FX brokers that have synthetic indices for trading
Table of contents
Synthetic indices are created by some brokers using various financial instruments. These instruments derive their value from an underlying asset or market, enabling investors to participate in that market without directly owning the physical assets. The synthetic indices can be traded using leverage, traders are allowed to go long or short and profit from both bull, and bear market conditions.
Trading synthetic indices is a way to diversify your portfolio, save trading costs, and manage trading risks. These assets can be a great addition to your watch list. However, it should be mentioned that synthetic indices are not for long term investors, as these instruments are CFDs (Contracts for Difference) and over a long period of time, swap fees can accumulate. The synthetic indices are ideal for medium and short term market speculations in the financial markets.
Top Forex Brokers Offering Synthetic Indices
When searching for the best broker that offers synthetic indices for trading, there are multiple aspects to consider. To begin with, it’s important to make sure that the broker is safe. And the best indicator of safety is regulations. In addition, it’s essential to consider trading conditions, such as fees, account types, minimum initial deposit requirements, available leverage, etc. In this article, we picked 5 top brokers with exceptional trading conditions and a variety of synthetic indices. Let’s learn more about each.
Tickmill
Tickmill is a highly reputable Forex and CFD (Contracts for Difference) broker regulated in multiple jurisdictions, including in Cyprus, Labuan, Seychelles, South Africa, and the UK. The long list of top-tier regulators indicates that Tickmill is a trustworthy Forex broker.
The broker provides traders with up to 500:1 available leverage. There are 3 account types to choose from: Pro, Classic, and VIP. Each account is aimed at a specific trader. As the name suggests, the VIP account is for VIP traders that can afford to keep over 50,000 account base currency on their accounts. The Pro account is best for active traders, while the Classic account is best suited for position traders, swing traders, and beginners. Tickmill offers 4 account base currencies to choose from. Available account currencies are: US Dollar, Euro, British Pound Sterling, and South African Rand. It’s worth mentioning that traders should open accounts in a currency that they use the most, as this way, they get to save money on currency conversions.
There are no inactivity fees for traders that have stopped or paused their trading activity. And traders need to deposit at least 100 USD as an initial deposit to be able to open live trading accounts. The company offers MetaTrader 4 (MT4), and MetaTrader 5 (MT5) trading platforms to its clients. Mobile, web terminal, and desktop trading versions of both MT4, and MT5 are available. Traders can use multiple funding and withdrawal options, including VISA, MasterCard, Skrill, fasapay, Bank wire transfer, Neteller, STICPAY, UnionPay, and WebMoney.
Pepperstone
Pepperstone is an Australian Forex and CFD broker that operates globally. The company is well regulated in multiple jurisdictions, including Australia, Bahamas, Cyprus, Germany, Kenya, UAE, and the UK, and therefore can be trusted. Pepperstone doesn’t have any inactivity fees or fees on funding methods. There are no minimum initial deposit amount requirements. Traders can get up to 500:1 leverage and there are more than 1200 tradable instruments available, including synthetic indices.
The broker offers 2 account types to choose from.
- Razor: The Razor account offers spreads from 0 pips. And trading fees are charged as commissions. There is a 7 USD commission per traded lot round turn. The fee structure creates ideal trading conditions for scalpers, day traders, algorithmic traders, high frequency traders, and news traders.
- Standard: The Standard account has zero commissions and trading fees are integrated in spreads. Spreads are variable, but on average, there is 1 pip spread on EUR/USD. The Standard account is built for beginners, swing traders, and position traders.
Pepperstone provides access to a wide range of trading platforms, including a full set of MetaTrader software, cTrader, and TradingView. Available account base currencies are: USD, EUR, GBP, AUD, CAD, CHF, JPY, NZD, SGD, and HKD. Traders are able to currency conversion fees by choosing the currency that they use the most. There are various options traders can use to fund their accounts and withdraw money, including: Visa, Mastercard, POLi, Bank Transfer, BPay, PayPal, Neteller, Skrill, and Union Pay.
HF Markets
HFM or HF Markets is a super popular Forex broker operating all over the world and is regulated in numerous jurisdictions. The company is licensed in the following countries: Kenya, Seychelles, South Africa, St. Vincent and the Grenadines, the United Arab Emirates, and the UK.
HFM stands out from its competitors by offering multiple account types, tailored to the needs of various trader types. There are 5 live account types to choose from. In addition, there are Demos and swap-free (Islamic) accounts available. Cent account is super useful for traders that want to test their trading strategies in a live trading environment with low capitals at risk. Zero account is best for active trading as there are no spread markups for trading major currency pairs, and traders are charged with commissions instead. The Zero account is best suited for day traders, scalpers, high frequency traders, arbitrage traders, and algorithmic traders.
Prop, Premium, and Top-up bonus accounts are best suited to beginner, position, and swing traders, as there are no commissions and trading fees are included in spreads.
