S&P 500 Brokers 2024
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 2024.
S&P 500 Brokers
These are the 10 best brokers for trading on the S&P 500:
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1FOREX.comActive Trader Program With A 15% Reduction In Costs
Ratings
$1000.01 Lots1:50NFA, CFTCForex, Stocks, Futures, Futures OptionsMT4, MT5, TradingView, eSignal, AutoChartist, TradingCentralWire Transfer, Credit Card, Debit Card, Visa, Mastercard, Skrill, Neteller, ACH TransferUSD, EUR, GBP, CAD, AUD, JPY, CHF, PLN -
2eToro USAInvest $100 and get $10Securities trading offered by eToro USA Securities, Inc. (“the BD”), member of FINRA and SIPC. Cryptocurrency offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk. https://www.daytrading.com/ is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD.
Ratings
$100$10SEC, FINRAStocks, Options, ETFs, CryptoeToro Trading Platform & CopyTraderACH Transfer, Debit Card, PayPal, Wire TransferUSD -
3Pocket Option50% Deposit Bonus
Ratings
$50$1MISABinary Options, Currencies, Commodities, Stocks, Indices, CryptosWeb, MT4, MT5Wire Transfer, Credit Card, Bitcoin Payments, Volet, Perfect Money, Visa, Mastercard, Debit Card, WebMoney, FasaPay, Ethereum Payments, Maestro, JetonCash, AirtelUSD -
4RedMars
Ratings
€2500.01 Lots1:30 (Retail), 1:500 (Pro)CySEC, AFMCFDs, Forex, Stocks, Indices, Commodities, CryptosMT5Credit Card, Wire Transfer, Debit Card, Sticpay, FasaPay, Bitcoin Payments, Trustly, PayPal, Skrill, Neteller, Klarna, Mastercard, VisaUSD, EUR -
5Capitalcore40% Deposit Bonus up to $2,500
Ratings
$100.01 Lots1:2000IFSAForex, Metals, Stocks, Cryptos, Futures IndicesWebTrader, ProEthereum Payments, Mastercard, Visa, Perfect Money, Bitcoin Payments, Debit Card, Credit Card, PayPalUSD -
6IGForex trading involves risk. Losses can exceed deposits.
Ratings
$00.01 Lots1:30 (Retail), 1:250 (Pro)FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA, FINMA, CONSOB, AFMCFDs, Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto, Spread BettingWeb, ProRealTime, L2 Dealer, MT4, TradingView, AutoChartist, TradingCentralPayPal, Wire Transfer, Mastercard, Credit Card, Visa, Debit CardUSD, EUR, GBP, CAD, AUD, JPY, ZAR, SEK, DKK, CHF, HKD, SGD -
7Videforex20% to 200% Deposit Bonus
Ratings
$250$0.011:500Binary Options, CFDs, Forex, Indices, Commodities, CryptoTradingViewSkrill, Perfect Money, Bitcoin Payments, Neteller, Credit Card, Visa, Mastercard, Ethereum PaymentsUSD, EUR, GBP, AUD, RUB -
8xChief$100 No Deposit Bonus
Ratings
$100.01 Lots1:1000ASICCFDs, Forex, Metals, Commodities, Stocks, IndicesMT4, MT5Wire Transfer, Bitcoin Payments, Credit Card, UnionPay, Skrill, Neteller, WebMoney, Perfect Money, Debit Card, Ethereum Payments, FasaPay, VoletUSD, EUR, GBP, JPY, CHF -
9Plexytrade120% Cash Welcome Bonus
Ratings
$500.011:2000CFDs, Forex, Indices, Stocks, Commodities, CryptoMT4, MT5Bitcoin Payments, Ethereum PaymentsUSD, EUR -
10Coinexx100% Deposit Welcome Bonus
Ratings
0.001 BTC0.01 Lots1:500Forex, Commodities, Indices, CryptocurrenciesMT4, MT5Bitcoin Payments, Ethereum PaymentsUSD
Here is a short summary of why we think each broker belongs in this top list:
- FOREX.com - Founded in 1999, FOREX.com is now part of StoneX, a financial services organization serving over one million customers worldwide. Regulated in the US, UK, EU, Australia and beyond, the broker offers thousands of markets, not just forex, and provides excellent pricing on cutting-edge platforms.
- eToro USA - eToro is a social investing platform that offers short-term and long-term trading on 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, eToro is still one of the most respected brands in the industry. eToro securities trading is offered by eToro USA Securities, Inc.
