Currency Indices
A forex index give an objective view of a currency’s international value by comparing it to several of its peers. Because the index is formed of multiple currencies, a significant rise or fall in one currency is balanced out by the remaining constituents. This guide to trading currency indices explains how they work, including their benefits and limitations. We also list the best brokers for trading forex indices.
Forex Index Brokers
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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) -
Eightcap, an acclaimed broker regulated by the FCA, offers exceptionally low trading costs. Recognised as the top-rated brand by TradingView's vast user base of 100 million, traders can directly access the platform. UK traders can open a live account with a minimum deposit of just £100.
Instruments Regulator Platforms CFDs, Forex, Stocks, Indices, Commodities ASIC, FCA, CySEC, SCB MT4, MT5, TradingView Min. Deposit Min. Trade Leverage £100 0.01 Lots 1:30 -
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, JFSA Web, L2 Dealer, MT4, TradingView, AutoChartist, TradingCentral, ProRealTime Min. Deposit Min. Trade Leverage $0 0.01 Lots 1:30 (Retail), 1:222 (Pro) -
eToro, a leading multi-asset platform, provides access to trading services across thousands of CFDs, stocks, and cryptocurrencies. Established in 2007, it boasts millions of active traders worldwide and is sanctioned by top-tier regulators such as the FCA and CySEC. It stands out for its extensive social trading feature. Crypto investments are unstable and carry risk. Tax implications might apply. Acknowledge the risks involved. 61% of retail CFD accounts incur losses.
Instruments Regulator Platforms CFDs, Forex, Stocks, Indices, ETFs, Smart Portfolios, Commodities, Futures, Crypto, NFTs FCA, ASIC, CySEC, FSA, FSRA, MFSA, CNMV, AMF eToro Web, CopyTrader, TradingCentral Min. Deposit Min. Trade Leverage $50 $10 1:30 -
Established in 2009, Vantage provides trading on more than 1,000 short-term CFD products to over 900,000 clients. Forex CFDs are available from 0.0 pips on the RAW account via TradingView, MT4, or MT5. Regulated by ASIC, Vantage ensures that client funds are kept in separate accounts. Traders looking to copy strategies will benefit from a wide array of social trading tools.
Instruments Regulator Platforms CFDs, Forex, Stocks, Indices, Commodities, ETFs, Bonds, Spread betting FCA, ASIC, FSCA, VFSC ProTrader, MT4, MT5, TradingView, DupliTrade Min. Deposit Min. Trade Leverage $50 0.01 Lots 1:30 -
Founded in 2006, FxPro has built a reputation as a reliable non-dealing desk (NDD) broker, providing trading access across more than 2,100 markets to over 2 million clients globally. It has received over 100 industry awards, reflecting its favourable conditions for active traders.
Instruments Regulator Platforms CFDs, Forex, Stocks, Indices, Commodities, Futures, Spread Betting FCA, CySEC, FSCA, SCB, FSA FxPro Edge, MT4, MT5, cTrader, AutoChartist, TradingCentral, DupliTrade, Quantower Min. Deposit Min. Trade Leverage $100 0.01 Lots 1:30 (Retail), 1:500 (Pro) -
FXCM, a reputable forex and CFD broker founded in 1999, is headquartered in the UK. It has garnered multiple accolades and operates in several regions, including the UK and Australia. Offering more than 400 assets and comprehensive analysis tools without any commission charges, FXCM is a favoured option among traders. The broker is also under the regulation of leading bodies such as the FCA, ASIC, CySEC, FSCA, and BaFin.
Instruments Regulator Platforms Forex, Stock CFDs, Commodities CFDs, Crypto CFDs FCA, CySEC, ASIC, FSCA, BaFin, CIRO Trading Station, MT4, TradingView, Quantower Min. Deposit Min. Trade Leverage $50 Variable 1:400
Pepperstone
Eightcap
IG
eToro
Vantage FX
FXPro
FXCMSafety Comparison
Compare how safe the Currency Indices are and what features they offer to protect traders.
