Best Brokers To Trade S&P 500

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Go to broker’s website Plus500 Overview

If you're too busy to read the entire article and want a quick answer, If you’re short on time and looking for a quick answer, the best broker to trade S&P 500 is Plus500. Why? Here are its key advantages:

Is legit in your country (Identified as United States )
Has a good user satisfaction score 6.83 out of 10
Provides advanced trading platforms with robust tools and features.
Supports various trading instruments, including indices, stocks, and commodities.
Has a strong reputation for customer support and user satisfaction.

Go to broker’s website Plus500 Overview

Below, we'll explain in more detail why we believe this and how brokers were evaluated.

Best brokers for trading S&P 500:

Plus500 - Best premium client support (personal manager, exclusive analysis, webinars)
Pepperstone - Best for scalping strategies (spread from 0 pips)
OANDA - Best for trading with advanced technical analysis tools (TradingView charts support)
FOREX.com - Diverse range of tradable assets (80+ currency pairs)
Interactive Brokers - Best broker for international investors (assets from 33 countries, 150+ markets)

The S&P 500, a widely recognized stock market index, tracks the performance of 500 leading publicly traded companies in the US. Traders can access the S&P 500 through several instruments, including ETFs, options, and futures contracts. These options allow speculation on the index's price movement without directly buying the underlying companies' stocks.

However, choosing the right broker is critical for trading the S&P 500 effectively. The ideal broker offers competitive spreads, intuitive platforms, and reliable regulation, ensuring a secure and seamless trading experience.

Whether you're an experienced trader or a beginner, finding the right broker can significantly impact your trading outcomes. Traders Union has prepared a list of Forex brokers that offer trading on the S&P 500 stock index under favorable trading conditions and are regulated accordingly.

Best Forex brokers to trade S&P 500 - сomparison

Choosing the right broker is essential to maximize your trading potential while keeping costs and risks manageable. Below, we compare some of the best Forex brokers for trading the S&P 500, highlighting their features, fees, and trading conditions to help you make an informed decision.

Best Forex brokers to trade S&P 500
	Min. deposit, $	S&P 500 spread	Regulation level	Open an account
Plus500	100	0,7	Tier-1	Open an account Your capital is at risk.
Pepperstone		0,5	Tier-1	Open an account Your capital is at risk.
OANDA		0,4	Tier-1	Open an account Your capital is at risk.
FOREX.com	100	0,3	Tier-1	Study review
Interactive Brokers		0,25	Tier-1	Open an account Your capital is at risk.

What is the S&P 500?

The S&P 500, or Standard & Poor's 500, is a stock market index that tracks the performance of 500 of the largest publicly traded companies in the U.S. Managed by S&P Dow Jones Indices, the S&P 500 represents a broad snapshot of the U.S. stock market, making it a crucial measure of the country's economic health. It provides a broad overview of the U.S. stock market and serves as a key indicator of the U.S. economy's health.

The S&P 500 is one of the most globally followed equity indices, often seen as a bellwether for the U.S. equity market. The index covers a range of sectors, including technology, healthcare, financials, and consumer discretionary, thereby reflecting the diverse American economy. This broad coverage makes the S&P 500 viewed by many investors as the best single gauge of the U.S. equities market.

Stocks, which the S&P 500 comprises, are ownership units in companies that have decided to list themselves publicly on stock exchanges. The primary goal of issuing these stocks is to raise capital. Investors trade these stocks, banking on their potential appreciation in value or the possibility of earning dividends. The practice of buying and holding stocks over a certain period can help individuals grow their financial portfolio and achieve long-term financial goals.

How is the S&P 500 calculated?

The S&P 500 is calculated based on the market value of its 500 companies. To determine this, each company’s stock price is multiplied by the number of shares it has issued. For example, if a company’s stock is priced at $100 and it has 1 million shares, its market capitalization is $100 million.

The market caps of all 500 companies are then added together and divided by a special number called the "divisor," which adjusts for events like stock splits or mergers. Larger companies, like Apple or Microsoft, have more influence on the S&P 500 because their market caps are much bigger than smaller companies.

For instance, if Apple’s stock price rises significantly, it could push the entire index up, even if smaller companies experience price declines. This ensures the index reflects the performance of the largest players in the U.S. economy.

