| Updated: February 17, 2025The Financial Times Stock Exchange 100 Index (FTSE 100) is among the most traded and followed stock market indices globally, representing the 100 largest and most liquid companies listed on the London Stock Exchange. For both traders and investors, the FTSE 100 presents a distinct opportunity to engage with the UK’s largest and most successful companies, offering the potential for substantial investment returns. Nonetheless, the complex nature of FTSE 100 trading can pose challenges, making it crucial to select a trustworthy and reputable FTSE 100 broker.
Below you can find a list with the best FTSE 100 Index Brokers:
Top 7 Brokers for trading FTSE 100
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- Offers different account types, including DMA (Direct Market Access) one
- Offers turbo warrants on forex pairs, commodities, indices, and equities
- Supports popular platforms like MT4 and TradingView as well as ProRealTime, L2, and more
Trading InstrumentsDeposit Methods- Bond Futures
- Bond Options
- Bond Spread Betting
- Bonds CFDs
- Commodities CFDs
- Commodity Futures
- Commodity Options
- Commodity Spread Betting
- Crypto CFDs
- Crypto Options
- Crypto Spread Betting
- Currency Futures
- Energy CFDs
- Energy Futures
- Energy Options
- Energy Spread Betting
- ETF CFDs
- ETF Options
- ETF Spread Betting
- Forex CFDs
- Forex Options
- Forex Spread Betting
- Index Futures
- Index Options
- Index Spread Betting
- Indices CFDs
- Interest Rate Futures
- Metal Futures
- Metal Options
- Metals CFDs
- Metals Spread Betting
- Share CFDs
- Stock CFDs
- Stock Options
- Stock Spread Betting
- US Stock CFDs
- US Stock Options
- US Stock Spread Betting
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- Providing access to more than 135 global markets: Forex, Cryptocurrencies, Bonds, Commodities and Stocks
- Seamless integration with third-party research platforms and API access for automated trading and portfolio management.
- Advanced trading tools, such as algorithmic trading options, which allow professional-level trading executions.
Trading InstrumentsDeposit Methods- Bond Futures
- Bonds CFDs
- Commodities CFDs
- Crypto CFDs
- ETF CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Mutual Funds
- Share CFDs
- Stock Options
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- Australia & CySEC regulated broker
- MT4/MT5, TradingView, Ctrader, Iress
- EUR/USD spread from 0.0 pips
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Energy CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Stock CFDs
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- Multi-Level Regulated Broker
- Proprietary trading platforms
- Easy to use mobile app
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Energy CFDs
- ETF CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Share CFDs
- Stock CFDs
- US Stock CFDs
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- Popular broker for social trading
- Trading is conducted on innovative in-house platform
- Offers both investing and trading products
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- ETF CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Share CFDs
- Stock CFDs
- US Stock CFDs
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- XTB is a publicly traded company regulated by FCA and CySEC
- XTB's proprietary mobile app enables traders to trade from anywhere
- Commission-free stock trading with no platform fees and direct access to thousands of shares
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Energy CFDs
- ETF CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Share CFDs
- Stock CFDs
- US Stock CFDs
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- XM provides great trading experiences using MetaTrader 4 and MetaTrader 5, which are improved by personalized features.
- Zero commission accounts are available
- Top-tier regulation from CySEC, ASIC, FSC, and DFSA oversee XM's operations, assuring transparency and client safety.
