Struggling to find the best brokers for FTSE 100? Then, don’t worry as you are at the right place. In this guide, we will list down all the best brokers that are available in the market.
The corona pandemic has deteriorated the stock market across the globe and the index FTSE 100 have badly fallen to its knees. It has devastated the stock market so badly that for thousands of companies it is impossible for two-three or even more years to reach their pre-pandemic levels. Though, there is one advantage also, as we all know a bear’s market is a buyer’s market. That means, today is the best time to buy shares and stocks of the world’s most prominent companies as they are available at a discounted price due to the pandemic. So, without further ado let’s get straight into our topic.
List of Top Brokers for FTSE 100 index
- TD Ameritrade
- CMC Markets
Best Brokers for FTSE 100 index
Now that you have gained all the knowledge of the key metrics that an investor looks into when investing through a broker or a trading platform. However, checking all these metrics into all the available platforms can be very time consuming and hectic. Therefore to save you your precious time we have listed below the best brokers that you can use to invest in FTSE 100. All of the below-mentioned trading platforms are highly trustworthy and offer amazing trading features to make you have a seamless trading exposure.
eToro- World’s Finest Broker
The very best trading platform that we have on our list is eToro. It is the most favourite trading platform of almost every trader in the UK. This trading platform gives you access to a variety of trading assets including stocks, indices, ETFs, CFDs and cryptocurrencies. If you are willing to invest in the FTSE 100 index then eToro is your go-to platform. Before you invest in FTSE 100 you must know that there is no direct way of investing in it, the only way you can do so is to gain exposure to the companies that make up the FTSE 100 index.
The platform is regulated by the FCA, ASIC and CySEC and is also accessible to the US traders as it is registered with the FINRA. This is a commission-free trading platform, except you will be required to pay a 0.5% fee on all your deposits and $5 on every withdrawal. The platform is the cheapest trading platform in the UK.
For beginners, eToro provides the copy trading feature. This feature allows you to copy ongoing trades of expert traders. You can also use the copy portfolio feature, which allows you to diversify your investment portfolio. Unlike other platforms, account creation on this platform is not time-consuming. It takes only a few minutes to create an account on eToro. Once you are done with creating an account you are then required to fund it to start your trading journey. For the convenience of its user’s, it accepts various payment methods for making a deposit such as Debit/Credit Card, Bank account, e-wallet e.t.c. The fee attached to the platform is an inactivity fee of $5, which is understandable and also the spreads are relatively low. The platform also offers a mobile application for the convenience of its customers. This trading platform also offers 24/7 available customer support that other free platforms don’t offer.
|* Beginner-friendly||* Not suitable for advanced learners|
|* Regulated by FCA, ASIC and CySEC|
|* Copy-trading and Copy Portfolio feature|
|* Offers a variety of financial assets|
|* Accepts debit/credit, bank account, e-wallet|
|* Fractional trading|
|* Offers 800+ shares|
Libertex- Best trading Platform with Zero Spreads
Another broker that we recommend to you is Libertex. Launched in 1997 this trading platform is home to nearly three million clients worldwide. When investing in an index such as FTSE 100, then Libertex is among the best brokers to consider. There are many benefits of investing with the broker Libertex such as trading without paying any spreads.
The platform allows you to enter and exit the market without paying a spread. However, you will be required to pay a minimal amount as a commission which in any case will be less than 0.1%, though many of the financial markets can be traded commission-free with Libertex. The platform also provides MT4 and MT5 and also a mobile application for the convenience of its traders. Moreover, the platform is completely safe to use as it is regulated by CySEC and FSA and also has a reputed history of more than 20 years. Libertex for the convenience of its traders also offers a free demo account feature that allows paper trading to practice trading without investing in your real money.
