With high and regular historic gains, an average daily volume of billions of dollars and containing some of the largest companies in the world, trading the S&P 500 is appealing to investors for many reasons. This guide contains all the information you need to find the best S&P 500 brokers, learn how to trade the stock index and develop an effective strategy. Use our ranking of the top S&P 500 brokers and platforms to get started.
S&P 500 Brokers
XTB is one of the largest stock exchange-listed forex and CFD brokers in the world, offering access to over 5800 instruments on their xStation platform. They boast 700,000 active traders, 20 years experience and authorization from tier-one regulators, including the UK's FCA.
Demo Account Regulated By MT4 Integration Yes FCA, CySEC, IFSC, KNF, DFSA No Min. Deposit Min. Trade Leverage $0 0.01 Lots 1:30
CMC Markets is a trustworthy brand authorized by tier-one regulators including the FCA and ASIC. Advanced trading tools, excellent market research and low fees help the broker stand out from rivals. The no minimum deposit, free demo account and social trading service have also made CMC Markets popular with aspiring traders.
Demo Account Regulated By MT4 Integration Yes FCA, ASIC, MAS, CIRO Yes Min. Deposit Min. Trade Leverage $0 0.01 Lots 1:30 (Retail), 1:500 (Pro)
Pepperstone is a leading online broker with over 400,000 clients in more than 175 countries. The top-rated brokerage offers excellent market access, industry-leading platforms in MT4, MT5, TradingView and cTrader, plus low fees with no hidden charges. Pepperstone is also heavily regulated with a high trust score, holding licenses with reputable bodies, including the FCA, ASIC, DFSA, and CySEC.
Demo Account Regulated By MT4 Integration Yes FCA, ASIC, CySEC, DFSA, CMA, BaFin, SCB Yes Min. Deposit Min. Trade Leverage $0 0.01 Lots 1:30 (Retail), 1:500 (Pro)
XM is a globally recognized forex and CFD broker with 10+ million clients in 190+ countries. Since 2009, this trusted broker has been known for its low fees on 1000+ instruments. XM is regulated by multiple financial bodies, including the ASIC and CySEC.
Demo Account Regulated By MT4 Integration Yes ASIC, CySEC, DFSA, FSC, FSCA Yes Min. Deposit Min. Trade Leverage $5 0.01 Lots 1:30
Kwakol Markets is a Nigerian headquartered broker with strong regulatory oversight in Australia and Canada. A great selection of asset classes are available, including synthetic products that simulate realistic market activity. Clients can trade on the MT4, MT5 and cTrader platforms, as well as a copy trading solution whereby a fee is only paid on profitable trades.
Demo Account Regulated By MT4 Integration Yes ASIC, FINTRAC Yes Min. Deposit Min. Trade Leverage £250 0.01 Lots 1:1000
Forex.com boasts a global reputation with multiple awards and 20+ years experience. Regulated in the US, EU, UK and Canada they provide a huge range of markets, not just forex, and offer competitive fees on a cutting-edge platform. The brand also provides a suite of additional tools, from performance analytics and SMART Signals to advanced charts and strategy builders.
Demo Account Regulated By MT4 Integration Yes FCA, CySEC, NFA, CFTC, CIMA, CIRO, SFC Yes Min. Deposit Min. Trade Leverage $100 0.01 Lots 1:30 (Retail), 1:500 (Pro)
OANDA is an award-winning global broker, established in 1996. The hugely respected brand offers competitive trading accounts and serves clients from 196 countries. It has proven a popular option with both beginners and experienced traders thanks to its user-friendly and sophisticated web platform, no minimum deposit and premium currency products and services. The company is also overseen by reputable regulators, including the FCA, ASIC and CIRO.
Demo Account Regulated By MT4 Integration Yes FCA, ASIC, KNF, MAS, CIRO, FFAJ, BVI Yes Min. Deposit Min. Trade Leverage $0 $0 1:30 (UK), 1:200 (EU)
Trade Nation is a top FX and CFD broker regulated in multiple jurisdictions including the UK and Australia. The firm offers low-cost fixed and variable spreads on 1000+ assets with robust trading platforms and training materials. The Signal Centre can also be used for trade ideas.
Demo Account Regulated By MT4 Integration Yes FCA, ASIC, FSCA, SCB, FSA Yes Min. Deposit Min. Trade Leverage $0 0.1 Lots 1:500 (entity dependent)
IG is an award-winning broker that has an excellent reputation globally. The brand offers spread betting, CFD and forex trading across a comprehensive suite of markets. IG is also multi-regulated, provides a great trading app and has 50 years experience.