Trading InstrumentsDeposit Methods- Bonds CFDs
- Commodities CFDs
- Crypto CFDs
- Energy CFDs
- ETF CFDs
- Forex CFDs
- Forex Options
- Index Options
- Indices CFDs
- Metals CFDs
- Share CFDs
- Stock CFDs
- Stock Options
- US Stock Options
Brokers Compared by Spread
| Brand | Commission per lot | |
|---|---|---|
| IG | AVG 1.04 pips | $0 |
| Interactive Brokers | MIN 0.1 pips | From 0.08 to 0.20 bps x trade size |
| FP Markets | AVG 1.2 pips | $0 Standard Account; $6 round turn on Pro Account |
| Plus500 | AVG 1.4 pips | $0 |
| eToro | MIN 1 pips | $1 or $2 (stocks only) |
| XTB | AVG 0.9 pips | $0 |
| XM Group | MIN 0.8 pips | $0 Ultra Low Micro and Ultra Low Standard Accounts; $3.50 per side XM Zero Account |
FX Brokers Deposit Method Comparison
| Brand | Minimum deposit | |
|---|---|---|
| IG |  |
$50 |
| Interactive Brokers |  |
$0 |
| FP Markets | |
$50 (AU$100) |
| Plus500 | |
$100 |
| eToro | |
$50 or $100 based on country ($10 for the UK) |
| XTB | |
$250 |
| XM Group | |
$5 |
Brokers by Regulator
| Brand | Maximum leverage | |
|---|---|---|
| IG | |
1:222 (BaFin | Pro Account), 1:30 (ASIC | Retail Account), 1:30 (BaFin | Retail Account), 1:200 (BMA | Retail Account), 1:30 (FCA | Retail Account) |
| Interactive Brokers | |
1:30 (ASIC | IBKR Lite), 1:30 (CBI | IBKR Lite), 1:30 (FCA | IBKR Lite), 1:25 (JFSA | IBKR Lite), 1:20 (MAS | IBKR Lite), 1:500 (Pro Account) |
| FP Markets | |
1:500 (CySEC | Pro Account), 1:30 (ASIC | Retail Account), 1:30 (CySEC | Retail Account), 1:500 (FSAS | Retail Account) |
| Plus500 | |
1:300 (Pro Account), 1:30 (ASIC | Retail Account), 1:30 (BaFin | Retail Account), 1:30 (CySEC | Retail Account), 1:30 (FCA | Retail Account), 1:30 (FMA | Retail Account), 1:30 (SFSA | Retail Account), 1:30 (DFSA), 1:300 (FSAS), 1:20 (MAS), 1:300 (SCB) |
| eToro | |
1:400 (CySEC | Pro Account), 1:30 (CySEC | Retail Account), 1:400 (FSAS | Retail Account) |
| XTB | |
1:200 (CySEC | Pro Account), 1:30 (CySEC | Retail Account), 1:30 (FCA | Retail Account), 1:500 (IFSC | Retail Account) |
| XM Group | |
1:30 (CySEC | Retail Account), 1:1000 (IFSC | Retail Account) |
Forex Brokers Platform Availability
| Brand | FX pairs to trade | |
|---|---|---|
| IG | |
MetaTrader 4, Proprietary Web, TradingView |
| Interactive Brokers | |
Proprietary Mobile, Proprietary Web |
| FP Markets | |
cTrader, TradingView |
| Plus500 | |
Proprietary Mobile, Proprietary Web |
| eToro | |
Proprietary |
| XTB | |
Proprietary |
| XM Group | |
MetaTrader 4, MetaTrader 4 MultiTerminal, MetaTrader 5, Proprietary Mobile, Proprietary Web |
Comprehensive Comparison of the Best CFD brokers for trading FTSE 100
| Brand | Min. Deposit | Trading Platforms | Spread | Regulation | Trustpilot |
|---|---|---|---|---|---|
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$50 |
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MIN 0.6 pips |
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 |
$0 |
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MIN 0.1 pips |
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|
 |
$50 (AU$100) |
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AVG 1.2 pips |
|
|
 |
$100 |
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AVG 1.4 pips |
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|
 |
$50 or $100 based on country ($10 for the UK) |
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MIN 1 pips |
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|
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$250 |
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AVG 0.9 pips |
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|
 |
$5 |
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MIN 0.8 pips |
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This page serves as a detailed guide to FTSE 100 brokers, including an overview of the index and its components. We will also examine various methods to trade the FTSE 100 index, such as CFDs, ETFs, index futures, index options, and mutual funds. Moreover, we will discuss the factors impacting the FTSE 100 index’s performance and provide guidance on selecting a trustworthy FTSE 100 broker. Additionally, we will touch on the significance of trading hours, spreads, leverage, and regulations, along with addressing frequently asked questions about FTSE 100 trading.
