Best Brokers With Synthetic Indices 2025
Brokers with synthetic indices provide trading tools that replicate the behaviour of conventional financial markets. Synthetic indices are not tied to real-world financial assets in the same way as normal indices, and their performance is either calculated according to a formula that is influenced by real-world market movements or is entirely simulated.
Dig into our selection of the top brokers in the UK offering synthetic indices, covering everything from fee structures to compatibility with popular platforms like MT4 and MT5.
List of Brokers That Trade Synthetic Indices
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Founded in Australia in 2010, Pepperstone is a highly regarded broker specialising in forex and CFDs. Serving more than 400,000 clients globally, it provides access to over 1,300 financial instruments through popular platforms like MT4, MT5, cTrader, and TradingView. Its fee structure is both low and transparent. With regulation by reputable bodies such as the FCA, ASIC, and CySEC, Pepperstone guarantees a safe trading environment for traders at every level.
Instruments Regulator Platforms CFDs, Forex, Currency Indices, Stocks, Indices, Commodities, ETFs, Crypto (only Pro clients), Spread Betting FCA, ASIC, CySEC, DFSA, CMA, BaFin, SCB MT4, MT5, cTrader, TradingView, AutoChartist, DupliTrade, Quantower Min. Deposit Min. Trade Leverage $0 0.01 Lots 1:30 (Retail), 1:500 (Pro) -
Established in Poland in 2002, XTB caters to over a million clients worldwide. This forex and CFD broker offers a robust regulatory framework, a diverse range of assets, and prioritises trader satisfaction. It provides an intuitive proprietary platform equipped with excellent tools to support aspiring traders.
Instruments Regulator Platforms CFDs on shares, Indices, ETFs, Raw Materials, Forex currencies, cryptocurrencies, Real shares, Real ETFs FCA, CySEC, KNF, DFSA, FSC, SCA, Bappebti xStation Min. Deposit Min. Trade Leverage $0 0.01 Lots 1:30 -
Founded in 1989, CMC Markets is a reputable broker publicly listed on the London Stock Exchange. It holds authorisation from top-tier regulators such as the FCA, ASIC, and CIRO. The brokerage, which has received multiple awards, boasts a global membership exceeding one million traders.
Instruments Regulator Platforms CFDs, Forex, Stocks, Indices, Commodities, ETFs, Treasuries, Custom Indices, Spread Betting FCA, ASIC, MAS, CIRO, BaFin, FMA, DFSA Web, MT4, TradingView Min. Deposit Min. Trade Leverage $0 0.01 Lots 1:30 (Retail), 1:500 (Pro) -
Saxo Markets is a renowned trading brokerage, investment firm, and regulated bank. Featuring over 72,000 trading instruments, alongside investment products and managed portfolios, it provides abundant opportunities for clients. This reputable brand ensures transparent pricing and is protected by top-tier regulations from more than ten agencies, including FINMA, FCA, and ASIC.
Instruments Regulator Platforms Forex, CFDs, indices, shares, commodities, cryptocurrencies, futures, options, warrants, bonds, ETFs DFSA, MAS, FCA, SFC, FINMA, AMF, CONSOB TradingView, ProRealTime Min. Deposit Min. Trade Leverage £500 Vary by asset 1:30 -
Interactive Brokers (IBKR), a leading brokerage, offers access to 150 markets across 33 countries and provides extensive investment services. With more than 40 years of experience, this Nasdaq-listed company complies with strict regulations from the SEC, FCA, CIRO, and SFC. It is among the most reliable brokers worldwide for traders.
Instruments Regulator Platforms Stocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, CFDs, Cryptocurrencies FCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMA, AFM Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, TradingView, eSignal, TradingCentral, ProRealTime, Quantower Min. Deposit Min. Trade Leverage $0 $100 1:50 -
Founded in 1974, IG is a part of IG Group Holdings Plc, a publicly listed brokerage (LSE: IGG). The company provides spread betting, CFD, and forex trading, offering access to over 17,000 markets. Its platforms and investing apps are notably user-friendly. Over the past 50 years, IG has consistently been an industry leader, excelling in all essential areas for traders.