Demo Account Regulated By MT4 Integration Yes FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA Yes Min. Deposit Min. Trade Leverage $0 0.01 Lots 1:30 (Retail), 1:222 (Pro)
eToro is a top-rated multi-asset platform which offers both investing in stocks and cryptoassets. Launched in 2007, the brand has millions of active traders globally and is authorized by tier one regulators, including the FCA and CySEC. Cryptoasset investing is highly volatile and unregulated in the UK and some EU countries. No consumer protection. Tax on profits may apply. 76% of retail CFD accounts lose money.
Demo Account Regulated By MT4 Integration Yes FCA, ASIC, CySEC, FSA No Min. Deposit Min. Trade Leverage $50 $10 1:30
City Index is an established and award-winning forex, CFD and spread betting broker with top-tier global regulation, including in the UK (FCA) and Australia (ASIC). With 30+ years in the industry, 13,500+ instruments and 24/5 customer support, City Index is a solid pick for aspiring traders.
Demo Account Regulated By MT4 Integration Yes ASIC, FCA, MAS Yes Min. Deposit Min. Trade Leverage $0 0.01 Lots 1:30 (Retail), 1:50 (Accredited Investor), 1:200 (Sophisticated Investor), 1:300 (Wholesale Investor), 1:400 (Professional Trader). Varies with jurisdiction.
Plus500 is a leading brokerage, listed on the London Stock Exchange with 25+ million registered traders. The firm specializes in CFD trading on its intuitive, in-house platform and mobile app. Spreads are low and there are no deposit or withdrawal fees. Plus500 also has a high trust score with licenses from reputable regulators, including the FCA, ASIC and CySEC.
Demo Account Regulated By MT4 Integration Yes FCA, ASIC, CySEC, DFSA, MAS, FSA, FSCA, FMA, EFSA No Min. Deposit Min. Trade Leverage $100 0.01 Lots 1:30
FXTM is a top-rated forex and CFD broker. The company is secure and regulated by leading authorities, including the FCA and CySEC. Offering 1000+ markets and three account types, they cater to all levels of trader.
Demo Account Regulated By MT4 Integration Yes CySEC (Cyprus), FCA (UK), FSCA (South Africa), FSC (Mauritius) Yes Min. Deposit Min. Trade Leverage $10 0.01 Lots 1:30 (EU), 1:2000 (Global)
Founded in 2017, Pocket Option is a binary options broker offering up/down contracts on forex, stocks and cryptocurrencies. With over 100,000 active users and a global reach, the brand has proven popular with budding traders. Pocket Option also supports dozens of payment methods and has a low minimum trade of just $1.
Demo Account Regulated By MT4 Integration Yes IFMRRC No Min. Deposit Min. Trade Leverage $50 $1 None
IQCent is an offshore binary options and CFD broker based in the Marshall Islands with 10+ payment methods and a low $50 starting deposit. With 100+ assets, around the clock trading and high payouts the brand is popular with aspiring traders.
Demo Account Regulated By MT4 Integration Yes IFMRRC No Min. Deposit Min. Trade Leverage $250 $0.01 1:500
FXChoice is a Belize-based broker established in 2010 and registered with the Financial Services Commission (FSC). The brand offers a wide selection of markets including crypto, plus the familiar MT4 and MT5 platforms. FXChoice stands out for its extra tools and perks, from LearnFx EAs to a VPS and Myfxbook's AutoTrade. New users can also claim a welcome bonus upon sign-up.
Demo Account Regulated By MT4 Integration Yes FSC Yes Min. Deposit Min. Trade Leverage $100 0.01 Lots 1:200
EagleFX is a forex and CFD broker, established in 2019. The broker uses STP execution on the MT4 platform, offering tight spreads and low commissions. With leverage up to 1:500 and no restrictions on hedging or scalping, EagleFX is an attractive option for global traders.
Demo Account Regulated By MT4 Integration Yes Yes Min. Deposit Min. Trade Leverage $10 0.01 Lots 1:500
Founded in 2009, Vantage offers trading on 1000+ CFD products to over 900,000 clients. You can trade Forex CFDs from 0.0 pips on the RAW account through TradingView, MT4 or MT5. Vantage is ASIC-regulated and client funds are segregated. Copy traders will also appreciate the range of social trading tools.
Demo Account Regulated By MT4 Integration Yes FCA, ASIC, FSCA, VFSC Yes Min. Deposit Min. Trade Leverage $50 0.01 Lots 1:500
VT Markets is an Australian multi-asset CFD broker regulated by the ASIC, FSCA, and SVGFSA. With 1000+ tradeable instruments, support for the MetaTrader 4 and MetaTrader 5 platforms, plus powerful charts from TradingView, this broker provides traders with an intuitive way to access diverse markets. Spreads start from 0.0 on the ECN account with very competitive commissions on some instruments, and the commission-free account also has fairly tight spreads starting from 1.2 pips on the EUR/USD pair.
