CFD indices trading allows the speculation upon the performance of stock markets or industries as a whole. Find out how trading an index using a CFD works, including the opportunities and risks. We’ve also tested and listed the top brokers with index CFDs.
Best CFD Index Trading Brokers
These are the top-rated platforms from our tests that offer CFDs on popular stock market indices:
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- FTSE Spread: 1.4
- GBPUSD Spread: 0.8
- Stocks Spread: 1.79 (Apple)
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- FTSE Spread: 0.5
- GBPUSD Spread: 1.5
- Stocks Spread: 0.13
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- FTSE Spread: From 0.4
- GBPUSD Spread: From 0.6
- Stocks Spread: Variable
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- FTSE Spread: 1.0
- GBPUSD Spread: 0.23
- Stocks Spread: 0.02
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- FTSE Spread: 1.64
- GBPUSD Spread: 1.9 average
- Stocks Spread: Variable
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- FTSE Spread: 2.0
- GBPUSD Spread: 1.3
- Stocks Spread: 1.28 (Apple)
81% of retail CFD accounts lose money.
Learn how we test brokers and why you can trust our ratings.
Here is a summary of why we recommend these brokers in October 2026:
- XM 4.8/5 XM delivers for CFD traders with flexible leverage and a huge range of markets, including bespoke thematic indices for exposure to popular sectors like artificial intelligence. The MT4/MT5 platforms are also fast and dependable while a free VPS is available to qualifying XM traders running algo trading strategies.
- AvaTrade 4.9/5 AvaTrade's 1250+ leveraged CFD products span a wide range of asset classes including stocks, indices, commodities, bonds, crypto, and ETFs. What we love is that you can speculate on rising and falling prices in the broker’s feature-rich web and mobile platforms with market-leading research tools to help you discover short-term trading opportunities.
- Trade Nation 4.4/5 Trade leveraged CFDs on over 1000 assets with low-cost spreads. You can also take advantage of the broker's integrated signals to help you determine when to enter and exit positions.
- IC 4.8/5 You gain access to over 2,250 CFDs, available for trading 24/5 across popular markets such as forex, commodities, indices, stocks, and bonds. Utilizing deep liquidity and advanced bridge technology, IC ensures optimal conditions for scalpers, hedgers, and algo traders alike.
- FP Markets 4.2/5 FP Markets offers CFD trading on a first-rate selection of financial markets, spanning stocks, major global indices, commodities, metals, cryptocurrencies, and bonds. With tight spreads, fast execution speeds, leverage up to 1:500 and top-tier liquidity, short-term traders get an efficient and seamless trading experience.
- Plus500 4.1/5 Plus500 presents commission-free CFDs encompassing a vast array of markets, spanning currencies, stocks, indices, and commodities. You can engage in long or short positions on popular assets, benefiting from adaptable leverage without encountering any concealed fees.
Compare CFD Index Fees
Compare direct CFD spreads on the FTSE 100 UK index side-by-side:
| Broker | FTSE 100 CFD Index Sread |
|---|---|
| XM | 1.4 |
| AvaTrade | 0.5 |
| Trade Nation | From 0.4 |
| IC | 1.0 |
| FP Markets | 1.64 |
| Plus500 | 2.0 |
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 | 3133 | ||||
| AvaTrade | 13567 | ||||
| Trade Nation | 2147 | ||||
| IC | 2 | ||||
| FP Markets | 10354 | ||||
| Plus500 | 20087 |
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
- FTSE Spread
- 1.4
- GBPUSD Spread
- 0.8
- Stocks Spread
- 1.79 (Apple)
- Leverage
- 1:1000
- Regulator
- CySEC, DFSA, FSCA, SCA, FSA, FSC-Belize, FSC-Mauritius, CMA-Kenya, CMA-UAE
- Platforms
- MT4, MT5, TradingCentral
- Account Currencies
- USD, EUR, GBP, JPY, ZAR
Pros
- 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 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 stands out for its commitment to trader education, with a wealth of well-presented resources, including webinars, tutorials, and even real-time trading sessions through XM Live.
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.
- XM relies solely on the MetaTrader platforms for desktop trading, so there’s no in-house downloadable solution for a more beginner-friendly user experience with unique features.
- 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.
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
- FTSE Spread
- 0.5
- GBPUSD Spread
- 1.5
- Stocks Spread
- 0.13
- Leverage
- 1:30 (Retail) 1:400 (Pro)
- 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
- Account Currencies
- USD, EUR, GBP, CAD, AUD, ZAR
Pros
- 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.
- The WebTrader excelled in our hands-on tests, sporting a user-friendly interface for beginners, complete with robust charting tools like 6 chart layouts and 60+ technical indicators.
- 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.
Cons
- 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.
- 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.
Trade Nation
Trade Nation suits discretionary traders who want to speculate on major indices like the US 500 or liquid FX pairs, and want the predictable all-in costs of fixed spreads. In tests, we found the fixed-spread TN Trader environment particularly useful for trading around scheduled economic releases owing to its reliable charting environment and because published spreads stayed capped.
Christian Harris, Reviewer
Trade Nation quick facts
- FTSE Spread
- From 0.4
- GBPUSD Spread
- From 0.6
- Stocks Spread
- Variable
- Leverage
- 1:30 (FCA, CMVM, ASIC), 1:200 (FSCA, SCB), 1:500 (FSA)
- Regulator
- FCA, ASIC, CMVM , FSCA, SCB, FSA
- Platforms
- TN Trader, MT4, TradingView
- Account Currencies
- USD, EUR, GBP, AUD, ZAR, SEK, NOK, DKK
Pros
- Trade Nation's 2026 partnership with Volt has sped up payments for Australian traders, who can now make instant deposits and withdrawals using PayID, with the faster payout capabilities planned for clients in the UK and EU.
