Best Forex Brokers With Volatility Index (VIX)

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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, the best broker with Volatility Index (VIX) 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
Enhanced security measures ensure safe transactions
Has an extensive range of supported trading assets

Go to broker’s website Plus500 Overview

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

The best Forex brokers with Volatility Index are:

AvaTrade - Best integration of passive investing platforms (DupliTrade and ZuluTrade)
Thinkorswim - Best for trading based on technical analysis (most advanced charting platform)
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)
IG Markets - Favorable Forex trading conditions (0 fees, avg. EUR/USD spread - 0.8)
Tier1FX - Malta-based STP/DMA broker offering Forex and CFD trading on MT4, JForex, and Fortex 6

You have probably come across the term volatility index when dealing with Forex. The majority of seasoned traders will tell you that they utilize volatility indices to reap massive returns. However, do you know what a volatility index means? Do you know how and where to trade with the volatility index? Luckily, by the end of this guide, you will have everything you need to know about the volatility index. Let's get right to it!

List of the best VIX brokers 2025

The Chicago Board Options Exchange (CBOE) established the CBOEVolatility Index (VIX) in 1993 as a real-time measure of the expected volatility of the U.S. stock market. Also known as the "fear index", VIX shows the implied volatility of the S&P 500 Index (SPX) over a 30-day forward projection. Although the VIX is based on S&P 500 volatility, it is usually used as a benchmark for the entire U.S. stock market.

Investors usually use the VIX to measure the level of stress, risk, or fear in the market when making investment decisions. Moreover, traders can trade the VIX using a variety of options and exchange-traded products. Alternatively, they can use VIX values to price derivatives.

VIX has a strong negative correlation to the stock market price. Therefore, if the VIX rises, then it means that stock prices are usually falling and the market is unstable. On the other hand, if the VIX declines then it implies that the stock prices are rising and the market is relatively stable and stress-free. A VIX value below 20% is typically considered a stable period (stress-free), while levels of 30% or more are high volatility and unstable periods resulting from increased uncertainty and fear among investors.

We have selected the top Forex brokers with a Volatility Index, offering optimal trading conditions, low spreads, and reliable regulation.

Best Forex brokers with VIX
	Min. deposit, $	Max. leverage	Min Spread EUR/USD, pips	Max Spread EUR/USD, pips	Investor protection	Max. Regulation Level	Open an account
AvaTrade	100	1:400	0,6	0,9	€20,00	Tier-1	Open an account Your capital is at risk.
Thinkorswim	2000	1:100	0,2	0,4	$500,000	Tier-1	Study review
Pepperstone		1:500	0,5	1,5	£85,000 €20,000 €100,000 (DE)	Tier-1	Open an account Your capital is at risk.
OANDA		1:200	0,1	0,5	£85,000 SGD 75,000 $500,000	Tier-1	Open an account Your capital is at risk.
FOREX.com	100	1:50	0,7	1,2	£85,000	Tier-1	Study review
IG Markets	1	1:200	0,6	1,2	£85,000 €100,000 SGD 75,000	Tier-1	Study review
Tier1FX	100	1:200	0,2	0,6		Tier-2	Study review

Admirals Review

Open an account

Your capital is at risk.

Admirals was founded in 2001. In more than 20 years of operation, a regional Estonian broker has grown into an international financial group of companies providing access to over-the-counter markets in more than 130 countries, as well as to exchange-traded stock instruments. Following the 2021 rebranding, Admirals became Admirals. The updated platform received new integrated risk management solutions.

AvaTrade Review

Open an account

Your capital is at risk.

AvaTrade was founded in 2006 in Dublin, Ireland. The company has offices in 10 countries. It currently has over 300, 000 registered users and processes more than 2 million transactions every month. These factors contribute to AvaTrade being a reliable and trusted broker. They are accredited across five continents and are one of the market leaders. The broker is regulated by the Australian Securities and Investment Commission (ASIC, 406684), the Japanese FSA ( 1662), and the South African FSCA ( 45984). AvaTrade holds accreditation by the Central Irish Bank ( C53877 ), the Abu Dhabi Financial Services Regulatory Authority (190018), and the British Virgin Islands Financial Services Commission ( SIBA/L/13/1049), CySEC ( 347/17). AvaTrade allows traders to trade stocks, securities, indices, cryptocurrencies, and currency pairs. In total, the offer more than 1,200 tools to customers.

