| Updated: December 17, 2024If stock trading seems riskier, you can always gain broader market exposure and reduce the risk by trading indices. These tradable assets combine multiple stocks, with the general price of an index depending on several companies, instead of a single entity. Ths S&P 500 index is one of the most popular trading options at reputable brokerages. It combines 500 of the top US companies, covering about 80% of the total market cap.
Our team of expert traders tested several regulated and trustworthy S&P 500 trading brokers and compiled a toplist with the best among them. Each S&P 500 broker received a quality score based on several factors, including Trustpilot rating, regulation, fees and commissions, available trading platforms, customer service and more.
Fusion Markets74-89% of retail CFD accounts lose money- AxiThe vast majority of retail client accounts lose money
- FP Markets73.85% of retail investor accounts lose money
- Pepperstone75.5% of retail investor accounts lose money
- Global Prime74-89% of retail CFD accounts lose money
- XM Group72.82% of retail investor accounts lose money
Top S&P 500 Trading Brokers
Whether you are planning to invest in mutual funds or ETFs, take some time to select a trustworthy S&P 500 brokerage company that will meet your requirements and manner of trading. The below list of trading brokers is not a ranking but rather a compilation of reputable trading platforms whose EU and non-EU leverage, spreads, commissions, and other features are reviewed by our team.
- 1. XM GroupMin Deposit$5Fees
- Long swap value: - 0.38
- Short swap value: - 0.24
CommissionsNo commission on index tradesSpread- 0.57 - US500 Cash
- 1.24 - US500 Futures
Leverage EU1:20Leverage non-EU1:500CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.12% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.XM is a reputable international brokerage brand that offers fee and commission-free trading of S&P 500 with extensive educational content, no hidden costs, and clear-cut trading conditions. In its essence, this is a group of licensed brokers that operate in different jurisdictions within the coverage of Trading Point of Financial Instruments Ltd. and licenses from the relevant authorities in the UK, Australia, and Belize.
Apart from US500 and the other indices, trades can be performed in relation to Forex, stocks, commodities, precious metals, and energies. As regards the supported trading platforms, traders can choose between MetaTrader 4 and MetaTrader 5 that are adapted for desktop computers, smartphones, and tablets. XM also has an in-house dedicated trading application that can be downloaded by scanning the QR codes on the website or from the App Store and Google Play.
Micro Account, Standard Account, and XM Zero Account are the account types traders can choose from. The common thing is they all come with a minimum deposit requirement of $5. The main difference is related to commissions. While micro and standard accounts have no commission attached, XM Zero holders trading forex instruments are paying some fees against zero or very low spreads.
- 2. eToroMin Deposit$50 - $10,000 (depends on country of residence)FeesOvernight fees:
- Buy - $ -1.47294156
- Sell - $ -0.08593384
CommissionsNo commission charged on index tradesSpread0.015%Leverage EU1:20Leverage non-EU1:10051% of retail investor accounts lose money when trading CFDs with this provider.We often say that a certain trading broker is appropriate for beginner traders but this probably applies most to eToro. In addition to the excellent educational content, the platform features lots of news and analyses as well as a sociable user community that help newcomers flawlessly enter the world of trading. If you already have some basic knowledge but are hesitant about the best strategy, you can use the CopyTrader functionality and replicate the activity of top-performing traders.
S&P 500 is one of the 18 indices available on eToro’s platform. The trading broker has structured the relevant information in a unique way and has separate tabs for Feed, Stats, Chart, and News (only available to registered users). The other assets that can be traded via eToro are stocks, cryptos, ETFs, commodities, and currency pairs.
The two main account types featured by eToro are retail and professional. Retail clients are allowed to trade all financial assets on the platform and use the CopyTrader functionality. In general, they have to comply with quite a few restrictions but enjoy a greater level of protection thanks to measures such as the Investor Compensation Fund. To qualify for a professional account, traders must have an investment portfolio of over €500,000, experience in the sector of at least one year, and a minimum of 10 scalable transactions per quarter throughout the last four quarters.
