Offer not for US customers
The Dollar Index is the value of the US Dollar against a basket of foreign currencies. The Dollar Index is currently calculated by considering the exchange rates of six major foreign currencies which include the Euro, the Canadian Dollar, the Japanese Yen, the Great British Pound, the Swedish Krona, and the Swiss Franc. Each of these currencies makes up a small part of the index with the Euro making up the largest part at 57.6%. It is followed closely by the Japanese Yen at 13.6%. The rest of the currencies make up 11.9% of the Great British pound, 9.1% of the Canadian Dollar, 4.2% of the Swedish Krona, and 3.6% of the Swiss Franc.
Essentially, the Dollar helps in keeping track of the value of the US Dollar against the six foreign currencies listed here. Investors can trade futures of the US Dollar Index 21 hours a day on the ICE platform with futures having a quarterly expiration cycle. These futures are also available as CFDs, Options, ETFs, and Mutual Funds. Now that we have a little understanding of what the Dollar Index is all about, let’s look at some of the best forex brokers with the Dollar Index.
You can also buy and sell the dollar index on eToro, one of the biggest forex brokers in the world today. This broker currently has close to 30 million users. It has some of the best trading conditions available to its clients. For starters, it offers an excellent trading platform, the eToro platform. It comes with their revolutionary CopyTrader technology that allows traders with no time and experience to invest in financial markets by copying the moves of traders more successful than them.
Additionally, eToro allows clients to invest in a variety of market instruments on the same platform. Investors can trade CFDs on forex, stocks, commodities, ETFs, and indices. They can also purchase real stocks and cryptocurrencies. This is a great lineup of markets to invest in on eToro. Further, eToro is a regulated broker in many jurisdictions. These include the UK by the FCA, Cyprus by the CySEC, and Australia by the ASIC. This is impressive, to say the least. Investors will always go for companies with regulations from reputable organizations. eToro nails this by having licenses from multiple such regulators. Despite operating in the US, please note the offer for trading CFDs on indices is not available to US customers.
77% of retail CFD accounts lose money with this provider. You should
consider whether you can afford to take the high risk of losing your money.
Forex.com has been offering brokerage services since 2001. This is remarkable longevity from a forex broker which is attractive to many traders, both novice and experienced. Additionally, this company has regulations from some of the best watchdogs in the market. These include the FCA in the UK, the IIROC in Canada, the CySEC in Cyprus, the ASIC in Australia, and both the CFTC and the NGFA in the USA. This is one of the reasons Forex.com is recognized globally as a top-tier broker.
Investors can find the dollar index on Forex.com under the symbol DXY. With Forex.com, you can trade the dollar index with CFDs or spread bets. This is not the only asset available on Forex.com. Investors can also trade forex, gold and silver, and futures and futures options.
Forex.com also offers the best trading platforms in the world. Investors can choose to trade on the MetaTrader 4, Forex.com Trader, or the WebTrader. These are excellent trading software with fast execution times and a variety of charting tools. These are useful in assisting traders to perform technical analysis before investing.
71.6% of retail investor accounts lose money when trading CFDs with this provider.
XM is one of the best trading platforms featuring the Dollar Index. There are a couple of benefits to trading the Dollar Index with XM. For starters, clients can trade the USDX (Dollar Index) with zero commissions. The spreads here can go as low as 0.05 pips. Additionally, XM promises clients low-margin requirements when trading this asset. Note that margin requirements can be different depending on the region a trader is from. For example, it is different for clients from the EU and those outside the EU as different maximum leverage can be used.
Clients of XM will be lucky to trade with one of the heavily regulated brokers in the market. XM has regulations from two top-tier organizations including the CySEC in Cyprus and the ASIC in Australia. It is also regulated by the FSC in Mauritius. Such regulations suggest that a company is willing to play by the book. Note that regulated companies can also engage in criminal activities. However, you’re better off investing with a regulated company than an unregulated one.
In terms of trading platforms, XM offers its clients both the MetaTrader 4 and MetaTrader 5 software. These are two of the best trading software in the world with tons of charting tools available to clients. Additionally, these trading platforms have some of the fastest execution times ensuring that traders do not miss out on potential profits due to slow execution. The Dollar Index is not the only asset you can trade on XM. In fact, this platform features over 1,000 trading instruments available to its clients. These instruments fall under 8 main categories which include forex, stocks, indices, shares, cryptocurrency, commodities, precious metals, and metals. It is very easy to diversify your portfolio on XM.
AvaTrade is another tier-one regulated broker allowing clients to trade the Dollar Index. The trading environment that AvaTrade offers to its clients is attractive, to say the least. The company promises highly competitive spreads and flexible trade entry options, which means that trade Calls and Puts with stop and limit orders can be triggered by a pre-determined premium level. This means added control over trade entry and exit.
AvaTrade is regulated by the CySEC, the ASIC, the Central bank of Ireland, the BVIFSC, and the FSCA, among others. This is an impressive lineup of regulatory licenses for a company to have under its belt. The licenses from the CySEC and the ASIC stand out as they are from tier-one regulators. This helps improve the reputation of AvaTrade in the market. AvaTrade is also a great place for traders to diversify their portfolios. Here, they can trade CFDs on forex, cryptocurrencies, stocks, commodities, indices, bonds, ETFs, and vanilla FX options. This is a common characteristic of the best brokers in the market. They offer opportunities to invest in multiple markets without having to leave the platform.