TD Ameritrade Review

TD Ameritrade (Charles Schwab) is an American broker that provides top-notch online services for trading and investing in securities on the OTC markets. The company was founded in 1975 under the name First Omaha Securities. It was reimagined as an online broker in 1998. TD Ameritrade (Charles Schwab) is a member of FINRA (CRD#: 7870/SEC#: 801-60469,8-23395 ) and SIPC and currently serves over 11 million client accounts. The broker offers simple pricing, high-tech trading platforms with professional analytics, and a wide range of markets and investment products. TD Ameritrade (Charles Schwab) was named Best Online Broker 2020 by StockBrokers.com and ranked first in the Platforms & Tools, Beginners, Education, and Customer Service categories.

Top VIX brokers comparison — all trading assets

To make it easier for you to choose, we also offer a comparison of brokers based on the availability of other trading assets that can help you with diverse investment options.

VIX brokers comparison
	Currency pairs	Open an account
Plus500	60	Open an account Your capital is at risk.
Pepperstone	90	Open an account Your capital is at risk.
OANDA	68	Open an account Your capital is at risk.
FOREX.com	80	Study review
Interactive Brokers	100	Open an account Your capital is at risk.

How to choose the best Volatility Index (VIX) brokers

Knowing what to look out for could save you time and money and help you find the best Volatility Index (VIX) brokers to suit your needs. Here are some key factors to consider when choosing the best Volatility Index (VIX) brokers:

Regulation and security. Ensure the broker you choose is regulated by a reputable authority, such as the U.S. Commodity Futures Trading Commission (CFTC) or the Financial Conduct Authority (FCA). Regulatory oversight helps protect your funds and ensures the broker adheres to industry standards.
User-friendly platform. Look for a broker with an intuitive and user-friendly trading platform. As a beginner, you should feel comfortable navigating the platform, placing trades, and accessing essential tools and resources.
Risk management tools. Make sure the broker offers risk management tools such as stop-loss orders, take-profit orders, and margin call notifications. These tools can help you protect your capital and minimize potential losses.

Tips for beginner VIX traders

Trading the VIX requires preparation, especially for beginners. We have developed a number of recommendations that will help you get started and minimize risks.

Use demo accounts

Practice on a demo account allows you to learn the specifics of trading the VIX without financial losses. This is a good way to test strategies and evaluate how the index reacts to market changes. Demo accounts offered by brokers allow you to get used to the trading platform and understand the dynamics of volatility.

Apply risk management

Set stop-loss orders to limit losses.
Keep the risk per trade within 1-2% of capital.
Diversify your portfolio by combining VIX with other assets.

Master trading strategies

Beginners are advised to learn basic strategies, such as using support and resistance levels to determine entry and exit points. High volatility requires accurate analysis and informed actions.

Learn and develop

Attend webinars, study articles and reviews from experienced traders. Constant learning and analysis of your own mistakes will help improve your results.

How is VIX calculated?

The Volatility Index (VIX) is a widely followed measure of market volatility and is often referred to as the "fear gauge." It represents the market's expectation of future volatility and is calculated using the prices of options on the S&P 500 index. Here's a step-by-step guide on how the VIX is calculated:

Selecting options

The first step in calculating the VIX involves selecting a range of calls and put options on the S&P 500 index (SPX). These options should have a specific time of expiration, typically 30 days, and must be traded on a standardized exchange.

Calculating implied volatility

For each of the selected options, calculate the implied volatility - which is the market's estimate of the future price fluctuations of the S&P 500. This calculation is usually done using an options pricing model like the Black-Scholes model.

Weighting

After calculating the implied volatilities of the selected options, they are weighted based on their time to expiration. Options with shorter timeframes have higher weights in the VIX calculation, as they are considered more representative of short-term market expectations. The weighting is done using the square root of time rule, where options with less than 30 days to expiration are given a weight of one.

Average implied volatility

Once the implied volatilities of the selected options are appropriately weighted, they are used to calculate the average implied volatility. This average reflects the market's consensus on the expected volatility of the S&P 500 over the specified time horizon.

