Are you ready to venture into the world of index trading in the UK but unsure where to find the most reliable brokers? Your search ends here. We’ve taken the hard work out of the equation and crafted this comprehensive guide to unveil the top index brokers in the UK. Discover what criteria to keep in mind when selecting the ideal broker and explore the exciting world of popular indices that can enhance your trading journey.
Essence
- Understanding the UK index market involves tracking indices like the FTSE 100, FTSE 250, and FTSE All-Share.
- To lower risk exposure, it’s smart to diversify your portfolio by trading a combination of different stocks.
- Trading hours match the UK stock market’s operating hours, spanning from 8 AM to 4:30 PM.
- Indices can be traded using various methods such as futures, options, ETFs, or CFDs.
- Carefully manage leverage and employ risk management tools to protect investments.
- Stay informed about economic, political events, and market sentiment to make informed trading decisions.
- Prioritize regulated brokers and factor in potential tax implications when trading indices
- If you’re new to index trading, consider starting with a demo account to gain practice and confidence before risking real money.
List of the Best Index Brokers in the UK
- eToro – Best Index Broker for Education in the UK
- Plus500* – One of the Best Index CFD Brokers in the UK
- Capital.com – Best With a Leverage-Free Trading Account
- Spreadex – Leading Index Provider for Spread Betting
- Pepperstone – Best Indices Broker With Excellent Support Service
- XTB – Best With Long-Term Investment Options
*76% of retail CFD accounts lose money
Compare Best Index Brokers in the UK
Our comparison table below offers a quick reference for key features, helping you choose the one that aligns best with your trading preferences.
| Index Brokers | Licence | Support Service | Software | Payment | Demo Account | Money Insurance |
|---|---|---|---|---|---|---|
| eToro | FCA, CySEC, MFSA, FSRA, ASIC, FSAS, SEC, FINRA, AMF, OAM, Bank of Spain, FinCEN, GFSC | 24/5 | eToro investing platform, Multi-asset platform, WebTrader, Mobile App, ProCharts, CopyTrader™, Smart Portfolios, eToro Money Wallet | eToro Money, Credit/Debit Cards, Bank Transfer, PayPal, Neteller, Skrill, Trustly, iDEAL | Yes | Yes (up to $250,000) |
| Plus500* 76% of retail investor accounts lose money when trading CFDs with this provider. | FCA (FRN 509909), CySEC (#250/14), ASIC (#417727), MAS, FSA, SFSA, EFSA, DFSA, FSCA, FMA | 24/7 | Plus500 Webtrader, Mobile App, Plus500 Invest, Plus500 Futures | Bank Wire Transfer, Credit/Debit Cards, PayPal, Skrill, Google/Apple Pay | Yes | Yes (up to £85,000) |
| Capital.com | FCA, SCB, ASIC, CySEC, SCA | 24/7 | TradingView, MT4, Web platform, Mobile app | Bank transfer, bank cards, Apple Pay, TrueLayer | Yes | Yes (up to £85,000) |
| Spreadex | FCA, SEBI | 24/5 | IPHONE App, IPAD App, ANDROID App, TradingView | Bank Wire Transfer, Credit cards | No | Yes (up to £85,000) |
| Pepperstone | FCA, ASIC, DFSA, CySEC, BaFin, SCB, CMA | 24/7 | MT4, MT5, cTrader, TradingView, Pepperstone Trading Platform | Apple/Google Pay, Credit/Debit Cards, PayPal, Domestic/International Bank Transfer | Yes | Yes (up to £85,000) |
| XTB | FCA, FSC, CySEC | 24/5 | xStation 5, xStation Mobile | Credit/Debit Cards, Bank Transfer, Skrill, Neteller, PayPal | Yes | Yes (up to £85,000) |
Brief Overview of Our Recommended Index Brokers’ Fees and Assets
In our pursuit of excellence in index trading, we’ve diligently researched and assessed the top index brokers in the UK. We understand that fees and available assets are vital considerations for traders. That is why we have prepared tables below highlighting our recommended brokers’ fees and assets for informed decisions.