Finally, AvaTrade offers clients great trading platforms. These include the MetaTrader 4 and 5 alongside their in-house-built AvatradeGO. AvaTrade also provides clients with the DupliTrade platform for clients who want to copy the trading strategies of other successful traders. This makes it easy for clients without the time and experience to invest in financial markets.
76% of retail CFD accounts lose money
Libertex follows the strict regulatory guidelines of the CySEC in Cyprus. This regulation allows Libertex to operate in many jurisdictions within Europe. CySEC is one of the best regulators in the market today. This is one feature that attracts many traders to Libertex.
Libertex also features the Dollar Index on its platform under the symbol USDX. The company claims that CFD on this index is mostly suitable for traders who closely monitor the state of the US economy. While this is true, there is still an investment opportunity for all kinds of traders on this asset. Other assets traders can invest in include CFDs on forex, stocks, metals, oil and gas, ETFs, and cryptocurrencies.
There are three main trading platforms available on Libertex. These include the Libertex Trader, MetaTrader 4, and MetaTrader 5. The trading platform a trader uses can determine the success of their trades depending on how fast the trading platform executes their moves. Luckily, these platforms have some of the fastest execution times in the market.
Index CFDs, including the US Dollar Index, are available via FP Markets. Clients can find this index under the symbol DXY. Clients can trade this asset on WebTrader, MetaTrader 4, or MetaTrader 5. Many traders rank the MetaTrader platforms as the best trading platforms in the world. This is because they come with a plethora of charting tools and have fast order execution. Other trading instruments available for trading on FP Markets include forex currencies and CFDs in shares, metals, commodities, indices, cryptocurrencies, bonds, and ETFs. Forex traders have over 60 currency pairs available for trading on FP Markets. For crypto traders, there are 11 different crypto assets clients can trade against the US Dollar. In total, there are over 10,000 trading instruments on FP Markets.
Note that even regulated companies can operate in a criminal manner. However, you are better off trading with companies with multiple regulators watching over them. Luckily, FP Markets has regulations from two of the best regulators in the market today. These include the ASIC in Australia and the CySEC in Cyprus.
Traders can find the dollar index on XTB under the symbol USDIDX with a target average spread of 0.015 pips. This is one of the lowest spreads on any asset in the market. The trading hours for this asset are from 2:00 am to 11:00 pm. This is just one index among another 20+ major indices on XTB. Other asset classes that traders can invest in include forex, commodities, and CFDs on stocks, cryptocurrencies, indices, and ETFs. The trading platform available to clients is the in-house-built xStation which is easy to use with fast execution speeds.
In terms of regulations, XTB operates under the strict supervision of a variety of watchdogs. These include the FCA in the UK, the CySEC in Cyprus, the KNF in Poland, and the IFSC in Belize. Such regulatory standing gives a forex broker a good reputation in the market. On top of that, XTB has over 20 years in the market, having launched in 2002.
IG is one of the most popular trading platforms in the world with over 300,000 clients worldwide. The company offers clients a great selection of market instruments to invest in. Traders can buy and sell CFDs on forex, shares, commodities, cryptocurrencies, indices, and more. One of the indices available for trading on IG is the Dollar Index under the symbol DXY.
IG is a regulated broker in many economic zones. These include the UK by the FCA, Australia by the ASIC, Germany by the BaFin, and the US by the CFTC and the NFA. These are some of the best regulatory organizations in the world. Having licenses from these organizations is a testament to the commitment to following the law by IG. IG offers a plethora of trading platforms to its clients. These include the IG trading platform, ProRealTime, L2 Dealer and MetaTrader 4. Traders can pick and choose the platform that best suits their investment needs.
Closing out our list is Pepperstone. This company also features the Dollar Index on its collection of tradable assets under the symbol USDX. However, the average spread for this on Pepperstone is very high at 6 pips. Not many clients can afford to trade with such spreads, especially when there are cheaper options. Nonetheless, Pepperstone has a great lineup of tradable assets on its website. Clients can trade CFDs on forex, shares, indices, ETFs, commodities, and currency indices. This is a great way to diversify your portfolio whether you are investing in the Dollar Index or not.
The trading platforms available to traders on Pepperstone include MT4, MT5 and cTrader. These are all excellent trading platforms with high functionalities. They are also fast in executing trades. Finally, we look at the regulatory status of Pepperstone. Luckily, this company has regulations in several economic areas including the FCA in the UK, BaFin in Germany and ASIC in Australia. These are three top-tier regulators watching over the company.
Final Thoughts on Forex Brokers With Dollar Index
The Dollar Index allows traders to keep track of the US Dollar against a number of select foreign currencies. Here, we looked at some of the best forex brokers featuring the dollar index. These brokers have regulations from reputable organizations and have longevity in the market. On top of that, they offer great pricing to their clients. Nonetheless, we always encourage investors to do their own research. Note that this is not an exhaustive list. Make sure you pick the broker that best suits your investment needs, whether they are on this list or not.
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