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FXCM offers an extensive collection of indices CFDs. Clients are able to trade their opinions on the world’s top equities markets alongside of currencies and commodities.

In addition to being a global leader in the provision of forex market access, FXCM also furnishes clients with a diverse selection of CFD (contract for difference) products. Currencies, commodities and equities indices are all available for trade through FXCM’s vast services suite.

An equities “index,” or in plural form “indices,” is a distinct cross section of each stock exchange’s most prominent companies. FXCM offers an extensive collection of indices CFDs, giving clients the opportunity to trade their opinions facing the world’s top equities markets.

Advantages

One of the most popular methods of participating in the capital markets is to purchase corporate stock or an index fund. While these activities are the backbone of many investment strategies, they have several disadvantages. Large fees, considerable required capital and convertibility issues limit their utility to active traders.

In contrast, the trading of an enhanced index CFD has several unique advantages:

  • Limited Trade Restrictions
  • Low Transaction Costs
  • Availability of Leverage
  • Variable Trade Sizes

Many individuals are interested in seeking opportunity in the world’s leading equities markets without owning an index fund or basket of stocks. Indices trading or spread betting on indices are practical alternatives.

Underlying Markets

FXCM offers clients a variety of indices products based on leading international equities marketplaces:

Scrollable
Symbol Underlying
Index
US30 DJIA
SPX500 S&P 500
NAS100 NASDAQ
UK100 FTSE
GER30 DAX
ESP35 IBEX
FRA40 CAC
HKG33 HSI
JPN225 NIKKEI
AUS200 ASX 200
EUSTX50 EURO STOXX

FXCM presents in-depth descriptions of all index CFDs via the Index Product Guide. The Index Product Guide lists each product’s vital statistics. Average spreads, trading hours and contract specifications are available for quick reference.

Indices Pricing

When trading indices products with FXCM, the only cost is the spread. The enhanced execution model ensures some of the lowest spreads in the industry, with no stop and limit trading restrictions.

Decimalised pricing is a tool that enables FXCM to offer tighter spreads and transparency to indices traders. Under decimalised pricing, FXCM quotes out to more decimal places than most competitors. As a rule, smaller increments equal tighter spreads.

For instance, FXCM quotes the GER30 in terms of hundredths rather than tenths:

  • GER30
    • Competition: 12189.0
    • FXCM:      12189.05

FXCM supports a diverse collection of software platforms, featuring the award-winning Trading Station. Each platform automatically calculates the cost of each trade using the following formula:

( Spread )
x ( Pip Cost )
x ( Number of Lots Traded )
= Total Cost

Indices Trading Details

In addition to cost, traders must be aware of several other details unique to indices:

Indices Trading Details

Contract Sizes:
Each have a specific minimum and maximum position

Trading Hours:
Trading hours vary depending upon the locale of the index.

Financing:
Costs associated with holding a position into the close (rollover) vary according to index.

Margin Requirements:
Margins change frequently and depend on the volatility of the underlying market.

Enhanced Execution:
FXCM offers trading with no stop and limit restrictions on select indices.

Getting Started

Incorporating indices trading into your portfolio is easy. Opening an account with FXCM is all that is needed to begin capitalising on opportunity in the world’s most influential equities marketplaces.

Compensation: When executing customers' trades, FXCM can be compensated in several ways, which include, but are not limited to: charging fixed lot-based commissions at the open and close of a trade, adding a markup to the spreads it receives from its liquidity providers for certain account types, and adding a markup to rollover. Under the Dealing Desk execution model, FXCM may act as a dealer and may receive additional compensation from trading.