margin access to global markets, then expanded in 2025 as one of the first brokers to add CME’s Micro Grain Futures, and then later in the year went further by integrating with TradingView.
- Years on, AvaTrade remains one of the few brokers offering a bespoke risk management tool, AvaProtect, that insures losses up to $1M for a fee and is easy to activate on the platform.
- Support at AvaTrade performed excellently during testing, with response times of 3 minutes and localized support in major trading jurisdictions, including the UK, Europe and the Middle East.
Cons
- AvaTrade’s WebTrader has improved, but work is still needed in terms of customizability – frustratingly widgets like market watch and watchlists can’t be hidden, moved, or resized.
- While signing up is a breeze, AvaTrade lacks an ECN account like Pepperstone or IC Markets, which provides the raw spreads and ultra-fast execution many day traders are looking for.
- The AvaSocial app is good but not great – the look and feel, plus the navigation between finding strategy providers and account management needs upgrading to rival category leaders like eToro.
Why Trade Synthetic Indices With IC?
IC (formerly IC Markets) offers superior pricing, exceptionally fast execution and seamless deposits. The introduction of advanced charting platforms, notably TradingView, and the Raw Trader Plus account, ensures it remains a top choice for intermediate to advanced day traders.
Christian Harris, Reviewer
IC quick facts
- Demo Account
- ✔Yes
- Instruments
- CFDs, Forex, Stocks, Indices, Commodities, Bonds, Futures, Crypto
- Regulator
- ASIC, CySEC, FSA, SCB, CMA-Kenya
- Platforms
- MT4, MT5, cTrader, TradingView, TradingCentral, DupliTrade, Quantower
- Minimum Deposit
- $200
- Minimum Trade
- 0.01 Lots
- Account Currencies
- USD, EUR, GBP, CAD, AUD, NZD, JPY, CHF, HKD, SGD
Pros
- You have access to over 2,250 CFDs across various markets, including forex, commodities, indices, stocks, bonds, and cryptocurrencies, allowing for diversified trading strategies.
- IC offers fast and dependable 24/7 support based on firsthand experience, particularly when it comes to accounts and funding issues.
- IC offers among the tightest spreads in the industry, with 0.0-pip spreads on major currency pairs, making it especially cost-effective for day traders.
Cons
- There are fees for certain withdrawal methods, including a $20 wire charge, which can eat into profits, especially for frequent withdrawals.
- The breadth and depth of tutorials, webinars and educational resources still need work, trailing alternatives like CMC Markets and reducing its suitability for beginners.
- Interest isn't paid on unused cash, an increasingly popular feature found at alternatives like Interactive Brokers.
Why Trade Synthetic Indices With IG?
IG continues to provide a comprehensive package with an intuitive web platform, best-in-class education for beginners, advanced charting tools bolstered by its recent TradingView integration, real-time data, and robust trade execution for experienced day traders.
Christian Harris, Reviewer
IG quick facts
- Demo Account
- ✔Yes
- Instruments
- CFDs (not in US), Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto, Spread Betting (UK only)
- Regulator
- CFTC, NFA, FCA, BaFin, ASIC, FINMA, MAS, JFSA, FMA, DFSA, BMA
- Platforms
- Web, L2 Dealer, MT4, TradingView, AutoChartist, TradingCentral, ProRealTime
- Minimum Deposit
- $0
- Minimum Trade
- 0.01 Lots
- Account Currencies
- USD, EUR, GBP, CAD, AUD, JPY, ZAR, SEK, DKK, CHF, HKD, SGD
Pros
- IG is amongst the best in terms of its range of instruments, which includes stocks, forex, indices, commodities, and cryptocurrencies, plus added US-listed futures and options as well as an AI Index, providing diversification opportunities.
- The IG app offers a superb mobile trading experience with a clean design that helped it secure Runner Up at our 'Best Trading App' award.
- IG offers an extensive collection of professional and engaging educational resources, including webinars, articles, and analysis.
Cons
- Beginners might find IG’s fee structure complex, with various fees for different types of trades or services, potentially leading to confusion or unexpected charges.
- IG has discontinued its swap-free account, reducing its appeal to Islamic traders.
- IG applies an inactivity fee of $12-$18 per month after 2 years, deterring casual investors.
Why Trade Synthetic Indices With Exness?
