US Dollar Index
The US dollar index is a measure of the value of the United States dollar, used by traders, investors, and economists. In this guide, we explain its composition today, calculation, trading economics, and historical performance. We also explain how to trade the US dollar index with a list of the top brokers and platforms in 2025.
US Dollar 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 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) -
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) -
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 -
eToro is a leading multi-asset platform, providing trading services in a vast array of CFDs, equities, and cryptocurrencies. Since its establishment in 2007, eToro has attracted millions of traders worldwide and holds licences from top regulators like the FCA and CySEC. Its social trading platform is especially favoured. Investing in cryptoassets is highly volatile and unregulated in the UK and certain EU nations, with no consumer protection. Tax obligations on profits may apply. 51% 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 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 -
InstaForex, established in 2007, is a forex and CFD brokerage. It provides extensive market access to millions of traders, featuring traditional assets such as currencies and shares. The broker also offers intriguing options like IPO investments.
Instruments Regulator Platforms Currencies, Cryptocurrencies, Stocks, Indices, Metals, Oil and Gas, Commodity Futures and InstaFutures BVI FSC MT4, MT5 Min. Deposit Min. Trade Leverage $1 0.10 of the lot (0.0001 of market lot for Cent.Standard and Cent.Eurica) 1:30 for retail clients, 1:500 for professional -
ActivTrades, a UK-based CFD and forex broker since 2001, is renowned for its award-winning services. It holds licences from esteemed regulators, including the UK’s FCA. The firm offers trading on more than 1,000 instruments across seven asset classes, with an impressive 93.60% of trades executed at the desired price.
Instruments Regulator Platforms CFDs, Forex, Stocks, Indices, Commodities, Bonds, ETFs, Futures, Cryptos (location dependent) FCA, CMVM, CSSF, SCB ActivTrades, MT4, MT5, TradingView Min. Deposit Min. Trade Leverage $0 0.01 Lots 1:30 (UK and EU), 1:400 (Global & Pro)
What Does The US Dollar Index Represent?
The US dollar index is a live measure of the US dollar relative to a basket of other major currencies, including the British pound, euro, Japanese yen, Canadian dollar, Swedish krona, and Swiss franc.
The index is computed using a weighted average of exchange rates between the US dollar and these other currencies.
It was first introduced in 1973 by the New York Board of Trade and measures the strength or weakness of the US dollar in global currency markets.
The US dollar index is also sometimes referred to as USDX or DXY, which is its ticker symbol on trading platforms.
How Does The US Dollar Index Work?
The US dollar index is calculated using a weighted geometric mean of the exchange rates between the US dollar and six major currencies. The weightings are based on the relative importance of each currency in US trade.
The index measures the value of the US dollar against a basket of currencies, rather than against any single currency because it’s a more accurate and stable measure of the currency’s value. This means fluctuations in the value of one currency may be offset by movements in the other currencies in the basket. This helps to reduce the impact of volatility in any one currency on the overall value of the index.
To calculate the US dollar index, each currency’s exchange rate is first converted into an equivalent percentage value relative to the US dollar. For example, if the exchange rate for the euro is 1.2 dollars, the percentage value would be 83.33 (1 divided by 1.2, multiplied by 100). These percentage values are then multiplied by their respective weightings, and the resulting values are summed up to create the index value.
The US dollar index is calculated in real-time throughout the trading day and is widely used by traders, investors, and policymakers to monitor the strength of the US dollar. A higher index value indicates that the US dollar is stronger relative to the basket of currencies, while a lower one indicates it’s weaker.
Note, brokers may have their own components and respective weightings in the US dollar index, such as CMC Markets below. These will be detailed in the product specifications.

CMC Markets US Dollar Index Components
Background Explained
The US dollar index dates back to 1973 when the US government officially ended the gold standard and allowed the US dollar to float freely. Before this, there was a fixed relationship between the US dollar index and the price of gold.
