Best DAX (Germany 40) Index Trading Brokers

The DAX (Deutscher Aktienindex), also known as Germany 40 or GER40, is the leading stock market index in Germany. It tracks the performance of the 40 largest blue-chip companies listed on the Frankfurt Stock Exchange. These companies span various sectors, including automotive, industrial, pharmaceutical, and financial services. This index is often seen as a benchmark for the German economy and European blue-chip stocks. Its volatility, liquidity, and global relevance make the DAX a favourite among traders. 

For traders looking to gain exposure to the German economy, selecting the right broker is crucial. In this article, we are going to explore some of the best DAX (Germany 40) index trading brokers, detailing their trading conditions, regulatory status, collection of other market products, and the trading platforms available.

Understanding DAX Trading

Before exploring the best brokers, it's important to understand how the DAX index is traded. Unlike individual stocks, an index cannot be traded directly. Instead, traders and investors use various financial instruments that derive their price from the underlying DAX index. The most common methods for trading the DAX include:

• Contracts for Difference (CFDs) - CFDs are derivative products that allow traders to speculate on the price movements of the DAX without owning the underlying assets. They offer leverage, enabling traders to control larger positions with a smaller amount of capital. This can amplify both potential profits and losses.

• Exchange Traded Funds (ETFs) - DAX-tracking ETFs are investment funds that hold a portfolio of stocks mirroring the composition of the DAX index. Buying shares of a DAX ETF allows investors to gain broad exposure to the German stock market.

These are the two main ways that investors trade the DAX index. There are other financial instruments that allow exposure to the DAX, including futures and options. However, in this article, we will mainly focus on trading of the DAX as CFDs and ETFs. Let’s first look at some of the best forex brokers that offer DAX trading through CFDs.

Best Brokers That Offer DAX CFDs

Pepperstone

Pepperstone is one of the top choices for traders looking for a broker that offers the DAX (Germany 40) index as a CFD. The broker offers this index under the ticker GER40 with competitively low spreads. Spreads are as low as 0.9 pips for the GER40 index and average 1.2 pips on both the Standard and the Razor accounts. There are no commissions charged on this index.

Alongside the DAX (Germany 40) index, there are other popular indices available to trade, all as CFDs. These include choices such as US30, NAS100, VIX, UK100, AUS200, and JPN225, among others. Further, traders can trade CFDs on forex, shares, cryptocurrencies, currency indices, commodities, and ETFs. Pepperstone offers a lineup of advanced trading platforms, including MetaTrader 4, MetaTrader 5, cTrader, TradingView, and its proprietary Pepperstone Trading Platform.

Finally, Pepperstone boasts a well-regulated trading environment, holding licenses from a variety of financial authorities. The broker’s German branch, Pepperstone GmbH, operates from the address Neubrückstrasse 1, 40213 Düsseldorf and is under the regulation of the BaFin in Germany. Additionally, this broker operates under the supervision of the FCA in the UK, the ASIC in Australia, the CySEC in Cyprus and the DFSA in Dubai, among others.

75.3% of retail CFD accounts lose money

FP Markets

FP Markets is a reputable broker that provides traders with access to the DAX (Germany 40) index as CFDs. This index is available to trade against the Euro with the ticker GER40, allowing traders to speculate on the price movements of the leading German stocks. The broker offers an average spread of 2.71 pips with no additional commission. 

FP Markets offers access to over 10,000 tradable instruments, including other global indices like the NASDAQ 100, Dow Jones (US30), UK100, and AUS200. Traders can also engage in CFDs on forex, indices, metals, commodities, stocks, bonds, and ETFs. FP Markets provides traders with access to popular platforms such as MetaTrader 4, MetaTrader 5, cTrader, and TradingView. These platforms offer robust charting tools, expert advisor compatibility, and a smooth execution experience for index trading.

FP Markets operates under the regulation of several financial authorities. These include the ASIC, the CySEC, the FSCA, and the CMA, among others. 

72.44% of retail CFD accounts lose money

XM

XM is a well-known online broker that provides traders with the opportunity to trade the DAX (Germany 40) index as a CFD. On the XM platform, the Germany 40 index is available both as a cash index and a futures index. The cash index CFD is available under the ticker GER40Cash with a minimum spread of 1.80 pips and an average spread of 2.71 pips. In contrast, the futures index CFD has the symbol GER40 and features a minimum spread of 3.75 pips and an average spread of 4.71 pips.

In addition to DAX, XM offers a wide selection of global indices including US30, UK100, AUS200, JP225, and EU50. Traders also have access to a large pool of forex pairs, cryptocurrencies, shares, commodities, stocks, metals, and energies, all as CFDs. XM supports trading through the popular MetaTrader 4 and MetaTrader 5 platforms, along with the XM Trading app.

XM operates under the regulatory oversight of several reputable financial authorities across different regions. These include the CySEC, the ASIC, and the FSC in Belize.

75.18% of retail investor accounts lose money when trading CFDs with this provider.

HFM

HFM is another excellent choice for trading the DAX (Germany 40) index via CFDs. The broker offers the index both as a spot CFD and as a futures CFD. The spot CFD is available under the symbol GER40, with spreads as low as 1.2 pips across the Premium, the Pro, the Top-up Bonus, and the Zero accounts. Meanwhile, the future CFD is available under the ticker GER40.F with spreads as low as 3.2 pips across the four accounts.

HFM provides access to a broad range of markets beyond the DAX index, including other global indices like US500, UK100, FRA40, and AUS200. Additionally, traders can access CFDs on forex, stocks, commodities, metals, bonds, ETFs, and cryptocurrencies. HFM supports the widely used MetaTrader 4 and MetaTrader 5 platforms, as well as its own user-friendly HFM Platform.

