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Dow Jones

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James Barra

Written By

James Barra

James is an investment writer with a background in financial services. He has worked as a management consultant, where he delivered large-scale operational transformational programmes at some of Europe's biggest banks. James authors, edits and fact-checks content for a series of investing websites.

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Edited By

Jemma Grist

Edited By

Jemma Grist

Jemma is a writer, editor and fact-checker focused on retail trading and investing. Jemma brings a unique perspective to the forex, stock, and cryptocurrency markets and works across several investment websites as a researcher and broker analyst.

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Fact Checked By

William Berg

Fact Checked By

William Berg

William contributes to several investment websites, leveraging his experience as a consultant for IPOs in the Nordic market and background providing localization for forex trading software. William has worked as a writer and fact-checker for a long row of financial publications.

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Updated

Jun 12, 2024

The Dow Jones was founded in 1882 by Charles Dow, Edward Jones and Charles Bergstresser. Over the next century, the company grew into one of the biggest players in the financial and business news industry.

The firm has also created various market averages, the most famous of these being the Dow Jones Industrial Average (DJIA). Today, a long list of online traders turn to Dow Jones brokers to speculate on some of the world’s leading companies, including Apple and Microsoft.

This article will guide you through the information you need to know about trading on the Dow Jones, alongside its history, popular trading strategies, and more. We also list the best brokers with access to the Dow Jones in 2024.

How To Compare Dow Jones Brokers

Consider the following features when choosing between online brokers that support Dow Jones trading:

Platforms & Tools

The best platforms offered by Dow Jones brokers is, of course, a matter of personal preference. However, having the choice between third-party terminals or proprietary tools is worth looking out for.

In-built indicators such as the relative strength index (RSI), moving average convergence divergence (MACD) or stochastic oscillator may be useful when identifying patterns in the Dow Jones index.

The MetaTrader 4 platform, for example, offer 30+ integrated technical indicators without the need for separate downloads. Being able to simply plot these onto graphs and charts within one interface will be advantageous when speculating on the Dow Jones.

Instruments

This a prominent global index and so Dow Jones brokers may offer a range of investment products.

The simplest and often most cost-effective way to trade the Dow Jones is via an exchange-traded fund (ETF) or index-linked fund. Investing in these funds requires a smaller initial cash outlay whilst still providing a performance that mirrors that of the Dow Jones.

Alternatively, look out for Dow Jones brokers that also offer individual stocks. You should be able to trade shares of the 30 companies included in the Dow Jones.

Regulation

The best Dow Jones brokers will be regulated by top-tier financial authorities. Regulated brokers are considered the safest option and will provide capital protection and safeguarding initiatives for all retail traders.

Many Dow Jones brokers are registered with the US Securities and Exchange Commission (SEC). Examples include TD Ameritrade and Interactive Brokers. The National Futures Association (NFA) safeguards the integrity of the securities markets within the USA. Check whether your online broker is a member via the official website.

Fees

Commissions and spreads can make a big difference to your overall profit. Fidelity, for example, offers commission-free investing on US stocks and ETFs.

As well as direct fees, Dow Jones brokers with low non-trading costs such as deposit and withdrawal charges, inactivity fees, and account maintenance costs should rank highly. Additionally, if you are trading with Dow Jones brokers that only permit account denominations in USD, you may be liable for currency conversion fees.

News

Access to live data and the latest company news is important for all index trading. However, the association of the Dow Jones group with well-regarded publications is a significant advantage. Dow Jones brokers that provide retail clients with free access to Dow Jones Newswires should be a key consideration.

The company publishes daily news items including exclusive content from The Wall Street Journal, Barron’s, and MarketWatch covering all asset classes and markets worldwide. Having this information directly available via your broker’s platform will save time and hassle.

Interactive Brokers, for example, integrates Dow Jones stock market insights and financial analysis into its service offering.

What Is The Dow Jones?

Dow Jones is known for founding one of the most prominent indices: the Dow Jones Industrial Average. The DJIA is formed of 30 significant companies listed on stock exchanges in the United States.