| Broker | Trust Rating | FCA Regulated | Negative Balance Protection | Guaranteed Stop Loss | Segregated Accounts |
|---|---|---|---|---|---|
| Pepperstone | ✔ | ✔ | ✘ | ✔ | |
| Eightcap | ✔ | ✔ | ✘ | ✔ | |
| IG | ✔ | ✔ | ✔ | ✔ | |
| eToro | ✔ | ✔ | ✘ | ✔ | |
| Vantage FX | ✔ | ✔ | ✘ | ✔ | |
| FXPro | ✔ | ✔ | ✘ | ✔ | |
| FXCM | ✔ | ✔ | ✘ | ✔ |
Payments Comparison
Compare which popular payment methods the Currency Indices support and whether they have trading accounts denominated in British Pounds (GBP).
| Broker | GBP Account | Debit Card | Credit Card | Neteller | Skrill | Apple Pay |
|---|---|---|---|---|---|---|
| Pepperstone | ✔ | ✔ | ✔ | ✔ | ✔ | ✔ |
| Eightcap | ✔ | ✔ | ✔ | ✔ | ✔ | ✘ |
| IG | ✔ | ✔ | ✔ | ✘ | ✘ | ✘ |
| eToro | ✔ | ✔ | ✘ | ✔ | ✔ | ✘ |
| Vantage FX | ✔ | ✔ | ✔ | ✔ | ✔ | ✘ |
| FXPro | ✔ | ✘ | ✔ | ✔ | ✔ | ✘ |
| FXCM | ✔ | ✔ | ✔ | ✘ | ✘ | ✔ |
Mobile Trading Comparison
How good are the Currency Indices at mobile trading using apps or other mobile interfaces.
| Broker | Mobile Apps | iOS Rating | Android Rating | Smart Watch App |
|---|---|---|---|---|
| Pepperstone | iOS & Android | ✘ | ||
| Eightcap | iOS & Android | ✘ | ||
| IG | iOS & Android | ✔ | ||
| eToro | iOS & Android | ✘ | ||
| Vantage FX | iOS & Android | ✘ | ||
| FXPro | iOS & Android | ✘ | ||
| FXCM | iOS and Android | ✘ |
Beginners Comparison
Are the Currency Indices 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 | ||
| Eightcap | ✔ | £100 | 0.01 Lots | ||
| IG | ✔ | $0 | 0.01 Lots | ||
| eToro | ✔ | $50 | $10 | ||
| Vantage FX | ✔ | $50 | 0.01 Lots | ||
| FXPro | ✔ | $100 | 0.01 Lots | ||
| FXCM | ✔ | $50 | Variable |
Advanced Trading Comparison
Do the Currency Indices 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) | ✔ | ✘ | ✔ | ✘ |
| Eightcap | TradingView Bots | ✘ | 1:30 | ✔ | ✘ | ✔ | ✘ |
| IG | Expert Advisors (EAs) on MetaTrader, build your own on ProRealTime | ✔ | 1:30 (Retail), 1:222 (Pro) | ✔ | ✔ | ✔ | ✔ |
| eToro | Automate your trades via CopyTrader - follow profitable traders. Open and close trades automatically when they do. | ✘ | 1:30 | ✘ | ✔ | ✘ | ✔ |
| Vantage FX | Myfxbook AutoTrade, Expert Advisors (EAs) on MetaTrader | ✘ | 1:30 | ✔ | ✘ | ✘ | ✘ |
| FXPro | Expert Advisors (EAs) on MetaTrader, cBots on cTrader | ✔ | 1:30 (Retail), 1:500 (Pro) | ✔ | ✔ | ✔ | ✘ |
| FXCM | - | ✘ | 1:400 | ✘ | ✔ | ✘ | ✘ |
Detailed Rating Comparison
Use this heatmap to compare our detailed ratings for all of the Currency Indices.
| Broker | Trust | Platforms | Mobile | Assets | Fees | Accounts | Support | Research | Education |
|---|---|---|---|---|---|---|---|---|---|
| Pepperstone | |||||||||
| Eightcap | |||||||||
| IG | |||||||||
| eToro | |||||||||
| Vantage FX | |||||||||
| FXPro | |||||||||
| FXCM |
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
- The award-winning customer support can be accessed through phone, email, or live chat. During tests, response times have consistently been under 5 minutes.
- Pepperstone presents itself as an economical choice for traders, offering spreads as low as 0.0 in its Razor account. The Active Trader programme provides rebates up to 30% on indices and commodities, plus $3 per lot on forex.
- 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.
