CFD Indices Trading
CFD indices trading allows the speculation upon the performance of stock markets or industries as a whole. This article will discuss what indices are, what CFD trading is, top brokers and how to get started. Find out how to start trading CFD indices today.
Best CFD Indices Trading Brokers
Here is a short summary of why we think each broker belongs in this top list:
- Interactive Brokers - Over 8,000 CFDs are offered on a vast array of instruments, encompassing stocks, indices, forex, and commodities. Moreover, the TWS platform lends itself to seasoned day traders, offering a comprehensive selection of over 100 order types and algorithms, alongside premium market data sourced from reputable sources such as Reuters and Dow Jones.
- UnitedPips - UnitedPips supports CFD trading on a narrow selection of currencies, metals and cryptos. It somewhat compensates for the meagre asset range with high leverage up to 1:1000, seriously amplifying potential profits or losses, and spreads that don’t change with market conditions.
- IQCent - CFDs are available on forex, indices, commodities and cryptos, although the range of 175+ instruments is limited compared to alternatives such as Quotex with 400+. Leverage is available up to 1:500 but the $250 minimum deposit is noticeably higher than competitors.
- Capitalcore - The range of CFDs at Capitalcore is narrow, with 6 precious metals, 6 indices, and a slim suite of stocks. Notably, there are no commodities such as oil or gas and spreads vary greatly. Tiered leverage is available depending on the account, from 1:100 to 1:2000.
- Videforex - Videforex CFDs are available on forex, indices, cryptocurrencies and commodities with up to 1:500 leverage and tight spreads from near zero. CFDs incur a commission fee of 1%–2.5% and up to 5% for leveraged trades.
- Sage FX - Trade CFDs on forex, stocks, metals, energies, indices, cryptos and dollar futures. Sage FX offers tight spreads and high leverage on all instruments from 1:100 to 1:500.
CFD Indices Trading Comparison
| Broker | CFD Leverage | Minimum Deposit | Minimum Trade | Regulators |
|---|---|---|---|---|
| Interactive Brokers | 1:50 | $0 | $100 | FCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMA, AFM |
| UnitedPips | 1:1000 | $10 | 0.01 Lots | IFSA |
| IQCent | 1:500 | $250 | $0.01 | IFMRRC |
| Capitalcore | 1:2000 | $10 | 0.01 Lots | IFSA |
| Videforex | 1:500 | $250 | $0.01 | - |
| Sage FX | 1:500 | $10 | 0.01 Lots | Pending |
Interactive Brokers
"Interactive Brokers is one of the best brokers for advanced day traders, providing powerful charting platforms, real-time data, and customizable layouts, notably through the new IBKR Desktop application. Its superb pricing and advanced order options also make it highly attractive for day traders, while its diverse range of equities is still among the best in the industry."
Christian Harris, Reviewer
Interactive Brokers Quick Facts
| FTSE Spread | 0.005% (£1 Min) |
|---|---|
| GBPUSD Spread | 0.08-0.20 bps x trade value |
| Stocks Spread | 0.003 |
| Leverage | 1:50 |
| Regulator | FCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMA, AFM |
| Platforms | Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, TradingView, eSignal, TradingCentral, ProRealTime, Quantower |
| Account Currencies | USD, EUR, GBP, CAD, AUD, INR, JPY, SEK, NOK, DKK, CHF, AED, HUF |
Pros
- While primarily geared towards experienced traders, IBKR has made moves to broaden its appeal in recent years, reducing its minimum deposit from $10,000 to $0.
- Interactive Brokers has launched ForecastTrader, a unique, zero-commission product where users can trade yes/no Forecast Contracts on political, economic, and climate events, with fixed $1 payouts per contract, 24/6 market access, and 3.83% APY on held positions.
- IBKR continues to deliver unmatched access to global stocks with tens of thousands of equities available from 100+ market centres in 24 countries, most recently the Saudi Stock Exchange.
Cons
- Support can be slow and frustrating based on tests, so you might find it challenging to reach customer service representatives promptly or encounter delays in resolving issues.
- You can only have one active session per account, so you can’t have your desktop program and mobile app running simultaneously, making for a sometimes frustrating trading experience.
- IBKR provides a wide range of research tools, but their distribution across trading platforms and the web-based 'Account Management' page lacks consistency, leading to a confusing user experience.
UnitedPips
"UnitedPips is ideal for traders seeking leveraged trading opportunities, the security of fixed spreads, and the flexibility to deposit, withdraw, and trade cryptocurrencies - all in one sleek TradingView-powered platform."
