S&P 500
S&P 500 brokers provide access to the most popular stock index in the United States, followed closely by the Nasdaq. This guide includes a comprehensive breakdown of the criteria required for US stocks to be listed in the S&P 500, as well as an analysis of the top performing companies in the index. We also explain how to get started with S&P 500 brokers and list the top supporting platforms, tools and investing apps. Find out how to compare online brokers with access to the S&P 500 in 2023.
S&P 500 Brokers
These are the 10 best brokers for trading on the S&P 500:
#1 - Forex.com
Forex.com boasts a global reputation with multiple awards and 20+ years experience. Regulated in the US, EU, UK and Canada they provide a huge range of markets, not just forex, and offer competitive fees on a cutting-edge platform. The brand also provides a suite of additional tools, from performance analytics and SMART Signals to advanced charts and strategy builders.
"Forex.com is an excellent broker for forex traders with over 80 currency pairs, tight spreads, low commissions and powerful platforms. The brand is also heavily regulated while its parent company is listed on the NASDAQ, giving it a high trust score."
- DayTrading Review Team
- Instruments: Forex, Spot Metals
- Regulator: NFA, CFTC
- Platforms: MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral
- Min. Deposit: $100
- Min. Trade: 0.01 Lots
- Leverage: 1:50
Stock Exchanges
Forex.com offers trading on 13 stock exchanges:
- Australian Securities Exchange
- Borsa Italiana
- CAC 40 Index France
- DAX GER 40 Index
- Dow Jones
- Euronext
- FTSE UK Index
- Hang Seng
- IBEX 35
- Japan Exchange Group
- Nasdaq
- S&P 500
- SIX Swiss Exchange
Forex Trading
Forex.com is a leading FX broker. The brand offers a wide range of currency pairs and some of the lowest fees in the industry. Spreads on the EUR/USD come in as low as 0.0 with a $7 commission per $100k.
Stocks Trading
Forex.com offers access to thousands of US, EU and UK stocks, with spreads of just 1 point. Speculate on household names as well as new IPOs. US stocks are available from just 1.8 cents per share.
Pros
- Excellent trading tools including Trading Central, SMART Signals and MetaTrader 4
- Up to 15% cashback rebates for active traders
- Beginner-friendly web platform and mobile app
Cons
- $15 monthly inactivity fee
- No copy trading platform
- Investment offering varies between countries
#2 - eToro USA
eToro is a social investing platform that offers stocks, ETFs, options, and crypto. The broker is well-known for its user-friendly community-centred platform and competitive fees. With FINRA and SIPC oversight and millions of users across the world, this brand is highly respected. eToro securities trading is offered by eToro USA Securities, Inc.
"eToro is a top pick for users looking for social investing and copy trading. With a low deposit, zero commissions and an intuitive platform, the broker will meet the needs of newer traders."
- DayTrading Review Team
- Instruments: Stocks, Options, ETFs, Crypto
- Regulator: SEC, FINRA
- Platforms: Own
- Min. Deposit: $10
- Min. Trade: $10
Stock Exchanges
eToro USA offers trading on 3 stock exchanges:
- Dow Jones
- New York Stock Exchange
- S&P 500
Stocks Trading
Trade popular US stocks and ETFs with zero commissions while fractional shares and options are also available. The eToro Academy and excellent market research are also huge bonuses for newer investors.
Crypto Trading
eToro US leads the way in cryptocurrency trading. 1% fee for buying or selling crypto added to the spread (from 0.75% for BTC), with their own wallet service and the largest number of cryptos to trade in the market. eToro copy trading is only for cryptos. Crypto asset investing is highly volatile and unregulated. No consumer protection. Tax on profits may apply.
Pros
- The $10 minimum deposit and straightforward account opening process means beginners can get started quickly
- The online broker offers an intuitive social investment network with straightforward copy trading on cryptos
- A free demo account means new users and prospective traders can try the broker risk-free
Cons
- No MetaTrader 4 platform integration
- Narrower range of instruments than some competitors
#3 - Kwakol Markets
Kwakol Markets is a Nigerian headquartered broker with strong regulatory oversight in Australia and Canada. A great selection of asset classes are available, including synthetic products that simulate realistic market activity. Clients can trade on the MT4, MT5 and cTrader platforms, as well as a copy trading solution whereby a fee is only paid on profitable trades.