- Pocket Option - Established in 2017, Pocket Option is a binary options broker offering high/low contracts on forex, stocks, indices, commodities and cryptocurrencies. With over 100,000 active users and a global reach, the platform continues to prove popular with budding traders.
- RedMars - Launched in 2020, Cyprus-based RedMars offers competitive spreads on more than 300 instruments and leverage up to 1:500. Three accounts are available - Standard, Pro and VIP - serving a range of budgets and experience levels, with a fast and fully digital account opening process.
- Capitalcore - Capitalcore is an offshore broker, based in Saint Vincent and the Grenadines and established in 2019. Traders can choose from four accounts (Classic, Silver, Gold, VIP) with lower spreads and larger bonuses as you move through the tiers. Where Capitalcore distinguishes itself is its high leverage up to 1:2000 and zero swap fees, though these don’t compensate for the weak oversight from the IFSA and paltry education and research.
- IG - Founded in 1974, IG is part of IG Group Holdings Plc, a publicly traded (LSE: IGG) brokerage. The brand-US offers spread betting, CFD and forex trading across an almost unrivalled selection of 17,000+ markets, with a range of user-friendly platforms and investing apps. For 50 years, IG has maintained its position as an industry leader, excelling in all key areas for traders.
- Videforex - Launched in 2017, 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.
- xChief - xChief 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.
- Plexytrade - Established in 2024 and headquartered in Saint Lucia, Plexytrade is an ECN/STP broker. Geared towards active traders, it supports four account options, crypto deposits and withdrawals, plus very high leverage up to 1:2000 made possible by its unregulated status.
- Coinexx - Coinexx is an unregulated broker that provides leverage up to 1:500 on forex, commodities, indices and cryptocurrencies with deep liquidity, pure ECN spreads and negative balance protection. The broker uses crypto as base currencies and has low minimum deposit requirements of 0.001 BTC.
FOREX.com
"FOREX.com remains a best-in-class brokerage for active forex traders of all experience levels, with over 80 currency pairs, tight spreads from 0.0 pips and low commissions. The powerful charting platforms collectively offer over 100 technical indicators, as well as extensive research tools."
Christian Harris, Reviewer
FOREX.com Quick Facts
Bonus Offer | Active Trader Program With A 15% Reduction In Costs |
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Demo Account | Yes |
Instruments | Forex, Stocks, Futures, Futures Options |
Regulator | NFA, CFTC |
Platforms | MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral |
Minimum Deposit | $100 |
Minimum Trade | 0.01 Lots |
Leverage | 1:50 |
Account Currencies | USD, EUR, GBP, CAD, AUD, JPY, CHF, PLN |
Stock Exchanges
FOREX.com offers trading on 14 stock exchanges:
- Australian Securities Exchange (ASX)
- Borsa Italiana
- CAC 40 Index France
- DAX GER 40 Index
- Dow Jones
- Euronext
- FTSE UK Index
- Hang Seng
- Hong Kong Stock Exchange
- IBEX 35
- Japan Exchange Group
- Nasdaq
- S&P 500
- SIX Swiss Exchange
Pros
- With over 20 years of experience, excellent regulatory oversight, and multiple accolades including runner-up in our 'Best Forex Broker' awards, FOREX.com boasts a global reputation as a trusted brokerage.
- FOREX.com offers industry-leading forex pricing starting from 0.0 pips, alongside competitive cashback rebates of up to 15% for serious day traders.
- The in-house Web Trader continues to shine as one of the best-designed platforms for aspiring day traders with a slick design and over 80 technical indicators for market analysis.
Cons
- Funding options are limited compared to leading alternatives like IC Markets and don’t include many popular e-wallets, notably UnionPay and POLi.
- FOREX.com's MT4 platform offers approximately 600 instruments, significantly fewer than the over 5,500 available on its non-MetaTrader platforms.
- There’s no negative balance protection for US clients, so you may find yourself owing more money than your initial deposit into your account.
eToro USA
"eToro remains a top pick for traders looking for leading social investing and copy trading services. With a low deposit, zero commissions and an intuitive platform, the broker will meet the needs of newer day traders."
