Why Trade CFDs on Indices

Did you know that trading indices can get you exposure to a country’s stock market performance?

 

.. and 10+ more

FOREX

Why Trade Indices with 4Pro Market:

Get Access to Global Indices

Over 15+ Indices CFDs

Get access to US, EU, UK, AU and Asian Indices with your 4ProMarket MT5 account!

No Requotes

Never experience a single requote with our deep liquidity pool and lightning execution speeds.

NY4 Servers

Ensure lightning-speed execution with our strategically located NY4 Servers.

Up to 1:500 Leverage

Trade to your maximum potential with high 1:500 leverage on 4ProMarket's MT5

Spreads from 0.0 pips

Our proprietary 4ProMarket Aggregation engine helps you consistently get the best spreads for trading on MT5 servers

10+ Tier 1 Liquidity Providers

Benefit from the deep liquidity of our pool of top tier liquidity providers to ensure you always get filled at the best rates.

All strategies allowed

Whether you’re a scalper, news trader or EA trader - 4ProMarket provides you the best environment to fulfil your potential.

Trusted & Regulated Broker

4ProMarket has four reputable licenses – ASIC, FMA, VFSC. You can rest assured that your funds are safe with us.
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Frequently Ask Question

All about CFD indices and share trading

What’s the main difference between CFD indices and share trading?

Stocks represent shares in an individual company. The price of the shares moves solely based on the company's performance, finances, and outlook. Meanwhile, indices track a group of companies that represent an industry or a nation's economy.

If you trade share CFDs, your analysis will focus on financial data and charts for one company. However, with indices CFD trading, you will look at the economy and the stock market as a whole.

What are the benefits of trading in CFD indices?

An index gives you exposure to an entire market sector. If you wanted to profit from a booming US economy, you could purchase CFDs tracking the S&P 500, for example.

Also, you can use leverage to increase the size of your position without having to contribute more capital. The capital requirements for indices CFD trading are much lower than those for trading index ETFs or futures.

CFDs also track the underlying index. Other derivatives, such as options on index ETFs or futures, do not mirror the price movements as closely due to expiration and time decay, market expectations, and other factors.

What factors impact the price of indices?

Since an index consists of different company stocks, the performance of influential companies, industries, or sectors can impact the price of indices CFDs. However, other factors are also important.

  • Geopolitics can either inspire confidence in the markets or cause uncertainty. Treaty announcements, conflicts, international disagreements, and political changes can cause bear or bull markets depending on whether investors see the changes as positive or negative.
  • Interest rate changes and other monetary policy decisions, which usually come from a central bank, can cause a country's stock market index prices to fluctuate.
  • Government policies, such as trade deals and corporate tax rate changes, can affect stock market index performance. Generally, more pro-business decisions, such as lower tax rates or incentives for certain industries, cause index prices to rise. Meanwhile, tax increases, new regulations, and other factors slowing business processes can cause a drop in index value.
Are 4ProMarket’s indices a future or a spot price?

4ProMarket's indices CFDs use the spot price, which directly tracks the underlying indices, not the futures price. Spot prices are meant for immediate settlement.