"Kwakol Markets is a good option for newer traders with a dedicated learning academy, copy trading and a choice of reliable platforms. New clients can also sign up and start trading in four straightforward steps."
- DayTrading Review Team
- Instruments: CFDs, Forex, Stocks, Indices, Commodities, Crypto
- Regulator: ASIC, FINTRAC
- Platforms: MT4, MT5, AutoChartist
- Min. Deposit: $1
- Min. Trade: 0.01 Lots
- Leverage: 1:1000
Stock Exchanges
Kwakol Markets offers trading on 8 stock exchanges:
- Dow Jones
- Euronext
- Hong Kong Stock Exchange
- London Stock Exchange
- Nasdaq
- New York Stock Exchange
- S&P 500
- Taiwan Stock Exchange
CFD Trading
CFDs are available on a breath of underlying assets, including stocks, indices, commodities, forex and cryptos. High leverage up to 1:500 is available alongside a 0.01 minimum lot size and award-winning software. For the tightest spreads from 0 pips, opt for the Premium account.
Forex Trading
Kwakol Markets offers a wider range of forex pairs than most competitors, with 90+ assets available. Users get fast execution speeds through the ECN model and competitive spreads. On the negative side, not all currency pairs are available on MT4.
Stocks Trading
Trade stocks with zero commissions and ultra-fast trade executions. Clients get exposure to US, EU, Asian and Russian stock markets on both the MT4 and MT5 platforms. Stocks are available as CFDs, so users will not own the underlying shares.
Crypto Trading
Trade cryptos against fiat currencies, other cryptocurrencies and metals like gold. This separates the broker from many alternatives that only offer cryptos paired with the USD. High leverage up to 1:20 on cryptos is available, plus support for Expert Advisors and copy trading.
Pros
- Demo account available
- 0.01 Lot trading
- MetaTrader 4 and MetaTrader 5 integration
Cons
- Lack of deposit and withdrawal methods
- High deposits for premium features
- Regional restrictions in certain countries
#4 - IG Group
IG is an award-winning broker that has an excellent reputation globally. The brand-US offers spread betting, CFD and forex trading across a comprehensive suite of markets. IG is also multi-regulated, provides a great trading app and has 50 years experience.
"IG offers a superb all-round package. Beginners will appreciate the user-friendly web platform and secure trading environment while established investors will rate the 17,000+ markets and top-tier market research."
- DayTrading Review Team
- Instruments: CFDs, Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto, Spread Betting
- Regulator: FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA
- Platforms: MT4, AutoChartist, TradingCentral
- Min. Deposit: $0
- Min. Trade: 0.01 Lots
- Leverage: 1:30 (Retail), 1:250 (Pro)
Stock Exchanges
IG Group offers trading on 20 stock exchanges:
- Australian Securities Exchange
- Bombay Stock Exchange
- Borsa Italiana
- Deutsche Boerse
- Dow Jones
- Euronext
- Hong Kong Stock Exchange
- IBEX 35
- Japan Exchange Group
- Korean Stock Exchange
- London Stock Exchange
- National Stock Exchange Of India
- Russell 2000
- S&P 500
- SIX Swiss Exchange
- Shanghai Stock Exchange
- Shenzhen Stock Exchange
- Tadawul
- Taiwan Stock Exchange
- Toronto Stock Exchange
CFD Trading
IG offers an impressive suite of 17,000+ CFD instruments. Negative balance protection ensures accounts cannot drop below zero while custom price alerts and the IG Academy enhance the trading experience.
Forex Trading
IG offers currency trading on its award-winning web platform and mobile app. Comprehensive charts and forex analysis tools are also available through ProRealTime.
Stocks Trading
IG offers 13,000+ shares, with more listed firms than most competitors. Fees are low with no commission on US stocks. Extended hours trading is also available alongside ultra-fast execution speeds of 0.014 seconds.