Demo Account Regulated By MT4 Integration Yes ASIC, FSCA, SVGFSA Yes Min. Deposit Min. Trade Leverage $200 0.01 Lots 1:500
Spreadex is an FCA-regulated broker that offers spread betting opportunities on an impressive 10,000+ instruments including 60 forex pairs as well as shares, indices, bonds, interest rates, ETFs, commodities and cryptocurrencies. Traders can also speculate on financial markets with CFDs and options, and take positions on sporting events. The brand has been around for over 20 years and won multiple awards.
Demo Account Regulated By MT4 Integration No FCA No Min. Deposit Min. Trade Leverage £0 £0.01 1:30
PrimeXBT is a multi-asset platform offering highly leveraged trading in forex, indices, commodities and cryptocurrencies. The company launched in 2018 and now has over 1 million users from more than 150 countries. With no minimum deposit, copy trading features and low commissions, the broker has become popular among new and experienced traders.
Demo Account Regulated By MT4 Integration Yes No Min. Deposit Min. Trade Leverage $0 0.01 Lots 1:1000
Trading 212 is a European-regulated CFD, stock and ETF broker that also offers ISA accounts. Traders can access markets through a proprietary trading platform and speculate on the movements of 1800+ tradeable instruments including forex, stocks, ETFs and commodities.
Demo Account Regulated By MT4 Integration Yes FCA, CySEC, FSC No Min. Deposit Min. Trade Leverage $1 0.01 Lots 1:30
FXTrading.com is global broker offering highly leveraged CFDs on 10,000+ assets, including forex, stocks, indices, commodities and cryptocurrencies. Competitive prices with raw spreads and low to zero commissions are available. Traders can use the popular MetaTrader 4 platform and will have access to a suite of additional analytical tools and other resources. The multi-regulated brokerage is authorized by the ASIC and VFSC.
Demo Account Regulated By MT4 Integration Yes ASIC, VFSC Yes Min. Deposit Min. Trade Leverage $200 0.01 Lots 1:500
InstaForex is a CFD broker providing access to forex, stocks, cryptocurrencies, commodities, energies, indices, and more. With competitive fees and a huge range of available assets, the brand offers safe and reliable trading. Millions of traders have opened an account with the firm which offers a suite of active trading and investment opportunities.
Demo Account Regulated By MT4 Integration Yes BVI FSC Yes 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
ThinkMarkets is a reputable CFD and forex broker with regulation from several top-tier bodies including the FCA and ASIC. Traders can use a bespoke platform, MT4 or MT5 to access a wide variety of assets including 3500+ stocks and ETFs, 46 forex pairs and over 20 cryptocurrencies. Fees are competitive, particularly for the ThinkZero account with spreads starting at zero.
Demo Account Regulated By MT4 Integration Yes FCA, ASIC, CySEC, FSCA, JFSA, FSA Seychelles Yes Min. Deposit Min. Trade Leverage $0 0.01 Lots 1:500
M4Markets is an award-winning broker regulated by the CySEC, FSA and DFSA. Clients can speculate on popular financial markets with ultra-tight spreads from 0.0 pips and very high leverage up to 1:5000. There are no hidden fees and funds are held in segregated accounts alongside negative balance protection.
Demo Account Regulated By MT4 Integration Yes FSA, CySEC Yes Min. Deposit Min. Trade Leverage $5 0.01 Lots 1:1000
Trade.com is a trustworthy online broker with a global presence. The broker offers 2,100+ CFDs in major markets, as well as futures, options and more. The broker offers best-in-class platforms and superior analysis tools for experienced traders. The broker is also regulated by top-tier authorities including the FCA and CySEC.
Demo Account Regulated By MT4 Integration Yes FCA, CySEC, FSC, FSCA, FINRA Yes Min. Deposit Min. Trade Leverage $100 0.01 Lots 1:30 (EU), 1:300 (Global)
Videforex offers access to stock, index, crypto, forex and commodities markets via binary options and CFDs. The proprietary platform, mobile app and integrated copy trading are user-friendly and will suit new and casual traders, and the market analysis tools and trading contests provide good ways to improve your trading skills.
Demo Account Regulated By MT4 Integration Yes No Min. Deposit Min. Trade Leverage $250 $0.01 1:500
IronFX is a multi-regulated broker offering CFD trading on forex, stocks, indices and commodities through the MetaTrader 4 platform. The broker offers various account types with competitive pricing, including spreads from zero on STP/ECN accounts. Leverage varies by regulator between 1:30 and 1:1000.
