Index Trading in the UAE

Trade global indices with low commissions and tight spreads on an ECN account with FXOpen.
Open an index trading account
with FXOpen

FXOpen: Index trading for the experts

Trading indices offers a different challenge to traders in that it involves speculating on the performance of a group of stocks rather than one single asset. They provide a highly liquid market, with typically longer trading hours. Some of the biggest global indices have long, illustrious histories.

Advantages of index trading in the UAE with FXOpen

Peace of mind

One platform with multiple instruments and markets

With us, you can use one platform for index trading in the UAE as well as for commodities (metals and energy only), forex, shares and cryptocurrency* CFDs.

We want you to be a successful trader

You're trading with an FCA regulated broker

based in the UK and your funds are fully protected up to £85,000 by the FSCS.

Make your money go further

Highly customisable

to your individual goals, style and strategies, so you can retain complete control of your index trading.

Ultra-fast execution

Access to automated trading

You have the option to download and use ready-made scripts and expert advisors or create a custom indicator or script, based on your very own index trading strategy.

Your choice of trading strategy

Access anytime, anywhere

via the desktop, web-based or mobile version of the MT4 and MT5 trading platforms.

200+ markets offered

Access to a wide range of analysis

50+ built-in indicators and graphic tools for technical analysis, quotes history centre, strategy tester and news, all designed to help you increase your index trading knowledge.

What are indices in trading?

Indices are a method of measuring the performance of a group of stocks from one particular exchange. They offer an alternative option for traders who may be looking to gain a wider view of the market – one they may be unable to obtain by analysing the performance of shares in a single company.

Via index CFDs, you can speculate on the performance of indices without owning the underlying asset. Index trading means you can access entire sectors without having to take up multiple positions.

The risks and rewards of index trading

All forms of trading pose a risk and indices are no different. Before you begin index trading in the UAE, it’s vital to develop your understanding of the markets and how certain factors can cause fluctuations. Once armed with that information, you can make decisions with greater clarity.

World indices are highly liquid and offer longer trading hours than most markets, so there is the potential to make profitable trades. But the flip side of that liquidity is that the markets can go against you. You need to adopt a strategy that will minimise and cover any losses.

Trading index CFDs is done on margin, so professional clients could end up losing more than their original outlay. For retail clients we offer negative balance protection, which negates the risk of losing more than the deposit. There are always risks when trading in global market indices, and although we will always execute your trades at the best possible price there can never be any guarantees of success.

Index trading in the UAE with FXOpen

When you begin index trading in the UAE with FXOpen you gain access to our cutting-edge platform. We’re fully authorised and regulated by the FCA in the UK and offer FSCS protection up to £85,000. Meanwhile, our trading software offers access to multiple instruments – including forex, shares, commodities, and cryptocurrency* – all from one account.

All you need to do is fill in our simple form and go through the identification verification checks, so why not get in touch or open an account and begin your index trading journey today.

How are world indices calculated?

Most global indices are based on the market capitalisation of the companies that make up that index. The larger cap organisations have greater weight, so their performance will have a greater influence on the value of the index than those with a lower market capitalisation.

Then there are global market indices that are weighted by the price of a company’s shares. In that instance, the performance of organisations has a more significant impact on the index than those whose share prices are lower.

Examples of global market indices

There are a number of global indices available for you to trade. These five tend to be among the most popular:

  • Wall Street 30 (Dow Jones Industrial Average): Tracks the performance of 30 of the biggest publicly traded firms in the United States.
  • Germany 40 (DAX): Made up of the 40 largest companies on the Frankfurt Stock Exchange.
  • UK 100 (FTSE 100): The UK’s largest 100 firms, by market capital, as listed on the London Stock Exchange.
  • US Tech 100 (NASDAQ 100): Measures the performance of the 100 biggest non-financial companies in the United States. Also referred to as the US Tech 100 due to its heavy focus on the technology sector.
  • Japan 225 (Nikkei 225): A price-weighted index covering 225 of Japan’s largest companies.

The factors that affect index trading

World indices cover a wider range of companies than when trading individual assets, so there are numerous factors that can have an effect on their performance. For example, the FTSE 100 has a high proportion of commodity stocks, so commodity prices can have a huge bearing on that particular index.

Changes to a company’s structure can also have an impact on its market capitalisation or share price, which may have a knock-on effect on the performance of the index.

Business’ financial results can have a direct bearing on their share prices, so traders will monitor those closely, while economic and geopolitical developments have also been known to impact certain global indices.

How to define success when index trading in the UAE

Mastering index trading is no easy feat but with careful analysis, a robust strategy and an ability to assess the risks and rewards, you’ll put yourself in a much stronger position.

It’s vital to identify your goals and form a plan that will help you achieve them. You should always attempt to manage your expectations and avoid making emotional or irrational decisions. Use your research to inform your choices and build a strategy that allows you to safeguard against any potential losses. That will enable you to tackle index trading in the UAE with greater confidence.

Begin index trading in the UAE
with FXOpen

*Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules. They are not available for trading by Retail clients.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.