- 3. City IndexMin Deposit$150 - $250 (varies across entities and payment methods)FeesOvernight financing:
- long positions - equivalent base rate +2.5%
- short positions - equivalent base rate -2.5%
CommissionsNo commission on CFDsSpreadFrom 0.6Leverage EU1:20Leverage non-EU1:200CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.Next on our list of S&P 500 trading brokers is City Index, a company established in 1983 in London, UK. The broker’s services are in three main directions: CFD trading, spread betting, and Forex trading. Each of them has an individual section on the platform with loads of useful information about the relevant products including benefits and risks, costs, tools comparisons and others.
Depending on the City Index entity operating in your country of residence, minimum deposit requirements may differ. While the FCA-regulated entity does not impose a specific minimum, other operating versions of the broker may require a minimum of $150 ($250 for debit/credit cards). Nevertheless, if you wish to trade the S&P 500 index or any other asset available at City Index, the recommendation for the least amount you can deposit is $2,000.
Being a modern trading broker, City Index caters to on-the-go traders by providing them with dedicated mobile applications that can be easily downloaded by scanning the relevant QR code present on the broker’s main website. Trades can also be executed through the WebTrader and MT4 platforms.
Better results come with experience and after making a thorough analysis of your trading activity. It is for this purpose that the Performance Analytics tool is provided. It allows traders to track their behavior, analyze strengths and weaknesses, and thus focus on areas where greater profitability is achieved.
- 4. Global PrimeMin DepositNo set minimumFeesSwaps:
- short points: -0.229
- long points: -0.28
CommissionsNone for indicesSpread3.95 (avg.)Leverage EU1:20Leverage non-EU1:100Trading derivatives is high risk. Losses can exceed your initial investment. You should only trade with money you can afford to lose. Any Information or advice contained on this website is general in nature and has been prepared without taking into account your objectives, financial situation or needs. Past performance of any product described on this website is not a reliable indication of future performance. You should consider whether you’re part of our target market by reviewing our Target Market Determination, and read broker's PDS and other legal documents to ensure you fully understand the risks before you make any trading decisions. We encourage you to seek independent advice if necessary. The information on this website is not intended to be an inducement, offer or solicitation to any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.When selecting a broker for your US500 trading activity, you should look for a few crucial aspects – a license by a reputable authority, T&Cs transparency, no hidden costs, and a proven record of competent and timely customer support service. When reviewing the Global Prime brokerage company we put a tick to each of these points.
GP is primarily an Australian trading broker that is regulated by the Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA) in Seychelles, and Vanuatu Financial Services Commission (VFSC). There is no specific minimum deposit requirement but the least you can upload to your trading balance depends on the transaction method, varying between $1 and $200 or equivalent in another accepted currency. No matter how much you choose to deposit, you can enjoy cost-effective S&P 500 trades, with low spreads and zero commission charged on index CFD trades.
Currently, Global Prime provides its users with the opportunity to trade on the widely known MetaTrader 4 (MT4). The platform is a benchmark for retail trading brokers and enjoys constant popularity due to its user-friendliness, customizable charts, and possibility for automatic trading. Whether you prefer in-browser, desktop or mobile trading, all three options are available through MT4.
- 5. TastytradeMin Deposit$0Fees$0.65 per contractCommissionsNone on ETFsSpreadutilizes different fee structureLeverage EU1:20Leverage non-EU1:200tastytrade does not provide investment, tax, or legal advice. tastytrade’s website and brokerage services are not intended for persons of any jurisdiction where tastytrade is not authorized to do business or where such products and other services offered by the Firm would be contrary to the securities regulations, futures regulations or other local laws and regulations of that jurisdiction. Options involve risk and are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially significant losses. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.Futures accounts are not protected by the Securities Investor Protection Corporation (SIPC). All customer futures accounts' positions and cash balances are segregated by Apex Clearing Corporation. Futures and futures options trading is speculative and is not suitable for all investors. Please read the Futures & Exchange-Traded Options Risk Disclosure Statement prior to trading futures products.
Unlike most online trading brokers reviewed by Tradingpedia, the tastytrade company has a comperatively shorter experience. In its present form, the US brokerage was established in 2017 with headquarters in Chicago. However, the managing team is one of the most experienced nowadays. Tom Sosnoff, who is one of the firm’s co-CEOs started trading on the Chicago Board Options Exchange in the distant 1981 and 6 years later Scott Sheridan began doing the same. Today we are witnessing the fruits of their valuable experience gained in the 80s.
