Which broker is best for trading indices?
Verdict
- Pepperstone is our pick for trading indices: index CFDs carry no commission, published Razor averages run from 0.4 points on the US500 and 1 point on the NAS100, and its account tables count 26 indices.
- You can trade cash indices, index forwards and, on selected markets, perpetual CFDs, on MT4, MT5, cTrader, TradingView or Pepperstone's app.
- For Singapore residents the account sits with Pepperstone Markets Limited in the Bahamas, with retail leverage up to 1:200 on major indices and no MAS licence.
- XS, our second choice for Singapore, does not publish index spreads in our data, so it is not compared here.
Index traders pay mostly through the spread, because most brokers, Pepperstone included, charge no commission on index CFDs. That makes published index spreads the number to compare, and Pepperstone publishes them in detail. The table below gives the averages; the sections after it cover which platform to use and which contract type fits how long you hold.
Why Pepperstone is our index pick
Three reasons. Price: no commission on index CFDs, and published Razor averages of 0.4 points on the US500, 1 point on the NAS100, 2 on the US30 and 5 on the HK50. Choice: 26 indices in Pepperstone's account tables, covering the US, Europe, Japan, China, Hong Kong and Australia. Flexibility: cash CFDs for short holds, forwards for longer views, and perpetual CFDs on the NAS100 and US500 with a weekly-set funding rate.
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Pepperstone index spreads
Average spreads in index points from Pepperstone's index-fee table (published on its Australian site, August 2026 data). Razor and Standard differ only in spread here, since neither charges commission on indices.
| Index | Razor average | Standard average |
|---|---|---|
| US500 | 0.4 | 0.5 |
| NAS100 | 1 | 1.2 |
| US30 | 2 | 2.3 |
| GER40 | 1 | 1.3 |
| UK100 | 1.5 | 1.9 |
| JPN225 | 7.4 | 9.4 |
| HK50 | 5 | 5 |
| AUS200 | 1.5 | 1.5 |
Which platform is best for index trading?
Index trading leans on charts and fast order entry, so the platform choice is personal. Because index CFDs carry no commission at Pepperstone, your platform choice does not change a commission line the way it does on FX. A practical split:
- TradingView for chart-led traders who want to draw levels and trade from them (Razor only).
- MT5 for expert advisors and Pepperstone's Smart Trader Tools.
- cTrader for C# automation through cTrader Automate.
- The Pepperstone app for watching index positions away from the desk.
Cash, forward or perpetual
- Cash index CFDs have the tightest spreads but pay overnight financing on positions held past the daily cut-off.
- Index forwards are priced for a later date with wider minimum spreads, for example US500-F from 1 point against 0.4 on the cash US500, and HK50-F from 10 against 5.
- Perpetual CFDs (NAS100-PERP and US500-PERP on the Bahamas retail margin table) have no expiry and a funding rate set weekly in advance, applied daily at 5 pm New York time.
Leverage and risk on indices
Under its Bahamas licence, Pepperstone allows retail clients up to 1:200 on major indices. That means $500 of margin can hold a $100,000 position, where a 0.5% move equals the whole margin. Index CFDs can also gap when markets reopen after a weekend or holiday, and Pepperstone does not publish a guaranteed stop-loss, so a stop may fill beyond its level. Professional clients get up to 1:500 on major indices and 1:100 on minor ones.
Sources
Pepperstone pages on index pricing and terms.
Does Pepperstone charge commission on index CFDs?
No. Index CFDs are spread-only on both Standard and Razor; Razor's spreads are slightly tighter on most indices.
Can I trade the Hang Seng and Nikkei from Singapore at Pepperstone?
Yes, as the HK50 and JPN225 index CFDs, with published averages of 5 and 7.4 points on Razor.
Is Pepperstone licensed in Singapore for index trading?
No. Singapore residents are served by Pepperstone Markets Limited under a Bahamas SCB licence (SIA-F217); Pepperstone holds no MAS licence.
Index CFDs are leveraged, can gap on market opens and can lose you money very quickly. Pepperstone's international site states that 80% of retail investor accounts lose money trading CFDs with this provider. This page is not investment advice.