Diversify Market Exposure via Index Trading with AAAFx

Regulated multi-asset, zero-commission broker, AAAFx offers traders a simple way to diversify their investment portfolio through index trading. With more than 10 global indices to choose from, including the S&P 500, Nasdaq, Nikkei and DAX 30, traders can gain exposure to an entire market segment or economy with a single trade.

Index trading is offered by the global brokerage through contracts for difference (CFDs), which increases accessibility to market opportunities through leveraged trading*. By using leverage, traders can use borrowed capital to trade derivative products such as CFDs, allowing them to speculate on the price difference of various underlying assets. In fact, AAAFx was recognised as the Best CFD Broker - APAC at the UF AWARDS APAC 2023.

Putting index trading into perspective

Traders are always on the lookout for market opportunities they can capitalise on. However, it can be difficult with limited capital and the extensive research required to trade each individual companies’ stocks. The popularity of trading indices comes down to the sheer breadth of exposure it provides for traders with every position.

Indices are baskets of stocks and by trading indices, traders do not gain ownership rights over any of the individual stocks composing them. An index is created with diverse but stringent selection criteria. Indices may offer exposure to regional company shares like the FTSE 100, which includes stocks of London-listed companies only, or an industry, such as Nasdaq, which is tech-heavy.

Typically tracking the performance of a group of regional companies’ shares or an industry sector (e.g., healthcare or technology), indices allow traders to maximise their exposure to an industry sector or multiple local shares without the need to analyse the performance of each share individually but rather have a view of the group’s overall performance. This way, they can use an extra tool to assess a company’s performance and improve their decision-making.

Index Trading with CFDs

One of the greatest advantages of trading indices via CFDs is that it allows traders to speculate on both rising and falling markets. Traders do, however, need to be cautious when using leverage as it enhances both profit and loss potential.

Why Do Traders Prefer AAAFx for Trading Indices?

AAAFx provides trading services to clients across 176 countries. Traders can choose from over 10 global indices and more than 200 other instruments to trade. Clients can place their trades on a variety of platforms, including MetaTrader 4, MetaTrader 5 and ZuluTrade. In line with its goal to make trading accessible and convenient for traders worldwide, AAAFx facilitates trading via desktop, Android, iOS and Web Trader.

Commitment to Trader Protection

AAAFx is licensed by the HCMC and FSCA. It upholds its commitment to safeguard the interests of its clients and empower them for informed decisions through transparency in all its services and products. For EU traders, the brokerage also ensures protection by ensuring compliance with the GDPR and MiFID II guidelines, such as negative balance protection and maintenance of client funds in segregated accounts. Plus, it ensures high-end security across user interfaces and touchpoints.

Trader-First Order Execution Facilities

AAAFx has an array of highly competitive offerings:

● Deep liquidity pool to ensure ultra-thin spreads

● Lightning-fast order execution

● Spreads from as low as 0.0

● High-end data technology to ensure security

● No fees on deposits and withdrawals

● Superior customer service

● Auto-connect with ZuluTrade’s social multinational trading community

Trading Facilities Based on Individual Preferences

AAAFx empowers traders to practice autonomy and flexibility by providing multiple account types and comprehensive trading tools. Traders can choose from 4 different account types based on their experience level and capital availability – ECN, ECN Zero, ECN Plus and Islamic for clients trading under the broker’s global entity. Traders can also access leverage up to 1:500, under certain prerequisites, with no minimum order distance. Furthermore, the broker provides diverse educational resources and facilitates copy trading via ZuluTrade to help beginners gain expertise.

*Leveraged products are high-risk investments and may result in capital loss.