Indices trading

Indices are a measure of a section of shares in the stock market, created by combining the value of several stocks to create one aggregate value. Major financial indices include the Dow Jones Industrial Average, FTSE 100, and S&P 500. The Dow Jones index, for example, represents 30 large publicly-listed companies traded on the New York Stock Exchange. More on indices trading

You can start trading on indices by opening a live account. Or, to practice index trading strategies, open a demo account and trade with virtual funds.

One of the advantages of trading CFDs is that you only need to deposit a percentage of the full value of your position to open a trade, known as trading on leverage. Remember, trading on leverage can also amplify losses, so it's important to manage your risk.

When you trade CFDs on indices via our platform, you don't buy or sell the underlying index. Instead, you're taking a position on whether you think the index will go up or down.

While you can trade on leverage, meaning you only need to put up a minor percentage of the overall trade’s value, any profit or loss is based on the full value of the trade. As a retail client, you can never lose more than the amount in your account, which is known as negative balance protection.

There's no cost when opening a live trading account with us. You can also view prices and use tools such as charts, Reuters news or Morningstar quantitative equity reports, free of charge. However, you'll need to deposit funds in your account to place a trade.

Yes, CMC Markets Canada Inc. is a member of the Canadian Investment Regulatory Organization (CIRO). CFDs are distributed in Canada by CMC Markets Canada Inc. acting as principal.

As a CMC client, your money is held separately from CMC Markets’ own money and is held on trust in segregated bank accounts with a Canadian bank. This account is opened and maintained in the name of CMC Markets Canada Inc. We do not use client money to hedge our positions or to meet the trading obligations of other customers. This offers you financial security and you can rest assured that your money with us is protected.

Our income primarily comes from our spreads, while other fees, such as overnight holding costs, make a minor contribution to our overall revenue.