Annualization

To obtain an annualized value, the calculated average implied volatility is multiplied by a factor that accounts for the number of trading days in a year. This factor is typically the square root of 252, which represents the number of trading days in a year based on the usual five-day trading week. The result is the VIX value, which represents the annualized expected volatility of the S&P 500 index.

With the result, investors and brokers can have an idea of the market's expectation of future volatility, offering critical insights for trading strategies and risk management.

Other types of synthetic indices

Over time, some exchanges have set up synthetic indices, which are engineered to simulate real-world market and price movements. Synthetic indices are not affected by world events and news, but they behave like real markets and are based on a cryptographic random number generator. Synthetic indices are usually audited by an independent third party so that they aren't manipulated.

Some of the most renowned synthetic indices offered by exchanges are "crash and boom" indices, step indices, "range break" indices, and jump indices. You can trade on synthetic indices 24/7, and they are free of market and liquidity risks. Nonetheless, many traders who believe that profitable trades are made from analyzing current events and human psychology usually perceive synthetic indices as closer to gambling.

Pros and cons of Volatility Index (VIX) trading in Forex?

The VIX paved the way for traders to use volatility as a tradable asset, although through derivative products. Like all indices, one cannot buy the VIX directly, but investors can take a position in VIX through futures or options contracts. Active traders, hedge fund managers, and large institutional investors use VIX-linked securities to diversify their portfolios.

Most brokers usually allow investors to use CFDs to take a position on the movement of the VIX. Traders can also trade VIX futures and Exchange Traded Funds (ETFs).

Trading volatility in Forex offers investors the opportunity to capitalize on the shifts in market share prices. Investors can take hedging positions depending on the projected shifts and can make tremendous profits.
When trading VIX in Forex, investors typically have a deeper understanding of current market conditions. This allows investors to leverage trend trading and reap returns. Traders are better placed to try and understand whether market conditions have reached extreme positions in either direction.
VIX offers investors a chance to broaden their portfolios by offering them access to an interesting and less common asset.

Daily fluctuations are usually a challenge to keep up with. As much as VIX gives a 30-day projection of volatility, sometimes daily fluctuations are hard to keep up with and some investors end up making losses while tying all their belief in the VIX.
Trading VIX in Forex is not suitable for beginners. Seasoned traders usually make tremendous profits from trading VIX, but rookies often end up losing significant amounts of money.

How to trade VIX with Forex brokers

Find brokers that offer direct VIX trading. Not all Forex brokers allow you to trade VIX directly. Many offer CFDs or VIX-related assets like ETFs, while some brokers may not support VIX trades at all. Make sure your broker gives you direct exposure to volatility so you can trade it precisely, rather than relying on indirect derivatives that can bring extra risks.
Pair VIX with major currencies for volatility-based trades. Using VIX alongside pairs like USD/JPY or EUR/USD can open unique trading opportunities. When VIX rises, it often signals market uncertainty. This is a cue to trade major pairs, like selling USD/JPY when the USD weakens amid growing volatility. By incorporating this into your Forex strategy, you can profit from broader market movements instead of just relying on technical setups.
Use VIX as a safety net. One advanced way to trade VIX is using it as a hedge for your Forex positions. If you anticipate volatility but hold a position in a major currency pair, buying VIX instruments can protect you from unexpected swings. This technique provides a comprehensive approach to managing risk, especially when big events like elections or major economic releases are on the horizon.
Watch global news for VIX signals.VIX tends to spike during times of global uncertainty, like during elections or geopolitical tensions. By staying on top of these events and understanding how they influence market volatility, you can spot early signs of rising VIX levels. This allows you to position yourself before volatility takes hold, giving you an edge when trading.
Stay cautious with your leverage. The VIX is highly volatile, and while it can lead to big profits, over-leveraging can wipe you out. Beginners should take a cautious approach and only use moderate leverage to avoid catastrophic losses when VIX spikes. By employing conservative risk management and limiting leverage, you can avoid being caught in unpredictable market moves.

Overview of VIX trading tools and strategies

The VIX is available for trading through a variety of tools optimized for specific strategies and objectives. Here are the key ones:

VIX futures contracts

VIX futures allow traders to speculate on expected future market volatility. They are traded on the Chicago Board Options Exchange (CBOE) and provide direct access to VIX movements. However, futures contracts can be complex for new traders due to the need to consider expiration dates and pricing details.