After slashing its spreads, improving its execution speeds and support trading on over 100 currency pairs with more than 40 account currencies to choose from, Exness is a fantastic option for active forex traders looking to minimize trading costs.
Christian Harris, Reviewer
Exness quick facts
- Demo Account
- ✔Yes
- Instruments
- CFDs on Forex, Stocks, Indices, Commodities, Crypto
- Regulator
- FSCA, CMA-Kenya, FSA, CBCS, BVIFSC, FSC, JSC, FCA (B2B only), CySEC (B2B only)
- Platforms
- Exness Trade App, Exness Terminal, MT4, MT5, TradingCentral
- Minimum Deposit
- $10 (varies by account and payment method)
- Minimum Trade
- 0.01 Lots
- Account Currencies
- USD, EUR, GBP, CAD, AUD, NZD, INR, JPY, ZAR, MYR, IDR, CHF, HKD, SGD, AED, SAR, HUF, BRL, NGN, THB, VND, UAH, KWD, QAR, KRW, MXN, KES, CNY
Pros
- Exness Terminal offers a streamlined experience for beginners with dynamic charts while setting up watchlists is a breeze.
- Excellent range of account types for all experience levels, including Cent, Pro plus the introduction of Raw Spread, ideal for day traders.
- Highly competitive spreads, reduced for USOIL and BTCUSD in 2024, are available from 0 pips with low commissions from $2 per side.
Cons
- Exness has expanded its range of CFDs, but there are still no real assets such as ETFs, cryptocurrencies or bonds
- Retail trading services are unavailable in certain jurisdictions, such as the US, UK, EU, and more recently India, limiting accessibility compared to top-tier brokers like Interactive Brokers.
- Apart from a mediocre blog, educational resources are woeful, especially compared to category leaders like IG which provide a more complete trading journey for newer traders.
Why Trade Synthetic Indices With Focus Markets?
Focus Markets is perfect for experienced active traders familiar with MetaTrader 5 or TradeLocker, offering flexible crypto transactions (USDT and BTC) and access to over 90 cryptocurrencies for seamless speculation, deposits, and withdrawals.
Christian Harris, Reviewer
Focus Markets quick facts
- Demo Account
- ✔Yes
- Instruments
- CFDs, Forex, Stocks, Indices, Commodities, Crypto, ETFs
- Regulator
- ASIC
- Platforms
- MT5, TradeLocker
- Minimum Deposit
- $100
- Minimum Trade
- 0.01 Lots
- Account Currencies
- USD, EUR, GBP, CAD, AUD, NZD, JPY, SGD
Pros
- Focus Markets excelled in the deposit and withdrawal category during testing, offering more base currencies than most competitors, including USD, CAD and EUR - and a range of traditional and popular crypto payment options, including BTC and USDT.
- Focus Markets offers a huge suite of 130+ cryptos and crypto indices, providing short-term opportunities on high-reward, but high-risk assets.
- Focus Markets’ MT5 and TradeLocker platforms delivered fast, seamless trade execution during testing with advanced charting, multiple timeframes, and useful tools like Depth of Market (DOM). The clean interfaces make navigation easy, while clear risk/reward ratios ensures precise trading.
Cons
- Focus Markets’ 24/5 support lacks direct phone help and unresponsive live chat, while email replies took a full business day during our latest tests. This slow support is a major drawback for active traders who need quick resolutions.
- Regulatory protection is a location lottery at Focus Markets – Australian traders benefit from strong ASIC oversight, but those using the SVGFSA-registered entity face limited recourse options in disputes.
- It mainly supports MT5 and TradeLocker, excluding popular platforms like MT4, cTrader and the increasingly popular charting package with active traders - TradingView.
How DayTrading.com Chose The Top Brokers That Allow Trading On Synthetic Indices
To rank the best brokers for synthetic indices, our team of experienced traders found and then evaluated platforms that offer simulated trading instruments.
Each broker’s synthetic index setup was tried, with our traders recording key factors like execution, pricing, platform stability, and user experience. We then combined hard data with our hands-on testing insights to create a ranking of the top synthetic index brokers.
What Is A Synthetic Index?
Synthetic index is a term used to describe an index that is not comprised of underlying assets, such as stocks, instead using random number generators to provide a value.