Demo Account Regulated By MT4 Integration Yes CySEC, FCA, FSCA, BMA / Bermuda Yes Min. Deposit Min. Trade Leverage $100 0.01 Lots 1:30 (FCA), 1:30 (CySEC), 1:500 (FSCA), 1:1000 (BM)
Ingot Brokers is a multi-regulated brokerage offering CFD trading opportunities on 1000+ instruments including forex, stocks, indices, commodities and cryptocurrencies. The broker supports the MetaTrader 4 and MetaTrader 5 platforms and offers both raw spreads and commission-free account options with competitive pricing and fast execution. It also has copy trading functionality and a decent suite of extras including educational content and calculators.
Demo Account Regulated By MT4 Integration Yes ASIC, FSCA, JSC, FSA, CMA Yes Min. Deposit Min. Trade Leverage $10 0.01 Lots 1:500
Dukascopy is an online broker operated by a Swiss-regulated banking group. It offers a good selection of 500+ markets, with forex, stocks, gold, ETFs, indices, bonds and cryptocurrencies available. It also offers flexible trading opportunities through the choice of CFDs or binary options. Traders will use MetaTrader 4 or a proprietary platform that is well-suited to automated trading.
Demo Account Regulated By MT4 Integration Yes FINMA, FCMC, JFSA Yes Min. Deposit Min. Trade Leverage $100 0.01 Lots 1:200
FinPros is an offshore broker that provides CFD trading on 400+ instruments with high leverage up to 1:500. This is a reliable bet for traders seeking offshore options, with strong security measures, negative balance protection and segregated client funds. The extra features including trading tools and commission-free stocks make this a good choice for beginners, and experienced day traders will appreciate tight spreads.
Demo Account Regulated By MT4 Integration Yes FSA No Min. Deposit Min. Trade Leverage $100 0.01 Lots 1:500
ForexChief is a foreign exchange and CFD broker, established in 2014. The company is based offshore and registered with the VFSC and FMA. Users can choose between a wide selection of accounts and base currencies, making ForexChief accessible to global traders. The brand also stands out for its no deposit bonus and fee rebates for high-volume traders.
Demo Account Regulated By MT4 Integration Yes VFSC Yes Min. Deposit Min. Trade Leverage $10 0.01 Lots 1:1000
Axofa is a forex and CFD broker registered in St Vincent and the Grenadines. The broker offers three account types with access to forex, commodities and indices. With ECN processing, low minimum deposits and no commissions, Axofa could be an attractive option, although the broker does not hold a reputable license.
Demo Account Regulated By MT4 Integration Yes SVGFSA No Min. Deposit Min. Trade Leverage $1 0.01 Lots 1:1000
GoFX is an unregulated CFD and forex broker that covers instruments from currency, stock, index, commodity and crypto markets. Traders can sign up to a variety of account types with deposits as low as $1 and will trade using the popular MetaTrader 4 platform. Exceptionally high leverage up to 1:3000 is offered on the standard account, while traders with the low-spread account can access leverage up to 1:1000.
Demo Account Regulated By MT4 Integration Yes FSA Yes Min. Deposit Min. Trade Leverage $1 0.01 Lots 1:3000
Focus Option is an offshore broker that specializes in binary options as well as CFDs. Binary options trading on forex, cryptos and three commodities is done through the broker's simple web-based platform with average payouts between 70% and 95%. The broker also offers a mobile app for trading CFDs, with 300+ tradeable instruments.
Demo Account Regulated By MT4 Integration Yes No Min. Deposit Min. Trade Leverage $10 $1 1:50
SimpleFX is an offshore forex, CFD and cryptocurrency broker with over 200,000 clients globally. The broker offers a proprietary trading solution, as well as the reputable MT4 platform. Traders can access a vast selection of digital assets with crypto deposits and multi currency accounts.
Demo Account Regulated By MT4 Integration Yes Yes Min. Deposit Min. Trade Leverage $0 0.01 Lots 1:500
Errante is a Cyprus-based and regulated forex and CFD broker with leveraged trading on multiple assets, tiered accounts including a zero-spread option, and copy trading support. The broker offers leveraged trading up to 1:30 under its CySEC-regulated branch and 1:500 from an offshore branch, and supports the MetaTrader 4 and MetaTrader 5 platforms. Errante's asset list is relatively limited but it does offer fast execution and low latency, and it is a trustworthy brand.
