Nasdaq 100 is struggling to reach its pre-pandemic level and it does make sense as the Corona pandemic caused the American stock market to fall more than 20% and that is the case with all the financial markets across the globe. The year 2020 has been a devastating year for the stock market. Though, there is one advantage to this also is it is a great opportunity for those who were looking forward to investing in some top leading companies as all the companies have fallen to their knees due to the pandemic.
That means, it is a great opportunity to buy top leading shares at a discounted price. So if you are the one looking to invest in the Nasdaq 100 index, and wondering what are the best brokers then you are at the right place. As in this guide, we will explain how you can find the best broker that matches your financial goals. Also, we will mention the best trading platforms that give you exposure to Nasdaq 100. Therefore, before further ado, let’s get straight into the topic.
What is Nasdaq 100?
The NASDAQ 100 is the foremost large capital growth index. As the name suggests, it consists of the 100 largest domestic and international non-financial companies that are listed on the Nasdaq stock exchange based on their market capitalization. It has companies working in all the sectors such as technology, consumer goods, healthcare, industrials and consumer services. The companies working in the healthcare sector under NASDAQ 100 are the leading companies that are known worldwide such as Gilead, Vertex, Regeneron and Amgen. These pharmaceutical companies Regeneron and Gilead worked round the clock with cutting edge technology during the corona pandemic. During the pandemic Regeneron announced prominent advances Covid-19 antibody program while Gilead evaluated the safety and efficacy of the remdesivir in adults diagnosed with covid-19 by initiating two phases 3 clinical studies. This index is home to the most famous trillion-dollar market companies such as Apple, Amazon, Alphabet, and Microsoft.
The Nasdaq 100 index is the most unique index because it is a diversified mix of a variety of different companies in different sectors. There are companies under NASDAQ that have benefited from the corona pandemic and it also has the companies that have experienced the hardest hit by the pandemic. For example, Zoom, its share prices are surging because it is working on the work from the home model but on the other hand companies like American Airlines and Expedia are struggling because of the travelling restrictions.
The Nasdaq 100 is a much better index when compared to S&P100 and the Russell 100 Growth Index as it doesn’t have companies working in the energy and financial sectors.
How to invest in Nasdaq 100?
Basically Investing in stocks means that you benefit from the increase in the share price movement of the underlying asset. One major thing to note down here is that you cannot just invest directly in the Nasdaq 100 index. Then how to invest in it? Don’t worry, you can do so by investing in the shares of the 100 non-financial companies that make up the Nasdaq 100.
Below are the most famous ways to invest in the Nasdaq 100 index:
Invest in Nasdaq 100 through ETFs
For investors there are multiple options available to invest in Nasdaq 100, however, the easiest way to do so is through an ETF (Exchange Traded Funds).
The most popular ETF is Invesco QQQ Trust, it is the second most traded ETF in the U.S. It is also known for providing high liquidity. As assets under management, it ranks number five with an expense ratio of 0.2%. It is worth noting that the companies with higher market capitalization enjoy the higher weightage in the index.
Invest in Nasdaq 100 through Stocks
Another amazing way to get exposure to the Nasdaq 100 index is to buy individual shares of stocks of the companies that make up the Nasdaq 100 index. Buying stocks of a company gives you indirect ownership of the company, which means you are privileged with certain benefits, such as voting in the company’s meetings. The most popular stocks that Investors invest in to gain exposure to the Nasdaq 100 index are Apple, Microsoft, Amazon and Alphabet stocks. As we have already mentioned that the. The Nasdaq 100 index is weighted on the basis of market capitalization, which means the price movements of these leading companies will have a major influence on the overall performance of the Nasdaq 100 index.
Nasdaq 100 Tracker Funds
Another great way of gaining exposure to the Nasdaq 100 index is through tracker funds. Tracker funds work just like Index funds as it tracks the performance of the underlying asset, in this case, Nasdaq100. Typically this works in the sense that when the Nasdaq 100 index rises, the value of the tracker fund also rises.
Things to consider before choosing the right broker for Nasdaq 100
You will be glad to know that at present there are thousands of trading platforms available in the market that allow you to gain exposure to your desired asset. But you are wrong if you think you can use the very first broker you find online as there are a few key metrics that you should consider before choosing the right Platform. Considering these key metrics is the most important thing as only on the basis of these metrics you can judge whether the platform is trustworthy or not.
Below are those key metrics :
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 favor. 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.
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 CopyTrading and CopyPortfolio.
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.
CopyPortfolios is an incredible feature that takes CopyTrading to the next level. It helps traders to diversify Portfolios, minimize long-term risk, and to take advantage of current market opportunities. In CopyPortfolio investment, each portfolio is periodically rebalanced 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.
Best Brokers to Invest in Nasdaq 100
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 Nasdaq 100. All of the below-mentioned trading platforms are highly trustworthy and offer amazing trading features to make you have a seamless trading exposure.