In terms of regulatory oversight, HFM operates under the authorisation and regulation of several financial authorities worldwide. These include the FCA in the UK, the CySEC in Cyprus, the CMA in Kenya, the FSCA in South Africa, and the DFSA in Dubai, among others. 

68% of retail investor accounts lose money when trading CFDs with this provider.

Forex.com

Forex.com is a globally recognised broker that offers access to DAX (Germany 40) index trading through CFDs. While this broker serves both traders from the US and outside the US, the DAX index is only available to those outside the US. The index is available under the ticker Germany 40 with floating spreads that depend on market conditions. At the time of writing this, the spread on this asset is 7.2 pips.

In addition to DAX, Forex.com offers traders outside the US a broad portfolio of CFD instruments, including other global indices like FTSE 100, S&P 500, UK100, and FRA40. On top of that, the broker offers CFDs on forex, stocks, cryptocurrencies, commodities, and precious metals. Meanwhile, it allows US-based investors to trade forex, futures, and futures options. The broker provides access to MetaTrader 4, MetaTrader 5, and its proprietary Forex.com Trader.

Forex.com is a highly regulated broker, authorised in multiple jurisdictions. Its parent company, StoneX, holds licenses from the FCA, the ASIC, the CySEC, the CIRO, and both the CFTC and NFA in the United States.

76-77% of retail investor accounts lose money when trading CFDs with this provider.

Benefits of Trading the DAX as a CFD

• Leverage - CFDs typically offer significant leverage, allowing traders to control larger positions with less capital. However, it's crucial to remember that leverage can amplify both profits and losses.
• Two-Way Trading - CFDs offer profit potential in both rising and falling markets.
• No Ownership - Traders avoid dealing with actual stock purchases, dividends, or custody fees.

The brokers listed above are some of the top choices for traders looking to trade the DAX index as a CFD. Let’s now take a look at some of the top brokers for trading DAX ETFs.

Best Brokers That Offer DAX ETFs

eToro

eToro is a top-tier broker best known for its revolutionary CopyTrader technology. This broker offers access to DAX ETFs both as real assets and CFDs. The DAX ETFs available on this broker site include the iShares Core DAX UCITS ETF managed by BlackRock and the L&G DAX Daily 2x Long UCITS ETF managed by Legal & General Investment Management Limited (LGIM).

When trading ETFs as real underlying assets, eToro does not charge commissions or apply its own spread fee. Instead, it uses a variable market-based spread that fluctuates with market conditions. For ETF CFDs, eToro charges a fixed spread fee of 0.15%. Additionally, CFD trades involving U.S.-listed stocks and ETFs priced at $3 or below are subject to a $0.02 fee per unit.

Apart from the DAX ETF, eToro also features a ton of other index ETFs, including the NAS100 and the S&P 500, among others. Further, traders have access to CFDs on other ETFs, indices, forex, commodities, stocks, and cryptocurrencies. Additionally, eToro supports the trading of real stocks and cryptocurrencies. The trading platform available to use is the broker’s proprietary eToro platform.

eToro is backed by a strong regulatory framework, operating under the supervision of multiple authorities. These include the FCA, the CySEC, the ASIC, and the FSA in Seychelles, among others.

61% of retail investor accounts lose money when trading CFDs with this provider.

XTB

XTB is another excellent broker for traders looking to invest in DAX ETFs. The broker offers access to several DAX ETFs. These include the Amundi DAX UCITS managed by Amundi Asset Management, the iShares Core DAX UCITS ETF managed by BlackRock, the L&G DAX Daily 2x Long UCITS ETF managed by Legal & General Investment Management Limited (LGIM), the Lyxor DAX (DR) UCITS managed by Lyxor International Asset Management S.A., and Xtrackers DAX UCITS ETF managed by DWS Investment S.A.

Trading real stocks and ETFs is commission-free on XTB for monthly turnovers up to $100,000. Above that, a 0.2% commission applies with a minimum commission of $10. Beyond DAX ETFs, XTB also offers trading on the DAX (Germany 40) index via CFDs. Traders can access the DAX under the symbol DE40 with competitive spreads starting as low as 0.9 points during peak market hours. The broker does not charge commissions on index CFDs, making it an attractive choice for cost-conscious DAX traders.

Further, investors gain access to a diverse selection of instruments, including CFDs on other global indices, forex pairs, commodities, cryptocurrencies, stocks, and other ETFs. This broker also supports the trading of real stocks and ETFs. To trade these various markets, the broker avails its proprietary xStation 5 platform.

When it comes to regulations, this broker operates under a multi-regulatory framework. It is supervised by several institutions, including the FCA, the CySEC, the FSC, and the KNF in Poland. XTB has a German branch (XTB S.A. German Branch) that operates out of Joachimsthaler Straße 10, 10719 Berlin.

75-78% of retail investor accounts lose money when trading CFDs with this provider.

Benefits of Trading DAX (Germany 40) as an ETF

• Asset Ownership - Investing in an ETF means owning a portion of the fund, which holds the underlying assets. This provides traders with indirect ownership of ETF assets.
• Transparency - ETFs disclose their holdings daily, so investors know exactly what assets they own.

Final Thoughts

The DAX index remains one of the top instruments for index traders. It offers exposure to the performance of Germany's leading companies through instruments like CFDs and ETFs. Selecting the right broker is crucial, as it directly impacts your trading costs, platform experience, and regulatory protection. The brokers we featured here all bring unique advantages to the table, ranging from tight spreads and powerful platforms to access to both real assets and derivatives.

Ultimately, the best DAX trading broker for a trader will depend on their individual trading needs, risk tolerance, and preferred instruments. Always conduct thorough research on any broker and consider your risk tolerance before you start trading.