How to invest in S&P 500 with Forex brokers

Investing in the S&P 500 via Forex brokers is an advantageous move for those seeking to diversify their portfolio and harness the growth potential of the U.S. economy. For beginners venturing into this form of investment, here are some detailed strategies and best practices to consider:

Use stop-Loss orders. Set stop-loss orders to limit potential losses by automatically closing a trade when the price hits a specific level. This helps control risk in volatile conditions.
Avoid scaling into losing trades. Do not add to losing positions in hopes of a reversal. Instead, increase positions only when trades move favorably (a strategy known as pyramiding).
Manage risk wisely. Risk no more than 2% of your trading account on a single trade to minimize impact from potential losses and preserve your capital.
Monitor economic calendars. Keep track of significant economic events like earnings reports and central bank meetings to avoid trading during periods of high volatility.
Develop a trading plan. Create a plan that outlines your financial goals, entry/exit criteria, and risk tolerance. Stick to this plan to maintain discipline and avoid impulsive decisions.
Maintain a trading journal. Record all trades, including entry/exit prices and strategies. Regularly review this journal to identify strengths, weaknesses, and areas for improvement.

These steps provide a structured approach for leveraging the S&P 500's potential while managing risks effectively.

9.4/10

Go to broker

Your capital is at risk.

Minimum deposit:

$100

Deposit Bonus:

Regulation:

FCA, CySEC, MAS, ASIC, FMA, FSA (Seychelles)

Review

Plus500 is an international fintech holding that offers CFD and options trading worldwide through its network of branches, as well as futures trading in the U.S. The company was established in 2008 in the Israel. It is regulated by the FCA, as well as by 9 financial supervisory authorities in other countries, such as CySEC (Cyprus), ASIC (Australia), MAS (Singapore), FSCA (South Africa), among others. Plus500 is listed on the London Stock Exchange (ticker: PLUS) and is part of the companies that make up the FTSE 250 stock index. Plus500 is a reliable intermediary for accessing financial markets, used by over 25 million traders worldwide.

Pros/Cons

•Multi-regulation — licensed in 10 countries;

•Wide range of trading instruments — over 2800;

•Highly functional trading platforms — browser and mobile versions;

•Transparent pricing model — Spreads and Additional fees;

•Automatic adjustment of trading conditions to meet regulatory requirements;

•Provision of educational content, free analytics, and demo accounts;

•Customizable trading alerts — both on the platform and through external communication channels.

•Lack of Micro or Cent-type accounts in its account lineup, which allow trading with minimal risks and investments;

•The Plus500 platform does not support automated trading;

•Some popular trader strategies are prohibited.

9.2/10

Go to broker

Your capital is at risk.
Your capital is at risk.

Minimum deposit:

Deposit Bonus:

Regulation:

ASIC, FCA, DFSA, BaFin, CMA, SCB, CySec

Review

Pepperstone (Pepperstone.com) was founded in 2010 in Melbourne, Australia, by professional traders who were not satisfied with the quality of services provided by most brokers. The founders decided to avoid many of the disadvantages of competitors, including high commissions, delayed execution of orders, etc. The founders therefore focused on improving the technical component. The company has set itself the goal of changing the “rules of the game” and setting the bar high for online trading.
Today, Pepperstone offers clients all over the world some of the best technological solutions and favorable trading conditions. The company also provides professional tools that help traders not only master the fine art of trading, but also significantly increase trading efficiencies. In addition, Pepperstone’s platform is scrutinized by seven regulatory authorities, including ASIC (Australian Securities and Investments Commission, AFSL No.414530), FCA (UK Financial Conduct Authority, 684312), DFSA (F004356), BaFin (151148), CMA, SCB (SIA-F217), and CySec (388/20). Moreover, with Pepperstone, clients' assets are maintained in aggregated accounts with several major, global banking institutions. These facts confirm the reliability of the company and guarantee the safety of the client's capital.

Pros/Cons

•Attractive trading conditions;

•Fast order execution - 30 ms on average;

•1,200+ trading instruments;

•Low fees; and

•No inactivity fee.

•Support service works only 24/7;

•No cent account;

•Not available to US clients;

•Limited passive trading opportunities;

•Limited analytical materials available on the site. The only way to resolve this issue is to connect to trading signals;

•No news section; and

•Demo accounts can only trade for free for 60 days.

9.1/10

Go to broker

Your capital is at risk.