Clients of HF Markets can choose between 5 account currencies, including: EUR, USD, NGN, JPY, and ZAR. The broker provides traders with multiple funding options such as: Visa, Mastercard, Bank Wire Transfer, fasapay, Neteller, PayRedeem, Perfect Money, Skrill, WebMoney, and bitpay.
XM
XM is one of the best multi-asset brokers that you can find. The broker is well regulated in various jurisdictions, including: Australia, Belize, Cyprus, the UAE, and the UK. Traders can open live trading accounts with the broker by depositing as little as 5 USD.
There are multiple account base currencies to choose from, including USD, EUR, GBP, JPY, AUD, HUF, PLN, SGD, ZAR and CHF. Keep in mind that choosing the account currency carefully can save you currency conversion fees when making deposits and withdrawals. Maximum available leverage is 1000:1.
XM offers a full set of MetaTrader platforms for trading to its clients: MetaTrader 4 (MT4), MetaTrader 5 (MT5). Both platforms are suitable for desktop, mobile and web trading.
The broker offers 4 account types to international clients. 3 out of the 4 are Forex trading accounts, and one (Shares Account) is for investors. Minimum deposit required to open the Shares account is 10,000 US Dollars, and it’s for long term investors. There’s no leverage available for traders and therefore, there are no swap fees.
The micro account is best for beginners, traders with small capital, and strategy testers. The account type enables traders to place orders with 100 times smaller contract size than Standard and Ultra Low accounts, and therefore, it’s ideal for testing live market fees and trading conditions with the lowest capitals at risk.
Standard account is best for beginners, swing traders and position traders. And the XM Ultra Low Account is designed for active traders such as intraday traders, scalpers, news traders, high frequency traders, algorithmic traders, and arbitrage traders. Traders can use multiple options to fund their trading accounts, including: Visa, Mastercard, Neteller, Skrill, WebMoney, Perfect Money, and STICPAY.
FP markets
FP markets is a reputable Australian broker regulated in various countries, including Australia, Cyprus, and St. Vincent and the Grenadines. The broker offers access to more than 10,000 tradable instruments, including Forex, Commodities, Shares, Metals, Cryptocurrencies, Indices, and Bonds. Available trading platforms are MetaTrader 4 (MT4), and MetaTrader 5 (MT5). Both platforms are super popular and highly reliable.
FP Markets offers 2 account types to choose from. There are more than 70 Forex pairs, metals, indices, and commodities available on each account type for trading. Maximum available leverage is 500:1. And both account types require over 100 Australian dollars or equivalent in account currency initial deposits to allow traders to open live accounts.
The main difference between Standard and Raw accounts is their fee structure. The Standard account has integrated fees in spreads and charges zero commissions. Spreads for EUR/USD pairs start from 1 pip. And therefore, the Standard accounts are ideal for novice traders, swing traders, and position traders. For active traders such as day traders, scalpers, news traders, high frequency traders, and algorithmic traders, there’s a Raw trading account available. As the name suggests, the Raw account offers raw spreads starting from 0 on Euro vs US Dollar. Trading fees on this account are charged in the form of commissions. There’s 3 USD commission per lot traded per side on the Raw accounts.
Traders have a wide range of account base currencies to choose from, including AUD, USD, EUR, GBP, SGD, CAD, CHF, HKD, JPY, and PLN. There are multiple funding options available, such as: Visa, Mastercard, Bank Transfer, Neteller, Skrill, Crypto, and Perfect Money.
FAQs on Forex brokers that offer synthetic indices for trading
Why do some traders use indices as technical indicators?
Indices serve a dual purpose. They can be traded as CFDs, or traders can use them as indicators to assess market conditions. Indices or share indexes are a type of instrument that follow the performance of a basket of certain stocks, and consequently, they are perfect for understanding the big picture. For example: FTSE 100 measures performance of top 100 UK companies, Ger40 follows 40 German giants, and US500 (S&P 500) follow top 500 American companies. Which is why these indices are great indicators for assessing each country’s economic performance.
How can I find a safe broker for trading indices?
Safety should be the top priority for every trader. There are a couple of features to look for in a broker that can tell you whether it’s safe or not to open a live account with a certain broker. The best indicator of safety is regulations. There are many top-tier regulators such as Financial Conduct Authority in the UK, Australian Securities and Investments Commission, Cyprus Securities and Exchange Commission, and others that regulate Forex and CFD brokers. The regulations are in place to protect traders. Additional safety features in a broker are experience, and reputation among other traders.
What should I consider when choosing the best broker for trading indices?
When choosing a Forex or CFD broker, it’s important to take into consideration various factors. Firstly, traders need to make sure that their broker can be trusted. The best indication of safety is regulations. Secondly, it’s important to make sure that your broker offers optimal trading conditions: low trading fees, your favorite trading platforms, etc. And lastly, it’s important to find a broker that has a professional customer service and accepts various funding methods.
Comments (0 comment(s))