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Russell 2000

Russell 2000 brokers allow clients to trade stocks and exchange-traded funds (ETFs) from the small-and medium-cap equities market in the US. Launched in 1984, it forms a part of the Russell 3000 index which acts as a benchmark for more than $9 trillion worth of assets. This guide will detail how to choose Russell 2000 brokers alongside information on historical prices, average returns, live charts, and listed constituents.

Russell 2000 Brokers

These are the 5 best brokers for trading on the Russell 2000:

  1. AvaTrade
  2. Pepperstone
  3. IC Markets
  4. Eightcap
  5. DNA Markets

#1 - AvaTrade

Why We Chose AvaTrade

AvaTrade is a leading forex and CFD broker, established in 2006 and regulated across 9 jurisdictions. Over 400,000 users have signed up with the broker which processes over 2 million trades each month. The firm offers multiple trading platforms, including MT4, MT5, and a proprietary WebTrader. 1250+ financial instruments are available for day trading, alongside a comprehensive education center and multilingual customer support.

"AvaTrade offers the full package for short-term traders. There is powerful charting software, reliable execution, transparent fees, and fast account opening with a low minimum deposit."

- DayTrading Review Team
  • Instruments: CFDs, Forex, Stocks, Indices, Commodities, ETFs, Bonds, Crypto, Spread Betting
  • Regulator: ASIC, CySEC, FSCA, ISA, CBol, FSA, FSRA, BVI, ADGM
  • Platforms: WebTrader, AvaTradeGO, AvaOptions, MT4, MT5, AlgoTrader, TradingCentral, DupliTrade
  • Minimum Trade: 0.01 Lots
  • Leverage: 1:30 (Retail) 1:400 (Pro)

Stock Exchanges

AvaTrade offers trading on 15 stock exchanges:

  • Australian Securities Exchange (ASX)
  • Borsa Italiana
  • Deutsche Boerse
  • Euronext
  • Hang Seng
  • IBEX 35
  • Japan Exchange Group
  • London Stock Exchange
  • Nasdaq
  • Russell 2000
  • SIX Swiss Exchange
  • Shanghai Stock Exchange
  • Shenzhen Stock Exchange
  • Taiwan Stock Exchange
  • Toronto Stock Exchange

Pros

  • Day traders can access stable spreads and zero commissions with no hidden fees
  • The broker’s unique risk management tool, AvaProtect, protects against losses up to $1 million and is easy to activate in the platform
  • AvaTrade is a heavily regulated and trustworthy broker with licenses from the ASIC, CySEC and more

Cons

  • Traders from the US are not accepted
  • It’s a shame that there are no rebate schemes for serious traders looking for additional perks - CMC Markets would be a better choice here
  • There’s an above-average $50 inactivity fee after three months, though this won't impact active day traders
Visit AvaTrade

#2 - Pepperstone

Why We Chose Pepperstone

Established in Australia in 2010, Pepperstone is a top-rated forex and CFD broker with over 400,000 clients worldwide. It offers access to 1,300+ instruments on leading platforms MT4, MT5, cTrader and TradingView, maintaining low, transparent fees. Pepperstone is also regulated by trusted authorities like the FCA, ASIC, and CySEC, ensuring a secure environment for day traders at all levels.

"Pepperstone stands out as a top choice for day trading, offering razor-sharp spreads, ultra-fast execution, and advanced charting platforms for experienced traders. New traders are also welcomed with no minimum deposit, extensive educational resources, and exceptional 24/7 support."

- DayTrading Review Team
  • Instruments: CFDs, Forex, Currency Indices, Stocks, Indices, Commodities, ETFs, Crypto, Spread Betting
  • Regulator: FCA, ASIC, CySEC, DFSA, CMA, BaFin, SCB
  • Platforms: MT4, MT5, cTrader, TradingView, AutoChartist, DupliTrade
  • Minimum Deposit: $0
  • Minimum Trade: 0.01 Lots
  • Leverage: 1:30 (Retail), 1:500 (Pro)

Stock Exchanges

Pepperstone offers trading on 22 stock exchanges:

  • Australian Securities Exchange (ASX)
  • CAC 40 Index France
  • DAX GER 40 Index
  • Deutsche Boerse
  • Dow Jones
  • Euronext
  • FTSE UK Index
  • Hang Seng
  • Hong Kong Stock Exchange
  • IBEX 35
  • Japan Exchange Group
  • Korean Stock Exchange
  • London Stock Exchange
  • Nasdaq
  • New York Stock Exchange
  • Russell 2000
  • S&P 500
  • SIX Swiss Exchange
  • Shanghai Stock Exchange
  • Shenzhen Stock Exchange
  • Taiwan Stock Exchange
  • Toronto Stock Exchange

Pros

  • Pepperstone emerges as a low-cost broker, especially for serious day traders with spreads from 0.0 in the Razor account and rebates of 25%+ through the Active Trader program.
  • Now offering spread betting through TradingView, Pepperstone provides a seamless, tax-efficient trading experience with advanced analysis tools.
  • Pepperstone boasts impressive execution speeds, averaging around 30ms, facilitating fast order processing and execution that’s ideal for day trading.