Our advice is to start trading through the platform only if you are not a novice in this field because its structure may look intimidating at first. The brokerage is more suitable for frequent and experienced traders who are interested in options, futures, and ETFs. As for the other trading products in the broker’s portfolio, they comprise indices, stocks, commodities, and cryptocurrencies.
We were pleased to find that although tastytrade is still considered an emerging trading broker, it caters to multiple types of users providing the Standard, Retirement, Entity, and International account types. Standard accounts are subdivided into Individual, Tenants in Common, and Joint with Rights of Survivorship. To learn which account variant is most suitable for your S&P 500 trades, we suggest doing your research by visiting the official website of tastytrade.
- 6. RoboForexMin Deposit$10 - $100 (depends on account type)Fees- 7% financing fee (leverage over 1:1)Commissions$4 - $5 per $1 million tradedSpreadfrom 0.02 USDLeverage EU1:20Leverage non-EU1:100Risk Warning: There is a high level of risk involved when trading leveraged products such as Forex/CFDs. 58.42% of retail investor accounts lose money when trading CFDs with this provider. You should not risk more than you can afford to lose, it is possible that you may lose the entire amount of your account balance. You should not trade or invest unless you fully understand the true extent of your exposure to the risk of loss. When trading or investing, you must always take into consideration the level of your experience. Copy-trading services imply additional risks to your investment due to nature of such products. If the risks involved seem unclear to you, please apply to an outside specialist for an independent advice.
RoboForex is an international award-winning trading broker that deals with eight types of trading assets – Forex, stocks, indices, ETFs, commodities, metals, energy commodities, and cryptocurrencies. The company has its seat and address in Belize and holds a valid license issued by the local authority body FSC (Financial Services Commission). For several years in a row, the broker has received many prestigious awards, the most recent of which are 2022 Best Stocks Broker Global at the London Trader Show Awards and 2021 Most Profitable Broker of Traders Union IAFT.
Not many are today’s brokerage firms that offer such a diverse portfolio of trading platforms as RoboForex. Both MetaTrader 4 and 5 can be used as well as the proprietary platforms R WebTrader and R StocksTrader. There is also the cTrader platform designed with experienced traders in mind giving them STP access to the Forex market and featuring 54 technical indicators and level II pricing. An additional convenience is that each of the platforms is available both as a mobile trading application adapted for iOS and Android devices and as a conventional desktop version.
Diversity is also observed with respect to the account types traders can choose from. RoboForex allows its users to select one of the five options each coming with its specifics.
- Prime – the trading broker promotes it as the account with the most favorable conditions on the platform. It can be used in relation to 28 currency pairs, metals, different CFDs, and cryptocurrencies.
- ECN – the most widely used RoboForex account. It is characterized by fast order execution and user-friendly trading conditions. Trading instruments are the same as with Prime accounts with the difference that the available currency pairs are 36.
- R StocksTrader – enables trading of more than 12,000 trading instruments via the platform bearing the same name. This is the only RoboForex account with a minimum deposit requirement of $100 as with all the others the threshold is $10.
- ProCent – account suitable for small investments in currency pairs, metals, and cryptocurrencies.
- Pro – Contrary to what the name suggests, this type of account is best suited for trading newbies.
- 7. SpreadExMin Deposit£0FeesNoneCommissionsNoneSpreadFrom 0.6Leverage EU1:20Leverage non-EU1:20Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. For professional clients, spread betting and CFD trading can also result in losses larger than your initial stake or deposit.
SpreadEx is a UK-based brokerage company with over 20 years of experience that is regulated by the Financial Conduct Authority. When preparing this short review, we were impressed by the fact that the broker is a five-time winner of the Investment Trends Award for ‘Best Customer Service’ 5 and decided to test it. A live chat session was initiated with a question about commissions related to the US500 index. A friendly representative of the customer care team replied in less than 30 seconds and explained everything we needed to know.
Except for S&P 500 and the other 30+ indices, SpreadEx allows traders to work with shares, commodities, Forex, ETFs, bonds and interest rate, etc. Regardless of the assets traded, opening an account with the brokerage is free of charge with no minimum deposit requirement.