The company also created and runs the Wall Street Journal, which remains one of the most influential financial publications to this day. One of the co-founders, Charles Dow, wanted to give investors predictions that would help to show whether the stock market was rising or falling.

The first index created by Dow consisted of 12 companies and the first recorded value of the Dow Jones Index, 40.94, was calculated by taking a market average of these firms. The top Dow Jones brokers offer access to the latest evolution of this index in 2024.

Dow also believed that it was possible to predict the movement in stocks based on the price movement of different types of equities. According to Dow Theory, an increase in industrial stocks will result in a similar trend in transportation stocks, for example. These averages can be used to try and predict the movement in share prices across various industries.

History

In 1882, Dow Jones was owned by its three founders Charles Dow, Edward Jones and Charles Bergstresser. Ownership then changed in 1902 when Dow died and the company was bought by Jessie Waldron and Clarence Barron. This pair eventually passed control to the Bancroft Family, who retained ownership until 2007 when Dow Jones and company was bought by News Corp.

Key milestone history dates include:

• 1896 – The start of the Dow Jones Industrial Average. At this time it consisted of 12 companies: General Electric Co, Laclede Gas Light Co, National Lead, North American Co, Tennessee Coal, American Cotton Oil, American Sugar Refining Co, American Tobacco, Chicago Gas, Distilling & Cattle Feeding Co, U.S. Rubber, U.S Leather and Iron and Railroad Co
• 1903 – U.S Steel Corp joins the DJIA. It is the largest company in the nation at the time
• 1916 – The industrial average expands to 20 stocks
• 1928 – The calculation for Dow is changed – a special divisor is used instead of dividing by the number of stocks. It is still referred to as an average
• 1929 – Dow falls 23% over two days from the economic crash and recession
• 1972 – Dow closes above 1000
• 1987 – In another crash Dow posts its worst-ever percentage loss of 22% over one day (19th October)
• 1999 – Dow first closes above 10,000
• 2008 – Dow’s biggest-ever trading percentage gain of 11% (13th October)
• 2022 – DJIA reached its all-time high at 36,952.65 points

Note, head to the official website for details on quarterly returns and daily trade volumes. The best Dow Jones brokers also provide information on investing metrics.

What Companies Are In The Dow Jones?

Like the S&P 500 and Nasdaq 100, the Dow Jones is one of the most prominent indices in the world. This is the list of companies included in the DJIA, along with the year they joined the index:

1. American Express Co – 1982
2. Amgen – 2020
3. Apple Inc – 2015
4. Boeing Co – 1987
5. Caterpillar Inc – 1991
6. Cisco Systems – 2009
7. Chevron Corp – 2008
8. Goldman Sachs Group – 2013
9. Home Depot Inc – 1999
10. Honeywell International Inc – 2020
11. International Business Machines Corp – 1979
12. Intel Corp – 1999
13. Johnson & Johnson – 1997
14. Coca-Cola Co – 1987
15. JP Morgan Chase & Co – 1991
16. McDonald’s Corp – 1999
17. 3M Co – 1976
18. Merck & Co Inc – 1979
19. Microsoft Corp – 1999
20. Nike Inc – 2013
21. Procter & Gamble Co – 1932
22. Travellers Companies Inc – 2009
23. UnitedHealth Group Inc – 2012
24. Salesforce Inc – 2020
25. Verizon Communications Inc – 2004
26. Visa Inc – 2013
27. Walgreens Boots Alliance Inc – 2018
28. Walmart – 1997
29. Walt Disney Co – 1991
30. Dow Inc – 2019

Keep an eye on the official index for the top stocks by market capitalization, along with any new additions. The top Dow Jones brokers will provide detailed insights into leading stocks, along with key financial metrics and latest price projections.

Trading Hours

Dow Jones is open from 9:30 am – 4 pm Monday to Friday in New York Time. In UK time, opening hours are 2:30 pm – 9 pm (GMT).