Synthetic indices typically take two forms:
- Asset-based, tracking the value of a specific market or element of a market, or
- Simulated, based on computer-generated data entirely separate from any actual markets but designed to imitate real-life price movements.
Understanding these different products can be confusing due to the interchangeability of the synthetic index label. This can also make it difficult for traders to discover which brokers offer synthetic indices trading.
Le’s break down both types of synthetic indices, listing their differences, respective merits and supporting brokers.
Simulated Synthetic Indices
Most commonly offered by forex brokers and binary options brokers from our tests, simulated synthetic indices use complex algorithms designed to mirror realistic price movements. In contrast to asset-based products, simulated synthetic indices are markets with no correlation to any underlying asset.
Simulated synthetic index brokers often provide traders with several options for their preferred trading vehicle and simulated market conditions. In addition, these markets can normally be traded 24/7.
However, some active traders are understandably wary of these products due to the opacity of these over-the-counter products. Some traders believe that for these products to be viable, the algorithms must be broker-favored, and therefore abstain from these artificial markets.
Asset-Based Synthetic Indices
Asset-based synthetic indices track the value of specific market sectors or market values. Popular examples of asset-based synthetic indices are the S&P 500 Volatility Index (VIX) and the US Dollar Index (USDX).
With synthetic indices based on spot assets, such as currency indices or market sector instruments, many of these products are hedged with real assets by the firm that provides the index.
A combination of swaps, futures, options and spot assets can also be used to back more sophisticated synthetic indices, though some of these products may not be fully hedged due to their complexity.
This measure attempts to secure the values of synthetic indices, though collapses have happened in the past – more on this later.
Simulated Vs Asset-Based Synthetic Indices
To help you decide which type of synthetic index is best for your goals and trading style, we have compared simulated and asset-based indices across several key categories:
Trading Vehicles
Simulated
With simulated synthetic indices brokers, trading instruments are more limited, often via binary options or CFDs. There are fewer forex brokers with simulated synthetic indices, with products mainly offered by binary brokers.
While these products are different in terms of leverage, fees and payouts, strategies are more limited than with asset-based synthetic indices.
Binary options, which are unregulated in certain jurisdictions, are typically traded in the short term with an all-or-nothing strategy.
Asset-Based
With asset-based synthetic indices, traders can use a variety of trading vehicles. Synthetic index brokers may offer contracts for difference (CFDs), exchange-traded funds (ETFs), futures, and options.
This gives traders more choice, opening up possibilities in terms of strategies and timeframes. The variety of vehicles available to trade asset-based synthetic indices also offers traders both high and low leverage options.
Payouts & Risk
Simulated
Simulated synthetic indices are typically traded through binary options or CFDs, and their payouts and capital risks vary depending on the vehicle used.
Binary options offer fixed payouts for a winning trade, with the best brokers for synthetic indices offering payouts of over 95% for a correct prediction. Traders cannot lose more than they invest in a position.
While CFDs offer leveraged profit potential, they also carry significant risks, including the possibility of losing more than the initial investment.
When trading at synthetic indices brokers using CFDs, ensure that your chosen brokerage offers features like stop losses and negative balance protection.
Asset-Based
Due to the wide range of vehicles available when trading asset-based synthetic indices, investors can choose a trading strategy suited to their personal risk/reward tolerance.
Products range from the highly leveraged CFD market down to the more stable ETF setup.
Safety & Security
Simulated
Brokers with simulated synthetic indices are not typically regulated by top-tier financial authorities such as the Securities and Exchange Commission (SEC) in the US or Financial Conduct Authority (FCA) in the UK.
Synthetic index binary options and forex brokers may not store client finds in tier-one banks or provide access to investor compensation schemes.
In addition, the opacity of simulated trading algorithms may not sit well with some traders. We’ve seen limited evidence to suggest that synthetic index brokers skew their algorithms to disadvantage investors, but with no real market to base prices on, the opportunity to manipulate simulated prices is arguably there.
Asset-Based
Asset-based synthetic indices are typically traded through regulated exchanges and brokers, which offer a higher level of security and transparency.
For example, the best brokers with synthetic indices brokers are often regulated by the FCA, SEC, or trusted bodies from other regions. This regulatory oversight provides traders with some level of protection against fraud, market manipulation, and other forms of misconduct.
