Best FTSE 100 Brokers to Trade With

The FTSE 100 (Financial Times Stock Exchange Index) is a stock market index that tracks the performance of the 100 largest companies by market capitalisation listed on the London Stock Exchange (LSE). These companies represent a diverse range of sectors, including financial services, consumer goods, energy, and industrials. 

The FTSE 100 is widely regarded as a barometer for the UK's economic performance and the European markets at large. As such, the FTSE 100 is a favourite among traders seeking exposure to established, blue-chip UK companies. Traders are attracted to its relatively lower volatility compared to US tech indices, alongside its liquidity that presents many trading opportunities.

For those looking to trade the FTSE 100, choosing a broker with the right tools, pricing, and regulation is essential. In this article, we’ll review some of the best brokers for trading the FTSE 100, focusing on their key features.

Factors To Consider When Selecting an FTSE 100 Broker

Choosing a broker to trade an asset involves evaluating several factors to ensure alignment with your trading goals and risk tolerance. Here are some key considerations when selecting an FTSE 100 broker:

• Regulation - The regulatory status of a broker is the most important consideration. Ensure the broker is regulated by a reputable authority. If you are based in the UK, prioritise brokers regulated by the UK’s FCA.

• Fees and Spreads - Compare the spreads, commissions, and other fees charged by different brokers. Choose a broker that offers competitive spreads, low commissions, and transparency in fees to minimise trading costs.

• Trading Platform - Look for a broker that offers a user-friendly, reliable platform with advanced tools. 

• Asset Availability - Ensure that the broker you select offers access to the FTSE 100 alongside other market products you may be interested in.

How to Trade the FTSE 100

Traders can trade the FTSE 100 index using different financial instruments, each with its own benefits and drawbacks. The two primary ways to trade the FTSE 100 are through ETFs (Exchange-Traded Funds) and CFDs (Contracts for Differences). CFDs allow for leveraged, short-term trades on the price of the FTSE 100 index. Meanwhile, ETFs are better suited for investors who want to buy and hold the index over time.

In this guide, we will cover brokers that offer FTSE 100 trading through ETFs and those that provide it via CFDs. It’s important to note that most brokers offer the FTSE 100 as a CFD. Let’s explore some of the brokers that provide FTSE 100 trading through CFDs.

Trading the FTSE 100 Through CFDs

A CFD is a financial product that allows traders to speculate on the price movements of an asset without owning the underlying asset. This method is popular due to its flexibility, leverage, and ability to profit from both rising and falling markets.

Below are some of the best brokers offering FTSE 100 CFDs:

Pepperstone

Pepperstone is a globally respected broker offering the FTSE 100 CFD index under the ticker UK100. The broker provides competitive conditions. The index has a minimum spread of £1.0 and an average spread of £1.2 on both Standard and Razor accounts. The broker offers some of the fastest order execution times, averaging under 30 milliseconds for the Pepperstone Group Limited branch and 60 milliseconds for the Pepperstone Limited branch.

Prices and spreads are subject to change. Check your platform for the most up to date data.

Alongside the FTSE 100 index, Pepperstone provides access to a ton of other market products, which are all CFDs. In total, this broker offers over 1,400 CFDs on forex, cryptocurrencies, other indices, shares, ETFs, and currency indices. To trade on Pepperstone, traders can use various trading platforms, including MetaTrader 4, MetaTrader 5, cTrader, TradingView, and Pepperstone Trading Platform.

On another good note, Pepperstone operates under the regulation of various financial institutions. For starters, Pepperstone is under the regulation of the FCA in the UK with the reference number 08965105. Additionally, it has regulatory oversight from the CySEC in Cyprus, the ASIC in Australia, the DFSA in Dubai, and the BaFin in Germany, among others.

75.3% of retail CFD accounts lose money

XM

XM is a well-established global broker offering FTSE 100 trading through CFDs. This broker offers FTSE 100 trading as a cash CFD. The cash CFD is available under the ticker UK100Cash with a minimum spread of £1.40 and an average spread of £2.78.

Spreads are subject to change. Check your platform for the most up to date data.

XM’s FTSE 100 is tradeable via MetaTrader 4, MetaTrader 5, along with the XM Trading app. These platforms are popular for their versatility and robust features. Beyond the FTSE 100, XM offers a variety of other market products. These include CFDs on forex, other equity indices, cryptocurrencies, shares, commodities, stocks, metals, and energies.