Demo Account Regulated By MT4 Integration Yes CySEC, FSA Yes Min. Deposit Min. Trade Leverage $50 0.01 Lots 1:500
World Forex is an offshore broker registered in St Vincent and the Grenadines, offering commission-free trading with a $1 minimum deposit and 1:1000 leverage. Digital contracts are also available, offering beginners a straightforward way to speculate on popular financial markets.
Demo Account Regulated By MT4 Integration Yes SVGFSA Yes Min. Deposit Min. Trade Leverage $1 0.01 Lots 1:1000
Swissquote is a Switzerland-based bank and broker that offers online trading and investing. The company has a high safety score and is listed on the Swiss stock exchange. The firm offers a huge range of products, from stocks, ETFs, bonds and futures to 400+ forex and CFD assets. Hundreds of thousands of traders have opened an account with the multi-regulated brokerage. Clients can get started in three easy steps while 24/7 customer support is available to assist new users.
Demo Account Regulated By MT4 Integration Yes FCA, FINMA, DFSA, SFC Yes Min. Deposit Min. Trade Leverage $1000 0.01 Lots 1:30
Global Prime is a multi-regulated trading broker offering 150+ markets. Traders can get started with a $200 minimum deposit and trade with leverage up to 1:100. The firm also has a high trust score and a good reputation with a license from the ASIC.
Demo Account Regulated By MT4 Integration Yes ASIC, VFSC, FSA Yes Min. Deposit Min. Trade Leverage A$200 0.01 Lots 1:200
Fortrade is a multi-asset, multi-regulated broker with branches regulated by the FCA, CySEC and ASIC among others. The brand offers trading opportunities on a wide range of instruments including stocks, bonds, commodities, forex, indices, cryptocurrencies and ETFs, with competitive fees and support for MetaTrader 4 and a proprietary platform.
Demo Account Regulated By MT4 Integration Yes FCA, ASIC, CySEC, NBRB, FSC, CIRO Yes Min. Deposit Min. Trade Leverage $100 0.01 Lots 1:30 (varies by entity)
FXOpen is a multi-asset broker with regulation from several trustworthy bodies including the UK's FCA. The broker offers CFD trading on forex, stocks, commodities, indices, cryptocurrencies and ETFs via the MetaTrader 4 & 5 and TradingView platforms.
Demo Account Regulated By MT4 Integration Yes FCA, CySEC, ASIC Yes Min. Deposit Min. Trade Leverage £300 0.01 Lots 1:30 (EU), 1:500 (Global)
Libertex is a well-known broker, established in 2012. The regulated brand has served numerous clients and is regulated by the Cyprus Securities and Exchange Commission with license number 164/12. Libertex offers CFD trading on 250+ underlying assets, including through an innovative and user-friendly proprietary web trader platform. Choose between CFDs on forex, cryptocurrencies, commodities, stocks, indices and ETFs, which are available with tight spreads and low commissions.
Demo Account Regulated By MT4 Integration Yes CySEC Yes Min. Deposit Min. Trade Leverage €100 €20 Up to 1:30 (Retail)
Infinox is a UK-based and FCA-regulated broker that offers diverse trading products thanks to its STP and ECN account types and support for MetaTrader 4, MetaTrader 5 and a proprietary platform. Clients can also benefit from a free VPS that can support automated strategies and a social trading platform, catering to both beginner and seasoned traders.
Demo Account Regulated By MT4 Integration Yes FCA, SCB, FSCA Yes Min. Deposit Min. Trade Leverage £1 0.01 Lots 1:30 (UK), 1:200 (Global)
Baxia Markets is an offshore CFD broker that offers trading on forex, commodities and indices with tight spreads on a straight-through processing model with ultra-low latency. Trade on MetaTrader 4 or MetaTrader 5 with leverage up to 1:500 and no restrictions to scalping or hedging strategies. Users also benefit from third-party copy trading services.
Demo Account Regulated By MT4 Integration Yes SCB, FSA Yes Min. Deposit Min. Trade Leverage $50 0.01 Lots 1:500
OspreyFX is an ECN broker headquartered in St. Vincent and the Grenadines. Established in 2019, the firm offers 120+ forex and CFD assets with high leverage up to 1:500, tight spreads from 0.1 pips and round-the-clock customer support. OspreyFX also stands out for its funded trading accounts where traders can keep up to 70% of profits.
Demo Account Regulated By MT4 Integration Yes Yes Min. Deposit Min. Trade Leverage $10 0.01 Lots 1:500
LonghornFX is a forex and CFD broker offering over 150 instruments with leverage up to 1:500. The firm is registered in Saint Vincent and the Grenadines and was launched in 2020. Clients can access a strong selection of cryptos, alongside forex, indices, commodities and stocks. With ECN/STP processing, this offshore broker promises tight spreads and fast execution.