- The broker expanded into Europe with regulated online trading services after securing authorization from Portugal's CVMV, boosting its safety protections for European residents.
- Trade Nation accounts can now be linked with TradingView, providing advanced multi-charts and the ability to execute trades directly.
Cons
- There is no raw or ECN pricing tier, which are often prefered by day traders. No matter how much you deposit or trade, you use the same fixed (or variable on MT4) pricing as beginners, making it unsuitable for scalpers especially.
- Withdrawals can take up to five business days, which is around the industry average but slower than the 1-3 days we’re increasingly seeing brokers offer in an attempt to quash withdrawal complaints from retail investors.
- Offshore SCB and FSA entities allow retail clients up to 1:200 and 1:500 leverage compared to 1:30 in regions like the UK, Europe and Australia, so an FSA client can have 16 times the exposure of a UK retail client on the same trade, but with less oversight and no compensation scheme.
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
- FTSE Spread
- 1.0
- GBPUSD Spread
- 0.23
- Stocks Spread
- 0.02
- Leverage
- 1:5000
- Regulator
- ASIC, CySEC, FSA, SCB, CMA-Kenya
- Platforms
- MT4, MT5, cTrader, TradingView, TradingCentral, DupliTrade, Quantower
- Account Currencies
- USD, EUR, GBP, CAD, AUD, NZD, JPY, CHF, HKD, SGD
Pros
- IC secured DayTrading.com's 'Best MT4/MT5 Broker' in 2025 for its seamless, industry-leading MetaTrader integration, refined over years to maximize the platform experience.
- IC offers fast and dependable 24/7 support based on firsthand experience, particularly when it comes to accounts and funding issues.
- As a tightly regulated and widely respected broker, IC prioritizes client security and transparency, helping to ensure a reliable trading experience globally.
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.
FP Markets
FP Markets strikes an ideal balance between affordability and quality for active traders. They’ve managed to keep trading costs low while expanding their investment offering, charting tools, and research features, all while providing excellent support you can rely on for urgent trading queries.
Christian Harris, Reviewer
FP Markets quick facts
- FTSE Spread
- 1.64
- GBPUSD Spread
- 1.9 average
- Stocks Spread
- Variable
- Leverage
- 1:30 (UK), 1:500 (Global)
- Regulator
- ASIC, CySEC, FSA, FSCA, FSC, SCB, CMA-Kenya
- Platforms
- Iress, MT4, MT5, cTrader, TradingView, AutoChartist, TradingCentral
- Account Currencies
- USD, EUR, GBP, CAD, AUD, NZD, JPY, CHF, HKD, SGD
Pros
- FP Markets delivers fast and dependable support, available 24/5 with average response times of less than 1 minute during testing.
- AI-powered sentiment analysis, trading signals and real-time NewsIQ research, integrated with MT4 and MT5, has been added via FP Markets Intelligence.
- With MetaTrader, cTrader, Iress and more recently TradingView, FP Markets is one of the most accommodating brokers in terms of platform choice.
Cons
- FP Markets trails the best MetaTrader brokers, despite offering a Trader's Toolbox on MT4, just 130 instruments are available, limiting opportunities for serious traders, especially compared to Pepperstone with its 1,300 assets.
- Although Traders Hub provides rich research, notably the Daily Report, Technical Report, Market Insights, and Fundamental Analysis, it needs to widen its daily content variety and keep its forex news updated to match category leaders like IG.
- FP Markets’ Iress platform is only available to clients in Australia. It also primarily emphasizes stock trading over forex trading, and data fees can accumulate rapidly unless you're an active trader or maintain a high-balance account.
Plus500
Plus500 offers a super-clean experience for traders with a CFD trading platform that sports a modern design and dynamic charting. That said, the broker’s research tools are limited, fees trail the cheapest brokers, and there’s room for enhancement in its educational resources.
Christian Harris, Reviewer
Plus500 quick facts
- FTSE Spread
- 2.0
- GBPUSD Spread
- 1.3
- Stocks Spread
- 1.28 (Apple)
- Leverage
- ✔Yes
- Regulator
- FCA, CySEC, EFSA, ASIC, FMA, FSCA, MAS, ISA, FSA, DFSA, SCA, JFSA, SCB, CIRO, BAPPEBTI, OJK, BI
- Platforms
- WebTrader, App
- Account Currencies
- USD, EUR, GBP, AUD, ZAR, CZK
Pros
- The broker offers low commission trading on a diverse range of markets, minimizing additional fees while appealing to established traders
- The customer support team continue to provide reliable 24/7 support via email, live chat and WhatsApp
- Plus500 has bolstered its suite of short-term trading products, including introducing VIX options with enhanced volatility and extended 24/5 hours trading on select stock and ETF CFDs, including SpaceX
Cons
- Algo trading and scalping are not supported, which may deter some day traders
- The absence of social trading means users can’t follow and replicate the trades of experienced traders
- Plus500’s lack of support for MetaTrader or cTrader charting tools might be a deal breaker for advanced day traders looking for familiarity
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.
Bottom Line?
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.
FAQ
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?
Not normally, 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.