Instruments Regulator Platforms CFDs, Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto, Spread Betting FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA, FINMA, CONSOB, AFM Web, ProRealTime, L2 Dealer, MT4, TradingView, AutoChartist, TradingCentral, ProRealTime Min. Deposit Min. Trade Leverage $0 0.01 Lots 1:30 (Retail), 1:222 (Pro)
Pepperstone
XTB
CMC Markets
Saxo
Interactive Brokers
IG IndexSafety Comparison
Compare how safe the Best Brokers With Synthetic Indices 2025 are and what features they offer to protect traders.
| Broker | Trust Rating | FCA Regulated | Negative Balance Protection | Guaranteed Stop Loss | Segregated Accounts |
|---|---|---|---|---|---|
| Pepperstone | ✔ | ✔ | ✘ | ✔ | |
| XTB | ✔ | ✔ | ✔ | ✔ | |
| CMC Markets | ✔ | ✔ | ✔ | ✔ | |
| Saxo | ✔ | ✘ | ✘ | ✔ | |
| Interactive Brokers | ✔ | ✔ | ✘ | ✔ | |
| IG Index | ✔ | ✔ | ✔ | ✔ |
Payments Comparison
Compare which popular payment methods the Best Brokers With Synthetic Indices 2025 support and whether they have trading accounts denominated in British Pounds (GBP).
| Broker | GBP Account | Debit Card | Credit Card | Neteller | Skrill | Apple Pay |
|---|---|---|---|---|---|---|
| Pepperstone | ✔ | ✔ | ✔ | ✔ | ✔ | ✔ |
| XTB | ✔ | ✔ | ✔ | ✔ | ✔ | ✘ |
| CMC Markets | ✔ | ✔ | ✔ | ✘ | ✘ | ✘ |
| Saxo | ✔ | ✘ | ✔ | ✘ | ✘ | ✘ |
| Interactive Brokers | ✔ | ✔ | ✘ | ✘ | ✘ | ✘ |
| IG Index | ✔ | ✔ | ✔ | ✘ | ✘ | ✘ |
Mobile Trading Comparison
How good are the Best Brokers With Synthetic Indices 2025 at mobile trading using apps or other mobile interfaces.
| Broker | Mobile Apps | iOS Rating | Android Rating | Smart Watch App |
|---|---|---|---|---|
| Pepperstone | iOS & Android | ✘ | ||
| XTB | iOS & Android | ✔ | ||
| CMC Markets | iOS & Android | ✘ | ||
| Saxo | SaxoTraderGo (iOS, Android, Windows) | ✘ | ||
| Interactive Brokers | iOS & Android | ✔ | ||
| IG Index | iOS & Android | ✔ |
Beginners Comparison
Are the Best Brokers With Synthetic Indices 2025 good for beginner traders, that might want an affordable setup to get started, along with good support and educational resources?
| Broker | Demo Account | Minimum Deposit | Minimum Trade | Support Rating | Education Rating |
|---|---|---|---|---|---|
| Pepperstone | ✔ | $0 | 0.01 Lots | ||
| XTB | ✔ | $0 | 0.01 Lots | ||
| CMC Markets | ✔ | $0 | 0.01 Lots | ||
| Saxo | ✔ | £500 | Vary by asset | ||
| Interactive Brokers | ✔ | $0 | $100 | ||
| IG Index | ✔ | $0 | 0.01 Lots |
Advanced Trading Comparison
Do the Best Brokers With Synthetic Indices 2025 offer features that allow for more advanced trading strategies?
| Broker | Automated Trading | Pro Account | Leverage | VPS | AI | Low Latency | Extended Hours |
|---|---|---|---|---|---|---|---|
| Pepperstone | Expert Advisors (EAs) on MetaTrader | ✔ | 1:30 (Retail), 1:500 (Pro) | ✔ | ✔ | ✔ | ✘ |
| XTB | Open API | ✔ | 1:30 | ✘ | ✘ | ✔ | ✘ |
| CMC Markets | Expert Advisors (EAs) on MetaTrader | ✔ | 1:30 (Retail), 1:500 (Pro) | ✔ | ✘ | ✔ | ✔ |
| Saxo | - | ✘ | 1:30 | ✘ | ✘ | ✘ | ✔ |
| Interactive Brokers | Capitalise.ai & TWS API | ✘ | 1:50 | ✘ | ✔ | ✔ | ✔ |
| IG Index | Expert Advisors (EAs) on MetaTrader, build your own on ProRealTime | ✔ | 1:30 (Retail), 1:222 (Pro) | ✔ | ✘ | ✔ | ✔ |
Detailed Rating Comparison
Use this heatmap to compare our detailed ratings for all of the Best Brokers With Synthetic Indices 2025.
| Broker | Trust | Platforms | Mobile | Assets | Fees | Accounts | Support | Research | Education |
|---|---|---|---|---|---|---|---|---|---|
| Pepperstone | |||||||||
| XTB | |||||||||
| CMC Markets | |||||||||
| Saxo | |||||||||
| Interactive Brokers | |||||||||
| IG Index |
Our Take On Pepperstone
"Pepperstone is a premier trading platform, providing tight spreads, swift execution, and sophisticated charting tools for seasoned traders. Beginners benefit from no minimum deposit, comprehensive learning materials, and outstanding 24/7 support."