Cons
- Although its market range has improved, its crypto offerings remain limited compared to brokers specialising in this sector, lacking real coin investment options.
- 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.
- Pepperstone's demo accounts expire after 30 days, which may not provide sufficient time to explore various platforms and evaluate trading strategies.
Our Take On Eightcap
"Eightcap excels for traders, offering diverse charting platforms, educational Labs, and AI tools. With over 120 crypto CFDs, it stands out in crypto trading and has won our 'Best Crypto Broker' award twice consecutively."
Pros
- Eightcap excels with a suite of advanced trading tools, such as MT4 and MT5, and has recently joined the 100-million-user social trading network, TradingView.
- In 2021, Eightcap enhanced its lineup, now providing an extensive range of cryptocurrency CFDs. It offers crypto/fiat and crypto/crypto pairs, along with crypto indices for comprehensive market exposure.
- Eightcap has excelled in all essential trading areas, surpassing all rivals to clinch our 'Best Overall Broker' award for 2024. It also earned the titles of 'Best Crypto Broker' and 'Best TradingView Broker' for 2025.
Cons
- Despite a helpful array of educational guides and e-books in Labs, Eightcap lags behind IG's extensive resources for aspiring traders. IG boasts a dedicated Academy app and features 18 diverse course categories.
- Eightcap must enhance its range of over 800 instruments to rival top competitors like Blackbull Markets, which offers 26,000+ assets, especially improving its limited commodities selection.
- The demo account is available for 30 days, after which it requires a request for extension. This is less convenient than XM's offering, which provides an unlimited demo mode.
Our Take On IG
"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 provides a wide range of professional and engaging educational materials, such as webinars, articles, and analyses, tailored for traders.
- 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 IG app provides an excellent mobile trading experience with an intuitive design, earning it the Runner Up position in our 'Best Trading App' award.
Cons
- IG has ended its swap-free account, diminishing its attractiveness to Islamic traders.
- In the UK and EU, negative balance protection is available. However, US clients lack account protection and guaranteed stop losses.
- Based on tests, stock and CFD spreads remain less competitive than the lowest-cost brokers, such as CMC Markets.
Our Take On eToro
"eToro's social trading platform excels with its outstanding user experience and lively community chat, aiding beginners in spotting opportunities. It offers competitive fees on numerous CFDs and real stocks, alongside exceptional rewards for seasoned strategists."
Pros
- The trading app provides a top-tier social environment featuring an engaging feed and community chat, which we enjoy using.
- eToro has enhanced its investment portfolio by frequently introducing new crypto assets. It currently offers a selection of over 100 digital currencies.
- There is an extensive online training academy offering a range of accessible resources, from concise articles to detailed courses.
Cons
- The absence of extra charting platforms such as MT4 may deter experienced traders who rely on external software.
- The minimum withdrawal is set at $30, accompanied by a $5 fee. This may impact traders with limited funds, particularly those just starting out.
- The only significant contact option, besides the in-platform live chat, is limited.
Our Take On Vantage FX
"Vantage is an ideal choice for CFD traders looking for a well-regulated broker with access to the dependable MetaTrader platforms. With a swift sign-up process and a minimum deposit of $50, starting trading is simple and fast."
Pros
- Hedging and scalping strategies are fully permitted without any short-term restrictions.
- The broker recently expanded its range of CFDs, offering more trading opportunities.
- Vantage addresses the needs of passive investors through user-friendly social trading on ZuluTrade and Myfxbook.
Cons
- Based on tests, average execution speeds of 100ms to 250ms are slower compared to other options.
- To access optimal trading conditions, a substantial deposit of $10,000 is required. This includes a commission of $1.50 per transaction per side.
- It's unfortunate that some clients must register with the offshore firm, which provides reduced regulatory safeguards.
Our Take On FXPro
"FxPro is an excellent choice for traders, offering swift execution speeds under 12ms, reduced fees since 2022, and outstanding charting platforms like MT4, MT5, cTrader, and FxPro Edge."
Pros
- FxPro provides four dependable charting platforms, including the user-friendly FxPro Edge. It features more than 50 indicators, 7 types of charts, and 15 different timeframes.
- FxPro's Wallet is a notable feature enabling traders to securely manage their funds. It ensures additional protection and ease by separating unused funds from active trading accounts.