1. eToro- World’s Finest Broker
The very best trading platform which gives you access to NASDQ100 is eToro. Other than this it gives you access to a variety of trading assets from stock, ETFs, CFDs and cryptocurrencies. The platform is easy to navigate even by the new traders. It is the most favourite trading platform of UK Investors because it provides you with a variety of trading features. This platform allows you to trade stocks that are listed on the London, New York and Tokyo exchanges. On this platform you are allowed to apply the leverage of up to 1:5 and even you can buy assets traditionally.
The platform is further regulated by the FCA, ASIC and CySEC. Even the platform is accessible to US traders as it is also registered with FINRA. Except you will be required to pay a 0.5% fee on all your deposits and $5 on every withdrawal. It is the cheapest brokerage 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 which other free platforms don’t offer.
- Regulated by FCA, ASIC and CySEC
- Copy-trading and CopyPortfolio feature
- Offers a variety of financial assets
- Accepts debit/credit, bank account, e-wallet
- Fractional trading
- Offers 800+ shares
- Not suitable for advanced learners
2. IG- Best Broker for Diversification
Another amazing platform we have on our list is IG. This trading platform was launched in 1974 and since then it is known as the most popular trading platform for CFD trading. This platform gives you access to the Nasdaq 100 index as well as to other trading assets to diversify your trading platform. 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.
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 Nasdaq 100 index, this platform gives you access to all the companies that are listed under Nasdaq 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
3. Libertex- Best CFD Trading Platform
Another amazing platform that we have on our list is Libertex. This CFD trading platform was launched in 1997 and is ideal for those looking to diversify their trading platform. And, if you have an eye for the Nasdaq 100 index, then this platform is your go-to platform as it allows you to access all the leading companies that fall under Nasdaq 100.
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 you to practice trading without investing in your real money.
- Regulated trading platform
- Minimal commissions
- A well-reputed history record
- Compatible with MT4 and MT5
- Offers a variety of financial investment assets
- Offers zero spread CFD trading
- Offers Nasdaq100 shares
- Only CFDs are available.
- Offers around 50 shares only
4. Plus 500- Well Known Trading Platform
Plus 500 is worth considering when looking for investing in Nasdaq 100. It is a trusted broker regulated by the FCA, FMA, CySEC, ASIC, ISA, MAS, and FSA. For EU based traders this trading platform provides negative balance protection. This amazing Platform gives access to a variety of different financial assets through CFDs including shares of Nasdaq 100 companies 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. Moreover, it allows you to apply the leverage of up to 5:1 on your selected trading asset. The platform is fully packed with advanced charting packages, an economic calendar, risk management tool and price alerts service.
The platform is regulated by the FCA. Hence 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.
- Regulated by the FCA
- Access to a wide range of investment assets
- Leverage of up to 5:1 for retail customers
- Easy and fast account creation
- Offers short selling
- Price alert feature
- Offers mobile application
- CFDs only
- Not beginners-friendly
5. TD Ameritrade- Best Trading Platform
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 Nasdaq 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 applications for the convenience of its traders.
- Trusted US Brokerage Firm
- Offers mobile application
- Offers Stocks and ETFs
- Offers option trading also
- Offers 11000+ mutuals
- Free account
- Low non-trading fees
- Regulated by SEC, MAS, FINRA and CFTC
- Not beginners-friendly
I hope you got all the information you were looking for in this guide. Summing everything up, you cannot just invest directly in the Nasdaq 100 index, the only way to do so is to gain exposure to the shares of the company that make up the Nasdaq 100 and the best way of gaining exposure to the companies making up the Nasdaq 100 index is either through ETFs, stocks or trader funds. And, with thousands of brokers on your plate, it is very difficult to choose one.
However, to help you choose the best trading platform we have listed above the key metrics that are used by pro Investors to choose the right platform. To help you furthermore, we have also listed above the best brokers that you can use to invest in Nasdaq 100 from the very comfort of your home.
Frequently Asked Questions
What is the Nasdaq 100 index?
Nasdaq 100 is the major capital growth index consisting of the 100 largest domestic and international non-financial companies that are listed on the Nasdaq stock exchange on the basis of their market capitalization.
Which is the best broker to invest in Nasdaq 100?
There are many brokers available in the market that give you access to the Nasdaq100 index. Above we have listed the very best brokers that give you exposure to Nasdaq 100. However, the best of all in our opinion is eToro. This trading platform is packed with all the amazing features and allows you to access your desired access Commission free.
What are the companies under Nasdaq 100?
Nasdaq 100 consists of 100 topmost non-financial companies. Some of the leading companies are Apple, Amazon, Alphabet, Facebook, Zoom, NVIDIA and Qualcomm and many more.
How much do I need to pay to gain exposure to Nasdaq 100 on eToro?
You don’t have to pay anything on eToro to gain exposure to Nasdaq100 as it is a commission-free trading platform. Though it does offer some of the tightest spreads for cryptocurrencies and CFDs.