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, CAC 40, and DAX. The Dow Jones index, for example, represents 30 large publicly-listed companies traded on the New York Stock Exchange.

You can start trading on indices by opening a live account. If you would like to practise your index trading strategy first, you can open a demo account to 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.

With CFD trading, you buy or sell a number of units for a particular instrument. For every point or unit that the price moves in your favour, you gain multiples of your stake, and vice versa.

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. See the major global indices you can trade with us.

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.

CMC Markets Germany GmbH is a company authorised and regulated by the German Federal Financial Supervisory Authority (BaFin). CMC Markets complies with the requirements of §84 of the German Securities Trading Act (WpHG) regarding client funds.

CMC Markets Germany GmbH is a broker regulated by the German Federal Financial Supervisory Authority (BaFin). It holds funds of private clients separately from its own funds in separate bank accounts. In the unlikely event that CMC Markets Germany GmbH is unable to meet its financial obligations, the EdW would cover any claim for damages by claimants up to €20,000, provided that certain criteria are met.

Retail client money is kept in separate trust accounts. By keeping retail client money separate from CMC Markets' own funds, it ensures that retail money is not owned and cannot be used by CMC Markets, as it is held on trust for retail clients. Learn more about client money regulations.

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