Cons

  • Despite enhancements to its range of markets, crypto offerings are relatively limited compared to other brokers such as eToro, with no option to invest in real coins.
  • Pepperstone does not support cTrader Copy, a popular copy trading feature built into the excellent cTrader platform and available at alternatives like IC Markets.
  • There’s no simplified proprietary trading platform, nor are there any social trading features, which could be a disadvantage if you are new to day trading.
Visit Pepperstone

#3 - IC Markets

Why We Chose IC Markets

IC Markets is a globally recognized forex and CFD broker known for its excellent pricing, comprehensive range of trading instruments, and premium trading technology. Founded in 2007 and headquartered in Australia, the brokerage is regulated by the ASIC, CySEC and FSA, and has attracted more than 180,000 clients from over 200 countries.

"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."

- DayTrading Review Team
  • Instruments: CFDs, Forex, Stocks, Indices, Commodities, Bonds, Futures, Crypto
  • Regulator: ASIC, CySEC, FSA
  • Platforms: MT4, MT5, cTrader, TradingView, TradingCentral, DupliTrade
  • Minimum Deposit: $200
  • Minimum Trade: 0.01 Lots
  • Leverage: 1:30 (ASIC & CySEC), 1:500 (FSA), 1:1000 (Global)

Stock Exchanges

IC Markets offers trading on 12 stock exchanges:

  • Australian Securities Exchange (ASX)
  • CAC 40 Index France
  • DAX GER 40 Index
  • Dow Jones
  • Euronext
  • FTSE UK Index
  • Hang Seng
  • IBEX 35
  • Nasdaq
  • New York Stock Exchange
  • Russell 2000
  • S&P 500

Pros

  • As a tightly regulated and widely respected broker, IC Markets prioritizes client security and transparency, helping to ensure a reliable trading experience globally.
  • With ultra-fast execution speeds averaging 35 milliseconds and deep liquidity, IC Markets provides an optimal trading environment for scalpers, hedgers, and algorithmic traders.
  • IC Markets offers fast and dependable 24/5 support based on firsthand experience, particularly when it comes to accounts and funding issues.

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.
  • Despite four industry-leading third-party platforms, there is no proprietary software or trading app built with new traders in mind.
Visit IC Markets

#4 - Eightcap

Why We Chose Eightcap

"Eightcap delivers in every area for day traders with a growing selection of charting platforms and AI-powered tools. Now sporting 250+ crypto CFDs and the Crypto Crusher market scanner, it's also become a stand-out choice for crypto trading, winning our 'Best Crypto Broker' award two years in a row."

- DayTrading Review Team
  • Instruments: CFDs, Forex, Stocks, Indices, Commodities
  • Regulator: ASIC, FCA, xCySEC, SCB
  • Platforms: MT4, MT5, TradingView
  • Minimum Deposit: $100
  • Minimum Trade: 0.01 Lots

Stock Exchanges

Eightcap offers trading on 16 stock exchanges:

  • Australian Securities Exchange (ASX)
  • CAC 40 Index France
  • DAX GER 40 Index
  • Dow Jones
  • Euronext
  • FTSE UK Index
  • Hang Seng
  • Hong Kong Stock Exchange
  • Japan Exchange Group
  • London Stock Exchange
  • Nasdaq
  • New York Stock Exchange
  • Russell 2000
  • S&P 500
  • SIX Swiss Exchange
  • Toronto Stock Exchange

Pros

  • After bolstering its roster in 2021, Eightcap offers one of the most extensive selections of cryptocurrency CFDs in the market, with crypto/fiat pairs, crypto/crypto pairs, plus crypto indices for broader exposure to the market.
  • Having excelled across all key areas for day traders, Eightcap outperformed more than 490 competitors to win our 'Best Overall Broker' award for 2024, also securing our 'Best Crypto Broker' title.
  • Eightcap stands out with a selection of powerful trading tools, including MT4 and MT5, the innovative algorithmic trading platform Capitalise.ai, and more recently the 50-million strong social trading network TradingView.