IG- Best CFD Broker for FTSE 100
Another broker that is the favourite among traders is IG. This is a top-rated CFD broker that was developed in 1974. This CFD broker is regulated by a variety of financial authorities including the UK’s FCA and the BaFin, which adds to the credibility of the platform. This broker allows you to access a variety of trading assets including the FTSE 100 index. It is regulated by FCA, which means you don’t have to worry about the safety and security of your funds. The platform gives you access to over 12,000 assets and allows you to apply the leverage of up to 1:200 on forex pairs like EUR/USD, EUR/GBP, EUR/GBP, EUR/JPY, and USD/JPY. That means with an account balance of just $300, you could potentially trade with $60,000. What attracts the traders most to this platform is that it gives access to over 80 currency pairs to trade Forex.
The account creation on this trading platform is also super easy. However, you do need to pay an entry-level fee of £8. But the good thing is that if you trade regularly then this entry-level fee will be reduced to £3. Once created an account you will be required to make a minimum deposit of $250 on this platform to initiate trading. This minimum deposit isn’t the fee of this platform but the working capital that is needed by the investors to start investing journey.
When thinking about investing in the FTSE 100 index, this platform gives you access to all the companies that are listed under FTSE 100.
- Well reputed UK Broker
- Offers more than 12,000 traditional assets
- Offers leverage and short selling
- Offers spread betting and CFD products
- Offers educational tools
- Offers more than 80 pairs
- MT4 is supported
- $15 commission on US Stocks
- $250 minimum deposit amount
Plus 500-Best Low-cost CFD Broker
Listed on London Stock Exchange under the ticker symbol PLUS, this trading platform is a well known CFD provider. The platform is regulated by the FCA and ASIC, which means you can trust the platform without stressing over money fraud. This amazing Platform gives access to a variety of different financial assets through CFDs with a spread of 1.25 or 0.07 % and 0.5 minimum deposit. On this platform, you will get access to the shares of nearly 500 companies including those making up the FTSE 100 index. Moreover, it allows you to apply the leverage of up to 5:1 on your desired shares. The platform is fully packed with advanced charting packages, an economic calendar, risk management tool and price alerts service.
The regulation of the platform makes the platform a healthy choice as it makes sure that all of its traders’ funds are not compromised at all. Its parent company is listed on the London Stock Exchange. The account creation on this platform is not time-consuming. All you are required to do is to enter your few basic details, undergo a verification process, make a deposit and that’s all. To deposit on this platform you can either use debit/credit cards, bank transfers or PayPal.
TD Ameritrade- Best FTSE 100 Broker
Developed in 1975, TD Ameritrade is one of the largest US-based trading platforms that gives you access to a variety of trading assets. The platform is trustworthy as it is regulated by the most reputed financial authorities SEC, FINRA and CFTC.
The platform allows you to access its abundance of advanced research and charting tools from the very comfort of your home. It is home to a variety of trading assets including all the leading companies in FTSE 100. It charges a small commission of $0.65 per contract from stocks to options. This trading platform is one of the most favourite trading platforms of those who are willing to access more advanced trading tools. This platform also offers demo account features that help traders to practice trading without investing in their own real money. Moreover, the platform doesn’t charge any deposit or withdrawal fee plus there are no minimum account fees. It also offers mobile trading apps for the convenience of its traders.
CMC Markets- Broker for FTSE 100
Another amazing platform that allows you to trade indexes such as FTSE 100 is CMC Markets and that too on the low fees as the fees are built into the spread on this platform. This trading platform offers a variety of trading instruments to diversify your trading portfolio including Commodities, Cryptocurrencies, Shares, ETFs and Treasuries. The trading platform is free to use as to use this platform you don’t need to pay a penny for withdrawals, deposits or accounts. However, it does charge a monthly inactivity fee of £10 per year.
This broker allows CFD account users to pick from ten different currencies including EUR, USD, and GBP. Whereas for those looking for a spread betting account there are limited options available for them to choose from that is GBP and EUR. For the convenience of its clients, the platform offers various options that you can adjust as per your needs. Moreover, it also offers a mobile trading application and a user-friendly interface.