When it comes to regulation, XM operates under the supervision of multiple regulatory authorities, including CySEC, ASIC, and the FSC in Belize. While not regulated by the FCA, this broker still has stellar oversight from recognised organisations.

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

Tickmill

Tickmill is another excellent broker offering access to FTSE 100 trading through CFDs. The FTSE 100 index is available under the ticker UK100 with competitive spreads. This asset has a minimum spread of £0.9 and the same typical spread of £0.9 with no commissions. Tickmill supports various trading platforms, including MetaTrader 4, MetaTrader 5, and the Tickmill Trader platform.

Spreads are subject to change. Check your platform for the most up to date data.

The broker also supports the trading of various other market products. These include CFDs on forex, other stock indices, metals, bonds, commodities, and cryptocurrencies. As such, traders can effectively diversify their portfolios as they see fit. 

On another note, Tickmill holds regulatory licenses from several authorities. It operates under the regulation of the FCA with the reference number 717270. This broker also has regulation from the CySEC and the DFSA, among others. While regulations alone are not enough, holding licenses from several well-known organisations is a good sign for a broker site.

71-74% of retail investor accounts lose money when trading CFDs with this provider.

HFM

HFM is another top broker for trading FTSE 100 CFDs. This broker offers the FTSE 100 index both as a spot CFD and as a future CFD. The spot CFD is available under the ticker UK100 with spreads as low as £1.0 across the Premium, the Pro, the Top-up Bonus, and the Zero accounts. Meanwhile, the future CFD is available on HFM under the ticker UK100.F and has spreads from £4.2 across the same four accounts.

Spreads are subject to change. Check your platform for the most up to date data.

Regulation is a key strength of HFM. This broker operates under the supervision of the FCA in the UK with the reference number 801701. It is also regulated by the CySEC in Cyprus, the DFSA in Dubai, the FSCA in South Africa, and the CMA in Kenya, among others. While it has regulations in Europe, it is important to note that HFM does not accept retail traders from the EEA region.

The trading platforms supported by HFM for clients to use include MetaTrader 4, MetaTrader 5, and its own HFM Platform. Aside from the FTSE 100, HFM supports the trading of CFDs on forex, stocks, commodities, other indices, metals, bonds, ETFs, and cryptocurrencies. This allows FTSE 100 traders to diversify their portfolios as they see fit.

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

Exness

Exness is a highly popular global broker known for its competitive trading conditions, including for the FTSE 100 index (UK100). They offer various account types (Standard, Pro, Raw Spread, and Zero), through which traders can access the FTSE 100 index. The spreads available depend on the account that a trader selects.

The Standard account has an average spread of £7.02, while the average spread is £4.92 on the Pro account, both with no commission charged. On the other hand, the Raw Spread has an average spread of £2.22 for the UK100 index but charges a commission of $1 per side per lot. Meanwhile, the Zero account has an average spread of £1.85 for UK100, plus a commission of $1.25 per side per lot.

Spreads are subject to change. Check your platform for the most up to date data.

In addition to the FTSE 100, Exness provides CFD trading on a broad range of instruments. These include CFDs on forex, other indices, cryptocurrencies, stocks, and commodities. Exness supports multiple trading platforms, including MetaTrader 4, MetaTrader 5, and its proprietary Exness Terminal.

It’s always important to consider the regulatory license that a broker has around the world. Fortunately, Exness is a broker with regulations from various organisations. Specifically, Exness has regulatory oversight by the FCA with the service number 730729. This broker also holds regulatory licenses from the CySEC, the FSCA, the CMA, and the FSA in Seychelles, among others. However, it is important to note that Exness does not offer services to retail traders in the UK or within the EEA region.

Remember that Forex and CFDs available at Exness are leveraged products.
Their trading can result in the loss of your entire capital.

Benefits of Trading the FTSE 100 as a CFD

• Leverage - CFDs generally offer traders high leverage, which allows traders to control larger positions with a smaller initial investment. This amplifies potential profits, but it also amplifies potential losses.
• Flexibility - Traders can go long or short, profiting from both rising and falling markets. Moreover, traders can use a variety of trading strategies on CFDs, including scalping and hedging.
• Liquidity - The FTSE 100 is highly liquid, ensuring tight spreads and efficient order execution.