Trading via SpreadEx is only possible through its proprietary platform that allows mobile trading via dedicated apps for iPhone, iPad, and Android. The trading application features price alerts that can be sent via SMS, email, and push messages. Another convenient feature is named Watchlists. It enables traders to group markets in separate lists and not lose extra time searching and comparing numbers. Data security is achieved by SSL encryption and PIN login.
- 8. CMC MarketsMin Deposit$0FeesOvernight holding cost:
- Buy - 0.0208%
- Sell - 0.0044%
CommissionsNoneSpreadFrom 0.1Leverage EU1:20Leverage non-EU1:20Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.The spread bet and CFD trading platform provided by CMC Markets allows its users to trade more than 80 indices including the S&P 500 among other products such as share baskets, commodities, and Forex. It makes a good impression that the broker has taken care to gain several licenses, all by reputable regulation authorities – FCA in the UK, ASIC in Australia, MAS in Singapore as well as the respective bodies in Canada, Germany, and New Zealand.
Regardless of the user-friendliness of a certain trading broker, we always put an emphasis on pricing. CMC Markets presents cost information in a well-structured and understandable manner so that traders do not have to wander around looking for a particular spreads number for example. The company is a commission-free brokerage with reasonable overnight holding costs and spreads on major indices starting from 0.1. There is also no requirement for a minimum deposit, which is another indicator of the broad accessibility of the platform.
CMC Markets has developed an in-house trading platform named Next Generation that can be used both on desktop computers and mobile devices since there are iOS and Android dedicated apps giving access to around 11,500 markets. Traders who do not feel comfortable with Next Generation have the option to use the popular MetaTrader 4 platform with no differences regarding spreads and other trading fees.
- 9. IGMin Deposit$50 (card payments)FeesOvernight funding admin fees:
- 2.5 - 3%
- 0.25 on US500 cash index
- 0.4 on US500 futures
CommissionsFrom 0%SpreadFrom 0.4Leverage EU1:20Leverage non-EU1:200Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Options and turbo warrants are complex financial instruments and your capital is at risk. Losses may be extremely rapid.IG is a well-regulated trading broker with a portfolio of more than 17,000 markets and a client base of over 300,000 traders. We can safely say IG is a global brand since it holds licenses issued by the FCA (UK), CFTC (USA), and BMA (Bermuda). However, traders located in the US should keep in mind IG US LLS is only authorized to perform Forex trading only. In all other authorized territories, you can use the platform for trades with indices, shares, commodities, and others.
Information on indices is very detailed and clearly presented so you can reach the relevant number in just 2-3 clicks. Spreads on S&P 500 vary between 0.4 and 1.5 according to trading hours.
In our humble opinion, the best approach when it comes to trading platforms is for brokerages to offer both proprietary and third-party variants. The more diverse selection, the better, since traders will not have to make a compromise with any aspect of their activity. It seems that IG agrees with such a conclusion since the company provides several desktop and mobile platforms. Let’s say a few words about the main options offering index trading.
- ProRealTime – Over 100 indicators allow for extensive analysis while filters enable quick access to preferred assets. Other benefits include a customizable layout, advanced charting, automated trading, etc.
- Progressive web app – a web-based platform that enables trading regardless of location or device without the need to download a mobile application. It can be used for spread bets and CFDs.
- MetaTrader 4 – one of the most widely used platforms today. It is software-based and full of tools for advanced analysis and automated trading as well as different perks such as editable charts and small minimums.
- 10. XTBMin Deposit$0FeesSwap point long/short:
- -0.023283% / -0.000000%
CommissionsNo commission on index tradesSpreadFrom 0.4Leverage EU1:20Leverage non-EU1:200CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.Already with over two decades of experience, XTB has gained a good reputation among traders from many parts of the world. The company’s main focus is European investors but residents of other regions are also welcome. However, there is also quite a long list of restricted countries with the US, Australia, and Hong Kong being the most notable ones.
Currently, the trading broker features over 30 Index CFDs, including US500, UK100, EU50, JAP225, and others. Trading hours are as follows: 12:05 am – 10:15 pm and 10:30 pm – 11:00 pm. Trades are executed through the broker’s proprietary platform xStation 5, which is highly appreciated by both novices and experienced traders. The platform has an intuitive and particularly user-friendly interface that enables XTB’s clients to shape the available tools so that they reflect traders’ preferences. All functions of the trading platform are accessible via the mobile and desktop versions of the broker’s app.