- Regulated brokers
- Offers trading with low fee
- Doesn’t require a minimum deposit
- Offers a variety of customizable options
- Charges £10 fee per month as an inactivity fee
FTSE 100 Brokers Fee Comparison
|ETF Fee||Stock Fee||Index CFD |
|$0||$5||No||$10 per month|
after 1 year
|$0||$0 with e-Wallet||No||$5 per month after |
|$0||$0||No||$12 per month after |
|$0||$0||No||$10 per 3 months after |
|$0||$0||No||$10 per month after|
|Min Spread 1||0.11%||0.02 per unit|
FTSE 100 Overview
FTSE 100 is a growth index, which consists of 100 top leading companies that are listed on the London Stock exchange on the basis of their market valuation. Astra Zeneca, Royal Dutch Shell, Vodafone, British American Tobacco, Rio Tinto are a few names of the companies that make up the FTSE 100 index. If you are looking forward to investing in the FTSE 100 index then the one and the only way to do it is by gaining exposure to the companies that make up the index. The key benefit of investing in FTSE 100 is that instead of investing in a single asset you will be investing in a well-diversified basket of stocks. FTSE 100 allows you to recover dividends and one key thing to note here is that the index re-balances and re-weighted every three months.
Ways to Trade and Invest in FTSE 100 index
First thing first, before you jump straight into trading or investing in the FTSE 100, you must know that these both are very different things. If you choose to trade the FTSE 100 then it can be done by spread betting or CFDs, if you keep an eye on the price movements and place a bet as per your predictions on whether the price will rise or fall. On the flip side, If you choose to invest in the FTSE 100, then you can do so by purchasing shares in ETFs. Therefore, if you have made up your mind about investing in FTSE 100, the very first thing you are required to do is find the best ETF provider. This ETF provider will buy all the 100 shares that are listed under the FTSE.
FTSE 100 ETFs & Stocks
The very best way to gain exposure to the FTSE 100 is to invest in ETFs. However, there are traders who prefer a more focused Investment of the underlying stock.
Unlike Nasdaq 100, UK’s FTSE 100 index has companies leading mainly in banks and energy firms. Therefore, rather than investing in a collective index, traders prefer to choose the stocks in which they want to invest their money.
FTSE 100 Tracker Funds
If you are someone looking for making a long term investment then the best option is to invest in a trackers fund. FTSE 100 tracker funds track the performance of the underlying asset.
Things to consider before choosing the right broker to invest or trade in FTSE 100 index
Today there are thousands of brokers available that give you access to your desired stock. However, with an increase in scams in the financial markets, you cannot trust the broker on the basis of the availability of your desired stock. So how to know whether the broker is legit or not? Don’t worry as there are a few metrics on the basis of which pro investors choose the right platform for themselves, which we have listed below :
License and Regulation
This is the key metric, if a platform isn’t licensed or regulated then that’s the red flag. If the platform isn’t regulated or licensed by a financial regulatory authority then there is no guarantee that your funds are safe with the platform and if your broker dupes away with your money you can’t even raise a dispute. So, before you choose any platform make sure it is regulated. For example, In the UK, the FCA is the regulatory body that ensures the platform can be trusted with the funds. And, if the platform is regulated by other jurisdictions, including ASIC and CySEC then it is icing on the cake.
Another major thing that you should look into before choosing the right broker for you is whether it gives access to your desired asset or not. And, along with that, whether it supports other investment classes to diversify your portfolio. Diversification plays an important role in investment. Simply put, if you invest in two or more things then there are changes if one investment fails others will work in your favour. That’s why to have a backup, diversification is important. Therefore, whenever you are planning on trading through a platform make sure it allows you to diversify your investments. For example, eToro is an online broker that gives you access to thousands of asset Classes, including the major ones such as ETFs, Cryptocurrencies, Stocks, Commodities and Indices trading
Another important metric that you should look into is the Minimum Investment. Make sure the platform you are choosing for placing trades allows you to start with the minimum investments. If you are a beginner then of course you won’t have an amazing prior trading experience. That means there are chances that you may lose more or even all your investment. That’s why it is better to start with the lowest possible amount so that if you lose it you don’t have to be depressed over losing it all. Therefore, before you choose any trading platform make sure it allows you to start trading by investing a small amount.