Demo Account Regulated By MT4 Integration Yes Yes Min. Deposit Min. Trade Leverage $0 0.01 Lots 1:500
Coinexx is an unregulated broker that provides leverage up to 1:500 on forex, commodities, indices and cryptocurrencies with deep liquidity, pure ECN spreads and negative balance protection. The broker uses crypto as base currencies and has low minimum deposit requirements of 0.001 BTC.
Demo Account Regulated By MT4 Integration Yes Yes Min. Deposit Min. Trade Leverage 0.001 BTC 0.01 Lots 1:500
Saxo is a multi-award-winning trading brokerage, investment firm and regulated bank. With a huge 72,000+ trading instruments, plus investment products and managed portfolios, clients have no shortage of opportunities. The trusted brand also offers transparent pricing and top-tier regulatory protection from 10+ agencies including FINMA, FCA & ASIC.
Demo Account Regulated By MT4 Integration Yes FCA, DFSA, MAS, SFC No Min. Deposit Min. Trade Leverage £500 Variable 1:30 (Retail), 1:66 (Pro)
Zacks Trade is a FINRA-regulated US broker offering trading on stocks, ETFs, cryptocurrencies, bonds and more through a proprietary terminal. The broker is geared toward active traders and offers very affordable fees on most assets as well as an app and a vast amount of market data.
Demo Account Regulated By MT4 Integration Yes FINRA No Min. Deposit Min. Trade Leverage $2500 $3 None
Amega is an offshore STP broker offering CFD trading on forex, stocks, indices and commodities with very high leverage up to 1:1000 and a zero-commission pricing structure. Traders access markets through the MT5 platform and can test the broker's services through a demo account.
Demo Account Regulated By MT4 Integration Yes No Min. Deposit Min. Trade Leverage $0 0.01 Lots 1:1000
Choosing S&P 500 Brokers
One of the key steps to effective and profitable trading of the S&P 500 index is selecting a good broker. This tutorial breaks down what to look for in the best broker to buy or sell an S&P 500 asset.
There are a variety of instruments available for trading at S&P 500 brokers. These include futures, options, binary options and other forms of margin trading. Lucrative day trading and swing trading strategies are possible using leveraged products such as CFDs and e-mini S&P 500 futures contracts.
In addition, S&P 500 mutual funds and tracker funds offer low-cost investing in the index, with investments automatically adjusted to reflect stock weightings and index entries and exits.
Investments in single companies from the S&P 500 are also possible. Traders can find these stocks on exchanges like the NYSE and Nasdaq.
Some firms, such as Interactive Brokers, will also offer several investing vehicles under one roof. These S&P 500 brokers can make trading considerably simpler for investors who wish to test different strategies and approaches.
It goes without saying that investors will wish to minimise fees and spreads when investing in any market.
Often, S&P 500 brokers will offer different fee structures, with some levying floating spreads for trades and others a percentage commission. In addition, some S&P 500 brokers may levy account management or inactivity charges.
Importantly, the type and price of any charges will depend on the instrument used. However, due to the high trading volume of the index, spreads and charges will typically be low on most instruments.
As S&P 500 mutual funds and ETFs are tracker funds rather than actively managed, fees can be as low as 0.07% for ETFs like the Vanguard UCITS ETF.
In many cases, UK investors will not need to worry about forex fees and trading in US Dollars. This is because many S&P 500 instruments are created by UK financial companies and offered to investors in British Pounds.
Many S&P 500 traders will use the index for long-term investing. Many tax-advantaged accounts, such as the SIPP, Stocks & Shares ISA and LISA, are available to UK traders that suit this passive investment style.
However, these accounts will not suit active traders requiring additional market data and advanced live charts to monitor the index.
To find the best broker to buy S&P 500 over the short or long term, ensure that a brokerage supports the account type that suits your investment style.
Platforms & Apps
As with account types, the best platform for the S&P 500 is an individual choice. Some investors favour simplicity, while others require advanced charting and level 2 or 3 data integration, especially when trading derivatives such as options.
Security & Regulation
Choosing a broker with top-tier regulation from reputable bodies such as the UK Financial Conduct Authority (FCA) can help investors steer clear of scams when online investing.
Additional security measures to look out for include fund insurance, negative balance protection, two-factor authentication and brokers that use segregated accounts for client funds.
What Is The S&P 500?
The S&P 500 is the stock index with the highest market capitalisation and boasts an average daily trading volume above $4 billion. However, the index didn’t always have such wealth behind it.
S&P 500 History
The first form of the S&P 500 was created in 1923 by Standard Statistics Company as a weekly-calculated index of 233 US-based companies. Following a merger with Poor’s Publishing, these firms became Standard & Poor’s – the “S&P” in the S&P 500.
