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) -
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) -
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) -
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 -
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 -
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 1983, City Index is a prestigious broker, now under the Nasdaq-listed StoneX Group. It excels in forex, CFDs, and spread betting. With access to over 13,500 instruments, City Index provides a dynamic Web Trader platform, exceptional educational materials, and round-the-clock support five days a week, ensuring a thorough trading experience.
Instruments Regulator Platforms CFDs, Forex, Stocks, Indices, Commodities, Crypto, Futures, Options, Bonds, Interest Rates,ETFs,Spread Betting FCA, ASIC, CySEC, MAS Web Trader, MT4, TradingView, TradingCentral Min. Deposit Min. Trade Leverage $0 0.01 Lots 1:30
Pepperstone
FXPro
IG Index
eToro
Eightcap
Vantage FX
City IndexSafety 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 | ✔ | ✔ | ✘ | ✔ | |
| FXPro | ✔ | ✔ | ✘ | ✔ | |
| IG Index | ✔ | ✔ | ✔ | ✔ | |
| eToro | ✔ | ✔ | ✘ | ✔ | |
| Eightcap | ✔ | ✔ | ✘ | ✔ | |
| Vantage FX | ✔ | ✔ | ✘ | ✔ | |
| City Index | ✔ | ✔ | ✔ | ✔ |
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 | ✔ | ✔ | ✔ | ✔ | ✔ | ✔ |
| FXPro | ✔ | ✘ | ✔ | ✔ | ✔ | ✘ |
| IG Index | ✔ | ✔ | ✔ | ✘ | ✘ | ✘ |
| eToro | ✔ | ✔ | ✘ | ✔ | ✔ | ✘ |
| Eightcap | ✔ | ✔ | ✔ | ✔ | ✔ | ✘ |
| Vantage FX | ✔ | ✔ | ✔ | ✔ | ✔ | ✘ |
| City Index | ✔ | ✔ | ✔ | ✘ | ✘ | ✘ |
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 | ✘ | ||
| FXPro | iOS & Android | ✘ | ||
| IG Index | iOS & Android | ✔ | ||
| eToro | iOS & Android | ✘ | ||
| Eightcap | iOS & Android | ✘ | ||
| Vantage FX | iOS & Android | ✘ | ||
| City Index | iOS & 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 | ||
| FXPro | ✔ | $100 | 0.01 Lots | ||
| IG Index | ✔ | $0 | 0.01 Lots | ||
| eToro | ✔ | $50 | $10 | ||
| Eightcap | ✔ | £100 | 0.01 Lots | ||
| Vantage FX | ✔ | $50 | 0.01 Lots | ||
| City Index | ✔ | $0 | 0.01 Lots |
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) | ✔ | ✔ | ✔ | ✘ |
| FXPro | Expert Advisors (EAs) on MetaTrader, cBots on cTrader | ✔ | 1:30 (Retail), 1:500 (Pro) | ✔ | ✘ | ✔ | ✘ |
| IG Index | 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 | ✘ | ✔ | ✘ | ✔ |
| Eightcap | TradingView Bots | ✘ | 1:30 | ✔ | ✘ | ✔ | ✘ |
| Vantage FX | Myfxbook AutoTrade, Expert Advisors (EAs) on MetaTrader | ✘ | 1:30 | ✔ | ✘ | ✘ | ✘ |
| City Index | Expert Advisors (EAs) on MetaTrader | ✔ | 1:30 | ✘ | ✔ | ✔ | ✔ |
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 | |||||||||
| FXPro | |||||||||
| IG Index | |||||||||
| eToro | |||||||||
| Eightcap | |||||||||
| Vantage FX | |||||||||
| City 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
- The award-winning customer support can be accessed through phone, email, or live chat. During tests, response times have consistently been under 5 minutes.
- Support for top-tier charting platforms such as MT4, MT5, TradingView, and cTrader. These tools accommodate different short-term trading methods, including algorithmic trading.
- Pepperstone offers rapid execution speeds of approximately 30ms, enabling swift order processing and execution, making it ideal for traders.
Cons
- Pepperstone's demo accounts expire after 30 days, which may not provide sufficient time to explore various platforms and evaluate trading strategies.
- 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.
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 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.
- 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 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.
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.
- 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.
- 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.
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
- 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.
- As a seasoned broker, IG adheres to stringent regulatory standards across various regions, ensuring significant trust.
- 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.
Cons
- Beginners may find IG's fees complicated, as they vary depending on the trades or services. This could cause confusion and unexpected costs.
- 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.
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
- eToro has launched automated crypto staking, offering a pathway to passive income. However, Ethereum requires users to opt in.
- eToro secured second place in DayTrading.com's 'Best Crypto Broker' for 2025, offering a vast selection of tokens, dependable service, and competitive fees.
- The web platform and mobile app receive higher user reviews and app rankings compared to leading competitors like AvaTrade.
Cons
- There are no assured stop-loss orders, which could be a valuable risk management tool for novice traders.
- The only significant contact option, besides the in-platform live chat, is limited.
- The absence of extra charting platforms such as MT4 may deter experienced traders who rely on external software.
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
- 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 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.
- 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 the growing range of tools available, Eightcap lacks popular industry resources such as Autochartist and Trading Central. These provide advanced charting analytics, live news, and essential market insights for traders focused on short-term strategies.
- 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.
- 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.
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
- Vantage addresses the needs of passive investors through user-friendly social trading on ZuluTrade and Myfxbook.
- Vantage upholds a high trust score through its solid reputation, backed by premier regulation from the FCA and ASIC.
- ECN accounts offer competitive terms, featuring spreads starting at 0.0 pips and a commission of $1.50 per trade side.
Cons
- Based on tests, average execution speeds of 100ms to 250ms are slower compared to other options.
- It's unfortunate that some clients must register with the offshore firm, which provides reduced regulatory safeguards.
- Regrettably, cryptocurrencies are accessible solely to clients in Australia.
Our Take On City Index
"City Index suits active traders perfectly, offering rapid execution speeds averaging 20ms and a customisable web platform with over 90 technical indicators. Its educational resources are exceptional. For UK traders interested in spread betting on 8,500+ instruments tax-free, City Index is an excellent option."
Pros
- City Index has significantly improved the trading experience. In 2024, they introduced Performance Analytics, providing insights into trades and discipline. The revamped mobile app now includes integrated market research and swipe-access news.
- City Index is under the regulation of leading authorities, such as the FCA in the UK, ASIC in Australia, and MAS in Singapore. Its parent company, StoneX Group Inc., is publicly listed, which enhances its credibility.
- City Index offers access to over 13,500 markets, including forex, indices, shares, commodities, bonds, ETFs, and interest rates. The platform's inclusion of niche markets such as interest rates provides traders with unique opportunities not commonly available on other platforms.
Cons
- Unlike brokers like AvaTrade and BlackBull, City Index lacks options for passive trading, such as social copy trading or real ownership of stocks and ETFs. This limitation may reduce its appeal to traders seeking a more hands-off approach.
- Although many brokers, such as eToro, have broadened their crypto offerings, City Index restricts its clients to crypto CFDs. This limited selection may not meet the needs of traders seeking a wider variety of altcoins.
- City Index does not offer an Islamic account with swap-free conditions, making it less attractive to Muslim traders than brokers such as Eightcap and Pepperstone.
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.