The New York Board of Trade (now part of the Intercontinental Exchange) introduced the US dollar index in March 1973 and it was set at a base level of 100, calculated using the currencies of the US’s major trading partners at the time.
The composition of the spot index has changed to reflect shifts in global trade patterns. In 1999, the euro was added as a component currency, and in 2000, the Deutsche mark was replaced by the euro as Germany’s official currency. In 2018, the Chinese yuan was added to the index as a sixth currency.
The price of the US dollar index has fluctuated over its history, reflecting changes in global economic conditions and monetary policy. The index reached a peak of 164.72 in February 1985, due to high US interest rates and strong economic growth, and a low of 71.33 in March 2008, at the height of the global financial crisis.
Live Chart
What Moves The US Dollar Index?
- Interest rates: Higher interest rates generally lead to an increase in demand for US dollars. When interest rates in the US rise, it becomes more attractive for foreign investors to hold US dollar-denominated assets such as bonds, stocks, and real estate. The US dollar rises as a result.
- Inflation: Higher inflation can decrease demand for US dollars, as it reduces the purchasing power of the currency. In addition, high inflation rates can lead to concerns about the stability of the economy, which can cause investors to sell off US dollar-denominated assets and seek safer investments in other currencies. This can contribute to a decline in the value of the US dollar. Note, the best brokers show the US dollar index adjusted for inflation.
- Economic growth: Stronger economic growth in the US can lead to an increase in demand for US dollars, as investors seek to invest in growing markets. This increase in demand for US assets can lead to an increase in demand for US dollars, which can cause the value of the US dollar index to appreciate relative to other currencies.
- Geopolitical events: Political or economic instability in other parts of the world can lead to an increase in demand for US dollars as a safe haven currency. In times of geopolitical instability, investors often become more risk-averse and may look to shift their investments to safer assets, such as those denominated in US dollars. This increase in demand for US assets can lead to an increase in demand for US dollars, which can cause the value of the US dollar index to appreciate.
- Trade balances: A trade deficit can put downward pressure on the US dollar, as it suggests a greater supply of US dollars in global currency markets. As a result, the value of the US dollar index may decline.
- Central bank policy: Actions taken by the Federal Reserve, such as changes in interest rates or the implementation of quantitative easing, can have a significant impact on the value of the US dollar index.
Trading The US Dollar Index
The US dollar index can be traded through various vehicles at the top brokers, including CFDs, futures, options, and ETFs.
To start trading the US dollar index at online brokers:
- Choose a broker: You will need to find a trading broker that allows you to trade the US dollar index. Among the most popular US dollar index brokers in the UK is Pepperstone, an FCA-regulated firm that offers average spreads of 6 pips on the USDX alongside 1:5 leverage.
- Analyse market conditions: Before making a trade, analyse current market conditions and any factors that may impact the price of the US dollar index, such as tracking economic indicators, monitoring central bank policy, or assessing geopolitical events. The top US dollar index brokers offer interactive daily, weekly, monthly and long-term 20+ years charts with historical data and news streams that provide insights to help with forecasts and predictions today.
- Place a trade: The top US dollar index brokers offer trading from charts and graphs on popular platforms like MetaTrader 4. Traders can set stop loss and take profit orders to limit their risk exposure.
Note, the US dollar index is not regulated in the same way as individual stocks or other securities. However, futures contracts that are used to trade the US dollar index are regulated by the Commodity Futures Trading Commission (CFTC) in the United States. The CFTC is responsible for regulating the futures and options markets, including setting rules designed to protect investors and maintain the integrity of the markets and its prices.
UK traders should also sign up with FCA-regulated brokers for additional peace of mind. This should mean sensible restrictions on retail leverage, negative balance protection, plus access to compensation should the brokerage go bankrupt.
Benefits Of US Dollar Index Trading
Pros of investing through US dollar index brokers include:
- Liquidity: The US dollar index is widely traded and highly liquid, meaning that it can be bought and sold quickly and easily, and at a relatively low cost.