XTB has a help page that consists of more than 40 separate themes on issues regarding fees, commissions, orders execution, accounts, etc. Those traders who cannot find a solution to a problem that has arisen can contact the friendly professional customer care team either by live chat or email. It makes a good impression that you do not need to be a registered user of XTB to use any of these communication channels.
S&P 500 which stands for Standard and Poor’s 500 is a stock market index reflecting the performance of 500 of the largest American companies. Unlike Dow Jones, which is a price-weighted index, the US500 is calculated by adding the float-adjusted market capitalization of all constituent companies. It is for this reason that many trading professionals define S&P 500 as the true indicator of the US economy although it is not as widely known to the general public as DJIA.
The inclusion criteria for Standard and Poor’s 500 are strictly defined and exclude the presence of subjectivity in the selection process. As per an announcement published in April 2024, the market capitalization of each company must be at least $18.0 billion with the minimum trading volume in the last six months being 250,000 shares. It should be noted that updated market capitalization requirements are for the icnlusion of new companies and do not apply for the continuation of current companies’ listings. At the moment of writing this review, the Top 5 S&P 500 companies are Nvidia, Apple, Microsoft, Amazon, and Meta Platforms.
How S&P 500 Trading Works for Traders and Brokers
The reason for the significant interest in US500 both on behalf of brokerage companies and traders lies not only in the presence of popular entities such as the ones mentioned above. It is also in the fact that the constituents of the index represent 80% of the US stock market capitalization which means trading brokers are offering a large basket of stocks that can be purchased in just one move.
Those traders who want to invest in S&P 500 and thus gain exposure to all the stocks in it may do so through mutual funds or exchange-traded funds (ETFs) offered by US500 trading brokers (full-service brokers or discount brokers). Additionally, it is possible to trade the index as a Contract for Differences (CFD), allowing you to speculate on the general price of the index, without owning any portion of shares. Although this stock index covers US companies only there are no country restrictions neither on the brokerage companies nor on traders.
The majority of reputable online brokerages offer their clients to trade S&P 500 and other popular indices in the form of CFDs. This type of trading allows you to gain wider exposure to a large number of stocks by trading a single instrument. The one specific feature of CFD trading is that it allows traders to speculate on the price fluctuations of the index, without gaining any ownership over the underlying asset. Depending on your predictions for the index’s price, you can take either a long or short position, making a profit from any type of price movement.
Thanks to mutual funds, traders can pool their money along with investments from other traders, allowing them to trade a collection of stocks that would be hard to trade by a single trader. The price of a mutual fund, also referred to as net asset value (NAV), is determined by the total value of the stocks comprising the index, divided by the number of the fund’s outstanding shares. Those who decide to trade the S&P 500 index as a mutual fund will not gain ownership over stocks in the index but they do own a certain amount of shares the mutual fund invests in.
Index mutual funds, however, come with considerable operating costs which usually lead to higher fees and commissions charged by the brokerage companies. The goal of mutual funds is to duplicate S&P 500 performance by purchasing a basket of securities. Then, you can buy shares of the fund and trade them. What is specific about mutual funds is that they can be bought at the day’s closing price only, which is based on the NAV.
While similar to mutual funds, ETFs on indices often trade a cost that is a discount to the actual NAV of the fund. Passive index replication is the characteristic of ETFs and investors have access to all the stocks in the index. Generally, exchange traded funds are low-cost, highly liquid, and subject to intraday price variability. That said, in most cases, even intraday price fluctuations correlate to the actual price of the underlying assets trades as ETFs.
If you are exploring different ways to trade the S&P 500 index, you may be also interested in futures trading. This derivative contract allows traders to buy or sell the future value of the underlying asset, with traders being obligated to fulfill the order at a specific price and in the future. You may often come across so-called fractional index futures that trade at prices lower than those that apply to institutional investors.
This is another type of derivative contract, which shares a lot of similarities with Index Futures. Options on major indices, such as the S&P 500, give traders the right to buy or sell the index at a set price in the future. The main difference between futures and options is the latter only gives the right to take a short/long position in the future but does not obligate traders to fulfill the order.