Fees
| Index Broker | Fees | Minimum Deposit Requirement | Transaction | Inactivity |
|---|---|---|---|---|
| eToro | From 2 pips | £50 | £5 withdrawal | £10 monthly |
| Plus500* | From 0.0 pips | £100 | Free | £10 monthly |
| Capital.com | From 0.0006 pips | £20 | Free | £10 per month after 12 months of inactivity |
| Spreadex | From 0.6 pts | £0 | Free | None |
| Pepperstone | From 0.0 pips | £0 | Free | None |
| XTB | From 0.1 pips | £0 | Free | £10 monthly |
*76% of retail CFD accounts lose money.
Assets
| Index Broker | Forex | Stocks | Commodities | ETFs | Options |
|---|---|---|---|---|---|
| eToro | Yes | Yes | Yes | Yes | Yes |
| Plus500 (CFDs) | Yes | Yes | Yes | Yes | Yes |
| Capital.com | Yes | Yes | Yes | Yes | No |
| Spreadex | Yes | Yes | Yes | Yes | Yes |
| Pepperstone | Yes | Yes | Yes | Yes | No |
| XTB | Yes | Yes | Yes | Yes | Yes |
Our Opinion & Overview of the Best Index Brokers in the UK
Choosing the right index broker is a critical decision for traders. Below, we provide expert insights to help you make an informed choice, ensuring a suitable match for your trading needs.
1. eToro – Best Index Broker for Education in the UK
Based on our exploration of eToro, it’s a standout choice for index trading education, especially for those in the UK. Its user-friendly platform makes it easy to trade and invest in major stock indices using CFDs, allowing users to benefit from price movements without owning the underlying assets. eToro also has a social trading platform, which is a valuable feature that enables users to connect with fellow index traders, share ideas, and learn from each other. You will also enjoy the broker’s copy trading platform that allows you to follow expert traders and replicate their trades if you lack confidence in your own trading strategy. With ample educational resources, including guides, videos, webinars, and more, we rank eToro with 5-stars.
✔Low minimum to fund an account and begin investing
- Easy-to-use platform.
- Wide range of major stock indices.
- Social and copy trading platform to improve index trading skills.
- High minimum deposit requirement for copy trading.
| Types | Fee |
| Minimum Deposit | $50 |
| Conversion Fee | depends on your payment method, currency, and eToro Club level. |
| Overnight Fee | vary according to the value and direction (BUY or SELL) of your position |
| Withdrawal Fee | all withdrawal requests are subject to a $5 USD fee |
| Inactivity Fee | monthly inactivity fee of $10 USD (charged after 12 months) |
2. Plus500 – One of the Best Index CFD Brokers in the UK
*Illustrative prices
Plus500 emerges as an outstanding index (CFDs) broker in the UK. Our testing revealed a seamlessly user-friendly experience, offering quick access to all essential resources. What sets Plus500 apart is its singular, proprietary platform, simplifying the navigation of the index market for users. We also explored a wealth of learning resources and a dependable 24/7 support service, making it an ideal entry point for traders. You can get started with as little as £100.
Noteworthy is Plus500’s inclusion of globally renowned indices like USA 100, US-TECH 100, and France 40. Leverage trading, with limits reaching up to 1:20, adds flexibility. Rely on this broker’s free real-time index quotes and market insights for a robust foundation in strategy development. Hence, our verdict is a resounding 5-star rating for Plus500.
✔ Regulated in many countries
- Low minimum deposit requirement
- High leverage limit for professional index traders
- Lists additional CFD assets, including shares, commodities, forex, and more, for portfolio diversification
- One of the most highly-rated mobile apps on Google Play and the App Store
- Inactivity fee of £10 monthly applies after only three months
- Limited asset offerings compared to its peers
| Type | Fee |
| Overnight Funding | yes |
| Currency Conversion Fee | 0.7% |
| Guaranteed Stop Order | spread applies |
| Inactivity Fee | $10 per month |
| Withdrawls/Deposits | $0 |
Note: 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
3. Capital.com – Best With a Leverage-Free Trading Account
Capital.com is one of the strongest choices for UK traders who want to trade indices without using leverage. As part of its broad offering, the broker lists over 40 global indices, including popular markets such as the US 500, FTSE 100, Germany 40 and Hong Kong 50. Alongside indices, Capital.com provides access to more than 5,000 CFD and spread betting assets, giving traders a wide scope for diversification.
Index trading without leverage is supported on its 1X account. This means you only trade with the funds you deposit, making it a safer alternative to traditional leveraged CFD trading. Traders benefit from no overnight fees, competitive spreads, and clear position size limits, which is ideal for long-term index strategies.