What Is FTSE 100?
The FTSE 100 index was introduced on January 3, 1984, and is a market-capitalization-weighted index, meaning that the largest companies in the index have the most substantial impact on its overall performance. The index is composed of the 100 largest companies listed on the London Stock Exchange.
The FTSE 100 index is reviewed and updated quarterly by the FTSE Russell, a leading global index provider. The review process involves a thorough analysis of the eligibility criteria, as well as a review of the company’s financial performance and market capitalization.
Here are some additional details on the selection criteria:
- Market Capitalization: The market capitalization of a company is calculated by multiplying the total number of shares outstanding by the current market price of the shares.
- Liquidity: Liquidity is measured by the average daily trading volume of a company’s shares over a 6-month period.
- Free Float: The free float of a company is calculated by subtracting the number of shares held by insiders, institutional investors, and other non-public shareholders from the total number of shares outstanding.
- Listing: A company must be listed on the LSE’s Main Market or the Alternative Investment Market (AIM) to be eligible for inclusion in the FTSE 100 index.
- Domicile: A company is considered to be domiciled in the UK if it is incorporated in the UK or has its principal place of business in the UK.
- Trading History: A company must have a minimum trading history of 6 months to be eligible for inclusion in the FTSE 100 index. This ensures that the company has an established track record of trading and financial performance.
- Financial Health: A company’s financial health is assessed by reviewing its profitability, cash flow, and debt levels over a 3-year period.
- Industry Representation: The FTSE 100 index aims to represent a broad range of industries and sectors, so companies from a variety of industries are considered for inclusion. This ensures that the index is diversified and representative of the UK economy as a whole.
Ways to Trade the FTSE 100 Index
There are several ways to trade the FTSE 100 index, each with its own advantages and disadvantages. These include:
- CFDs on FTSE 100: Contract for difference (CFD) trading allows traders to speculate on the price movement of the FTSE 100 index without actually owning the underlying assets.
- Exchange-traded funds (ETFs): ETFs are investment funds that track the performance of the FTSE 100 index, offering a diversified portfolio of stocks in a single trade.
- Index futures contracts: Index futures contracts allow traders to buy or sell the FTSE 100 index at a predetermined price on a specific date in the future.
- Index options: Index options give traders the right, but not the obligation, to buy or sell the FTSE 100 index at a predetermined price on or before a specific date.
- Mutual funds: Mutual funds are investment funds that pool money from multiple investors to invest in a diversified portfolio of stocks, including those included in the FTSE 100 index.
Trading Hours for the FTSE 100 Index
The FTSE 100 index is traded on the London Stock Exchange, with trading hours typically between 8:00 am and 4:30 pm GMT, Monday to Friday. During this window, traders can participate actively in the trading of the FTSE 100 constituents and keep an eye on real-time fluctuations.
Factors Impacting the Performance of the FTSE 100 Index
The performance of the FTSE 100 index is influenced by a range of factors, including:
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Economic indicators
Economic indicators such as GDP growth, inflation, and unemployment rates can impact the performance of the FTSE 100 index. For example, a strong GDP growth rate can lead to an increase in the index, while a high inflation rate can lead to a decrease.
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Company earnings
The earnings of the companies included in the FTSE 100 index can also impact the performance of the index. For example, if several companies in the index report strong earnings, the index may increase, while weak earnings can lead to a decrease.
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Geopolitical events
Geopolitical events such as wars, natural disasters, and changes in government policies can also impact the performance of the FTSE 100 index. For example, a war in a major oil-producing country can lead to an increase in oil prices, which can impact the performance of oil companies in the index.
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Interest rates
Changes in interest rates can also impact the performance of the FTSE 100 index. For example, a decrease in interest rates can lead to an increase in the index, as lower interest rates can make borrowing cheaper and increase consumer spending.
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Currency fluctuations
Fluctuations in the value of the British pound can also impact the performance of the FTSE 100 index. For example, a strong pound can make exports more expensive and decrease the competitiveness of UK companies, which can lead to a decrease in the index.
