IG Index Australia trading is the national leader based on a number of features including:
– Low dealing spreads starting at 0.4
– Access to over 30 indices around the world
– Strong leverage of up to 200:1 (0.5%)
– Fast execution speeds
IG Index Trading Markets
IG trading on indices exists across three key regions.
1) European Indices
IG Index trading can occur across all the key European index markets including UK through to Greece. Some markets like Hungary are considered higher risk which may result in losses, this means the leverage available is lower than other markets and their is an increase limited risk premium attributed to the market.
IG has only a handful of America indices available including the Tech 100, Russell, Mexico 35 and Brazil 60. Like for Europe, high leverage is available for the established market indices in USA whereas developing countries such as Brazil and Mexico have lower leverage and a higher risk premium.
Below shows the key Asian indices as well as the South African index (the only index available within the African zone). Asian currencies are ideal as they are on the same time-zone as Australia allowing Australian index traders to trade during AEST.
AUD denominated Index Trading
Trading overseas index markets are often overlooked due to the fact that you also need to by default currency trade to these markets. This means that risks exists not only from indices movements but also from currency movements. The IG trading review versus Saxo Capital Markets viewed the AUD denomination is perfect from investors who don’t want forex currency exposure.
The indices available with AUD denominations are:
- Wall Street
- US 500
- Japan 225
- FTSE 100
- US Tech 100
- Germany 30
- Hong Kong HS50
- India 50
- China H-Shares
- China A50
- China 300
- Taiwan Index
The table on the right shows how the trading hours differ as does margin (leverage) depending on the indices. Those looking for higher leverage will need to trade on perceived less risky markets such as the USA and UK.
IG Index Australia Trading Platform Review
Two platforms offer IG Index Australia trading including L2 Dealer and their core platform.
a) The L2 Platform Index Trading
This platform allows forex trading and share trading with direct market access through a dedicated L2 dealer. It was designed for traders who want to participate directly with the share market and associated liquidity.
Some of the key features of L2 are:
i) Strong index pricing and liquidity
- The complete range of indices that can be traded by IG index traders both overseas and within Australia can be accessed with full market depth
- Market makers, dark pools as well as the primary exchanges can accessed when making trades
- Buy and sell prices can be see on a consolidated window across multiple indices
- Smart order routing is enabled ensuring that IG index Australia trading occurs at the best price that can be sourced across multiple training venues.
ii) Advanced control of index orders
- L2 has ‘drag and drop’ functionality enabled which can be linked to charts within the interface
- Order types such as kill or fill as well as eliminate are available when indices trading
- An iceberg facility exists to make smaller orders across markets
iii) Efficient Indices Trading That’s Optimised
- No re-quoting occurs through referred tickets
- Excel enabled ‘watch-lists’ allow multiple indices and shares to be traded
- Excel can be used to make indices purchased or sells automatically utilising algorithm smarts
- Limits can be placed on orders utilising ‘ladder trading’
- DMA (Direct Market Access) with a customisable interface can be accessed
- ‘One Click’ traders from tools and market alerts are available
- The ability to quickly ‘one-click’ trade with tools and market alerts
- Direct feeds from markets help alert traders
The L2 Dealer for IG index trading Australia has usage costs which are rebated when active trading occurs.
b) Core IG Platform
The core IG platform is web-based for PC users meaning there is no need to download any software to when index trading. There is though a requirement to download apps when using the platform on either an iPhone, Windows and Android device or tablet device.
The desktop web-based platform has a layout which can be customised for your needs with the ability to save different layouts. Advanced charting, DMA prices and even multiple deal tickets are all available as well as Reuters news which is perfect for index trading.
For mobile users, that are native designs for the major mobile software providers. The are updated periodically to suit the phones and ensure the newest features are available and are free to download for index traders. They have 256-bit SSL encryption to ensure you have a secure platform and direct access to market data and real-live prices exist even without the need to login.
What Is IG Index Trading?
All major stock changes around the world have an index, each with numbers that don’t have a particular meaning but rather move based on the aggregate of the shares they represent. When the aggregate of the shares move up or down, they impact the indices. Indices trading is when you predict that an indices will either increase or decrease over time.
An example is the ASX 200 (Australia 200) which is the largest 200 companies traded on the Australia Stock Exchange. If for example, the average of these companies shares move down, the index will fall. Most indices are weighted based on capitalisation-weighted. This means that larger companies movements will impact the indices more than smaller firms.
Major indices across the world include the Down Jones, Nasdaq, Hang Seng, SAX, CAC and Nikkei.
It should be noted that the Nikkei and Down Jones are not capitalisation-weighted and instead based on price. This means that shares with a higher price impact the indices more even though their market capitalisation may be lower.
Our IG Index Australia trading review found the broker is the leader in this investment solution as discussed in our comparison with Axitrader, IC Markets and Plus500 based on their low fees, wide options of market, the ability to trade in AUD and the high leverage available to traders.
About This IG Index Trading Review
Volatility is plaguing global markets due largely to political and economic uncertainly. As a result traders are looking at alternative ways to invest their money and diversify their income while still reducing their exposure to high volatility. Investing in a collective index rather than individual securities is becoming more and more appealing to traders. As a result, traders are increasingly looking to companies like IG who offer index trading services compared to Pepperstone, CMC Markets and easyMarkets. This IG Index trading review identifies all the key features the company offers so traders can make better informed decisions around the brokers best suited to them.