Crypto Trading
11 popular cryptos are available, plus two crypto crosses. A crypto index is also offered, following the value of the top 10 digital currencies by market cap. All cryptos are available via CFDs.
Pros
- Share dealing and ISAs are available for longer term investing
- Opening an account takes less than 5 minutes
- Over 17,000 assets are available spanning stocks, forex, commodities, baskets, futures, options and more
Cons
- Inactivity charge
- No copy trading platform
#5 - Pocket Option
Founded in 2017, Pocket Option is a binary options broker offering up/down contracts on forex, stocks and cryptocurrencies. With over 100,000 active users and a global reach, the brand has proven popular with budding traders. Pocket Option also supports dozens of payment methods and has a low minimum trade of just $1.
"We recommend Pocket Option for aspiring binary options traders looking for copy trading services and a low minimum investment."
- DayTrading Review Team
- Instruments: Binary Options, Currencies, Commodities, Stocks, Indices
- Regulator: IFMRRC
- Platforms: MT5
- Min. Deposit: $50
- Min. Trade: $1
Stock Exchanges
Pocket Option offers trading on 11 stock exchanges:
- Australian Securities Exchange
- CAC 40 Index France
- DAX GER 40 Index
- Dow Jones
- Euronext
- FTSE UK Index
- IBEX 35
- Japan Exchange Group
- Nasdaq
- New York Stock Exchange
- S&P 500
Forex Trading
Binary and OTC options can be purchased on over 40 foreign exchange pairs. Typical payouts are also decent at 81% and users can trade forex binary options in just a couple of clicks.
Stocks Trading
Trade 30 of the most popular American multinational stocks including Microsoft and Google. Payouts on big brands come in at a decent 92% while indices are available up to 67%.
Crypto Trading
Pocket Option supports major cryptocurrencies on a beginner-friendly app. Over 10 leading cryptocurrencies are available with very high leverage up to 1:1000.
Pros
- Welcome bonuses and coupon codes
- 50+ payment methods
- 92% payouts on binaries
Cons
- IFMRRC is not a reputable regulator
- No MT4 trading platform
- Only one account type is available
#6 - IQCent
IQCent is an offshore binary options and CFD broker based in the Marshall Islands with 10+ payment methods and a low $50 starting deposit. With 100+ assets, around the clock trading and high payouts the brand is popular with aspiring traders.
"IQCent will appeal to newer traders who want a platform where they can trade both binary options and CFDs with copy trading support and regular contests."
- DayTrading Review Team
- Instruments: Binary Options, CFDs, Forex, Stocks, Indices, Commodities, Crypto
- Regulator: IFMRRC
- Platforms: TradingView
- Min. Deposit: $250
- Min. Trade: $0.01
- Leverage: 1:500
Stock Exchanges
IQCent offers trading on 5 stock exchanges:
- DAX GER 40 Index
- Dow Jones
- FTSE UK Index
- Nasdaq
- S&P 500
CFD Trading
IQCent CFDs are available on forex, stocks, indices, commodities and cryptos with leverage variable by asset to a maximum of 1:500, which is higher than many alternatives. 24/7 customer support is also available to assist new users.
Forex Trading
IQCent traders can access CFDs or binary options on 40+ forex pairs, including majors, minors and exotics. CFD spreads start from 0.7 pips and binary options payouts are decent up to 95%. Trading takes place through the broker's proprietary platform with advanced analysis tools.
Stocks Trading
IQCent offers CFDs and binaries on four German stocks: Lufthansa, Deutsche, Daimler and BMW. Traders can also speculate on stock markets via seven leading indices including US30, S&P500 and FTSE100.
Crypto Trading
IQCent offers 17 crypto assets through its own platform, including Bitcoin, Ethereum and Litecoin. Leverage on crypto CFDs is limited to 1:10 while binary options payouts vary by token but are competitive.
Pros
- Binary options with 98% payouts
- Instant deposits and fast withdrawals
- Copy trading service
Cons
- Poor selection of stocks with just four equities
- A short period before an inactivity fee is charged
- Not overseen by any highly respected regulator
#7 - Nadex
Nadex is a renowned exchange and binary options provider, based in the US. The company is fully regulated by the CFTC and offers options, call spreads and Knock Out contracts. Nadex also has just a $1 entry or exit fee and a user-friendly platform and proprietary app.
