Best Brokers for Indices

The Deriv Broker is the “number one go-to” broker when it comes to trading indices. Deriv.com former “Binary.com” derives its name from derivatives which in finance means a contract that gets its value from the analytics of an underlying asset, index, or interest rate. Selecting the best broker for trading indices is a crucial decision that can significantly impact your trading success. The right broker should offer a secure trading environment, competitive pricing, a wide range of available indices, user-friendly trading platforms, and excellent customer support.

 

Can you trade indices with $100?

Answer

Yes, it’s possible to trade indices with $100, but it comes with limitations. Many brokers offer micro or mini index contracts, which allow traders to start with smaller capital. However, trading with $100 may restrict the number of contracts you can trade, and it’s essential to manage risk carefully. Consider using leverage cautiously and prioritize risk management to protect your capital while trading indices with a limited budget.

TABLE OF CONTENTS

• Choosing the right Indices Broker
• Deriv.com MT5
• What can you trade with Deriv.com MT5
• Deriv Major Pairs
• Deriv Exotic Pairs
• Deriv Digital Options
• Deriv FX Contract for Difference
• Deriv Metatrader 5 (MT5)
• Conclusion
• Frequenty Asked Questions
• Recommended for you

Choosing the right Indices Broker

7 Things to look for when choosing a Synthetic Indices Broker

• Range of indices: Choose a broker that offers a wide range of indices to trade.

• Trading fees and spreads: Look for a broker with competitive trading fees and low spreads.

• Platform user-friendliness and tools: Consider the platform’s ease of use and the trading tools it provides.

• Reputation and security: Choose a broker with a strong reputation for reliability and security.

• Customer support and education: Evaluate the customer support and educational resources provided by the broker.

• Regulatory oversight and financial stability: Make sure the broker is properly regulated and financially stable.

• Demo accounts: Check if the broker offers demo accounts to test the platform before committing to a real account.

Deriv.com MT5

Deriv is on an MT5 trading platform and offers a wide variety of instruments like Boom and Crash (300 – 1000), Volatility 10 (s) – 100 (s), Step Index, Range Breaks 100 – 200, and Jump Indices 10 – 25. The most traded index is the volatility 75 or popularly known as the vix 75. This index attracts most traders due to its high volatility as its name suggests and also because of the small lot size required to trade it, which is as little as 0.001.

 

The other factor why traders prefer Deriv to other brokers is because of its ease in making deposits and withdrawals as this can all be done within the platform or app. Deriv offers and app known as the DP2P which simply stands for Deriv Peer to Peer. With DP2P traders can buy and sell e-money at 0% transaction fees and this is done instantly. The App or Online Portal has a beginner friendly dashboard and is very easy to navigate.

What can you trade with Deriv.com MT5

Deriv Major Pairs

The most popular, commonly traded currency pairs are EUR/USD, GBP/USD AUD/USD and USD/JPY. All major pairs include USD since it is the world’s most traded currency.

Deriv Exotic Pairs

Currency pairs consisting of one major currency and the currency of a developing country such as Turkey which is available on the DMT5 platform are USD/RUB or USD/THB. These fall under the exotic pairs group

Deriv Digital Options

Digital options have a fixed payout and a fixed premium. Before purchasing each trade, you’ll know the exact cost of each trade and how much you stand to gain or lose. At worst, the maximum that you could ever part with is the price initially paid to purchase the trade; at best, you’ll win back your initial stake plus the payout amount displayed for your consideration when you first bought the trade. Thus, as forex trading goes, the digital option route is clear-cut and predictable in terms of the potential outcomes. Your risk on DTrader is strictly limited to your premium.

Deriv FX Contract for Difference

A CFD is a derivative product that you can use to speculate on the future direction of a market’s price. You’ll never take ownership of the underlying asset (in this case, currencies). Profit or loss results only from the difference in the price of the underlying asset when the contract is closed. A CFD gives you exposure to a market and allows you to go long (trade for the price to go up) or short (trade for the price to go down). 

 

The CFD will remain open until you close it or it gets stopped out. Deriv.com believes in reasonable trading and offer ways to limit your risk such as stop loss, take profit and limit orders they also offer a no negative balance guarantee which means should a trade go heavily against you and you don’t have a stop loss order you will not be asked for additional funds.

Deriv.com Metatrader 5 (MT5)

MetaTrader 5 (MT5) is a robust online trading platform developed by MetaQuotes Software. Whilst, at first sight, MT5 can look a little overwhelming, take it a bite at a time and you’ll easily be able to rise to master it. The software is available free of charge and can be downloaded onto a desktop/laptop and there is also an app available for Android and IOS devices

Conclusion

In conclusion, selecting the best broker for trading indices is a multifaceted decision that necessitates careful consideration of various factors. Regulatory compliance, trading conditions, available index offerings, trading platforms, and customer support all contribute to the overall trading experience. After thorough research and evaluation, traders can make an informed choice that aligns with their individual trading goals and preferences. Prominent brokers such as IG, Saxo Bank, Interactive Brokers, and more cater to diverse needs in the realm of index trading, providing traders with the tools and resources to pursue success in this dynamic market.

F.A.Q

What should I consider when choosing a broker for trading indices?

Consider factors such as regulatory compliance, trading costs (spreads, commissions), available indices, trading platforms, customer support, and the broker’s reputation.

Which brokers offer a wide range of indices to trade?

Brokers like IG, Saxo Bank, Interactive Brokers, and CMC Markets typically offer a broad selection of indices from various global markets.

What trading platforms are commonly offered by brokers for index trading?

MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are popular trading platforms, but many brokers also have their proprietary platforms designed for index trading.

Do brokers offer demo accounts for index trading?

Yes, most brokers provide demo accounts, allowing you to practice index trading with virtual funds before trading with real money.

Can I trade indices with a small account balance?

Some brokers offer micro or mini index contracts, making it possible to trade indices with a smaller capital base. However, ensure you manage risk appropriately.

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Message from the Author
I hope you enjoyed this article and that it was an eye-opener. If you found value, kindly share with your fellow traders on social media and let’s grow together both in knowledge and skill.

Written By: Allen Matshalaga

 

Allen is a professional forex trader, blogger, and online enthusiast who spends most of his time testing and reviewing legit ways of making money online and is determined to help others succeed.