And, also make sure to start risking your money only when you can afford to lose it.
Fees and Commission
Every platform is in the market to make money but the way they earn money differs from Platform to platform. There are Platforms that charge entry fees, there are those that charge commission and there are those that make money by deducting withdrawal and deposit fees. And, free trading platforms are also there to earn money, they usually charge ongoing fees. For example, webull charges $1 per month to keep your trading account open.
Deposits and Withdrawals
In most cases, many free Platforms offer you to make a deposit or a withdrawal for free. But, still, a few trading platforms that are free still charge minimal withdrawal or deposit fees. For example, Robinhood, the free trading platform allows you to deposit funds for free via ACH but that same platform charges $8 when deposited via bank wires.
To make deposits and funds every platform offers different payment methods. And, platforms like eToro offer a variety of payment methods to fund your account. So before you choose any trading platform make sure it offers a variety of payment methods that are supported in your region.
Trading Tools and Features
When selecting a free trading platform, make sure it also offers trading tools and features. There are free trading platforms that allow you to trade for free but they don’t offer you many tools and features to make your trading journey positive with minimizing the risk of losing. For example the free trading platform, eToro offers you amazing features like Copy Trading and Copy Portfolio.
This feature allows you to copy ongoing trades of expert traders. The minimum size of a copy is $1 so you should make sure you have sufficient funds in your account to be sure to copy all the trades by the trader you are copying.
Copy Portfolios is an incredible feature that takes Copy Trading to the next level. It helps traders to diversify Portfolios, minimize long-term risk, and to take advantage of current market opportunities. In Copy Portfolio investment, each portfolio is periodically re-balanced so that its users can get the most out of the thematic trading strategy. To use this amazing feature, you first need to create a trading account on eToro’s official website.
Customer support is one of the most important services as it is always there with you in your trading journey to assist you whenever you come across any difficulties.
However, having 24/7 available customer support is a top-notch service that you may not find in all the free trading platforms. But to our luck, a few reputed trading platforms such as eToro offers you 24/7 customer support.
I hope you got all the information you were looking for to find the best broker for the FTSE 100 index. Before you choose any platform you are advised thousands of times to first check whether the platform is regulated or not, also don’t forget to check the user testimonials.
- What is FTSE 100?
FTSE 100 is the UK’s growth index which consists of 100 top leading companies that are listed on the London Stock exchange on the basis of their market valuation.
- How can I invest in or trade FTSE 100?
There is no direct way to do so. You can invest in or trade FTSE 100 index by gaining the exposure of the companies that make up this index. Basically, If you are willing to trade the FTSE 100 index then you can choose either spread betting or CFD. On the flip side, If you are willing to invest in the FTSE 100, you need to select an ETF provider.
- What are the best brokers for FTSE 100 index?
All the above-mentioned trading platforms are the best in the market. You can choose any of the above or can choose the platform of your choice but make sure to consider the metrics that we have mentioned above. However, the very best broker in our opinion is eToro.
- How much do I need to gain exposure to the FTSE 100 index on eToro?
On eToro you don’t have to pay anything to gain exposure to your desired asset as it is a commission-free trading platform. Though it does offer some of the tightest spreads for cryptocurrencies and CFDs.
- What is the minimum amount of the desired shares I can buy?
There are stocks that are not affordable at all. But thanks to our most favourite trading platform eToro as it allows fractional ownership that means, instead of buying a whole share you can buy a fraction of it. On eToro you can buy a fraction of a share for as low as $50.