Our trading experience at Capital.com was smooth across the web platform, mobile app, MT4 and TradingView. Users get 100+ technical indicators, unlimited watchlists, smart feeds, price alerts and responsive charting. Support is available 24/7, and beginners can make use of videos, courses and strategy ideas to develop their skills. You can get started with as little as £20.
✔ Highly regulated
- Lists 40+ global indices and 5,000+ additional assets
- 1X account allows leverage-free index trading
- No overnight fees on 1X positions
- Quality trading tools on its web, app, MT4, and TradingView platforms
- 24/7 customer support and strong educational content
- No physical ownership of listed securities
- Guaranteed stop-loss not available on 1X accounts
| Type | Fee |
| Minimum Deposit | £20 |
| Commission/Spreads | Free commissions, with Capital.com spreads from 0.0006 pips |
| Overnight Funding | Yes, except for the 1X account |
| Currency Conversions | £0 |
| Guaranteed Stop-Loss Orders | Yes |
| Inactivity | £10 per month after 12 months of inactivity |
| Deposits and Withdrawals | £0 |
4. Spreadex – Leading Index Provider for Spread Betting
Spreadex has built one of the strongest reputations in the UK for index spread betting, and after testing the platform ourselves, we can see why. The pricing is immediately appealing, with spreads from just 1 point on the UK 100, 1 point on the Germany 40, and 2.4 points on Wall Street. These tight spreads give active index traders a cleaner, more cost-efficient way to trade major global benchmarks, especially during high-volume sessions.
Overall, we discovered over 30 global indices across Europe, Asia, and more. What’s more, there are an additional 10,000+ CFD and spread betting assets, which we believe are excellent securities for portfolio diversification. This index broker has no minimum deposit requirement, and all transactions are free.
When it comes to platform reliability, its Web and mobile app are user-friendly with fast trade execution speed. While there are no MetaTrader or cTrader platforms, TradingView offers users advanced features. These include chart types, 100+ pre-built technical indicators, social trading, and more. Its learning resources and support service are also of excellent quality, and highly recommended for newbies.
✔Helpful customer service
- Low indices spread from 1pt on the UK 100 and Germany 40
- Free deposits and withdrawals
- 30+ index markets for global diversification
- Robust platform with advanced charting tools
- No minimum deposit requirement for UK clients
- No demo account for practice
- No buying and taking ownership of listed securities
| Type | Fee |
| Minimum deposit | Free |
| Overnight fee | Yes |
| Deposit fee | Free |
| Withdrawal fee | Free |
| Inactivity fee | Free |
5. Pepperstone – Best Indices Broker With Excellent Support Service
From our analysis, Pepperstone is one of the top indices brokers with excellent support service. We contacted its team via email, live chat and phone, and their response was prompt. Plus, they handled our questions very professionally, thus allowing us to start index trading on a good note. We also like this broker’s learning resources. We find them very informative and easy to understand, especially for newbies. Furthermore, the availability of a demo account makes it easier for users to test the broker’s performance and gauge their skill level without risking real money.
Pepperstone allows users to trade indices as CFDs and spread betting. Some of the most popular stock indices you will explore include the US500, UK100, and JPN225. The best part is that indices trading at Pepperstone is commission-free with low spreads from 1 point on AUS200. Besides indices, users can diversify their portfolios with additional securities, including shares, forex, commodities, cryptos, and more.
✔ No dealing desk intervention
- No minimum deposit requirement
- A user-friendly and intuitive design platform
- Quality market analysis tools on its cTrader, TradingView, MT4, and MT5 platforms
- Users can engage in social and copy trading
- Indices trading fees can be higher compared to its peers
- No buying and taking full ownership of the featured assets
| Type | Fee |
| Minimum Deposit | $0 |
| Withdrawal fee | $0 |
| Deposit fee | $0 |
| Inactivity fee | No |
| Account fee | No |
6. XTB – Best With Long-Term Investment Options
XTB remains one of the most well-rounded and cost-efficient brokers for UK investors who want both index CFDs and long-term investment tools in one place. We noticed that the broker gives access to 20+ global indices, including major markets across the US, Europe and Asia. You can open leveraged long or short CFD positions, with spreads starting from as low as 0.012 pips.