- FxPro uses a 'No Dealing Desk' (NDD) model for swift and transparent order execution, usually within 12 milliseconds, making it well-suited for short-term trading strategies.
Cons
- FxPro, with its $10M funded demo account and expanding Knowledge Hub, mainly caters to experienced traders. Beginners might find its account and fee structure challenging to understand.
- There are no passive investment options such as copy trading or interest on cash. While traders might not find these essential, competitors like eToro, which accommodate both active and passive investors, offer more extensive services.
- FxPro offers customer support five days a week around the clock, accessible via various platforms, and the service quality is reliable based on tests. However, the absence of weekend support can be a drawback for traders requiring help beyond standard market times.
Our Take On FXCM
"FXCM remains a leading choice for traders using automated strategies, offering four robust platforms, strategy backtesting, and algorithmic trading via APIs. It is also ideal for active traders, providing discounted spreads and minimal to zero commissions on popular assets."
Pros
- FXCM has broadened its trading options by offering stock CFDs via MetaTrader 4.
- The proprietary Trading Station platform is an excellent option for traders seeking a comprehensive tool for their short-term and automated strategies.
- Traders have access to premium tools such as a market scanner, forex signals, and research from the third-party site eFXPlus.
Cons
- While FXCM primarily caters to seasoned traders, the absence of managed accounts is unfortunate.
- There are no retail account options available for traders, and Cent/Micro account alternatives are also absent.
- The live chat support is often sluggish and inconsistent when compared to leading competitors.
What Is A Currency Index?
A currency index is a way to measure the performance of a single currency by comparing it to a basket of similar currencies. For example, the British Pound Index assesses the strength of the GBP against the currencies of its key trading partners, including the Euro, US Dollar, Japanese Yen, and Swiss Franc.
By measuring a base currency against several others, the forex index gives a more holistic view of its performance than you would get from a single currency pair as extremes are balanced out.
This makes currency indices a useful way to gauge a country’s overall economic performance; when an index rises, the country is usually performing strongly and vice versa.
Generally, only major currencies have forex indices that can be easily traded. The most common currency indices you can find for online trading are the US Dollar, Pound Sterling, Euro, and Japanese Yen.
The most popular way for retail investors to trade forex indices is through CFDs, allowing users to go long or short with leverage.
How Do Currency Indices Work?
Currency indices can be calculated in various ways, but the most common approach is to measure them against the currencies of a country’s main trading partners, weighted according to each partner’s proportion of the country’s total trade volume.
The Bank of England uses this kind of trade-weighted index for the UK currency. The British Pound Index includes all trading partners whose share of UK exports or imports for the last three years are on average above 1%.
The US is the single largest country on the index with a weighting of around 20%, followed by China with a weighting of around 12%. But the UK’s largest trading partner is the EU, and the Euro is weighted at around 42%.
Importantly, forex index brokers often use their own formulae. As a result, the exact currencies and weightings may differ somewhat between trading platforms. For example, the weighting for the GBP Index at CMC Markets can be seen below.
CMC Markets – GBP Index Weighting
Benefits Of Trading Currency Indices
- Gives an overall view of a currency’s performance, including the GBP, USD and EUR
- Balances out extreme price movements that can arise when trading currency pairs
- Opportunity to go long or short with derivatives like CFDs
- Can be used for hedging and portfolio diversification
- Trading available 24/5
Risks Of Trading Currency Indices
- Complex products with many factors that influence each currency’s value, making it hard to predict future trends
- Vulnerable to unforeseen events that can badly affect a country’s economy
- Some traders prefer the higher volatility found in trading currency pairs
- Best time to trade different forex indices varies
How To Trade Forex Indices
The most popular investment vehicles available to UK traders are:
- CFDs – A contract for difference, or ‘CFD’, is a derivative where the trader’s profit or loss equals the difference in the underlying asset’s price at contract open and at contract close. Open a long position on a CFD if you believe the forex index’s value will rise or a short position if you think it will fall. CFDs can also be traded with leverage; for example, Pepperstone offers forex index trading with leverage up to 1:5.
- Futures – A future is a derivative contract in which the counterparties agree to complete a trade for an underlying asset at an agreed price at a predetermined time in the future. The profit or loss from this trade is determined by the difference between the agreed price and the market value of the asset when the contract expires.