UnitedPips Quick Facts
| Bonus Offer | 40% Deposit Bonus |
|---|---|
| FTSE Spread | NA |
| GBPUSD Spread | 1.3 |
| Stocks Spread | NA |
| Leverage | 1:1000 |
| Regulator | IFSA |
| Platforms | UniTrader |
| Account Currencies | USD |
Pros
- UnitedPips’ platform performs well, with an intuitive design that will appeal to beginners, while the TradingView integration delivers powerful charting tools without overwhelming users, making it straightforward to execute trades efficiently.
- Although being handed off mid-chat due to shift changes during testing was frustrating, customer support is generally good with quick, helpful responses, and 24/7 support via phone and email for regional teams is a definite advantage.
- UnitedPips offers impressive leverage up to 1:1000 with zero swap fees or commissions, which can enhance potential returns for day traders and swing traders looking to control prominent positions with less capital.
Cons
- UnitedPips' selection of tradable instruments is still minimal, comprising a bare minimum selection of forex, metals and crypto. There are no equities, indices or ETFs, which may be a drawback for experienced traders looking for diverse opportunities.
- Unlike brokers such as IG, UnitedPips is an offshore broker not regulated by any 'green tier' financial authorities, raising concerns for traders seeking assurance and protection under well-established regulatory frameworks.
- UnitedPips lacks comprehensive research, while the educational content for beginner traders is woeful. Compared to brokers like eToro, which offers tutorials, webinars, and advanced courses, UnitedPips offers minimal resources to help new traders understand key concepts.
IQCent
"IQCent will appeal to day traders looking for a straightforward binary options and CFD trading platform with low fees, a range of accounts, and copy trading. Getting started takes less than 1 minute and a $250 deposit. "
IQCent Quick Facts
| Bonus Offer | 20% to 200% Deposit Bonus |
|---|---|
| FTSE Spread | 1.4 |
| GBPUSD Spread | 0.8 |
| Stocks Spread | N/A |
| Leverage | 1:500 |
| Regulator | IFMRRC |
| Platforms | Online Platform, TradingView |
| Account Currencies | USD, EUR |
Pros
- CFD trading fees are competitive based on tests, including 0.7 pips on major forex pairs such as EUR/USD
- There's an accessible $0.01 minimum stake for new day traders with a small budget
- Keen traders can take part in trading contests with cash prizes
Cons
- The market analysis is very basic with limited technical summaries and insights from analysts
- IQCent charges a punitive $10 monthly inactivity fee if you fail to place at least 1 trade per month
- There's no automated trading support for algo traders
Capitalcore
"The major selling points of Capitalcore are its high leverage options up to 1:2000 and zero commission or swap fees. However, its weak regulatory oversight from the IFSA and non-existent education place it far behind the top brokers."
Capitalcore Quick Facts
| Bonus Offer | 40% Deposit Bonus up to $2,500 |
|---|---|
| FTSE Spread | 25 |
| GBPUSD Spread | 0.5 |
| Stocks Spread | 1.5 (Apple) |
| Leverage | 1:2000 |
| Regulator | IFSA |
| Platforms | WebTrader, Pro |
| Account Currencies | USD |
Pros
- While a relative newcomer to binary options space, its transparent, accessible service earned it runner up in DayTrading.com's 2025 'Best Binary Broker' award.
- The support team are available 24/7 and responded within minutes during testing with helpful responses.
- Capitalcore has added binary options trading on 30+ currency pairs, metals and crypto with one-click trading and payouts up to 95%.
Cons
- Capitalcore’s threadbare education and research seriously trail category leaders like IG, making it less suitable for aspiring traders.
- Capitalcore is not regulated by major financial authorities and has an unproven reputation, raising concerns about the safety of client funds.
- Platform support is limited to proprietary software, so there's no integration with the market-leading MetaTrader or cTrader, which offer built-in economic news and support automated trading.
Videforex
"Videforex will serve traders looking for a no-frills, easy-to-use platform to speculate on the direction of popular financial markets through binaries. With a sign-up process that takes a matter of minutes and a web-accessible platform, getting started is a breeze. "
Videforex Quick Facts
| Bonus Offer | 20% to 200% Deposit Bonus |
|---|---|
| FTSE Spread | Floating from 0.2 |
| GBPUSD Spread | Floating from 0.1 |
| Stocks Spread | NA |
| Leverage | 1:500 |
| Platforms | TradingView |
| Account Currencies | USD, EUR, GBP, AUD, RUB |
Pros
- Videforex is one of the few brokers with 24/7 multilingual video support, providing comprehensive assistance for active traders.
- Videforex regularly runs trading contests, offering practice opportunities and cash prizes to beginners and experienced traders, with position sizes from just ¢0.01.
- With the addition of over 60 new assets, Videforex now gives traders access to in-demand crypto (TON, ARB, PEPE, SHIB), top-performing tech stocks (Tesla, Meta, Nvidia, Amazon), and a more diverse FX portfolio (THB, ZAR, and MXN).