We found the ability to trade microlots, from 0.01 lots, especially helpful when we wanted tighter control over my position size. Swap fees are low, which makes holding index trades for longer periods far more manageable. And even though XTB keeps the sign-up process simple with free account opening, it still maintains high-level protection like two-factor authentication and FCA regulation.
Besides listing indices and an additional 10,000+ CFD instruments, XTB has investment options. You can invest in over 8,400 stocks and ETFs, build automated investment plans, or use its Stocks and Shares ISA to grow assets tax-efficiently. Adding interest of up to 4.25% on uninvested funds makes it even better for investors who prefer to keep part of their capital on the sidelines.
✔ Wide range of global markets
- Access to 20+ global indices with low spreads
- Microlots available for precise position control
- Low swaps on index positions
- Lists additional assets for portfolio diversification
- No minimum deposit requirement for UK clients
- No third-party platforms like MT4 or MT5
- Algorithmic trading is not supported
| Type | Fee |
| Opening an account | $0 |
| Account type: Standard: spread | 0.5 |
| Account type: Swap Free: spread | 0.7 |
| Forex | From 0.1 pips |
| Stock CFDs commission | 0% |
| ETF CFDs | 0% |
| Crypto commission | From 0.22% |
| Monthly Fee for maintaining an Account | Free of charge or up to 10 EUR |
| Withdrawal fee | $0 |
| Deposit fee | $0 |
The Ultimate Guide to Trading with Index Brokers
Understanding the world of index trading and choosing the right broker is just the beginning of your trading journey. In the sections below, we’ll dive into every aspect of trading with index brokers. From getting started to choosing the best broker, exploring popular indices, and finding the easiest broker to trade with, we’ve got you covered.
How to Start Trading with Index Brokers
Embarking on your journey as a trader with index brokers is an important step. Before you start index trading, here are some points you should note.
- Educate Yourself About the Market: Knowledge is your most potent tool in trading. Understand the basics of financial markets, asset classes, trading terminology, and strategies.
- Set a Realistic Budget: Determine the amount of capital you’ll allocate for trading. This should mirror what you plan to invest in live trading, helping you develop a realistic trading approach.
- Choose the Best Index Broker: Select a broker that aligns with your goals. Look for a platform that offers a wide range of assets, user-friendly tools, educational resources, and more.
- Develop a Trading Strategy: Establish clear goals and a trading strategy before you start. Decide on your preferred trading style and outline your entry and exit criteria.
- Utilize Risk Management Tools: Implement risk management techniques to protect your capital, including setting stop-loss orders and position sizing.
- Keep a Trading Journal: Maintain a detailed journal to track your trades, strategies, and progress. This journal will help you identify areas for improvement.
- Practice Patience and Discipline: Emotional control is key to successful trading. Be patient, stick to your strategy, and avoid impulsive decisions.
How to Choose the Best Index Broker in the UK
Selecting the right index broker is crucial for a successful trading journey. To make an informed choice, consider these key factors.
Ensure the broker is regulated by authorities like the Financial Conduct Authority (FCA) in the UK for trust and security.
Check the diversity of assets available for trading, including stocks, forex, commodities, cryptocurrencies, and indices.
Understand the fee structure and be aware of any hidden costs that might impact your profitability.
Look for an intuitive platform with essential tools and educational resources.
Go to Google Play, the App Store, and Trustpilot to analyse other users’ testimonials for informed choices.
Reliable customer support is essential, so assess the platform’s reputation for helpful assistance.
Popular Trading Indices
A range of indices can be traded in the UK, with the FTSE 100, FTSE 250, and FTSE All-Share being the most well-known. The FTSE 100 comprises the largest 100 companies listed on the London Stock Exchange (LSE). Understanding these popular indices is essential for trading success.
Which Broker is Easiest to Trade Indices?
Finding the easiest index broker depends on your experience level and preferences. Brokers like IG Markets and City Index are known for their user-friendly platforms, making them suitable for traders of all levels. However, the ease of trading also depends on your familiarity with the broker’s tools and features.
5 Quick Steps To Start with Index Broker
Starting your trading journey with an index broker is a straightforward process that involves a few key steps. Here’s a quick guide to get you started.
Begin by visiting the official website of your chosen index broker. You’ll typically find an option to create an account or sign up.
Click on the “Sign Up” or “Create Account” button and complete the registration form. You’ll need to provide some personal information, including your name, email address, and contact details. Ensure that the information you provide is accurate and matches your identification documents.