Cons

  • Eightcap needs to continue bolstering its suite of instruments to match category leaders like Blackbull Markets with its 26,000+ assets, featuring a particularly weak selection of commodities.
  • Despite a useful library of educational guides and e-books, Eightcap still trails IG’s comprehensive toolkit for aspiring traders with its dedicated IG Academy app and 18 course categories.
  • In spite of an increasing variety of tools, Eightcap doesn't offer industry favorites like Autochartist or Trading Central, which offer cutting-edge charting analytics, live news, and market insights for short-term traders.
Visit Eightcap

#5 - DNA Markets

Why We Chose DNA Markets

DNA Markets is a forex and CFD broker established in 2020. The broker operates two entities in Australia and the offshore jurisdiction, St Vincent and the Grenadines. Traders can access 250+ markets, with a Standard account for beginners and a Raw account for experienced traders. The reliable MetaTrader 4 and MetaTrader 5 platforms are available, alongside Signal Start.

"DNA Markets is an excellent choice for short-term traders familiar with the MetaTrader platforms. The smooth sign-up process also makes it easy to get started while the $100 minimum deposit is accessible. That said, DNA Markets trails the top brokers in education, research and mobile trading. "

- DayTrading Review Team
  • Instruments: CFDs, Forex, Indices, Commodities, Stocks, Crypto
  • Regulator: ASIC
  • Platforms: MT4, MT5
  • Minimum Deposit: $100
  • Minimum Trade: 0.01 Lots

Stock Exchanges

DNA Markets offers trading on 11 stock exchanges:

  • Australian Securities Exchange (ASX)
  • CAC 40 Index France
  • DAX GER 40 Index
  • Dow Jones
  • FTSE UK Index
  • Hang Seng
  • Japan Exchange Group
  • Nasdaq
  • New York Stock Exchange
  • Russell 2000
  • S&P 500

Pros

  • Top-rate platforms and charting tools for day traders with access to MT4 and MT5
  • Convenient account funding with 7 base currencies, a $100 deposit and a wide range of payment methods
  • 24/5 customer support with response times of <2 minutes during testing

Cons

  • Although it continues to strengthen its client base and reputation DNA Markets lacks the track record of top brokers like Vantage
  • The investment offering trails alternatives, especially in terms of stocks, cryptos and commodities
  • There are limited educational and research tools, reducing its appeal to beginners
Visit DNA Markets

How To Compare Russell 2000 Brokers

What Is The Russell 2000?

The Russell 2000 is a stock market index that tracks the value of 2000 of the smallest publicly tradable companies in the USA. Alongside the Russell 1000 index, it forms the Russell 3000 index, which comprises more than 95% of all tradable equity on the US stock market when measured by market capitalization. Just over half of all companies in the Russell 2000 index are from the financial, industrial or healthcare industries.

While two-thirds of the companies in the Russell 3000 index are in the Russell 2000 index, the Russell 2000 only accounts for around 7% of the Russell 3000’s total market cap. This is because the components of the Russell 2000 are small and mid-cap stocks ranked using float-adjusted market cap. Float adjusted means the ranking takes into account the current shares in a company that are available to be publicly traded.

There is a wide range of market cap sizes making up the Russell 2000 as there is no exact definition of the market cap range for small and medium-cap stocks. At the time of writing, the largest market cap of a company on the index is just over $10.5 billion and the median average across the index is around $1 billion.

History

The Russell 2000 index was founded in 1984 by the Frank Russell Company, an asset management and investment firm. It was the first real way to gauge the strength of so many small and medium-cap companies in the US at once. Nowadays, the index is run by the Financial Times Stock Exchange (FTSE) Russell Group and has grown to become a popular method of gauging the health of the entire US equities market.

With the ticker symbol RUT, you can follow live price quotes and look at history charts for the Russell 2000 on websites such as MarketWatch and Yahoo Finance. The best brokers with access to the Russell 2000 also have charts showing time frames ranging from the past few days up to several years ago. The top platforms may also contain fact sheets detailing P/E ratio history, average historical returns, annual returns by year and the total return and dividend yield since the index was launched.

Key Dates

Rules

The Russell 2000’s listings can change each year as companies’ fortunes change and new organizations go public.

For a company to be included in the Russell 2000, it must satisfy the following criteria:

Trading Hours

The opening hours for the index depend on the instrument and exchange you are trading. For instance, futures on the E Mini Russell 2000 index from the CME Globex are tradable between Sunday 6 PM until Friday 5 PM (ET) with a 15-minute break each day starting at 4:15 PM.