The current 500 company form of the S&P 500 was introduced in March 1957, when Standard and Poor’s launched the S&P 500 Stock Composite Index. From this point, the index has undergone minor tweaks but remains similar to its 1957 inception.
Unlike some other major global indices, inclusion within the S&P 500 is not just based on the trading economics of each equity. A company must pass a committee selection process in addition to meeting minimum market capitalisation requirements, NYSE or NASDAQ listing and minimum volume requirements.
One of the reasons that investors regard the S&P 500 so highly is its consistent annual returns. Since the index started issuing dividends in 1970, trading the S&P 500 has averaged an impressive total return of over 15% per year.
While the index has a strong dividend history of offering investors competitive returns in the 3-5% range, the S&P 500 is now dominated by growth-oriented equities, which tend to pay little, if any, dividends. As a result, recent dividend yields have been notably smaller, such as the 1.29% paid in 2021 and the 1.71% paid in 2022.
The S&P 500 record trading volume occurred in late 2008, with daily volume reaching over $11 billion.
The S&P 500 all-time high happened on January 3rd 2022 when it reached 4796.56 points.
The S&P 500 all-time low occurred on August 12th 1982, when it closed at 102.42 points.
Investors can view the entire S&P 500 price history through free charts provided by services like TradingView or a broker’s platform.
Why Is It Popular?
The consistency of its price history is one reason the S&P 500 is viewed as one of the most dependable indices. In addition, the long-term returns of the index make it a favourite for UK personal pensions such as SIPPs or LISAs.
Live Price Chart
The S&P 500 comprises 503 US equities symbols, weighted by the market capitalisation of their publicly traded shares.
Of the entire companies list, over 18% of the index weighting is currently made up of the five biggest stocks in the S&P 500. The share price of these assets will have a significant impact on the performance of the index.
The 5 largest companies in the S&P 500 are currently:
- #1: Apple Inc. (AAPL)
- #2: Microsoft Corporation (MSFT)
- #3: Amazon Inc. (AMZN)
- #4: Alphabet Inc. Class A (GOOGL)
- #5: NVIDIA Corporation (NVDA)
Other notable equities in the S&P top 10 include Tesla (TSLA), Berkshire Hathaway Inc. Class B (BRK.B) and Exxon Mobil Corporation (XOM).
The S&P 500 By Sectors
The S&P 500 is fairly well diversified by industry sectors. This ensures that the index is not overly exposed to individual sector performance.
The primary industry sectors are 27.48% Technology, 14.58% Health Care, 11.18% Consumer Discretionary, 10.9% Communication Services and 9.89% Financials.
Pros Of Investing In The S&P 500
- UK-Based Instruments – Many UK firms have pound-traded S&P 500 vehicles for investors. This means that UK traders can invest in the S&P 500 without forex fees and within UK market hours.
- Consistent Total Returns – With an average annual total return of over 15% per year since 1970, the S&P 500 remains the most consistent index for long-term investing in the stock markets.
- Contains Leading Global Stocks – S&P 500 brokers contain top global equities such as Microsoft (MSFT), Tesla (TSLA) and Apple (AAPL). These high-flying growth stocks provide investors with exposure to some of the largest companies and sectors in the modern world.
- Wide Range Of Instruments – From CFDs to binary options and ETFs to e-mini futures, the S&P 500 is available to trade through a wide range of products at leading brokers.
- Informative Market – The performance and price of the S&P 500 are often used as a barometer of the US market as a whole, whether this is merely to observe and gauge market health or to trade and hedge other investments.
Cons Of Investing In The S&P 500
- Uneven Weightings – While investors may believe that a stock index with 500 companies would be well diversified, when trading with S&P 500 brokers, traders should note that the top 10 stocks make up over 25% of the total index price.
- Low Dividends – Despite historically high dividend yields, the current S&P 500 is primarily made up of growth stocks with small or no dividends. As a result, recent dividend yields sit below the 2% mark.
- Singular Country – The S&P 500 is made up of 503 symbols from 500 companies, which are all from the US. Investors that want regional diversification should choose another index or product.
Want to know how to day trade the S&P 500? Or perhaps you are interested in a long-term investment or an options play? Here are five popular S&P 500 strategy ideas:
The idea of investing in a major stock market over a long period is championed by veteran investors Warren Buffet and other finance experts.
While past performance is no indicator of future returns, the historical stability and considerable total returns when investing in the S&P 500 over the last 50 years and beyond suggest that the index is suitable as a long-term investment vehicle at leading brokers.
