Best Brokers With Volatility Index 2025

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Christian Harris

Christian is a UK-based investment writer who's been actively trading an array of financial instruments for over 5 years. Having used most of the major brokers in the UK, Christian provides valuable insights on all things investing for British traders.

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James Barra

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When markets get shaky, some savvy traders look to volatility indexes for opportunity. Often called the “fear gauge,” these tools don’t just track uncertainty – they help you profit from it.

This guide to the best brokers with volatility indexes (VIX) will help you understand how volatility works and how to use it to your advantage in unpredictable times.

How Investing.co.uk Chose The Best VIX Brokers

To identify the top brokers for trading the VIX, we focused on platforms that not only offer access to volatility indexes but also deliver exceptional service for UK-based clients.

Using our in-depth broker database, we applied a custom scoring system built around 200+ data points, including VIX availability, execution speed, trading tools, FCA regulation, GBP accounts, and platform performance.

But we didn’t stop at the specs – our team ran hands-on tests under to see how each broker actually performs in the trading environment.

What Is A Volatility Index?

A volatility index measures market expectations of future price fluctuations – essentially tracking how much turbulence traders think is ahead.

The most well-known example is the CBOE Volatility Index (VIX), which reflects anticipated volatility in the S&P 500 over the next 30 days. When the VIX rises, it signals increased market anxiety. When it falls, investors are generally more confident.

These indexes don’t forecast direction (up or down). Instead, they gauge the intensity of movement. That makes them valuable for traders looking to profit not just from market trends but also from how chaotic or calm the markets are expected to be.

Instruments based on volatility indexes – like ETFs, options, and CFDs – let you speculate on or hedge against market swings.

How Volatility Indexes Work

When traders anticipate big swings (up or down), they’re willing to pay more for options, which pushes the index higher. When markets are calm and stable, the index tends to drop.

These indexes are not directional indicators. A high reading doesn’t mean the market will fall – it simply means traders expect large movements, which could be in either direction.

Bullish and bearish traders use volatility indexes to gauge risk, prepare for price shocks, and manage exposure.

Even though the VIX is US-based, UK investors can benefit from understanding how these indexes operate.

Many global financial instruments, including UK stocks and indices like the FTSE 100, are influenced by US market sentiment. Additionally, UK traders often gain access to volatility-based products like VIX derivatives, CFDs on VIX 75, or volatility ETFs via brokers like CMC Markets and Pepperstone.

Knowing how volatility indexes are built can help you make informed decisions, whether hedging portfolios or speculating on market uncertainty.

Why Trade Volatility Indexes?

Volatility indexes allow you to profit from market turbulence rather than direction. Unlike traditional assets, which depend on whether prices go up or down, volatility trading focuses on the intensity of market movement.

This makes volatility indexes ideal for capitalising on times of uncertainty – whether markets are rallying, crashing, or simply bracing for impact.

In my experience trading the VIX and VIX 75, I’ve found that volatility spikes sharply during sudden market sell-offs or news shocks before prices fully react – capturing these moves early has often led to some of my most profitable trades.

Christian Harris

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One of the most significant advantages of trading volatility is hedging. Volatility tends to spike during events like interest rate decisions, geopolitical tensions, or major economic reports.

Instruments based on indexes like the VIX or VIX 75 can help protect a portfolio from unexpected moves. For example, you might use a VIX CFD to offset risk from long positions in equity markets.