Minimum deposit:

No minimum

Deposit Bonus:

Regulation:

FSC (BVI), ASIC, IIROC, FCA, CFTC, NFA

Review

The name OANDA is an acronym for “Olsen & Associates” or “Olsen AND Associates”. It is registered in the United States and provides its clients with a wide range of financial services in most countries of the world. The company was founded in 1996 and is currently regulated in four jurisdictions. The main regulator of the broker is the UK Financial Conduct Authority (FCA). Oanda Canada is licensed by IIROC. The company has several significant awards to its credit, including a victory in the category "Best Forex Trading Technologies" from the UK Forex Awards, "Best Trading Platform" from FX Week, as well as "Best Customer Service" from the US Foreign Exchange Report.

Pros/Cons

•Minimum deposit from 1 dollar.

•A large selection of the most popular trading instruments.

•Several reliable and reputable financial regulators.

•Inconvenient and poorly functioning site.

•Lack of cent accounts.

•Lack of bonus programs.

8.9/10

Study Review

Minimum deposit:

$1000

Deposit Bonus:

Regulation:

CIMA, FCA, FSA (Japan), NFA, IIROC, ASIC, CFTC

Review

Forex.com is a company owned by GAIN Capital Holdings, Inc. (NYSE: GCAP) and has earned a reputation as a reliable broker in the trading industry for its transparent work and high quality of services. The company cooperates with clients in 140 countries. The broker is registered in the Cayman Islands and supervised by CIMA (Certified Institute for Management Accountants). The license number is 25033. The parent company of the Forex.com broker is registered in England and Wales under the number 1761813 at the UK Companies House. It is licensed by one of the most reputable regulators in the world, FCA (No. 113942).

Pros/Cons

•average rate of order execution is 0.04 ms;

•reliability is controlled by several regulators so customer funds are kept on separate accounts from the company's assets;

•attractive trading conditions are tight spreads on over 90 assets, including currency pairs and metals, and over 4,500 markets, including FX, indices, commodities, stocks, and cryptocurrencies.

•poor quality of site optimization, little specifics in the descriptions of services, tabs at the top of the page do not work. To find the information you have to use a tab called "Sitemap";

•it is difficult to contact the support service due to its high workload;

•large fixed commission for withdrawing funds;

•high initial deposit, it starts from $1,000;

•there are few options for depositing and withdrawing funds, the terms rarely correspond to those stated.

8.7/10

Go to broker

Your capital is at risk.
Your capital is at risk.

Minimum deposit:

Deposit Bonus:

Regulation:

SEC, FINRA, SIPC, FCA, NSE, BSE, SEBI, SEHK, HKFE, IIROC, ASIC, CFTC, NFA

Review

Interactive Brokers is among the best-known global online brokers. Based in the US, it has been operating since 1977. Interactive Brokers allows clients to trade products from 160 exchanges including stocks, option, currencies, bonds, funds and more from a single unified platform. The company is regulated by the US Securities and Exchange Commission (SEC), the US Financial Industry Regulatory Authority (FINRA), the UK Financial Regulatory Authority (FCA, 208159), and other international financial regulation commissions. Interactive Brokers has earned recognition as a top broker, garnering multiple awards and accolades from respected industry sources such as Barron's, Investopedia, Stockbrokers.com,and many others. Also, the broker is popular in other countries. Here you can read reviews of Interactive Brokers in Canada, Singapore, Australia, Hong Kong, Ireland.

Pros/Cons

•extensive and free educational resources through the IBKR Campus;

•access to160markets in 36 countries and territories;

•trading in stocks, options, futures, currencies, bonds, funds and more from a single unified platform.

•Support service does not work on Saturday;

Pros and cons of investing in the S&P 500

While the S&P 500 presents significant opportunities for long-term wealth building, investing in the S&P 500 also comes with risks tied to market volatility and economic uncertainty. Understanding both the advantages and disadvantages can help you make informed investment decisions.

Benchmark index. The S&P 500 is the gold standard for measuring U.S. market performance, helping investors evaluate their portfolios against a reliable benchmark.
Historical returns. Averaging an annual return of 8.9% (inflation-adjusted) since inception, the index has shown long-term profitability.
Accessibility: Easily invest through index funds or ETFs available via most brokers and retirement account providers.
Long-term growth. With a consistent upward trend since 1949, the S&P 500 demonstrates resilience and growth, even after economic crises.
Dividends. Offers steady income through dividends, often reinvested automatically via Dividend Reinvestment Plans (DRIPs).

Market volatility. The index is prone to downturns every 7-10 years, requiring high risk tolerance and patience.
Alternative strategies. Other investments may provide better returns with lower risks, like a diversified mix of stocks, bonds, or alternatives.
Uncertain future returns. While historically strong, the S&P 500’s past performance does not guarantee future success, and market irrationality can lead to losses.