Outside of regular market hours, there is also industrial pre-market trading running from 4 am to 9:30 am (ET) and after-hours trading from 4 pm to 8 pm (ET) though not all Dow Jones brokers will offer this.

Note, there is no overnight trading or weekend investing on the index.

Other Indices & Publications

Outside of the DJIA, other indices and publications are currently or were previously owned by the Dow Jones company.

Indices:

• Dow Jones Industrial Average
• Dow Jones Transportation Average (Includes 20 transportation companies)
• Dow Jones Utility Average (Includes 15 US utility stocks)

Dow Jones and company no longer directly control these three indices that they originally founded. In 2012, S&P Dow Jones Indices LLC bought all three. This company is a collaboration between the CME Group and S&P Global.

Publications:

• The Wall Street Journal
• Financial News
• MarketWatch
• Barron’s

Strategies

Various investment and trading strategies can be employed to speculate on the Dow Jones via brokers that offer the index. Popular examples include:

• Top ten – This strategy involves making a balanced investment between the 10 Dow Jones stocks with the highest dividend yield at the start of the year. After holding these stocks for the rest of the year they can be sold following the same pattern. This strategy is known to have favourable results over the longer-term. Many Dow Jones brokers support this investment system
• Swing trading – This involves making trades that last a couple of days up to several months. The purpose is to take advantage of an anticipated price move to make a profit and usually involves buying the stock at the top of a cup in a price chart with a stop-loss order placed at the most recent low in the cup
• Scalping – This is a fast-paced strategy that involves making numerous small profits from minor price changes that occur throughout the day
• Range trading – By paying attention to live trading charts and graphs it’s possible to make predictions on Dow Jones futures and use this to determine buy and sell decisions
• News-based investing – This strategy involves buying and selling stocks based on the news and media announcements surrounding respective companies. If a stock receives attention it is likely to fluctuate depending on if the news is positive or negative
• High-frequency trading (HFT) – These strategies involve using algorithms to take advantage of small or short term changes in the market to make a profit

Note, that the best Dow Jones strategy will depend on your individual investment objectives and risk appetite. 

Final Word On Dow Jones Brokers

The Dow Jones Industrial Average compares and ranks 30 major companies listed on stock exchanges in the US. As well as the popular index, the organization also set up various financial news brands. This guide has provided an introduction to the Dow, along with key dates in its history. We have also explained how to compare brokerages and platforms that offer trading on the Dow Jones.

Use our list of the best platforms and brokers with access to the Dow Jones to get started today.

FAQs

How Do You Trade The Dow Jones At Online Brokers?

The easiest way to trade Dow Jones via online brokers is through an exchange-traded fund (ETF). ETFs are known for being less volatile than individual stocks since large swings in the performance of specific equities will have a limited impact on the overall index average. As well as being lower risk, ETFs also help diversify portfolios. You can check what instruments Dow Jones brokers offer before signing up.

What Time Does The Dow Jones Start Trading At Online Brokers?

Standard trading hours begin at 09:30 ET which will be shown in broker’s investing platforms.

When Does The Dow Jones Stop Trading At Online Brokers?

Typical closing times are 16:00 ET which will be reflected via broker’s platforms. Note, that closing hours may vary with Christmas and public holidays.

Is Dow Jones A Price-Weighted Index?

Yes, the components of Dow Jones with the most value will have more influence. The best Dow Jones brokers offer detailed statistics and data on the constituents of the index.

What Is The Future Forecast For The Dow Jones?

The Economic Forecast Agency has made a prediction of 30,296 points for the beginning of June 2024 with a maximum of 32,114 and a minimum of 28,478. Various other forecasts and predictions can be found online at Dow Jones Brokers.

When Is The Best Time To Trade The Dow Jones With Major Brokers?

Regular trading of Dow Jones begins early at 9:30 am EST. The hour ending at 10:30 am EST is often the best time of day. This is when the biggest changes occur in the shortest amount of time. Many professional day traders will prioritize this time to make the most of the high volatility in prices.