Tobias Robinson
Reviewer
Pros
- Over the years, Pepperstone has consistently garnered recognition from DayTrading.com’s annual awards. Recently, it was honoured as the 'Best Overall Broker' in 2025 and was the 'Best Forex Broker' runner-up the same year.
- Support for top-tier charting platforms such as MT4, MT5, TradingView, and cTrader. These tools accommodate different short-term trading methods, including algorithmic trading.
- In recent years, Pepperstone has significantly enhanced the deposit and withdrawal process. By 2025, clients can use Apple Pay and Google Pay, while 2024 saw the introduction of PIX and SPEI for customers in Brazil and Mexico.
Cons
- Pepperstone's demo accounts expire after 30 days, which may not provide sufficient time to explore various platforms and evaluate trading strategies.
- Pepperstone doesn't offer cTrader Copy, a favoured feature for copying trades found in the cTrader platform, which is available on other platforms such as IC Markets. However, Pepperstone has launched its own user-friendly copy trading app.
- Although its market range has improved, its crypto offerings remain limited compared to brokers specialising in this sector, lacking real coin investment options.
Our Take On XTB
"XTB emerges as an ideal option for novice traders, offering the impressive xStation platform, zero commission pricing, no required minimum deposit, and outstanding educational resources, many of which are conveniently integrated into the platform."
Pros
- XTB has raised its interest rate on uninvested funds and introduced zero-fee ISAs for UK clients, offering access to 3,000 stocks and 700 ETFs for diverse investment opportunities.
- The xStation platform stands out with its user-friendly design and intuitive tools, such as adaptable news feeds, sentiment heatmaps, and a trader calculator. These features streamline the learning process for new traders.
- Top-notch customer support, available 24/5, includes a welcoming live chat with response times under two minutes during tests.
Cons
- It is frustrating that XTB products do not allow traders to modify the default leverage level. Manually adjusting leverage can greatly reduce risk in forex and CFD trading.
- XTB lacks a raw spread account, a feature increasingly offered by competitors such as Pepperstone. This omission might not satisfy traders seeking the most competitive spreads.
- The demo account lasts only four weeks, posing a challenge for traders wanting to fully explore the xStation platform and refine short-term strategies before investing actual money.
Our Take On CMC Markets
"Equipped with advanced charts and a broad array of tradable CFDs, including an unmatched selection of currencies and bespoke indices, CMC Markets offers an excellent online platform for traders at any level."
Pros
- CMC provides competitive pricing with narrow spreads and low trading fees, except for stock CFDs. The Alpha and Price+ programmes offer additional benefits for active traders, including discounts on spreads of up to 40%.
- CMC Markets is well-regulated by respected financial authorities, ensuring a secure and reliable trading environment. It upholds a strong reputation, providing traders with confidence.
- We've upgraded the 'Assets & Markets' rating due to frequent product enhancements in early 2025. These include extended trading hours for US stocks and the introduction of new share CFDs.
Cons
- The CMC Markets app provides a comprehensive trading package; however, its design and user experience lag behind market leaders such as eToro.
- CMC provides a robust range of assets; however, it does not support trading actual stocks, and UK clients are unable to trade cryptocurrencies.
- Trading stock CFDs comes with a relatively high commission, particularly when compared to low-cost brokers such as IC Markets.
Our Take On Saxo
"Saxo suits active traders and high-volume investors, providing unmatched instrument variety, premium research, and fee rebates. With 190 currency pairs offering tight spreads, it excels for forex traders."Christian Harris
Reviewer
Pros
- Access to advanced external analysis tools, such as TradingView and Updata, is available.
- Outstanding educational materials are available, such as podcasts, webinars, and expert-led videos.
- Elite research centre offering specialised market analysis and exclusive forecasts, including 'Outrageous Predictions'.
Cons
- A subscription is necessary to access Level 2 pricing.
- Clients from certain regions, such as the US and Belgium, are not accepted.