Many of the stocks you can trade with Russell 2000 brokers are traded on the NASDAQ, for which the market operating hours are as follows:

However, bear in mind that online Russell 2000 brokers may set their own trading hours.

What Companies Are In The Russell 2000?

There are companies on the Russell 2000 from a wide range of industries such as technology, energy and utilities. As of 2023, the following are the top ten biggest constituents by market cap in the index:

  1. Iridium Communications (IRDM)
  2. Matador Res Co (MTDR)
  3. Crocs Inc (CROX)
  4. Saia Inc (SAIA)
  5. Inspire Medical Systems (INSP)
  6. Emcor Group Inc (EME)
  7. RBC Bearings Inc (RBC)
  8. Halozyme Therapeutics (HALO)
  9. Texas Roadhouse Inc (TXRH)
  10. Shockwave Medical (SWAV)

How To Start Trading The Russell 2000

Select An Instrument

There are several ways to trade the Russell 2000. Among the most popular are:

Stocks

The index is made up of companies from a range of different stock exchanges, so if you want to trade individual stocks you will need to ensure your Russell 2000 brokers provide access to at least one of these.

When selecting the stock or stocks to trade with Russell 2000 brokers, you need to consider volume vs volatility. The trading volume of an asset relates to how many shares of a company are being exchanged over a given time. It is a key metric because it gives an idea of where future price movements could be. For instance, if there are more people investing in a given stock at one time, the price is considered more likely to move and by a larger amount. A by-product of having so many other investors placing buy and sell orders is that there is lower slippage as orders are filled faster. Additionally, the bid-ask spreads are likely to be tighter too.

You also need to account for the volatility of a given stock tradable through Russell 2000 brokers. Volatility relates to how hard it is to predict the frequency and the size of swings in the value of a stock, which can be taken advantage of to generate returns. Generally, during times of low volatility, the price of a stock is not expected to see large fluctuations in price, meaning there may be less opportunity to generate returns. On the flip side, higher volatility stocks are often more attractive for day traders as there are more chances to capitalize on price action with the swings happening so often. The drawback is the added risk as the price can easily swing unfavorably, putting you in a losing position.

ETFs

An exchange-traded fund (ETF) is a collection of assets, typically stocks, that is tracked and traded as a single security. As the name suggests, they can be traded on exchanges, making them easy to access for clients of Russell 2000 brokers.

There are ETFs that track the price of the Russell 2000 by investing in some or all of the index’s stocks. For example, the iShares Russell 2000 ETF which can be traded on the NYSE ARCA is made up of 1,943 of the index’s holdings. Other viable investment options include the SPDR Russell 2000 small-cap ETF, the Xtrackers UCITS ETF, the Vanguard ETF Growth Index Fund and the Fidelity Index Fund. Another popular option is the iShares Russell 2000 Small-Cap Index K which is similar to the Russell 2000 index but it has different sector weighting and so the growth in value can vary.

If you feel that the ETFs that track the performance of the Russell 2000 index closely produce insufficient returns, you can instead invest in leveraged ETFs. Examples include the ProShares Ultra ETF and ProUltra which leverage the Russell 2000 index by 2x and 3x, respectively.
Alternatively, you can invest in inverse ETFs such as the ProShares Short and UltraShort Russell 2000. These are ETFs that track the Russell 2000 with a -1x and -2x inverse multiplier, allowing clients to profit from a decline in the value of the entire index.

Derivatives

Derivative products are a popular way for retail traders to speculate on price movements, with many Russell 2000 brokers offering products that allow them to take advantage of leverage through margin trading.

Derivatives can be traded on individual stocks, ETFs that track the Russell 2000, or using the Russell 2000 index itself as a basis for trades through brokers like eToro. Some of the most popular Russell 2000 derivatives are listed below:

Develop A Strategy

Adopting a strategy is the best way to turn your investments with Russell 2000 brokers into consistent profits. Day trading involves a lot of emotion. Developing a strategy can help you to stay disciplined as you follow a methodical way of investing and avoid rushing into trades. This could involve using certain technical indicators to confirm trends or limiting investment size to reduce risk exposure.

Research Companies & Markets

A good first step is to research the companies with the highest market capitalization as these will have the biggest influence on price movements. You should also take note of the largest markets and sectors represented on the index and research factors that influence these when developing your strategy.

Find A Niche

The index tracks just under 2000 stocks, so finding a niche is another way to streamline the trading process. Whether this is concentrating on a single industry or on certain stocks such as the top 10 by market cap.