- Options – An options contract gives investors the right but no obligation to complete a trade on an underlying asset at an agreed time in the future. The key difference between this and a futures contract is that you don’t need to complete the trade, meaning that if the trade goes against you, your losses will be limited to the premium paid for the options contract.
- ETFs – You can also trade currency indices as part of an ETF (exchange-traded fund), for example, the Invesco DB US Dollar Index Bullish Fund. ETFs can be used as a hedging tool.
Comparing Brokers With Forex Indices
- Fees – Most fees usually come from bid-ask spreads and/or commissions. For CMC Markets, the spreads on currency indices vary depending on the currency you choose; the USD index is the tightest with spreads from 0.25 pts whereas the JPY index has spreads from 5 pts. You also need to account for any swaps fees for positions held overnight, deposit and withdrawal charges and inactivity costs.
- Index List – Before registration, check which currency indices are available with a broker and the instruments you can use to trade them. Pepperstone, for example, offers CFD trading on three different currency indices.
- Trading Platform – The trading platform is the application used for everything from technical and fundamental analysis to executing trades. FXTM is one of several leading forex index trading brokers that support multiple high-quality platforms, including MetaTrader 4 and MetaTrader 5. Some brands will also offer their own proprietary platforms.
- Regulation – Brokers with currency indices that are licensed by the UK’s Financial Conduct Authority or other reputable regulators must adhere to rules that protect clients. Negative balance protection is one example of this that stops clients from becoming indebted to their brokers due to a bad trade.
- Support Desk – The best forex index brokers make it easy to seek help by offering contact methods such as live chat on the website or by calling up a phone hotline. Pepperstone, for example, is contactable 24 hours a day, Monday to Friday.
- Demo Account – Several brokers such as CMC Markets offer free demo accounts. These are excellent ways to test out forex index trading strategies under real market conditions or to build up experience with a new platform.
Trading Strategy
Popular approaches to trading currency indices include:
- Technical Analysis – This involves the use of indicators and charting tools on a platform. Useful indicators for trading forex indices include the relative strength index, stochastic oscillator and moving averages. Technical analysis involves predicting upcoming price-action and opening positions by analysing past market movements. This is most often used in short-term trading strategies such as trend-following or trend reversals.
- Fundamental Analysis – This relies on news and knowledge of economic indicators for a currency’s intrinsic value. You can analyse a country’s economy to support predictions for future price action. News to be aware of includes economic projections and announcements such as inflation and central bank rates hikes, political events such as changes in government and natural disasters and crises. An economic calendar with key dates can help you can stay informed of upcoming events.
Trading Hours
The trading hours for each index will depend on the broker and currency index. For example, the US Dollar Index CFD at CMC Markets can be traded between midnight and 10pm (GMT) Monday to Friday.
However, futures on the US Dollar Index via the Intercontinental Exchange (ICE) are available from 6pm on a Sunday until 10pm the following Thursday with breaks between 10pm and 1am every day.
Bottom Line On Forex Index Trading
Through currency indices, investors have a different way of trading the forex market by evaluating the overall strength of a currency. The best forex index brokers offer several leading currencies, including the British Pound Index and the US Dollar Index.
FAQs
What Is An Index In Forex Trading?
A currency index is a group of forex pairs that measure the strength of a single base currency. For example, the Bank of England’s Pound Sterling Index weighs GBP against the currencies of the UK’s largest trading partners, including the US, Europe, and China.
What Is The Difference Between Trading Forex And Forex Indices?
Forex trading involves making investments in single pairs, such as EUR/USD or GBP/USD. Forex index trading involves a single currency’s performance, which is measured by weighing it against several relevant currencies at once. Importantly, forex pairs are more volatile.
Is Trading Currency Indices Better Than Forex Pairs?
Currency pairs and indices are similar in many ways, though pairs tend to be more volatile. A forex index will give a more objective and stable view of a currency’s overall performance, but you are likely to find more products and brokers to invest in popular currency pairs.
How Do You Use The US Dollar Index To Trade Forex?
The US Dollar Index is a useful measure of the overall strength of the USD. It can be used as a helpful indicator of how the currency compares on the world stage against other major currencies such as the Euro and Chinese Yuan. It can also serve as the basis for derivative products such as CFDs.