- Trading accounts require substantial financial investment.
Our Take On Interactive Brokers
"Interactive Brokers ranks highly for seasoned traders due to its robust charting platforms, live data, and bespoke layouts via the new IBKR Desktop app. Its competitive pricing and sophisticated order choices appeal to traders, and its wide equity options are industry-leading."
Pros
- The new IBKR Desktop platform combines the top features of TWS with customised tools such as Option Lattice and MultiSort Screeners, providing an impressive trading experience for traders of all skill levels.
- The TWS platform is tailored for intermediate and advanced traders, featuring over 100 order types and a dependable real-time market data feed with exceptional uptime.
- IBKR offers an economical environment for traders, featuring low commissions, narrow spreads, and a clear fee structure.
Cons
- IBKR offers a variety of research tools, but their inconsistent placement across trading platforms and the 'Account Management' webpage creates a confusing experience for users.
- The learning curve for TWS is quite steep, making it tough for novice traders to navigate and grasp all its features. In contrast, Plus500's web platform is far more accessible for those new to trading.
- You are limited to a single active session per account, meaning you cannot use both your desktop programme and mobile app at the same time. This restriction can occasionally lead to a frustrating experience for traders.
Our Take On IG Index
"IG offers a complete package with an intuitive online platform, top-tier beginner education, advanced charting tools through its TradingView integration, real-time data, and swift execution for seasoned traders."
Pros
- IG stands out with its extensive range of instruments, offering stocks, forex, indices, commodities, and cryptocurrencies. Additionally, it has recently introduced US-listed futures and options, along with an AI Index. These options enhance opportunities for diversification in trading.
- The web-based platform supports traders at every level, offering advanced charting tools and real-time market data vital for trading. Additionally, IG now includes TradingView integration.
- The ProRealTime advanced charting platform remains free, provided traders meet modest monthly activity requirements.
Cons
- IG has ended its swap-free account, diminishing its attractiveness to Islamic traders.
- Based on tests, stock and CFD spreads remain less competitive than the lowest-cost brokers, such as CMC Markets.
- Beginners may find IG's fees complicated, as they vary depending on the trades or services. This could cause confusion and unexpected costs.
How Did Investing.co.uk Chose The Best Brokers That Offer Synthetic Indices?
To identify the best brokers for trading synthetic indices, our testing panel – made up of active traders and industry experts – handpicked the top providers. We carried out in-depth, hands-on testing to verify that each platform genuinely offers synthetic index products.
Our process went beyond surface-level research. We opened accounts, navigated the platforms, and tested features to assess the things that matter most to synthetic index traders – trading costs, platform usability.
We also factored in support for UK-specific needs, so every brokerage in our toplist is FCA-regulated and supports GBP-denominated accounts.
What Are Synthetic Indices?
Synthetic indices are designed to replicate the price movements of real-world markets.
However, unlike traditional financial instruments, their pricing is typically generated using cryptographically secure random number algorithms rather than tied to actual assets.
This allows synthetic indices to be traded around the clock, including weekends – offering flexibility beyond conventional market hours.
Some leading brokers offering synthetic indices are audited by independent bodies to ensure price integrity and prevent manipulation, creating a more transparent environment for retail traders.
For UK investors, the most widely available and recognised types of synthetic-like indices include:
- Volatility indices: These measure fluctuations in market sentiment. A key example is the VIX, which reflects expected volatility in the S&P 500. While not purely synthetic, it mimics characteristics of volatility-focused synthetic assets.
- Currency indices: These track a single currency’s strength against a group of others. One of the most traded is the US Dollar Index (DXY), while brokers like CMC Markets also offer a British Pound Index, tracking the GBP against the currencies of the UK’s major trading partners.
Though not synthetic in the strictest sense – like the engineered indices offered by brokers like Deriv – these tools share similar traits. They help you speculate on broader market dynamics or hedge exposure to macroeconomic shifts without relying on individual securities.
CMC Markets’ GBP Index tracks the strength of the British pound against key global currencies
How To Compare Brokers That Offer Synthetic Indices
To begin trading synthetic indices, you must register with a UK broker that provides access to these instruments. For example, Saxo offers CFDs on the VIX and direct market access (DMA) to VIX futures.
