Hi everyone)Why all forex brokers out there offer index trading as futures?Can we trade global indexes like SPX500,AUS200,UK100 etc as spot instruments like we trade forex pairs in the spot market?
Thanks
Happy Trading
Hey Marketdeal,
I believe the reason for this has to do with the way the market is regulated. Futures on currency are regulated as derivatives through the CFTC, the NFA, and the relevant futures exchanges. In other words, forex brokers would have to comply with regulatory agencies in order to offer these spot instruments to their customers.
SerenityFX
Depending on where you are based, the following providers offer spread betting services on the DJIA, S&P500 FTSE100 DAX CAC ETC
City Index
CMC Markets
IG Index
May help?
Hi Marketdeal,
Are you saying you want to trade CFDs on the stock indexes that don’t expire every 3 months like the futures contracts? If so there are plenty of brokers out there that offer stock index CFDs that don’t expire, some of which are also swap free, so you can hold as long as you like with no pesky interest charges. FXChoice, for example…they have some of the tightest spreads I’ve seen, especially during the NY session.
I personally prefer 24H access to the stock indexes, but if you would rather trade CFDs on stock indexes in their respective cash trading sessions only there are brokers that offer those too. Stock index CFDs at Lite Forex, for example, trade SP500, Nasdaq Composite, and Russell 2000 during the NY session, and DAX, CAC, IBEX during European session.
In fact, trading times for CFDs on the major European stock indexes are all over the place. Some brokers offer 24H versions of the FTSE, DAX and CAC. At other brokers, they are closed during the Asian session but open during the European and NY sessions. Then there are the ones only open during the European session.
Finally, there are also CFDs on stock index ETFs. I’ve seen CFDs on SPY, DIA, and QQQ. Can’t remember the specific brokers but they’re out there.