Methodology for compiling our ratings of Forex brokers

Traders Union applies a rigorous methodology to evaluate brokers using over 100 quantitative and qualitative criteria. Multiple parameters are given individual scores that feed into an overall rating.

Key aspects of the assessment include:

Regulation and safety. Brokers are evaluated based on the level/reputation of licenses and regulations they operate under.
User reviews. Client reviews and feedback are analyzed to determine customer satisfaction levels. Reviews are fact-checked and verified.
Trading instruments. Brokers are evaluated on the range of assets offered, as well as the breadth and depth of available markets.
Fees and commissions. All trading fees and commissions are analyzed comprehensively to determine overall costs for clients.
Trading platforms. Brokers are assessed based on the variety, quality, and features of platforms offered to clients.
Other factors like brand popularity, client support, and educational resources are also evaluated.

Find out more about the unique broker assessment methodology developed by Traders Union specialists.

Trade S&P 500 smarter with direct market access and volatility-based stops

Many beginners stick with brokers offering S&P 500 CFDs, but you’ll gain an edge by choosing brokers with Direct Market Access (DMA). This feature allows you to trade directly on the exchange, cutting out the middleman and offering more accurate prices. Watch for trading opportunities during less busy hours when large institutions adjust their portfolios — this often leads to better trade execution without inflated costs.

Most traders use fixed stop-loss limits, but this can backfire during high-volatility sessions driven by U.S. economic news. Instead, consider volatility-based stop losses using the Average True Range (ATR) indicator. This tool adjusts your stop loss depending on how much the market is moving, helping you stay in the trade longer while still managing risk. Combine this with an economic event calendar for smarter trade planning.

Conclusion

Сhoosing the best broker to trade the S&P 500 depends on your specific needs, such as trading tools, fees, platform usability, and customer support. Reputable brokers stand out for their comprehensive offerings, competitive pricing, and robust platforms, making them ideal for trading one of the world’s most popular indices. By selecting a broker that aligns with your trading style and goals, you can maximize your opportunities in the dynamic S&P 500 market.

FAQs

Where is the best place to buy S&P 500?

The best place to buy S&P 500 index funds would be a reputable brokerage offering low fees and a user-friendly platform. You can find such brokers in our ranking, as it presents companies with the most favorable trading conditions and regulations that are appropriate for your country.

What is the best way to invest in S&P 500?

The best way to invest in the S&P 500 is through an index fund or an ETF that tracks the S&P 500. This allows for broad market exposure with a single investment.

How do I buy a S&P 500 index fund?

You can buy an S&P 500 index fund through a brokerage account. After opening and funding your account, search for the index fund of your choice and place a buy order.

Can you invest in S&P 500 without a broker?

Yes, you can invest in the S&P 500 without a broker through some companies' Direct Stock Purchase Plans (DSPPs). However, it's more common to use a broker or a robo-advisor.

Team that worked on the article

Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.

Learn about our editorial policies

Chinmay Soni is a financial analyst with more than 5 years of experience in working with stocks, Forex, derivatives, and other assets. As a founder of a boutique research firm and an active researcher, he covers various industries and fields, providing insights backed by statistical data. He is also an educator in the field of finance and technology.

As an author for Traders Union, he contributes his deep analytical insights on various topics, taking into account various aspects.

Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).

BaFin

BaFin is the Federal Financial Supervisory Authority of Germany. Along with the German Federal Bank and the Ministry of Finance, this government regulator ensures that licensees abide by eurozone laws.

Volatility

Volatility refers to the degree of variation or fluctuation in the price or value of a financial asset, such as stocks, bonds, or cryptocurrencies, over a period of time. Higher volatility indicates that an asset's price is experiencing more significant and rapid price swings, while lower volatility suggests relatively stable and gradual price movements.

Upward Trend

Uptrend is a market condition in which prices are generally rising. Uptrends can be identified by using moving averages, trendlines, and support and resistance levels.

CFTC

The CFTC protects the public from fraud, manipulation, and abusive practices related to the sale of commodity and financial futures and options, and to fosters open, competitive, and financially sound futures and option markets.

Cryptocurrency

Cryptocurrency is a type of digital or virtual currency that relies on cryptography for security. Unlike traditional currencies issued by governments (fiat currencies), cryptocurrencies operate on decentralized networks, typically based on blockchain technology.