ETFs and ETNs

For easier access to volatility trading, ETFs and ETNs have been developed that track the dynamics of the VIX. The most popular ones include:

VXX (iPath Series B S&P 500 VIX Short-Term Futures ETN). Provides exposure to short-term VIX futures, reflecting market expectations for near-term volatility.
UVXY (ProShares Ultra VIX Short-Term Futures ETF). Aims to provide 1.5x the return of the VIX Short-Term Futures Index, making it more volatile and suitable for short-term strategies.
SVXY (ProShares Short VIX Short-Term Futures ETF). Designed to provide the inverse (-0.5x) return of the VIX Short-Term Futures Index, allowing traders to profit when volatility declines.

Choose brokers with VIX, real-time data, and risk management tools

When selecting the top brokers for trading VIX, beginners should prioritize brokers that offer direct VIX access, along with effective charting and real-time market data. Trading VIX requires precise information, as even a small delay in data can throw off your timing. Make sure your broker provides VIX-linked assets such as ETFs or options, with low trading costs and tight spreads. This ensures that you're not only trading volatility but also doing so efficiently with minimal slippage or fees.

Another key factor to consider is tools to manage risk, especially when trading the wildly volatile VIX. It’s crucial to set stop-loss and take-profit points effectively for such fast-moving markets. Additionally, if your broker offers leverage for bigger potential gains, you can increase your profits — but be mindful of the risks. Choose a broker that lets you set your own leverage limits based on your risk tolerance and trading goals, giving you full control over your exposure while maximizing your trading strategy.

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.

Conclusion

The VIX is a valuable tool for analyzing market sentiment and managing risk. Using it requires understanding how volatility is formed and applying well-thought-out strategies. To successfully trade the VIX, it is important to use futures and ETFs, as well as choose reliable brokers with high-quality platforms. Beginner traders are advised to start with demo accounts and gradually implement risk management into their practice. Trading the VIX provides unique opportunities, but requires discipline and constant learning. A conscious approach to this tool can significantly improve the effectiveness of your trading decisions.

FAQs

How does the VIX index help determine market sentiment?

VIX shows the market's expectations regarding future volatility. An increase in the index signals increased uncertainty and anxiety among market participants, while a decrease indicates stabilization and a decrease in market risks.

What strategies are suitable for trading in conditions of high volatility?

In conditions of high volatility, strategies based on support and resistance levels work effectively. For example, selling at the resistance level or buying at the support level allows you to minimize risks and increase the likelihood of a successful transaction.

Can VIX be used for long-term market forecasting?

VIX is more suitable for short-term analysis, as it reflects volatility on a 30-day horizon. For long-term forecasts, it is used in combination with fundamental indicators and macroeconomic data.

What tools help reduce risks when trading VIX?

Using stop-loss orders and limiting the size of positions reduces the risk of losses. It is also useful to practice on a demo account to test strategies in conditions of changing volatility.

Team that worked on the article

Maxim Nechiporenko has been a contributor to Traders Union since 2023. He started his professional career in the media in 2006. He has expertise in finance and investment, and his field of interest covers all aspects of geoeconomics. Maxim provides up-to-date information on trading, cryptocurrencies and other financial instruments. He regularly updates his knowledge to keep abreast of the latest innovations and trends in the market.

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).

Risk Management

Risk management is a risk management model that involves controlling potential losses while maximizing profits. The main risk management tools are stop loss, take profit, calculation of position volume taking into account leverage and pip value.

Extra

Xetra is a German Stock Exchange trading system that the Frankfurt Stock Exchange operates. Deutsche Börse is the parent company of the Frankfurt Stock Exchange.

Day trading

Day trading involves buying and selling financial assets within the same trading day, with the goal of profiting from short-term price fluctuations, and positions are typically not held overnight.

Margin Call

A margin call is a demand made by a broker or a financial institution to a trader or investor who is using margin (borrowed funds) to cover potential losses in a trading account. It occurs when the value of the securities or assets held in the account falls below a certain threshold, known as the maintenance margin or margin requirement, as specified by the broker.

CFD

CFD is a contract between an investor/trader and seller that demonstrates that the trader will need to pay the price difference between the current value of the asset and its value at the time of contract to the seller.