To comply with regulatory requirements, the broker will need to verify your identity. You’ll be asked to provide a copy of your identification documents, such as a passport or driver’s license, and proof of address. This process may take some time, so be patient.
Once your account is successfully registered and verified, it’s time to fund your trading account. You can choose from various deposit methods, including bank transfers, credit cards, or online payment systems. Select the method that suits you best and follow the instructions to make your deposit.
With your trading account funded, you’re now ready to start trading indices. Log in to your trading platform, select the indices you want to trade, and execute your trades based on your trading strategy. Keep an eye on the markets, manage your positions, and adjust your strategy as needed. Also, consider using risk management tools to protect your capital as you begin your trading journey.
Pros and Cons to Trade with Index Broker
Trading with an index broker has its advantages and disadvantages, and understanding these can help you make an informed decision.
| Pros | Cons |
|---|---|
| Trading with index brokers allows you to spread your risk by investing in a variety of stocks at once. | You can’t choose specific stocks when trading indices, missing out on individual opportunities. |
| It’s easy to buy and sell index-based products quickly, reducing the risk of unexpected price changes. | Broader economic events can impact index trading, making it difficult to time the market. |
| Index trading is open to traders of all levels and can be done using various financial instruments. | You have less control over your investment portfolio as you track an entire index. |
| Trading indices often costs less than buying individual stocks, thanks to lower fees. | |
| You can benefit from overall market trends when trading indices. |
FAQs
Yes. Many traders are making money* trading indices. The first step to success is choosing a suitable broker like the ones we recommend above.
*Don’t invest unless you’re prepared to lose all the money you invest.
Yes. There are many brokers in the UK offering various indices to trade with. Simply choose a suitable one and give index trading a try.
Yes. IG Markets is one of the most popular index brokers and has proven to be the most trusted for trading index by UK traders.
First, learn how index trading works. Second, decide on the type of indices you want to trade and choose the most suitable index broker. You will then have access to the trading markets, where you will be free to open a position and monitor your trading activities.
Absolutely. The best index broker should be regulated by a world-class authority. For the UK market, the FCA is the leading financial regulator.
Conclusion
Before diving into index trading, your first step should be to master the intricacies of this financial practice. Equally important is selecting a top-notch index broker, ideally one recommended for its streamlined services. Keep in mind that a reliable broker alone doesn’t guarantee profitable trades. It’s crucial to conduct thorough research, stick to your trading plan, and exercise patience. Learning from seasoned professionals and staying updated on market developments are additional vital aspects. By following this guidance, you can navigate the dynamic world of index trading more effectively and increase your chances of success.
How we test?
Our evaluation and testing process is thorough and exhaustive. First, we conduct extensive research. Our experts visit each broker’s official site and assess every offering. Then, we go to credible review sites like Trustpilot, Google Play, and the App Store and read user testimonials and feedback. After research, our experts proceed to the next step: testing.
The testing phase is critical in determining if brokers deliver as promised. We used demo and live accounts to vet available trading platforms, tools, and other resources. While doing so, our experts strive to identify the most pronounced strengths and weaknesses.
Why do we do all that? It’s simple. You are a valued member of the TradingGuide family, and we are committed to doing everything in our power to ensure you have access to the best brokers. Find out more about our test process here.
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I tried almost all brokers from this list but never hear about Fidelity. Is it worth trying?
Fidelity is a very popular broker, I recommend trying it
Do you trade with Fidelity?
This guide completely transformed my trading journey! With newfound confidence, I've chosen eToro for its remarkable social trading feature, allowing me to follow seasoned traders. While eToro's fees are slightly higher, the quality of their service justifies it. I've also expanded my portfolio with FP Markets, appreciating their user-friendly app and exceptional support. The guide acted as a navigational tool, simplifying the intricate world of trading. A big thank you to the guide for making the complex simple. Wishing everyone happy and successful trading!
I've already traded indices using Plus500 and eToro, but this guide showed me a lot of new things. I learned about many other brokers and indices that were unknown to me. The advice on choosing a broker and risk management was helpful. Now I have more tools and knowledge for successful trading. It's truly a valuable resource for experienced traders!
Solid list of brokers! I’ve traded indices with a few of these, and I’d say Interactive Brokers is my go-to platform
Anyone else finding that volatility has been lower on major indices lately? Been having to adjust position sizes and look at emerging market indices for better opportunities.