Cons
- The client terminal needs improvements based on our latest tests, sporting sometimes slow and unresponsive widgets which could dampen the experience for day traders.
- The absence of any educational tools is a serious drawback for newer traders who can find blogs, videos and live trading sessions at category leaders.
- Videforex lacks authorization from a trusted regulator, meaning traders may receive little to zero safeguards like segregated client accounts.
Sage FX
"Sage FX will suit forex traders looking for high leverage and ECN spreads. The broker's prop trading service will also appeal to users looking for funded accounts with up to $200K available."
Tobias Robinson, Reviewer
Sage FX Quick Facts
| Bonus Offer | $1,500 trading competition |
|---|---|
| FTSE Spread | 5.0 |
| GBPUSD Spread | 0.9 |
| Stocks Spread | N/A |
| Leverage | 1:500 |
| Regulator | Pending |
| Platforms | TradeLocker |
| Account Currencies | USD, EUR, GBP, CAD, AUD |
Pros
- High leverage up to 1:500
- Prop trading accounts with multiple funding tiers
- Flexible accounts with STP and ECN solutions available
Cons
- Not regulated by any reputable body
- Lacks educational resources and other extra features
- Relatively narrow range of asset classes
What Is An Index?
An index is a financial term for a method of tracking the performance of a market or a group of assets in a set, uniform way.
Indices can follow specific stock markets, like the ASX, or areas of economies and industries, like the top technology stocks, top non-technology stocks, etc.
Additionally, indices can encapsulate an entire market, such as the TAIEX which tracks the performance of the Taiwan Stock Market as a whole. Within finance, you cannot invest directly in an index.
Indexes may have different methods for calculating their value and weighting their constituents. Generally, an index would have a base value, e.g. 100, and a base year.
The value would then increase or decrease based on the performance of the index’s constituents.
The change in the value of an index is often more important than the value itself, as that indicates if the market is growing or not.
Popular Indices
CFD indices trading is popular in markets across the world. Some of the most commonly-traded indices include:
FTSE 100
The FTSE 100 is a UK stock market index that tracks the performance of the shares of the best 100 enterprises listed on the London Stock Exchange (LSE).
Note, just because the index tracks London Stock Exchange-listed stocks, that doesn’t mean that only UK-based companies can be found there. This index is maintained by the FTSE Group, which is a subsidiary of the London Stock Exchange Group. The FTSE 100 is one of the most popular instruments for CFD indices trading.
NASDAQ 100
This is a US index of the 100 largest non-financial companies that are listed on the NASDAQ stock exchange. The weights of stocks in the index are based on their market capitalisations, with rules implemented to cap the influence of the larger listed securities. You can find an index consisting only of the financial companies in a separate index called the NASDAQ Financial-100.
Dow Jones
This is a US index of the largest 30 companies that are listed on the New York Stock Exchange (NYSE).
S&P 500
This is a US index of the 500 companies that have the largest market capitalisation. This is favoured for CFD indices trading as it tracks a massive portion of the US economy.
DAX
This is a German index that tracks the performance of the largest 40 companies listed on the Frankfurt Stock Exchange. Although not as big a market as some others, it remains quite popular for CFD indices trading due to more regular market movements.
Why Are Indices Suitable For CFD Trading
CFD indices trading involves speculating on some of the best-performing companies in global markets. This provides diversified exposure to the underlying market without having to invest in individual companies, spreading the risk.
This in turn means that there is a reduction in the possibility of wild market movements in reaction to sudden news releases.
In addition, as an investor, you do not have to carry out as much in-depth technical analysis of individual companies when CFD indices trading.
Your investment will likely be spread over several industry sectors, reducing the stress of having to manually identify potential stocks worth looking into.
Moreover, CFD indices trading is possible throughout the day and is not necessarily limited to normal stock trading hours.
Pros
- Your positions are naturally spread across multiple industries and companies, diversifying your investment and reducing the possibility of drastic instability.
- Returns are measured on the performance of the index as a whole instead of any particular stocks, meaning that the trade wins or loses based on the performance of all of the listed stocks on the index.
- You can “short” an index if its overall performance is in decline, allowing you to still speculate on bearish markets.
- CFD indices trading allows you to speculate upon different global markets as a whole, rather than individual stocks, which requires much less in-depth research.
Cons
- You do not own any of the stocks listed within the particular index in which you open a CFD position.
- Although the performance of the index you speculate against is not majorly influenced by any single company and is more stable than trading individual stocks, the index value could still undergo drastic changes. It is a real possibility that you could lose more than you invest if trading on margin, so great caution needs to be taken.
- CFD indices trading is not supported in all countries. For example, the USA has banned all CFD trading.