"Users looking to trade short-term binary options with a US-regulated broker will find a good platform in Nadex."
- DayTrading Review Team
- Instruments: Binary Options, Knock Outs™, Call Spreads
- Regulator: CFTC
- Platforms: Own
- Min. Deposit: $250
- Min. Trade: $1
Stock Exchanges
Nadex offers trading on 7 stock exchanges:
- DAX GER 40 Index
- Dow Jones
- FTSE UK Index
- Japan Exchange Group
- Nasdaq
- S&P 500
- Shenzhen Stock Exchange
Forex Trading
Speculate on 11 popular currency pairs via Knock Out contracts, call spreads and binary options. Nadex offers a wider range of timeframes than most binary options brokers, with contracts spanning from intraday to weekly.
Stocks Trading
Speculate on a handful of global indices via binary options contracts, including the S&P 500 and FTSE 100. There are low commissions and traders can see fixed payouts and risk levels before opening a trade.
Crypto Trading
Nadex offers a limited list of cryptos with just Bitcoin and Ethereum. Traders can go long or short though with straightforward binary options contracts that mean you don't need to own the underlying token.
Pros
- A range of timeframes that will suit both short and longer term strategies
- Free demo account for new users
- US regulated exchange with excellent trust score
Cons
- Products and tools are more advanced than some alternatives
- Narrow selection of cryptocurrencies to trade
- No welcome bonuses or financial incentives
#8 - Videforex
Videforex offers access to stock, index, crypto, forex and commodities markets via binary options and CFDs. The proprietary platform, mobile app and integrated copy trading are user-friendly and will suit new and casual traders, and the market analysis tools and trading contests provide good ways to improve your trading skills.
"Newer traders will find a lot to enjoy about trading binary options on Videforex's easy-to-use proprietary platform, as well as the broker's copy trading solution. Payouts are also higher than most alternatives climbing to 98%."
- DayTrading Review Team
- Instruments: Binary Options, CFDs, Forex, Indices, Commodities, Crypto
- Platforms: TradingView
- Min. Deposit: $250
- Min. Trade: $0.01
- Leverage: 1:500
Stock Exchanges
Videforex offers trading on 7 stock exchanges:
- Dow Jones
- FTSE UK Index
- Hong Kong Stock Exchange
- IBEX 35
- Nasdaq
- S&P 500
- SIX Swiss Exchange
CFD Trading
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.
Forex Trading
Trade 35 major, minor and exotic forex pairs through CFDs with floating spreads from 0.1 pips. Alternatively, binary options allow you to speculate on rising and falling prices with a fixed stake and payout.
Stocks Trading
Trade binary options and CFDs on global stocks from US, European, Russian and Asian exchanges, as well as 37 indices covering a wide range of global markets. The access to stocks trumps many binary options brokers.
Crypto Trading
Traders can speculate on crypto prices in pairs with USD and CNY through binary options and CFDs. The range of digital currencies is fairly narrow vs alternatives but major tokens like Bitcoin are available.
Pros
- Earn up to 98% payouts on 100+ assets with the broker’s binary options
- Mirror the trades of experienced investors with low fees
- Withdrawals are usually processed within one hour
Cons
- The broker isn’t overseen by a trusted regulatory agency
- No MetaTrader 4 integration
- US clients aren’t accepted due to legal restrictions
#9 - ForexChief
ForexChief is a foreign exchange and CFD broker, established in 2014. The company is based offshore and registered with the VFSC and FMA. Users can choose between a wide selection of accounts and base currencies, making ForexChief accessible to global traders. The brand also stands out for its no deposit bonus and fee rebates for high-volume traders.
"ForexChief will prove popular with investors looking to trade highly leveraged CFDs on the popular MetaTrader platforms. The large welcome bonus and low starting deposit will also appeal to new traders."
