IBEX 35

IBEX 35 brokers provide access to the stock market index for the Bolsa De Madrid, Spain’s primary stock exchange. Like all key equity indices, the Iberian Index is comprised of the most liquid stocks in the country. Banco Santander, Respol and Arcelor are just some of the 35 companies on the list. These members, plus others, have a total market cap of around £400 billion, making the IBEX 35 a relatively small index in comparison to others, like the FTSE 100, which is valued at over £2 trillion. However, with the total value of IBEX 35 stocks growing almost 7% in the last year, it offers attractive trading opportunities.

In this guide, we explain how to compare IBEX 35 brokers, from commissions and fees to platforms, apps and UK regulatory oversight. Our traders also unpack the history of the index and share investing tips and beginner-friendly strategies.

Choosing IBEX 35 Brokers

• Products – The best brokers with access to IBEX 35 offer derivatives like CFDs. These allow traders to magnify their purchasing power and returns using leverage. FXCM, for example, offers 1:10 leverage on its IBEX CFD. Other popular vehicles include ETFs and spread betting (tax-free in the UK).
• Platforms – IBEX 35 brokers offer different platforms and apps. One of the most popular is MetaTrader 4 (MT4), however, increasingly brokerages are offering their own proprietary platforms. CMC markets is a good example, providing the highly regarded MT4 & MT5, but also their own web platform.
• Fees & Commission – The best IBEX 35 brokerages offer tight spreads with low or zero commissions. Pepperstone, for instance, offers a 5-point average spread on the IBEX. Also look out for deposit and withdrawal charges, overnight holding fees, and inactivity penalties. These costs can all cut into your profits.
• Regulation – In the UK, the top IBEX 35 brokers are regulated by the Financial Conduct Authority. The FCA is the body responsible for overseeing firms that offer trading products to retail clients. Importantly, they also ensure online brokers comply with rules designed to protect retail investors, including limiting leverage, restricting the use of misleading bonuses and advertisements, and providing negative balance protection.
• Payments – Leading brokers with access to the IBEX 35 offer cheap deposit options and immediate transfers. Popular payment methods among UK traders include debit card, PayPal, Skrill and wire transfer.

How To Start Trading IBEX 35

Pick Your Strategy

Firstly, understand your motivation for trading the IBEX 35. Are you looking to build steady, low-risk gains, or are you looking to trade short-term in the pursuit of high-risk, high-rewards?

Warren Buffet famously said that ‘risk comes from not knowing what you are doing’. Once you understand this, you can choose a suitable investing vehicle and develop an approach.

Choose A Product

One of the most popular products among day traders is the CFD, or Contract for Difference. CFDs are exactly as described, rather than purchasing the underlying asset, you are entering into a contract for the difference in settlement price between the opening and closing position.

IBEX 35 brokers offering CFDs tend to have lower fees and are quick to process, making them suitable for short-term trading. With that said, they are less suitable for holding overnight positions due to the charges imposed.

ETFs, or exchange-traded funds are another option. They can be bought and sold on a stock exchange or broker, just like the shares that the IBEX 35 is comprised of. ETFs are touted as a safer way to trade than picking individual stocks as they are diversified across multiple sectors.

Strategy Tips

The IBEX 35 is a relatively volatile index, meaning there is potential for profit with short-term strategies. However, analysing the historical prices of the IBEX 35 shows that the index has not outperformed its rivals in recent years, partially due to its exposure to the tourism industry during the pandemic. This has not been great for long-term positions opened pre-2020.

With that said, analysis shows that Spain’s economy is shifting, with a heavier focus on technology, making the European nation more resilient to this type of challenge in the future.

Make A Trade

Once you have registered with one of the best IBEX 35 brokers and opened a live account, make a starting deposit. You can then download the broker’s platform and search for the instrument.

Next, open an order. You will likely need to choose between an instant or pending order, enter the position size, plus any stop loss and take profit levels.

Once opened, monitor your position and exit in line with your IBEX 35 trading strategy.

Live Price Chart

How The IBEX 35 Works

The IBEX is formed of the 35 most liquid stocks traded on the Bolsa De Madrid. It is the chief stock market index in the country and is home to big names, including Telefónica (TEF), Banco Santander (SAN), and Siemens Gamesa (REE).

The IBEX 35 is a market capitalisation-weighted index (the number of shares x price per share). This means not all the stocks listed carry the same weight. For example, large-cap firms have a higher weighting, thus their rises and falls have a bigger impact on the value of the index as a whole. Iberdrola and Santander have the largest weighting (10%>).

Importantly, the IBEX 35 is often used as a benchmark for the Spanish economy, attracting traders looking to speculate on the country’s short-term, medium-term, and long-term prospects.

History

Having turned just 30 years old in 2022, the IBEX 35 has a relatively short trading history. It was founded in 1992, just before the infamous dot com boom.

It has performed strongly over the years, particularly between 2000 and 2007 when strengthening Spanish economics saw stock prices rise well in comparison to competing European indices. In particular, when Spain joined the Euro in 2002, IBEX 35 companies experienced a boost, which in turn, led to growth in the products offered, including ETFs, futures, options and other financial derivatives.

However, Spain’s economy struggled hugely during the pandemic because of its reliance on tourism, so trading IBEX 35 was tough for those holding long positions. On the infamous ‘Black Monday’, global markets dived and the IBEX 35 fell 8.1%, one of the largest in history.

More recently, the IBEX 35 has become diversified, with increasing representation from technology and renewable energy companies. This makes it an attractive investment opportunity for long-term traders.

Opening Hours

Most IBEX 35 index brokers offer trading hours in line with the underlying exchange. This means online investing is typically available between 07:00 and 19:00 GMT with no break.

Bottom Line On IBEX 35 Brokers

IBEX 35 brokers offer access to the principle stock market index in Spain. Retail investors can go long or short on the Spanish economy using a variety of investing products, including leveraged CFDs.

Several leading UK platforms offer the IBEX 35. Use our ranking of the best IBEX 35 brokers to get started.

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