However, this does not mean that asset-based synthetic index investments are safe. On 5 February 2018, VIX futures rose from their opening level of 16 into the low 30s by the afternoon. This caused two synthetic indices that offered an inverse VIX tracker to fall by over 95% each, wiping out the funds of traders.
Due to the nature of synthetic indices, such losses are often difficult to reverse.
Trading Hours
Simulated
One of the unique advantages of brokers with synthetic indices is the ability to trade a market with infinite liquidity that operates 24/7.
Other than scheduled maintenance and platform downtimes, the algorithms for simulated synthetic indices run constantly, giving traders around the world an equal chance to trade.
Asset-Based
The operating hours for asset-based synthetic indices usually follow the trading hours of the underlying assets that make up the index.
The longest trading hours can often be found via forex brokers with synthetic indices or futures brokers, with trading available up to 11 hours per day. However, even these extended market instruments do not typically trade on weekends.
Trading Fees
The fees and commissions paid when trading synthetic indices are often dependent on the vehicle and broker rather than the type of index. There are also other types of charges to consider when choosing the best brokers for synthetic indices, which we will get into later on.
Traders can opt for low or zero-commission brokers to trade ETFs and there are no commission fees when speculating with most binary options brokers. The highest fees will come when trading through forex brokers with synthetic indices CFDs, plus futures and options.
Comparing Brokers With Synthetic Indices
Our list of synthetic indices brokers includes several top brands. But to help you find which broker offers the best synthetic indices trading conditions, look for the following qualities:
Vehicles
The first step when choosing a trading platform is to establish the type of synthetic index available.
Binary options and forex brokers can sometimes support both asset-based synthetic indices and simulated synthetic indices.
However, traditional stocks, futures and options brokers typically shy away from the less transparent natures of simulated synthetic indices.
Markets & Customization
The next item to compare is which broker offers the synthetic index markets you favor.
When trading simulated synthetic indices, the best brokers offer a range of different products set up with various algorithms simulating different market conditions.
For asset-based synthetic indices, this can mean finding brokers that support products from a range of financial markets, such as stocks and forex.
Fees & Payouts
Simulated synthetic indices are often traded as binary options or “multipliers”, although some forex brokers allow CFD trading with simulated synthetic indices.
With binary options, there are no trading fees, with profits dictated by payouts. While investors should shop around for the most competitive payouts, ensure that you are not enticed into a suspect broker by high payouts alone.
CFD profits are similar from broker to broker. Spreads and charges such as commissions and swap fees make the difference between trading firms.
With asset-based synthetic indices, payouts will often depend on the trading product, which is largely independent of a specific broker. However, fees and commissions can significantly influence how much profit is made by a successful trader.
Look for low spreads and commissions when trading CFDs, and low or zero commissions for ETF and futures trading. This said, some brokers with synthetic indices can draw investors in with low trading fees and add account or deposit charges, so do your due diligence before signing up.
Regulation & Security
The safety of funds and sensitive personal information is key when trading any product.
To give yourself the best chance at staying safe, favor brokers with regulation from reputable bodies such as the US SEC or UK FCA.
The best brokers for synthetic indices will also offer additional measures, such as two-factor authentication (2FA) and fund insurance schemes.
Trading Platforms
Choosing brokers with synthetic indices that support stable, reliable and user-friendly platforms is a must. Some synthetic indices brokers use proprietary solutions so make use of a demo account to trial these terminals before committing money.
Alternatively, opt for a popular and well-supported platform such as MetaTrader 4 (MT4) or MetaTrader 5 (MT5). These platforms offer advantages such as customizable indicators and automated trading tools.
Payments
Choose brokers with synthetic indices that offer low-cost, high-speed deposit options. Ideally, these solutions will include choices with some protection, such as PayPal or debit cards. In addition, native support for your local currency will help you avoid conversion fees.
In the CFD and binary options space, there are also some synthetic indices brokers with bonus schemes. But while deposit bonuses can be attractive, ensure you understand any withdrawal terms before opting in.
Bottom Line
When comparing brokers with synthetic indices, there are several considerations to keep in mind. Firstly, traders should favor synthetic index brokers with oversight from reputable regulators. Other considerations include market availability, trading platform support, accepted payment methods and fees.
Get started with our list of the best brokers with synthetic indices.