Jemma Grist, Reviewer
eToro USA Quick Facts
Bonus Offer | Invest $100 and get $10 |
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Demo Account | Yes |
Instruments | Stocks, Options, ETFs, Crypto |
Regulator | SEC, FINRA |
Platforms | eToro Trading Platform & CopyTrader |
Minimum Deposit | $100 |
Minimum Trade | $10 |
Account Currencies | USD |
Stock Exchanges
eToro USA offers trading on 3 stock exchanges:
- Dow Jones
- New York Stock Exchange
- S&P 500
Pros
- The broker's Academy offers comprehensive learning materials for beginners to advanced-level investors
- The low minimum deposit and straightforward account opening process means beginners can get started quickly
- eToro USA Securities is a trustworthy, SEC-regulated broker that is a member of FINRA and SIPC
Cons
- The proprietary terminal doesn't support trading bots and there are no additional stock market analysis tools
- There's a narrower range of day trading instruments available compared to competitors, with only stocks, ETFs and cryptos
- Average fees may cut into the profit margins of day traders
Pocket Option
"Pocket Option excels for its easy-to-use web platform which provides a best-in-class user experience for short-term binary traders. The $50 minimum deposit is also accessible for beginners while opening an account is really easy. Looking at the negatives, Pocket Option still trails alternatives in its market offering and regulatory credentials."
Jemma Grist, Reviewer
Pocket Option Quick Facts
Bonus Offer | 50% Deposit Bonus |
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Demo Account | Yes |
Instruments | Binary Options, Currencies, Commodities, Stocks, Indices, Cryptos |
Regulator | MISA |
Platforms | Web, MT4, MT5 |
Minimum Deposit | $50 |
Minimum Trade | $1 |
Account Currencies | USD |
Stock Exchanges
Pocket Option offers trading on 11 stock exchanges:
- Australian Securities Exchange (ASX)
- 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
Pros
- The MetaTrader platforms offer integrated analysis with helpful technical summaries for short-term traders
- Well-funded traders who deposit $1000+ can qualify for a 2%+ payout boost, more tradable assets and exclusive perks
- The range of payment methods beats the majority of rivals, providing fast, secure and convenient deposits for traders in most countries
Cons
- The MISA is a weak regulator with limited investor protection for retail traders
- Pocket Option offers a slimmed down iteration of the MT4 and MT5 that doesn't provide the full charting package for advanced traders
- The maximum binary contract length of 4 hours is restrictive for longer-term trading strategies. Alternatives like Videforex offer binaries up to 1 month
RedMars
"RedMars is the best fit for experienced day traders familiar with the MetaTrader 5 platform and based in the EU, where the broker is authorized by the CySEC. However, the threadbare education and research tools make it unsuitable for beginners."
Christian Harris, Reviewer
RedMars Quick Facts
Demo Account | Yes |
---|---|
Instruments | CFDs, Forex, Stocks, Indices, Commodities, Cryptos |
Regulator | CySEC, AFM |
Platforms | MT5 |
Minimum Deposit | €250 |
Minimum Trade | 0.01 Lots |
Leverage | 1:30 (Retail), 1:500 (Pro) |
Account Currencies | USD, EUR |
Stock Exchanges
RedMars offers trading on 15 stock exchanges:
- Australian Securities Exchange (ASX)
- CAC 40 Index France
- DAX GER 40 Index
- Dow Jones
- Euronext
- Hong Kong Stock Exchange
- IBEX 35
- Japan Exchange Group
- London Stock Exchange
- Nasdaq
- National Stock Exchange Of India
- New York Stock Exchange
- S&P 500
- Shanghai Stock Exchange
- Shenzhen Stock Exchange
Pros
- Clients in the EU, in particular, can trade with peace of mind knowing RedMars is authorized by the CySEC with up to €20K compensation available through the ICF in the event of bankruptcy
- The broker is one of a limited number of firms to offer an account specially designed for VIPs with premium support and invites to exclusive events
- Getting started on RedMars is incredibly easy - you can be up and running in just a few minutes based on tests
Cons
- With just 300 instruments, RedMars offers a narrow trading environment, particularly compared to category leaders like BlackBull Markets which offers 26,000 assets
- While RedMars' spreads are within industry averages, they don't offer a significant edge over the cheapest day trading brokers we've personally used, notably IC Markets
- RedMars falls short for newer traders, with little in the way of education, no beginner-friendly platform, a steep minimum deposit, and inadequate support during testing
Capitalcore
"The major selling points of Capitalcore are its high leverage options up to 1:2000 and zero commission or swap fees. However, its weak regulatory oversight from the IFSA and non-existent education place it far behind the top brokers."