- DayTrading Review Team
- Instruments: CFDs, Forex, Metals, Commodities, Stocks, Indices
- Regulator: VFSC
- Platforms: MT4, MT5
- Min. Deposit: $10
- Min. Trade: 0.01 Lots
- Leverage: 1:1000
Stock Exchanges
ForexChief offers trading on 14 stock exchanges:
- Australian Securities Exchange
- 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
- Nasdaq
- New York Stock Exchange
- S&P 500
CFD Trading
ForexChief offers a competitive range of CFDs, encompassing crypto, indices, energies and metals. A clear pricing schedule is available to clients with no hidden charges. Traders can also access very high leverage up to 1:1000.
Forex Trading
ForexChief supports spot foreign exchange trading on all account types for 40+ major, minor and exotic currency pairs on the leading MT4 and MT5 platforms. Spreads are tight starting from zero and there are no dealers or requotes.
Stocks Trading
ForexChief offers 100 US company stocks CFDs for MT4 DirectFX and Classic+ account holders. Investors can speculate on the price of some of the world's largest companies, including Apple and Coca Cola. Spreads start from 5.
Crypto Trading
ForexChief supports crypto trading with five major digital currencies paired against the US dollar. Traders can bet on rising and falling prices with leveraged CFDs and market-leading trading software.
Pros
- STP/ECN execution with low spreads from 0.0 pips
- High leverage up to 1:1000 is available
- Copy trading solution with signals
Cons
- Limited market research
- Weak regulatory oversight
- Withdrawal fees on several payment methods
#10 - Axofa
Axofa is a forex and CFD broker registered in St Vincent and the Grenadines. The broker offers three account types with access to forex, commodities and indices. With ECN processing, low minimum deposits and no commissions, Axofa could be an attractive option, although the broker does not hold a reputable license.
"Axofa could be a good option for clients looking for social trading features alongside the MT5 platform, and are willing to trade with an offshore brand."
- DayTrading Review Team
- Instruments: Forex, CFDs, Stocks, Indices, Commodities
- Regulator: SVGFSA
- Platforms: MT5
- Min. Deposit: $1
- Min. Trade: 0.01 Lots
- Leverage: 1:1000
Stock Exchanges
Axofa offers trading on 2 stock exchanges:
- Nasdaq
- S&P 500
CFD Trading
CFDs are available on popular asset classes with a competitive $1 minimum deposit. The broker offers very high, unrestricted leverage of 1:1000, which will amplify both profits and losses.
Forex Trading
Axofa offers 50+ forex pairs with raw spreads and low commissions. On the downside, the broker is not particularly transparent when it comes to their account conditions and fees.
Stocks Trading
A decent selection of 100+ popular international stocks are available. Traders can also test out their strategies in the free MT5 demo account, though the conditions are more limited vs other brokers.
Pros
- International broker accepting clients from the USA, India, Indonesia, and Ireland
- Proprietary mobile app
- MT5 integration
Cons
- Inconsistencies between international subsidiaries and website information
- Lack of transparency around pricing
- Limited verifiable information about the broker’s owners and background
Comparing S&P 500 Brokers
An online broker is an investor’s gateway to the market. Therefore, it is important that you choose S&P 500 brokers that suits your financial goals, risk appetite and investment style. The key factors to consider when comparing S&P 500 brokers include:
Platform
The best platform offered by S&P brokers is a matter of personal preference. But key elements to look for when investing in the S&P 500 are straightforward volume charts, market indicators (such as 50, 60 or 90-day moving average tickers), plus other technical analysis tools. Additionally, it is worth making sure you can access strong trend tracking and comprehensive price history, plus information on company economics.
Some S&P 500 brokers will facilitate trading on industry-established platforms such as MetaTrader 4 (MT4) or MetaTrader 5 (MT5). Alternatively, investors may wish to use a platform that is independent of their brokerage when speculating on the S&P 500. Traders may prefer to use charts that they are already familiar with from TradingView, for example.
Fees
Retail investing can incur high fees, including commissions, deposit and withdrawal charges, plus transaction costs. If you’re trading in high volumes, these fees can reduce your overall yield, erode profits and impact your S&P margin. Some S&P 500 brokers will advertise a $0 fee package when trading the index, but bear in mind that there may be hidden charges that are applied later. For example, IG offers commission-free direct investing on the S&P 500, though overnight swap charges apply.