Trading the FTSE 100 Through ETFs

An ETF (Exchange-Traded Fund) is an investment fund that trades on stock exchanges, similar to individual stocks. An FTSE 100 ETF is designed to mirror the performance of the FTSE 100 index by holding the same stocks in the same proportions as the index. Here are some of the best brokers that offer FTSE 100 trading through ETFs:

eToro

eToro is one of the top brokers for trading ETFs alongside other assets. This broker offers several different FTSE 100 ETFs, both as CFDs and as real underlying assets. The ETF available to trade is the iShares Core FTSE 100 UCITS ETF managed by BlackRock. 

eToro does not charge commissions for trading ETFs as real underlying assets, nor does it apply its own spread fee. The charge that applies when trading this asset class is the market-based spread, which varies depending on market conditions. 

Spreads are subject to change. Check your platform for the most up to date data.

Importantly, eToro also offers the FTSE 100 index CFD under the ticker UK100 and with spreads from as low as £1.5. Aside from these various FTSE 100 assets, eToro offers a wide range of trading opportunities with over 7,000 financial instruments. This includes CFDs on forex, indices, commodities, stocks, and cryptocurrencies. Additionally, this broker offers the trading of real stocks and cryptocurrencies. The trading platform available to use is the broker’s in-house built platform, eToro.

eToro operates under a solid regulatory framework, overseen by various financial organisations. The broker has authorisation and supervision from the FCA with the reference number 583263. The other organisations that regulate this broker include 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 well-known global broker that allows traders to trade the FTSE 100 as an ETF. This broker offers ETF trading as both real underlying assets and ETF CFDs. There are various FTSE 100 ETFs, including iShares Core FTSE 100 UCITS ETF managed by BlackRock, Vanguard FTSE 100 UCITS ETF managed by Vanguard, and the Xtrackers FTSE 100 UCITS ETF managed by Xtrackers.

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. When trading ETF CFDs, there is no commission charged, and the spreads involved are floating depending on market conditions.

Spreads are subject to change. Check your platform for the most up to date data.

Further, there is only one trading platform available on XTB, its proprietary xStation 5 platform. This platform allows for the trading of other market products alongside ETFs. Traders have access to CFDs on forex, indices, stocks, commodities, ETFs, and cryptocurrencies. Investors can also trade real stocks and other ETFs.

Regarding regulations, XTB operates under the supervision of several financial institutions. It holds regulatory licenses from the FCA with the reference number 522157, the CySEC, the FSC, and the KNF in Poland.

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

Interactive Brokers

Interactive Brokers is a leading global broker offering extensive access to various financial products, including ETFs. This broker offers several FTSE 100 ETFs from various regions and exchanges. Some of the FTSE 100 ETFs available include iShares Core FTSE 100 UCITS ETF managed by BlackRock, Vanguard FTSE 100 UCITS ETF managed by Vanguard, and HSBC FTSE 100 UCITS ETF managed by HSBC Global Asset Management, among others.

Interactive Brokers charges a 0.05% commission for ETF trading, with a minimum fee of $1 and a maximum cap of 1% of the trade value. Traders can execute their orders using the broker's advanced platforms, including Trader Workstation (TWS) and the IBKR Platform.

Spreads are subject to change. Check your platform for the most up to date data.

Lastly, Interactive Brokers is highly regulated, holding licenses across several major jurisdictions. It operates under the supervision of the FCA in the UK with the reference number 208159. It also operates under the regulation of the SEC and CFTC in the United States, the ASIC in Australia, and the CIRO in Canada. 

Benefits of Trading the FTSE 100 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.
• Diversification - By investing in an FTSE 100 ETF, traders gain exposure to 100 leading UK companies in a single trade.
• Transparency - ETFs disclose their holdings daily, so investors know exactly what assets they own.

ETFs generally provide little to no leverage, which significantly reduces the risks of leveraged trading. However, this also means the profit potential is lower compared to leveraged products. Interestingly, some brokers combine the benefits of ETFs and CFDs by offering FTSE 100 index exposure through ETF CFDs.

Final Comments

The FTSE 100 remains one of the most popular indices for traders and investors seeking exposure to the UK’s largest and most influential companies. Whether you prefer trading with CFDs or through ETFs, selecting the right broker is essential to your success. The best FTSE 100 brokers stand out for their competitive pricing, robust trading platforms, and strong regulatory frameworks.

Each broker caters to different types of traders. Ultimately, the best broker for FTSE 100 trading depends on your individual trading style, budget, and investment goals. Always conduct thorough research and consider your risk tolerance before making any investment decisions.