Christian Harris, Reviewer
Capitalcore Quick Facts
Bonus Offer | 40% Deposit Bonus up to $2,500 |
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Demo Account | Yes |
Instruments | Forex, Metals, Stocks, Cryptos, Futures Indices |
Regulator | IFSA |
Platforms | WebTrader, Pro |
Minimum Deposit | $10 |
Minimum Trade | 0.01 Lots |
Leverage | 1:2000 |
Account Currencies | USD |
Stock Exchanges
Capitalcore offers trading on 5 stock exchanges:
- DAX GER 40 Index
- Dow Jones
- FTSE UK Index
- Nasdaq
- S&P 500
Pros
- Capitalcore is one of the only brokers to charge zero swap fees, which may appeal to Islamic traders looking to comply with Islamic Finance.
- Unlike most brokers, Capitalcore offers an unlimited demo account that takes under 5 minutes to open.
- The Capitalcore platform provides comprehensive charting tools and a wide range of 150+ technical indicators, ideal for detailed market analysis.
Cons
- Capitalcore is not regulated by major financial authorities and has an unproven reputation, raising concerns about the safety of client funds.
- Capitalcore’s threadbare education and research seriously trail category leaders like IG, making it less suitable for aspiring traders.
- Platform support is limited to proprietary software, so there's no integration with the market-leading MetaTrader or cTrader, which offer built-in economic news and support automated trading.
IG
"IG continues to provide a comprehensive package with an intuitive web platform, best-in-class education for beginners, advanced charting tools bolstered by its recent TradingView integration, real-time data, and fast execution speeds for experienced day traders."
Christian Harris, Reviewer
IG Quick Facts
Demo Account | Yes |
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Instruments | CFDs, Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto, Spread Betting |
Regulator | FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA, FINMA, CONSOB, AFM |
Platforms | Web, ProRealTime, L2 Dealer, MT4, TradingView, AutoChartist, TradingCentral |
Minimum Deposit | $0 |
Minimum Trade | 0.01 Lots |
Leverage | 1:30 (Retail), 1:250 (Pro) |
Account Currencies | USD, EUR, GBP, CAD, AUD, JPY, ZAR, SEK, DKK, CHF, HKD, SGD |
Stock Exchanges
IG offers trading on 20 stock exchanges:
- Australian Securities Exchange (ASX)
- 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
Pros
- The IG app offers a superb mobile trading experience with a clean design that helped it secure Runner Up at our 'Best Trading App' award.
- IG offers an extensive collection of professional and engaging educational resources, including webinars, articles, and analysis.
- IG is amongst the best in terms of its range of instruments, which includes stocks, forex, indices, commodities, and cryptocurrencies, plus recently added US-listed futures and options, providing ample diversification opportunities.
Cons
- While there is negative balance protection in the UK and EU, there is no account protection or guaranteed stop losses for US clients.
- Beginners might find IG’s fee structure complex, with various fees for different types of trades or services, potentially leading to confusion or unexpected charges.
- IG applies an inactivity fee of $12 per month after 2 years, deterring casual investors.
Videforex
"Videforex will serve traders looking for a no-frills, easy-to-use platform to speculate on the direction of popular financial markets through binaries. With a sign-up process that takes a matter of minutes and a web-accessible platform, getting started is a breeze. "
William Berg, Reviewer
Videforex Quick Facts
Bonus Offer | 20% to 200% Deposit Bonus |
---|---|
Demo Account | Yes |
Instruments | Binary Options, CFDs, Forex, Indices, Commodities, Crypto |
Platforms | TradingView |
Minimum Deposit | $250 |
Minimum Trade | $0.01 |
Leverage | 1:500 |
Account Currencies | USD, EUR, GBP, AUD, RUB |
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
Pros
- Videforex regularly runs trading contests, offering practice opportunities and cash prizes to beginners and experienced traders, with position sizes from just ¢0.01.
- Traders can earn up to 98% payouts on 100+ assets with the broker’s binary options, bringing it in line with competitors like IQCent.
- Videforex is one of the few brokers with 24/7 multilingual video support, providing comprehensive assistance for active traders.
Cons
- Videforex lacks authorization from a trusted regulator, meaning traders may receive little to zero safeguards like segregated client accounts.
- The client terminal needs improvements based on our latest tests, sporting sometimes slow and unresponsive widgets which could dampen the experience for day traders.
- The absence of any educational tools is a serious drawback for newer traders who can find blogs, videos and live trading sessions at category leaders.
xChief
"xChief continues to prove popular with investors looking to trade highly leveraged CFDs on the popular MetaTrader platforms. The broker's rebate scheme and investment accounts will particularly appeal to seasoned traders. However, the lack of top-tier regulatory oversight is a major drawback."