An advantage of this strategy is its passivity. Whether investing via a mutual fund or ETF, the best brokers to buy the S&P 500 allow investors to set up regular purchases to take advantage of pound cost averaging.
With this strategy, trading at S&P 500 brokers is not about choosing when to buy or sell, nor will investors have to conduct any further technical or fundamental analysis on the index.
There are also many low-cost UK ETFs and mutual funds available at the top online brokers.
Single Stock Picking
As one of the biggest indices in the world in terms of market cap and average daily trading volume, the S&P 500 is a great place to look for single-stock speculation.
Whether you want to buy or sell short, there are ample opportunities for intraday and swing trading of S&P 500 equities, and even chances for investing based on dividend yield for individual companies.
Support & Resistance
Technical analysis can be an effective way of creating S&P 500 signals due to the index’s heavy institutional and automated trading. One way to use this data to create a strategy is to identify key support and resistance levels.
Many technical tools and indicators offered by S&P 500 brokers can identify potential support and resistance levels. These include Fibonacci overlays and moving average indicators like the Ichimoku cloud, Moving Average Convergence/ Divergence Indicator (MACD) and Money Flow Index (MFI).
Using tools such as these helps investors spot trends and a viable trading range for the S&P 500, even without a complete understanding of the index’s trading economics.
For investors that want to receive stable dividends underlined by a strong and liquid market, trading covered calls on the S&P 500 can be a good option.
A covered call is an options strategy in which an investor holds a long position in an asset and sells call options on that same asset to generate income from the option premiums.
Traders can create these contracts manually through an options broker, or invest in an S&P 500 covered call ETF such as XYLD to automate this process. Dividends are paid monthly with competitive returns that can exceed 10% annually.
For investors looking for an options or e-mini s&p 500 futures strategy, scalping can be a lucrative form of online investing available at the best brokers.
Scalping is a high-frequency strategy often involving day trading securities to profit from small price changes and discrepancies between providers. Investors can use an S&P 500 calendar to find periods of potential volatility, such as top 10 stocks’ earnings reports, regional GDP news or announcements from the US federal bank.
The S&P 500 live opening hours are between 14:30 GMT and 21:00 GMT from Monday to Friday. US-based ETFs and mutual funds will typically follow these times, though UK products based on the S&P 500 may vary.
However, pre-market and after-hours trading is available for some stocks through various S&P 500 brokers. The inclusion of S&P 500 overnight investing takes the full opening hours to 09:00 GMT until 01:00 GMT from Monday to Thursday, and 09:00 to 22:00 GMT on Friday.
These hours differ between markets and products such as futures and CFDs, with indices operating 24/5 and e-mini futures hours trading 11 hours a day from 23:00 GMT until 22:00 GMT Sunday to Friday.
There are no weekend trading markets for the S&P 500.
Bottom Line On S&P 500 Brokers
With a wide range of available instruments, great historical gains and plenty of profitable strategies, the S&P 500 is hugely popular with retail investors.
Choosing the best S&P 500 brokers can be overwhelming due to the number of firms available. However, use this guide to compare S&P 500 platforms to find a suitable provider. Alternatively, choose from our list of top-rated S&P 500 brokers that accept UK traders.
Which UK Brokers Offer The S&P 500?
What Are Trading Hours At S&P 500 Brokers?
The stocks traded in the S&P 500 are typically available to trade between 14:30 GMT and 21:00 GMT from Monday to Friday. However, S&P 500 products such as CFDs, futures and binary options may have extended hours of up to 24 hours a day.
When Did S&P 500 Futures Start Trading?
Brokers began to offer futures markets on the S&P 500 in 1982, while e-mini S&P 500 futures were added in 1997.
What Are The Best Stocks In The S&P 500?
Of the 500 companies on the S&P 500, many provide opportunities for growth, short selling, dividends and scalping strategies. Some of the biggest stocks on the index are Tesla (TSLA), Apple (APPL), Johnson & Johnson (JNJ) and Microsoft (MSFT).
What Is The S&P 500 Trading At?
Investors can view current data through live charts on S&P 500 brokers’ platforms or through free resources like TradingView.
The historical high of the S&P 500 was January 3rd 2022 when the index reached 4796.56 points.
What Is The S&P 500 Dividend Yield?
The S&P 500 dividend yield has decreased in recent years as the index has become dominated by growth stocks. Recent S&P 500 dividend yields have come in below 2% per year.
How Should You Compare S&P 500 Brokers?
Key comparison points should include the choice of investing vehicles, leverage and margin rules, spreads and commissions, platforms and apps, regulatory oversight from the FCA, customer support, plus additional tools like copy trading. Demo accounts are also a good way to test S&P 500 brokers.