However, before choosing a provider, it’s important to compare synthetic index brokers across the following key areas:
- Trading Costs: Consider the total fees including spreads, commissions, overnight charges, and currency conversion fees if your account is not GBP-denominated. For example, IG offers access to the CBOE Volatility Index (VIX) and VSTOXX with floating spreads starting from 0.4 pips. Be sure to check for any deposit charges, withdrawal fees, or premium data subscriptions. If you opt for a binary options platform with synthetic indices, compare typical payout percentages – top providers offer 95% or higher.
- Trading Platforms: Look for brokers offering advanced proprietary platforms or trusted third-party terminals like MetaTrader 4 (MT4) and MetaTrader 5 (MT5). Strong platforms will feature fast execution, charting tools, and mobile accessibility. Interactive Brokers, for example, offers a comprehensive platform suite, including its powerful Trader Workstation (TWS) geared toward high-volume traders.
- Demo Account: We’ve found that a free practice trading account can be an invaluable tool, especially if you’re new to synthetic indices. It lets you familiarise yourself with market behaviour and trading strategies without risking real funds.
- Payment Options: Choose a broker that supports popular UK-friendly payment methods such as debit card, credit card, bank transfer and e-wallet. Look for a GBP currency account to avoid unnecessary conversion fees.
- Regulation & Safety: Always opt for brokers that are FCA-regulated. UK investors benefit from added protections such as negative balance protection, segregated accounts, and potential compensation through the Financial Services Compensation Scheme (FSCS) if the broker becomes insolvent.
- Customer Support: We’ve learned that responsive support is crucial due to the high-speed nature of synthetic index trading. Top brokers offer assistance via live chat, email, and phone, with availability either 24/5 or 24/7 to suit global trading hours.
AvaTrade offers a variety of synthetic indices, including the Inverse VIX ETN (VXXB)
How To Start Trading Synthetic Indices
Most FCA-authorised brokers offering synthetic indices follow a standard onboarding process. Here’s what you can expect when getting started:
- Create a live trading account: Complete the broker’s registration form and submit the required Know Your Customer (KYC) documents, such as a valid photo ID (passport or driver’s licence) and a recent utility bill or bank statement to confirm your address. This process is mandatory under UK financial regulations. It can be time-consuming – I know I’ve done it many times – but it’s unavoidable.
- Fund your account: Deposit funds using one of the accepted payment methods (e.g. bank transfer, debit card, PayPal). Be aware of minimum deposit requirements, which can vary by platform—some start from £50, while others may require £250 or more.
- Access the trading platform: Log into your broker’s client portal and launch the trading terminal. Most platforms support MT4 or MT5, though some synthetic index brokers that we’ve tested offer web-based or proprietary alternatives.
- Explore synthetic indices: Within the platform, search for available synthetic instruments or related indices, such as the VIX, GBP Index, or proprietary volatility assets. Check the product details, including leverage, trading hours, and spreads.
- Analyse and execute your trade: Use available charting tools, indicators, and market data for technical or fundamental analysis. Once ready, place your order, choosing the appropriate trade size and risk parameters.
When starting with synthetic indices, use a demo account to test how the asset behaves at different times of day. Unlike traditional markets, these instruments run 24/7, and volatility patterns can shift depending on the time, offering unique trade setups during off-peak hours.
Pros And Cons Of Trading Synthetic Indices
Pros
- Consistent volatility
- Low spreads and fees
- Can be traded around the clock
- Multiple trading vehicles available, including CFDs, futures and binary options
- Leading synthetic index brokers are regulated by the FCA
- Can be used as a hedging tool
Cons
- Limited list of UK brokers with synthetic indices from our investigations
- High volatility can lead to large losses, especially for beginners
- 24-hour availability increases the risk of overtrading
Bottom Line
Brokers that offer synthetic indices provide UK investors a way to trade market-like movements without exposure to real-world assets. These instruments are often powered by secure algorithms that simulate volatility, and they can be traded 24/7—ideal if you seek round-the-clock opportunities.
Available through select FCA-regulated brokers, synthetic indices let you practise strategies, hedge positions, or speculate on price action in a controlled, transparent environment.
Products may include volatility-based instruments or GBP-focused indices, giving UK investors local relevance and global variety.
To get started, open an account with one of the best synthetic index brokers.
FAQ
Is Trading Synthetic Indices Safe?
Trading synthetic indices can be safer if done through a reputable, FCA-regulated broker that offers transparent pricing and strong client protections, such as negative balance protection.
While these products aren’t tied to real-world assets, secure algorithms and audited systems often drive their values. However, as with all leveraged trading, there’s still financial risk – especially due to the high volatility synthetic indices are designed to replicate. You could lose any money you invest.