The best brokers that support S&P 500 trading provide a transparent fee structure and a published pricing schedule available on their website. Prospective investors should be able to research how much it will cost to trade the S&P 500 without needing to create an account with a given provider.
Customer Support
Investing in any asset class can be confusing, so you may rely on the support services of S&P 500 brokers. Reliable and responsive customer service is important here.
During market operating hours, most brokerages will offer comprehensive support, with the best brokers that offer S&P 500 trading providing 24/7 customer service via live chat, telephone, email and social media.
Some of the best S&P 500 brokers with 24 hour customer support include TD Ameritrade (24/7), XTB (24/5) and CMC Markets (24/5).
Additional Features
Leading S&P 500 brokers will offer additional features to enhance the user experience. When trading the S&P 500, using a historical data sheet can provide insights into past trends, prices, p/e ratio and dividend history. This data can typically be split out by year or by sector if traders want to research specific stocks rather than the entire S&P 500 index.
Some S&P 500 brokers may also offer trading calculators that can be used before entering a position, or when devising a new investment strategy. These include return or compound interest calculators which allow you to adjust variables, for example, based on whether you’re investing from the UK or not.
Other useful additional features include an economic calendar to keep track of important dates, historical and live price charts, an S&P bot to automate positions, or educational videos which investors can watch on the broker’s website. Live streams with the latest US corporation news can also provide valuable insights to support investment decisions.
Security
When you’re risking your own capital, your funds need to be secure. Most reputable S&P 500 brokers will be regulated by leading financial bodies such as the Securities & Exchange Commission (SEC) in the US or the Financial Conduct Authority (FCA) in the UK. You should always research whether your chosen brokerage is licensed to operate in your jurisdiction, and you can verify this by visiting the website of the financial watchdog.
The level of security offered by the brokers that support S&P 500 trading is also important. Standard security procedures include a safe key code, encrypted data processing and multiple authentication factors. Some S&P 500 brokers may require non-US residents to provide additional identification documents when trading the index to comply with legislation policies following the Patriot Act, 2001.
What Is The S&P 500?
The Standard and Poor’s 500, commonly known as the “S&P 500”, is the most traded stock market index in the United States. The S&P 500 tracks the performance of the 500 largest US companies which meet the S&P criteria for selection. Because the S&P 500 represents most of the largest businesses in the US, many traders use the index to speculate on the health of the US economy in general. The index is even seen as a definition of the overall global economy. As a result, there is ample choice of S&P 500 brokers to choose between.
The S&P 500 was initially introduced in 1957 to make it easier for investors to track the value of major companies trading on both the New York Stock Exchange (NYSE) and the NASDAQ Composite. It was founded by Henry Poor and the Standard Statistics Company in 1941. Since its development, US companies included on the S&P stock list have changed dramatically as firms have risen and fallen.
Note, when day trading with S&P 500 brokers, share prices and are typically denominated in USD.
S&P 500 Criteria Explained
The list of companies included in the S&P 500 is measured by the weightings of market cap and free float. For companies to be eligible for inclusion in the index, they must meet the following criteria:
- Trading on the NYSE for longer than one year
- Market cap of at least $14.6 billion (as of 2022)
- Majority of company shares are available in the public domain
- A minimum of 250,000 company shares have been traded in the last six months
- Have positive earnings reports for the most recent year, including the publication of any S&P 500 eligible fourth quarter performance
Note that not every large company in the US is necessarily included in the S&P as they may not satisfy the inclusion criteria above. This includes companies such as Berkshire Hathaway, Uber and Dell. Fortunately, the best S&P 500 brokers also offer investment opportunities on a range of equities not included on the index.
Five Biggest Stocks On The S&P 500
Over the last ten years, the companies the top of the S&P 500 have changed significantly as technological advances, governmental support and other factors have influenced business growth. On average, the five largest companies in the S&P 500 account for 20% of the entire index, with the top 10 representing almost a third of the market.
