Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

CFD Trading on Indices

Trade CFDs on Indices with FXTM

Choose from the most prominent securities in the US, Europe, Australia and Asia.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Index Trading

When you trade indices with an industry-leading broker, you can expect to choose from an industry-leading selection of indices. FXTM offer index trading on some of the world’s most active securities, meaning that traders can choose to trade and buy the selection of stocks which suits their trading strategy.

Choose from an eclectic range of indices and access the international markets. As a CFD indices trader with FXTM, you can trade indices such as:

  • GDAX (Dax 30)
  • AUS200 (Australia 200)
  • ND100m (US Tech 100 – Mini)
  • UK100 (UK100)
  • SP500m (US SPX 500 – Mini)

FXTM’s superior online trading conditions ensure that you can trade indices with leverage that is appropriate for your trading style. This can amplify traders’ positions and potentially maximise profits – although traders should be aware that leverage can also amplify losses.

Key Reasons to Trade Indices

  • Can be traded long or short
  • Enjoy long trading hours
  • Great for portfolio diversification

What are indices?

Indices, or indexes, are portfolios of stocks. These stocks are grouped together in accordance with a particular sector or a particular market: the GDAX (or Dax 30), for example consists of 30 major German companies trading on the Frankfurt Stock Exchange. The ND100m contains stocks from the top technology companies in the US.

So, what is online CFD indices trading? A Contract for Difference (CFD) is a contract made between a buyer and a seller for a specified product. The seller agrees to pay the buyer the price difference between the current price and the price at the end of the contract. This means that when you trade CFDs on indices, you are aiming to profit from the movement of an index instead of investing in the index itself. Investors trade CFDs on indices on online trading platforms, using stock trading accounts such as FXTM’s Standard MT4 account.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Why Trade CFDs on Indices with FXTM?

Globally Regulated & Licensed

Globally Regulated & Licensed

The FXTM brand is regulated and licensed under CySEC in Cyprus, South Africa’s FSCA, UK’s FCA and the FSC of the Republic of Mauritius, among others.

Transparent

Transparent

Performance statistics, including Requote, Slippage and Order Execution, are checked by PWC.

Secure & Safe

Secure & Safe

Your funds are kept safe in segregated accounts, and your trades are protected by negative balance.

Committed to Education

Committed to Education

FXTM offers regular seminars, workshops and webinars in multiple languages.

Index Trading Platforms

FXTM offers the industry’s leading online trading platforms: MetaTrader 4 (MT4) and MetaTrader 5 (MT5).

trading-platforms

These platforms are equipped with all the tools and stock trading software you need to analyse the markets and monitor the index market. MT4 and MT5 can be downloaded directly onto your PC or Mac, or you can use WebTrader to access the platforms without downloading them.

FXTM also offers mobile trading. Download our currency trading app FXTM Trader for Android or iOS to open, close or modify positions on the go. Mobile trading allows you to react quickly to sudden market movements wherever you are.

Indices CFD Trading Conditions

Leverage

Leverage is a useful tool to help you maximise your buying power. Traders should bear in mind, however, that leverage can boost losses as well as profits.

*Leverage is offered based on your knowledge and experience.

Spreads

Our CFD trading accounts have tight spreads. With FXTM you can enjoy competitive spreads starting from just 0.5 on Standard accounts and 0.1 on ECN MT4 accounts.

All the details of FXTM spreads can be found on our Trading Accounts Comparison page, where you can view the individual minimum spreads, pricing, limit and stop levels for each account on offer.

Trading Hours

The indices markets open at different times throughout the day, with the US Tech 100 (Mini) – for example – opening at 1:20 and closing at 23:00:00. Traders can access FXTM’s trading services whenever a market is open, meaning you can trade CFDs on indices 24 hours a day, 5 days a week. Find out more about indices trading hours on our Contract Specifications page.

Lot Sizes

Choosing the lot size which suits you best as a trader means you have full control of your trading activity. Traders may be drawn to different lot sizes depending on their trading level and amount of experience on the markets. When it comes to CFDs on indices FXTM sets the maximum volume per trade at 5 lots.

Example: Buy 1 lot WSt30m (Wall Street 30 mini)

Deposit: $10,000

Open Price: 23,508

Close Price: 23,599

Notional Value ($) = Volume * Contract Size * Open Price = 1 * 10 * 23,508 = $235,080

Profit: (Close Price - Open Price) * Volume = (23,599 - 23,508) * 1 = $91

Costs

Swap: Volume * Swap Rate = 1 * -$4 = -$4

Commission: (Volume * Contract Size * Open Price) / 1,000,000 * Commission * 2 = (1 * 10 * 23,508) / 1,000,000 * -20 * 2 = -$9.40

Cumulative Costs = Swap + Commission = -$4 - $9.40 = -$13.40

Cumulative Costs (%) = (Cumulative Costs / Notional Value) * 100 = (13.4 / 235,080) * 100 = 0.0057%

Cumulative Effect of Costs on Return (without fees) = (Profit / Deposit) * 100 = (91 / 10,000) * 100 = 0.91%

Cumulative Effect of Costs on Return (with fees) = (Profit - Cumulative Costs / Deposit) * 100 = (91 - 4 - 9.40 / 10,000 ) * 100 = 0.78%

Reduction of profit = 0.91% - 0.78% = 0.13%

 

Example: Buy 1 lot WSt30m (Wall Street 30 mini)

Deposit: $10,000

Open Price: 23,508

Close Price: 23,447

Notional Value ($) = Volume * Contract Size * Open Price = 1 * 10 * 23,508 = $235,080

Profit: (Close Price - Open Price) * Volume = (23,447 - 23,508) * 1 = -$61

Costs

Swap: Volume * Swap Rate = 1 * -$4 = -$4

Commission: (Volume * Contract Size * Open Price) / 1,000,000 * Commission * 2 = (1 * 10 * 23,508) / 1,000,000 * -20 * 2 = -$9.40

Cumulative Costs = Swap + Commission = -$4 - $9.40 = -$13.40

Cumulative Costs (%) = (Cumulative Costs / Notional Value) * 100 = (13.4 / 235,080) * 100 = 0.0057%

Cumulative Effect of Costs on Return (without fees) = (Profit / Deposit) * 100 = (-61 / 10,000) * 100 = -0.61%

Cumulative Effect of Costs on Return (with fees) = (Profit - Cumulative Costs / Deposit) * 100 = (-61 - 4 - 9.40 / 10,000 ) * 100 = -0.74%

Reduction of profit = 0.74% - 0.61% = 0.13%

*For FXTM Invest, the Strategy Profit Share represents a percentage of the profits that will be awarded to the Strategy Manager for his/her positive performance. Example: If the above example refers to a profitable trade in FXTM Invest, and the Strategy Manager sets a performance fee of 20%, then the Client’s net profit would amount to: (Net Profit) - (Net Profit * 20% Manager fee) = (91 - 13.4) - (77.6 * 20%) = $62.08.

**Such estimations are based on assumptions and may deviate from costs and charges that will actually be incurred. Swaps and table-accordion commissions may be subject to change. For more information please refer to our contract specifications and table-accordion commissions pages.Transaction costs and fees incurred in currencies other than the currency of the account are converted on a real-time basis in MetaTrader, at no additional cost to the client.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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