Strategies
Follow The News
Before deciding what index you want to speculate upon using CFD indices trading, keeping yourself up-to-date on the latest financial news is paramount.
Changes in local laws can have a huge effect on any indices based in the area and being able to spot where the market is likely to head will place you in a better position to make the right choices.
More importantly, this will allow you to stay aware of possible future movements, reducing the chances of the market catching you off guard.
Hedging
Since CFD indices trading allows you to sell (“short”) the index, it is often used to hedge existing investments.
If your portfolio consists of several stocks from the same index and you expect there to be a sudden decline in the market, you can short the index with CFDs to offset the losses you would see from your main investment, reducing your downside exposure.
Check that your broker permits hedging prior to trading.
How To Start CFD Indices Trading
Choosing A Broker
To begin your CFD indices trading journey, you must first find a CFD broker that offers the right instruments. When doing your research, it is helpful to consider the following points:
- Leverage Rates: If you have a particular index in mind, you should investigate and compare the margin trading conditions offered. The lower the margin, the lower the required initial investment.
- Spreads: CFD indices trading brokers often make money from the spreads that they offer to you. The lower the spread, the lower the price movement you need to cover the trade cost.
- Reputation: The reputation of a broker is important when dealing with CFD indices trading, given that certain countries have limited regulations for this kind of trading. Is the broker well known? Have they had any reported issues with their platform before?
- Customer Support: The last thing that an investor wants is not being able to access their funds or make decisions on their positions due to errors with the platform. Customer support should not be overlooked, some brokers even offer 24/7 support.
- Fees: There can be many fees associated with CFD indices trading, such as overnight holding charges and transaction fees. Compare the costs of using each broker and try to consider them against your trading approach.
There are lots of different brokers that can offer you CFD indices trading on commercial or proprietary platforms, including City Index and Fineco Bank. Choosing the right broker could mean the difference between success or failure when CFD indices trading, see our list of top recommendations here.
Opening Your Position
As a rule of thumb, you should never invest more than you are comfortable losing. Most CFD indices trading platforms are easy to use, and entering/exiting your position is quick and simple. You will be presented with the options to buy (long) or sell (short) your chosen index.
Going long when CFD indices trading means that you expect the value rise to rise while going short is the position to take when you expect price drops. Most broker platforms offer you extensive information about different instruments, showcasing their data history to help inform your decisions.
Monitoring Your Position
You should keep a close eye on your positions once you open them, putting in place automated exit strategies if possible. If you think that your position is going to start failing, you should exit it to avoid losses. Some platforms allow you to place automated limits, called stop orders, which, once hit, will exit your position for you.
However, the negative balance protection offered by brokers is less a guarantee than a target, as severely unfavourable trading conditions, often coupled with lots of leverage, can still result in you losing a lot of money. Rapid and volatile changes in the market can sometimes be too quick for loss prevention strategies to react to.
Tips For CFD Indices Trading
Here are some useful tips that could help you during your CFD indices trading journey.
- Use stop losses and take profits to limit your losses.
- If you hold a stake in a given index through owning stocks in companies listed on there, consider hedging during times of poor market performance to offset any of your losses.
- Don’t invest more than you can handle losing.
- Be wary of using high leverage rates as, while profits are increased, losses are magnified.
Final Word On CFD Indices Trading
CFD indices trading is a great way for retail traders to access the indices markets without needing to physically invest in funds and trackers, simply making money from correct speculation of an index’s price movements. Leveraged trading is offered by most CFD brokers and allows profits to be magnified and markets to be accessed for less capital, though losses are also amplified. If you wish to begin CFD indices trading, check out our top CFD brokers.
FAQs
How Do CFDs Work?
CFD indices trading allows investors to speculate on the future performance of a market without needing to own the particular asset. CFDs are often more accessible than spot products and traders can trade in both bullish and bearish markets.
What Is An Index?
An index is a financial term for a method of tracking the performance of a market or a group of assets in a particular set. CFD indices trading involves taking out the derivatives contracts on index trackers.
What Is Going Long/Short When CFD Indices Trading?
When you buy “long”, you are predicting that the index will go up in value. When you sell “short”, you are predicting the opposite, that the index is going to decrease in value. If your predictions are correct, you will make money on your trade, and vice versa if you are wrong.
Are Trading Hours the Same Across All CFD Indices Trading Instruments?
No. CFD indices trading hours vary from index to index. Some indices may be 24-hours, while others follow the opening hours of the equities markets they are based on.
Do I Have To Pay Stamp Duty On My CFD Index Trades?
No, CFD indices trading is exempt from stamp duty in the UK. However, other countries may have different taxation policies, you can check out our CFD taxes page for an overview, though it is recommended you speak to a qualified advisor before making any tax-related financial decisions.