Most Popular Volatility Indexes To Trade

If you’re looking to trade market sentiment rather than price direction, these are the top volatility indexes that attract the most attention from traders worldwide:

• VIX (CBOE Volatility Index): The most recognised volatility index globally, the VIX measures expected 30-day volatility of the S&P 500. Known as the market’s “fear gauge,” it’s widely used by traders and institutions to hedge or speculate during uncertain times. UK traders can access it through ETFs like VXX, as well as CFDs, options, and futures via brokers such as IG, CMC Markets, and City Index.
• VIX 75 (Volatility 75 Index): A synthetic volatility index designed for retail traders, VIX 75 is known for its extreme price movements and 24/7 trading availability. It’s popular among short-term speculators and high-risk traders. UK and international traders typically access it through Deriv and similar brokers offering synthetic indices.
• VXN (Nasdaq-100 Volatility Index): The VXN index tracks expected volatility in the tech-heavy Nasdaq-100. It’s a favourite for traders focused on technology and growth stocks, offering a targeted way to trade volatility in fast-moving sectors. It’s available via select brokers that support Nasdaq-linked volatility products.
• VDAX-NEW (Germany): As the key volatility index for Germany’s DAX 40, the VDAX-NEW provides insight into Eurozone market sentiment. It’s popular with UK and European traders looking to hedge or trade based on volatility in the EU’s largest economy. Access is typically via international brokers offering DAX-linked derivatives or CFDs.
• RVX (Russell 2000 Volatility Index): The RVX measures volatility expectations for the small-cap-focused Russell 2000 index. It’s popular with traders seeking exposure to more volatile segments of the US equity market. While mainly traded on institutional platforms, some retail brokers offer access through ETFs or CFD products.

Top broker for trading the VIX: Trading the VIX on XTB‘s xStation platform felt refreshingly straightforward during testing, even during high-volatility periods. I used CFDs to speculate on short-term spikes, particularly around US inflation data and Fed meetings, where VIX movements tend to be sharp and fast.

The platform’s layout makes it easy to monitor charts and set stop-losses quickly, which helps manage risk in a market that can turn within minutes. While XTB doesn’t offer direct access to VIX futures, the real-time pricing and built-in news feed gave me enough insight to act decisively.

Getting Started

Getting started with trading volatility indexes begins with choosing a reliable FCA-regulated broker that offers access to these unique markets.

Many popular brokers, including IG, CMC Markets, and City Index, provide trading on volatility indexes like the VIX through CFDs, options, or futures.

Brokers such as Pepperstone, IC Markets, and Vantage are also excellent options if you want tight spreads and fast execution. They offer robust platforms and competitive pricing.

Once you’ve selected a broker, open a trading account. Most VIX brokers we’ve tested, like XTB, Eightcap, and Plus500, offer user-friendly onboarding processes and demo accounts, which are perfect for beginners to practice without risking real money.

After getting comfortable, fund your account and begin trading with careful risk management. Volatility indexes can be highly unpredictable, so it’s recommended to start with smaller positions and use stop-loss orders.

Platforms like Spreadex also provide educational resources and tools to help new traders understand volatility trading nuances and improve their strategies.

Trade the VIX Index on IG’s platform with intuitive tools and tight spreads

Bottom Line

Trading volatility indexes means speculating on market uncertainty instead of price direction. Popular indexes like the VIX and VIX 75 reflect expected market swings and often rise during turbulent times.

You can access these markets through instruments like CFDs, options, and futures offered by UK-regulated brokers. While volatility trading presents unique profit opportunities, it also involves higher risk and requires careful risk management.

Use our list of the best brokers with volatility index trading to get started.

FAQ

Is Volatility Trading Legit?

Yes, volatility trading is entirely legitimate. Retail and institutional traders use this recognised strategy to profit from or hedge against market uncertainty. When done through regulated brokers and with proper risk management, it’s a legal and valid form of trading.

Is Volatility Trading Suitable For Beginners?

Volatility trading can be risky for beginners due to sharp price swings and the use of leverage, which can lead to rapid losses.

However, with proper education, risk management, and starting on a demo account or low-risk instruments, beginners can gradually build experience. It’s best suited for those who take the time to learn the markets and start small.

Article Sources

• Volatility Index (VIX)
• VXN (Nasdaq-100 Volatility Index)
• VDAX-NEW (Germany)
• RVX (Russell 2000 Volatility Index)