Given that the index accounts for circa 80% of the market value of the US stock market, trading these big five stocks can have a significant influence on the S&P 500, sector and market performance.
As of 2022, the biggest players include:
- Apple Inc (AAPL) – Index Weighting: 7.1%, Market Cap: $2,707 B
- Microsoft Corp (MSFT) – Index Weighting: 6.0%, Market Cap: $2,311.4 B
- Amazon.com Inc (AMZN) – Index Weighting: 3.7%, Market Cap: $1,426.6 B
- Tesla, Inc (TSLA) – Index Weighting: 2.4%, Market Cap: $902.1 B
- Alphabet Inc. Class A (GOOGL) – Index Weighting: 2.2%, Market Cap: $836.5 B
Head to the official index for the top 10 stocks by market cap, along with any new additions. Many of the top S&P brokers also offer detailed insights into leading stocks, along with key financial metrics.
Trading Hours
The S&P 500 opening hours are aligned to the hours of the New York Stock Exchange and the Nasdaq stock market. The opening hours are typically 9:30 AM to 4:00 PM EST (1:30 PM to 8:00 PM GMT), excluding market holidays.
Additionally, it is possible to engage in premarket trading and after-hours investing, depending on whether your chosen S&P 500 brokers offer it. Though, there is no overnight trading or weekend speculation on the S&P 500.
E-Mini S&P 500
To increase accessibility across the S&P 500, in 1997 the Chicago Mercantile Exchange (CME) began offering the E-mini S&P 500. This index offers futures and options contracts on the S&P 500 index.
An E-mini S&P 500 futures contract essentially states that if a trader buys a contract today, they are obligated to either buy or sell the asset at a pre-agreed share price on a set date in the future. Day trading E-mini S&P 500 futures is less popular because E-mini futures are more stable and less volatile. For traders investing on a longer timeframe, price stability might attract them to the E-mini.
Traders of the S&P index may also deploy a hedging strategy with the E-mini S&P 500 to hedge against any unexpected price predictions that might impact their current trades. Investors can also set signals for any key stock price movements to alert themselves to swings that may compromise their positions.
Note, that both the e-mini futures index and the traditional index opening hours are in line with the CME and the NYSE.
Getting Started
Regardless of whether you’re targeting annual, quarterly, monthly, weekly or daily total returns, following a step-by-step approach will give you a good fundamental basis to start investing in the S&P 500. To get started:
Fund Your Account
Once you have selected your broker, you need to deposit funds into your account before you can begin to trade. S&P 500 brokers will offer different payment options. Instant processing and flexible limits should be top of your list. A low minimum deposit requirement should also be a key point to look out for, particularly if you are new to the index.
Recognized methods include VISA & Mastercard debit/credit cards, PayPal, and Skrill. Even cryptocurrency is being accepted as tender.
Do Your Research
Before you enter the market, it’s good practice to carry out in-depth analysis and market research on the S&P 500 and the stocks in question. Because it’s the most widely traded index in the US market, there is a significant amount of information available online. The best S&P 500 brokers will provide useful articles about the index on their websites, however third-party platforms can often provide better independent insights.
This is particularly true with the S&P 500 Futures Live Trading Group. This is a community of traders who train other investors and review S&P 500 ideas and strategies that have been shared by other members. Although new traders can join for free initially, it does cost to join and some of the reviews are mixed.
Investors looking for S&P 500 trading tips that are free of charge can use discussion forums such as Reddit or consult online articles and videos. Other popular sources include Bloomberg and Morningstar.
Choose Your Asset
Many traders may intend to trade the S&P 500 or the E-mini S&P 500, however there is also the option to trade some of the individual stocks included in the 500-strong list. It’s difficult to have a good understanding of all 500 stocks, as each will have its own market price driven by unique factors and fundamentals.
Despite this, all S&P stocks on the index share two common qualities: volume and volatility:
Volume
The meaning of volume is the number of shares being traded at a specific time. The S&P 500 trading volume is based on all of the shares of the stocks listed under the index. If the chart history of the S&P showed that the index had increased by a daily trade volume of 1,000 transactions since yesterday and decreased by 500 today, then the total volume over the two days would be 500. In this example, the average daily trading volume of the S&P 500 would be 250 (500/2 days).