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Market sentiment
Market sentiment, which refers to the overall attitude of investors towards the market, can also impact the performance of the FTSE 100 index. For example, if investors are bullish on the market, the index may increase, while a bearish sentiment can lead to a decrease.
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Technical analysis
Technical analysis, which involves the study of charts and patterns to predict future price movements, can also impact the performance of the FTSE 100 index. For example, if a technical analyst identifies a trend or pattern in the index, they may recommend a buy or sell signal, which can impact the performance of the index.
What to Look for When Choosing FTSE Brokers
When choosing a FTSE 100 broker, there are several factors to consider, including:
- Spreads: Look for brokers that offer competitive spreads, which can help to reduce trading costs.
- Maximum leverage and margin requirements: Check the maximum leverage and margin requirements offered by the broker, which can help to manage risk.
- Trading platforms: Choose a broker that offers reliable and user-friendly trading platforms, with a range of technical and fundamental analysis tools.
- Regulation: Ensure that the broker is regulated by a reputable regulatory body, such as the Financial Conduct Authority (FCA) in the UK or the Cyprus Securities and Exchange Commission.
- Order execution speed: Look for brokers that offer fast and reliable order execution, which can help to minimize slippage and maximize trading profits.
- Payment methods: Check the payment methods offered by the broker, which should include a range of convenient and secure options, including bank transfers, credit and debit cards, and e-wallets, among others.
Tips on Trading FTSE 100 Index
To trade the FTSE 100 index successfully, it’s essential to develop a viable trading strategy, manage risk properly, and stay up-to-date with the latest market news and analysis. Here are some tips to help you get started:
- Use stop-loss orders: Stop-loss orders can help to limit losses and protect trading capital.
- Develop a trading strategy: Develop a trading strategy that takes into account your investment goals, risk tolerance, and market analysis.
- Manage risk properly: Manage risk by setting realistic trading goals, using stop-loss orders, and diversifying your portfolio.
- Keep a trading journal: Keep a trading journal to track your trading performance, identify areas for improvement, and refine your trading strategy.
- Compare spreads: Compare spreads offered by different brokers to find the most competitive rates.
FAQs
Which are some of the companies that make up the FTSE 100 index?
Below are a few of the most popular companies that have been among the constituents of the FTSE 100 index for over 10 years and the respective sectors:
- Unilever (consumer goods)
- BT Group (telecommunications)
- British Petroleum (energy)
How can I trade the FTSE 100 index?
You can trade the FTSE 100 index using CFDs, ETFs, index futures contracts, index options, and mutual funds.
What are the trading hours for the FTSE 100 index?
The FTSE 100 index is traded on the London Stock Exchange, with trading hours typically between 8:00 am and 4:30 pm GMT, Monday to Friday.
What factors impact the performance of the FTSE 100 index?
The performance of the FTSE 100 index is influenced by a range of factors, including economic indicators, company earnings, and geopolitical events.
How are the FTSE 100 constituents listed?
The FTSE constituents must be listed on the London Stock Exchange. They are chosen based on their full market capitalization and are subjected to quarterly reviews. During each review, some companies exit while others enter, impacting share prices and resulting in a busy trading day. The reviews are held usually on the Wednesday after the first Friday in March, June, September, and December.
Why You Should Trust RationalFX
When it comes to making informed decisions about forex brokers, it's essential to rely on trustworthy sources. RationalFX, a company with over 17 years of experience since its founding in 2005, has established itself as a credible authority in the industry. With an impressive collection of over 2500 reviews on Trustpilot, boasting a score of 4.2, it's clear that Rational FX has built a reputation for providing reliable and unbiased information.
What sets Rational FX apart is its rigorous evaluation process, which considers over 30 different criteria when selecting forex brokers. This comprehensive approach ensures that every aspect of a broker's service is taken in consideration, including regulation, forex spreads, trading platforms, deposit methods, and reputation. With its wealth of experience, transparent review process, and outstanding customer feedback, Rational FX is a trusted source for anyone seeking reliable information on forex brokers. You can reach us via e-mail at feedback@rationalfx.com or contact us through our social media accounts here: Facebook, YouTube, or leave a feedback here.