William Berg, Reviewer
xChief Quick Facts
Bonus Offer | $100 No Deposit Bonus |
---|---|
Demo Account | Yes |
Instruments | CFDs, Forex, Metals, Commodities, Stocks, Indices |
Regulator | ASIC |
Platforms | MT4, MT5 |
Minimum Deposit | $10 |
Minimum Trade | 0.01 Lots |
Leverage | 1:1000 |
Account Currencies | USD, EUR, GBP, JPY, CHF |
Stock Exchanges
xChief offers trading on 14 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
- Nasdaq
- New York Stock Exchange
- S&P 500
Pros
- xChief offers STP/ECN execution with low spreads from 0.0 pips and low commission rates starting from $2.50 per side
- The broker offers a turnover rebate scheme geared towards active investors, as well as trading credits and several other occasional bonuses
- The broker offers several account types to suit different traders, including a Cent account for beginners and pro-level hedging/netting accounts
Cons
- The Classic+ and Cent accounts provide access to fewer instruments than the other account types, at 50+ and 35+, respectively
- The total range of 150+ assets is much lower than most competitors who typically offer hundreds
- The broker trails competitors when it comes to research tools and educational resources
Plexytrade
"Plexytrade is a newcomer in the brokerage scene with attention-grabbing features like 1:2000 leverage, zero spreads on select instruments and fast execution speeds of less than 46 milliseconds. However, the absence of regulation is a significant concern, while the non-existent research and educational tools place it far behind industry frontrunners."
Christian Harris, Reviewer
Plexytrade Quick Facts
Bonus Offer | 120% Cash Welcome Bonus |
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Demo Account | Yes |
Instruments | CFDs, Forex, Indices, Stocks, Commodities, Crypto |
Platforms | MT4, MT5 |
Minimum Deposit | $50 |
Minimum Trade | 0.01 |
Leverage | 1:2000 |
Account Currencies | USD, EUR |
Stock Exchanges
Plexytrade offers trading on 15 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
- IBEX 35
- Japan Exchange Group
- Nasdaq
- New York Stock Exchange
- Russell 2000
- S&P 500
- SIX Swiss Exchange
Pros
- Plexytrade offers among the highest leverage we’ve seen, up to 1:2000, catering to advanced traders willing to forego regulatory protections.
- US residents are accepted as clients, distinguishing Plexytrade as one of the rare offshore brokers that cater to US-based traders.
- There are various VPS packages starting from $50 per month, but they become complimentary once specific deposit thresholds are reached.
Cons
- Deposits and withdrawals are exclusively facilitated through cryptocurrencies, as Plexytrade does not support bank cards, bank wire transfers, or e-wallets.
- There are no social or copy trading features for inexperienced traders to replicate the trades of more experienced investors, trailing category leaders like eToro.
- Plexytrade lacks regulation in major jurisdictions, significantly increasing the risks of opening an account and depositing funds.
Coinexx
"Coinexx best serves short-term traders willing to foregoes regulatory protections in return for highly-leveraged CFDs and trading accounts, deposits and withdrawals processed in cryptos like BTC. "
Tobias Robinson, Reviewer
Coinexx Quick Facts
Bonus Offer | 100% Deposit Welcome Bonus |
---|---|
Demo Account | Yes |
Instruments | Forex, Commodities, Indices, Cryptocurrencies |
Platforms | MT4, MT5 |
Minimum Deposit | 0.001 BTC |
Minimum Trade | 0.01 Lots |
Leverage | 1:500 |
Account Currencies | USD |
Stock Exchanges
Coinexx offers trading on 5 stock exchanges:
- DAX GER 40 Index
- Dow Jones
- FTSE UK Index
- Hong Kong Stock Exchange
- S&P 500
Pros
- Coinexx is one of a limited pool of brokers to support the ActTrader platform, which is highly customizable with detachable widgets, as well as 48 indicators, 11 timeframes, and price quotes up to 8 decimal places.
- Coinexx uses an ECN model that facilitates ultra-tight spreads from 0 pips, which alongside high leverage up to 1:500, may serve fast-paced, high-volume trading strategies.
- The virtual private server (VPS), hosted near the firm’s data center in Amsterdam, offers 24/7 connectivity, low latency and 99.99% uptime, catering to algo traders.
Cons
- Aside from 7 calculators (forex, margin, pip, currency, commission, swap, PnL), Coinexx offers very little in terms of additional tools, with no education or research features to support traders.
- Despite operating for over 7 years, Coinexx still hasn’t secured any regulatory approvals, respected industry awards or the full confidence of our experts.
- Although it supports near-instant account funding in 25+ cryptos, the absence of fiat deposit options at Coinexx will be severely limiting for many traders.
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 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 (in 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.
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 trading 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.