- Transparency: The US dollar index is calculated and published in real-time, making it easy for investors to monitor and analyse market trends.
- Accessible: Trading the US dollar index can be done through various financial instruments, including CFDs, ETFs, futures, and options, making it accessible to a range of UK investors.
- Diversification: The US dollar index provides exposure to a basket of currencies, which can help diversify investment portfolios.
- Trading hours: Retail investors can speculate on the US dollar index throughout the standard week at the best brokers. CMC Markets, for example, offers US dollar index trading from 00:00 – 22:00 GMT, Monday to Friday. The USDX can also be traded through futures contracts on the Intercontinental Exchange (ICE) exchange. The trading hours for the US dollar index futures symbol on ICE are Sunday: 6:00 PM ET to 5:00 PM ET Monday, Monday – Thursday: 6:00 PM ET to 5:00 PM ET the following day, Friday: 6:00 PM ET to 5:00 PM ET Sunday.
Risks Of US Dollar Index Trading
Cons of online trading at US dollar index brokers include:
- High volatility: The US dollar index can be highly volatile to economic or geopolitical events, leading to unexpected price movements.
- Technical analysis challenges: Using past market data to predict future price movements can be challenging with the US dollar index due to the complex nature of the basket of currencies it tracks.
- Economic factors: The US dollar index is heavily influenced by economic factors, such as interest rates and inflation, which can be difficult to predict and analyse accurately.
- Geopolitical risks: Political or geopolitical events impact the US dollar index, making it difficult to anticipate and respond to sudden changes in the market.
- Margin requirements: Trading the US dollar index through derivatives often require traders to post margin, which can increase the risk of large losses.
Bottom Line On The US Dollar Index
The US dollar index is widely followed and is often used as a benchmark for measuring the strength of the US dollar. Traders should consider their financial goals and risk tolerance before investing, and stay informed of economic and geopolitical events that could impact the value of the USDX.
See our list of top-rated US dollar index brokers to start trading.
FAQ
What Does The US Dollar Index Mean?
The US dollar index measures the value of the US dollar relative to a basket of six other major currencies: the euro, Japanese yen, British pound, Canadian dollar, Swedish krona, and Swiss franc. When it rises, the US dollar is increasing in value vs the other currencies, while the opposite is true if its value falls.
How Is The US Dollar Index Calculated?
The US dollar index is calculated as a weighted geometric average of the exchange rates between the US dollar and the other currencies in the basket, with each currency assigned a specific weight based on its importance in international trade. The euro has the greatest weighting given its role as a key trading partner.
What Factors Influence The US Dollar Index?
The US dollar index is influenced by a variety of economic and political, including interest rates, inflation, trade balances, government policies, and global events such as natural disasters. Geopolitical uncertainty in Europe, for example, may weaken the value of the euro which in turn would strengthen the US dollar index.
See our guide to understanding the US dollar index for definitions explained, daily currency index charts, historical prices, factors affecting the USDX, latest bullish updates, and more.
How Can You Trade The US Dollar Index?
Investors can trade the US dollar index through various financial instruments, including buying and selling CFDs, ETFs, futures, options, and mutual funds.
For instance, investors could short the US dollar index through inverse ETFs with 2x or 3x leverage. Alternatively, some of best UK brokers with access to the US dollar index, such as Pepperstone, offer CFDs on the instrument with spreads from 6 pips and a minimum contract size of 100.
Why Is The Dollar Index Important?
The US dollar index enables traders to monitor the value of the USD against the currencies of major trading partners. It also provides an opportunity to hedge against risks associated with the dollar through futures, for instance.
How Much Is The Dollar Index Today?
See the live chart in our guide for the US dollar index latest prices and quotes today.
Why Is The US Dollar Index Rising?
The US dollar index may start rising or falling for a variety of reasons. If an event strengthens the value of the US dollar relative to other currencies in its basket then the index may rise. In contrast, if the value of a component currency, such as the Japanese yen, rises then it may have a negative impact on the index.