Investors can use investing volumes to gauge whether other market participants’ interest is increasing or decreasing in the index, which could prompt a move from the trader. This volume trading logic applies to both the entire S&P index as well as individual stocks within the S&P.
Volatility
Volatility is the risk that an asset’s share price can change unpredictably at any given time. The size of any given price movement is relatively unknown, which therefore increases the risk.
Large swings are considered to be highly volatile, whereas smaller swings in an asset’s price are considered to be of low volatility or stable. Typically, day traders thrive when a stock’s price experiences large swings because it means that they can capitalize on volatile price movements.
Choose Your Strategy
Once you have chosen between brokers that support trading on the S&P 500, and the asset you wish you trade, you need to implement a strategy.
There is a range of strategies available depending on your risk tolerance or how active you will be in the market. In all scenarios, being aware of the S&P pre-market price will give traders an insight into the opening value of the asset, which helps with the development of a day trading strategy.
For example, an unusually high close/pre-opening market price might prompt a trader to sell or short the index in anticipation of the price falling when the market opens. This strategy is an example of intraday trading on the S&P 500.
Other traders may analyze the index’s performance over a longer time, which would typically lend itself to a swing investing strategy.
Some market participants trade the S&P 500 and other assets as their full-time jobs, and will often share free advice online on developing a solid strategy. When you are seeking tips online, however, be wary of any paid groups or courses as these are usually “too good to be true” and can sometimes be scams designed to target rookie investors.
It is also worth checking whether S&P 500 brokers permit certain strategies and investing systems before you sign up. Some S&P 500 brokerages and platforms prohibit scalping, for example.
Final Word On S&P 500 Brokers
The S&P 500 has been traded for over 60 years and remains the leading index in the USA. It is popular with day traders because it gives a good indication as to how the US market is currently performing, which can provide insights into other asset classes.
It is worth noting that the S&P can be heavily influenced by how individual companies with large weighting are performing. For example, if Tesla’s share price falls due to an Elon Musk tweet, then the index might also be slightly affected by this as the market reacts.
Overall, the S&P 500 is a solid asset to have in your portfolio, and due to its popularity, there is a wide range of helpful resources available online. Use our list of the best brokers with access to the S&P 500 to get started today.
FAQs
Do S&P 500 Brokers Offer Trading On The Index Via MetaTrader 4?
Yes, trading the S&P 500 is available on MT4 through supporting brokers. Some brokers that support trading on the S&P 500 also provide premarket/early investing and charts and tools to help identify key support levels today or over the last 10 years. Quarterly returns and historical data on dividend yields are also available at the top S&P 500 brokerages. See our list of the best brokers and trading apps for buying S&P 500 stocks.
What Is The Symbol For The S&P 500 At Online Brokers?
When trading the S&P 500 with brokers that offer the index, look out for the market ticker symbol INX.
When Do S&P 500 Brokers Start Futures Trading?
The Chicago Mercantile Exchange (CME) first introduced S&P 500 futures contracts in 1982, and subsequently released the S&P 500 E-mini option in 1997. Now, several top S&P 500 brokers offer futures products.
Can You Invest In S&P 500 With Most Leading Brokers?
Yes, most top-rated brokers will allow you to trade the S&P 500. You can find the index on eToro and Webull, among many others.
Is The Nasdaq Or S&P 500 Better?
The S&P is a much broader representation of the US market as it includes stocks that are listed across different markets and sectors, whereas the Nasdaq is exclusively made up of Nasdaq-listed stocks, over 50% of which are technology focused. When choosing between trading S&P 500 and Nasdaq, the choice should be made based on the trader’s market knowledge and risk tolerance while taking into account the difference between the underlying structures. Importantly, most S&P 50o brokers also support online trading on the Nasdaq.
What Time Does The S&P 500 Stock Index Start Trading On Brokers’ Platforms?
The NYSE and the Nasdaq both open at 9:30 AM and close at 4:00 PM EST. The S&P and all of the stocks included in the index are also bound by these timings so this will reflect on your broker’s platform interface.