Stock Indices Trading With Beacon FX
Beacon FX offers one of the largest ranges of stock indices of any online broker. You can choose from variety of different stock index CFDs, covering markets around the globe, and trade them right alongside your Forex trades. To trade indices you do not need the services of traditional stock brokerage firms as was the case before the technological advances made in high speed internet connections. Now you can buy an index or sell an index through online interactive brokers such as Beacon FX . Hence market trading online has become increasingly popular and retail investors buy indices or sell indices either as investment vehicles or hedging tools to mitigate their portfolio risks.
The index tracks a basket of stocks that are used as indicators of a specialized segment of a stock exchange such as technology (NASDAQ) or are a general representation of the whole stock market, such as the S&P500.
Open trading account today and discover the advantage of stock indices CFDs trading with Beacon FX .
What Are Indices?
Trading stock indices is normally more rewarding to an investor or a trader because in general indices have a higher return than the stock market they represent partially or wholly.
Stock index CFDs are financial instruments that represent the value of the underlying publicly-traded companies. One leading index is the S&P 500, which reflects the collective value of top companies trading on the NYSE. If the overall value of those companies’ shares rises, the price of the S&P 500 will go up.
There are also indices that represent smaller companies trading on the NYSE, as well as indices for various stock exchanges around the world, from Japan’s NIKKEI to Germany’s DAX.
Beacon FX selection of 19 stock index CFDs includes:
- S&P 500 – The value of the Standard & Poor 500 is based on the share prices of 500 leading US-based companies
- NASDAQ 100 – This index represents the value of 100 non-financial NASDAQ-traded companies
- FTSE 100 – The FTSE 100 is a collection of 100 of the largest publicly-traded UK companies
- DJ EURO STOXX 50 – Euro Stoxx 50 collects together 50 of the largest European companies’ share value
Why Trade Indices with Beacon FX
CFD index trading offers a number of benefits to the online trader. Trading CFDs (Contracts for Difference) allows you to buy or sell financial instruments without actually owning the underlying asset. These could be commodities, stock, or in the case of stock index CFDs, the value of the underlying indices.
A trader can place a buy order on, for example, the S&P 500. If the price of the index goes up, when he comes to sell he will earn the difference between the buy and sell price. If it goes down, the trader pays the difference.
Advantages of Spot trading with Beacon FX
- Highly liquid markets
- Safe Investment: spot metal trading is considered to be a safe haven
- Investors generally prefer to purchase and own precious metals as long-term investments
- Spot metal trading diversifies investor’s portfolio as it is an emerging asset class
- No dealing desk intervention, no slippage, and no re-quotes
- Market depth-direct access to live stream prices
- Swap-Free (Islamic) Accounts
- Personalized “My Beacon FX ”
- Instant funding and withdrawal
- Fast account opening and approval
- Trade Forex, Indices, Commodities, Equity CFD’s
- Scalping, Hedging, use of all Expert Advisors (EAs) are welcome
- Comprehensive range of trading products, platforms and account types
- True STP, ECN and NDD execution
Beacon FX allows all types of Trading Strategies including News Trading.
Beacon FX accounts are suitable for all types of traders: from novice traders to real Forex experts! If you are still new to Forex trading, we would suggest you to open Beacon FX Demo Account to master your trading skills.
Our Demo account features benefits that the live account offers but bears no risk as the funds are virtual. Note that Demo Account does not have an expiry date.