There are many stocks you can invest in and many ways in which you can trade so it can be easy to be overwhelmed with too many choices. It may be best therefore to focus your time and effort on just a few securities. By doing so, you learn more about certain companies which can help you to make better predictions on future price movements.

Tips

Practice With A Demo Account

Demo accounts with Russell 2000 brokers are a good way to practice trading. This is especially important if you are unfamiliar with the platform, strategy or stocks you are trading with.

The best brokers with access to Russell 2000 will offer a free paper-trading account with plenty of simulated funds so you can build up experience with the index.

Use Available Resources

To help you stay educated or discover new strategies for trading the Russell 2000, you can use the many resources available online. For example, trading classes, books, ebooks, PDF guides and tutorial videos. Additionally, you can find advice from other investors on forums and communities on websites such as Reddit, Facebook and Discord.

Many Russell 2000 brokers also support trading services such as expert advisors (EA). These are algorithmic trading robots that implement instructions you provide to execute trades. Using an EA is no guarantee you will produce winning results as the bot is simply executing the strategy provided, but it can help to execute a greater number of trades. An EA is particularly useful for day traders that want to enter and exit many positions in a short space of time.

Economic Calendar

An economic calendar is a useful tool that can help you to keep track of important events and news that could impact your portfolio and investments. You can make notes of key dates relating to companies you are investing in. For instance, annual general meetings and expected publications of reports on performance.

Also, make sure you mark significant dates relating to the Russell 2000 index such as the annual reconstitution. All Russell indices are recalibrated annually to accurately reflect the US equities market. For example, if a company’s market cap grows too large for the Russell 2000, it will be moved up to the Russell 1000 index. The reconstitution always happens in June, but the exact dates may vary each year. Furthermore, track the dates when new eligible IPOs are added to the index, which happens each quarter.

Keep A Journal

Using a trading journal to keep track of your trades is helpful for monitoring and improving your performance. This can be done using a physical journal or with software such as Excel and bespoke programs. When you open a position, make a note of the asset, entry price and time as well as details such as why you executed that trade.

Then, after closing, input the exit price and time, the result, the profit or loss and why you exited your position at that time. This information will help you to self-reflect and review your own performance over time.

If you use Excel, you can generate graphs and charts to visualize your performance over time. Certain Russell 2000 brokers allow their clients to export their trading history into a CSV file making it easier to monitor trades in Excel. There are also some dedicated trading journal apps like Edgewonk and TraderSync that automate the journaling process and provide additional analysis tools.

Final Word On Russell 2000 Brokers

The Russell 2000 is a popular index due to its status as a benchmark for the performance of the US equities market. Through Russell 2000 brokers, clients can spot trade as well as open derivatives such as futures, options and CFDs on a range of stocks. Register with one of the top-rated Russell 200 brokers to get started.

FAQs

What Stocks Are In The Russell 2000?

There are around 1,950 stocks in the Russell 2000 index. You can find a full list of all companies in the Russell 2000 index on the FTSE Russell website. Some of the index’s top holdings by market cap include Iridium Communications, the Matador Res Co and Crocs Inc.

What Is The Russell 2000?

The Russell 2000 is an index that tracks 2000 small and medium-capitalization-sized companies in the US. It is often seen as a good way to evaluate the US economy as it accounts for so many small and medium high-growth stocks. You can trade on the Russell 2000 through one of the many listed stocks or through ETFs such as Global X Russell 2000 Covered Call ETF and the Schwab Index Fund.

Are Russell 2000 Brokers Regulated?

Many of the best Russell 2000 brokers hold licenses with regulatory bodies such as the Financial Industry Regulatory Authority (FINRA) in the US or the Financial Conduct Authority (FCA) in the UK. You can confirm if a broker is regulated by checking the license number on the regulator’s database.

How Do You Short The Russell 2000?

You can either take a short position with a CFD or by opening a put options contract. Another way is to trade against the Russell 2000 by investing in inverse and leveraged short ETFs such as the ProShares Short Russell 2000 -3X ETF.

Are Russell 2000 ETFs The Best For Trading?

To determine if the Russell 2000 is the best ETF for trading you should compare it with other index ETFs. For example, the S&P500, S&P600, NASDAQ index, Russell 1000 and Russell 3000. To do this, consider factors such as historical returns, volatility and performance forecasts.

Where Can I Track The Russell 2000 Index?

Websites such as Yahoo Finance and MarketWatch are good options for tracking the Russell 2000 index with the symbol RUT. Both sites provide useful information on instruments such as futures and ETFs with lists detailing recent contracts. The top Russell 2000 brokers also offer live price charts and graphs with the latest data on the index.