Best Broker for Trading Nasdaq Index May 2025

Compare the Best Nasdaq 100 Trading Brokers

How to Invest in Nasdaq?

Recently, futures trading has grown in popularity and is a real option for making a full-time living. Nasdaq futures trading is no exception, but how do you get started with futures trading? The answer is simple: a futures trading platform, a reputable broker, excellent instructions and fantastic prospects. Using this equation, you can also trade in the futures market. Plus500 will not leave you hanging, however; instead, we will detail each step in the following article. to help you prepare to trade Nasdaq futures. First and foremost, you should know that Nasdaq futures are a type of derivative market and are based on the Nasdaq stock market. There is no manipulation as the futures contract is carefully regulated and traded on the CME. The S&P 500, Dow and Russell 2000 futures are linked to other U.S. stock futures markets, as is the Nasdaq futures market. The Nasdaq futures market, however, has a distinct personality. Despite its link to stocks.

Basic Information about Nasdaq Futures

The futures market, which bases its futures on underlying instruments, is a derivative market. In this case, Nasdaq futures are based on the Nasdaq index and are influenced by Nasdaq stocks! Because of the dividends paid by the companies in the cash index, the futures market often trades at a discount to the cash index. The futures index does not offer this opportunity. Traders need to know the specifications of Nasdaq futures contracts, such as tick size and other details. A screen shot of the CME website is shown below. Since one point in Nasdaq futures is worth $20, one tick, or quarter point, is worth $5 per contract. Technology stocks have a significant influence on futures trading since Nasdaq futures are based on the index itself. This indicates that Nasdaq futures are more volatile, just like technology stocks. Although they trade fewer contracts per day on average than their S&P 500 counterparts, Nasdaq futures are quite liquid. Between 400,000 and 500,000 contracts are traded each day on the Nasdaq Futures market, sometimes abbreviated as NQ or ENQ, compared to the 1 million contracts typically traded on the S&P 500 Futures.

What Should I Look for to Trade Nasdaq Futures?

Lower liquidity and technology market drift are two factors that contribute to the volatile nature of the Nasdaq futures market. The Nasdaq index includes many companies that are considered "volatile". The majority of technology companies that influence the Nasdaq index are included in the FAANG. This group includes Netflix, Google, Amazon, Apple and Facebook. Microsoft, which should also be included, is not discussed. Traders should pay attention to certain stock movements, especially those already mentioned, when trading NQ futures. This covers earnings announcements and other important opportunities that could influence these stocks. Another thing to keep in mind when trading NQ futures is the danger of an out-of-market link to another stock market. NQ futures are positively correlated with other stock markets, including S&P 500 futures, Russell 2000 futures and Dow futures. They tend to move in unison, so it may be important to consider whether the Nasdaq will drag the other markets along or catch up if any of the multiples begin to diverge.

4 Best Brokers for Trading NASDAQ Index

1. Pepperstone - Best Overall Broker for NASDAQ Index Trading.

   Pepperstone provides an excellent trading environment for the NASDAQ Index with tight spreads and rapid execution speeds. Known for its advanced trading tools and reliable platform, Pepperstone is a top choice for both experienced and new traders focusing on NASDAQ Index trading.

2. FPMarkets - Top Choice for NASDAQ 100 Index Trading.

   FPMarkets delivers professional trading solutions for the NASDAQ 100, featuring ultra-low spreads, fast execution, and powerful analytical tools. Ideal for traders seeking exposure to leading US tech stocks.

3. Plus500 - Best Broker with Multiple Licenses, including Dubai.

   Plus500 offers a secure and user-friendly platform for trading the NASDAQ Index (CFDs). With strong regulatory licenses and robust investor protection measures, Plus500 is ideal for traders looking for a reliable platform to trade this key financial index.

4. XM - Best Platform and Excellent Brokerage for Beginners.

   XM excels by offering extensive educational resources and practical online workshops to support traders in mastering NASDAQ Index trading. The platform's user-friendly interface and comprehensive support make it a great choice for beginners.

Nasdaq Futures: Where to Start?

The basic procedure for getting started in the Nasdaq futures market consists of two steps. Choose a reliable futures broker to serve as a data source for the CME market and a reliable platform to connect to that data provider. Finding a two-for-one is an additional option. Data and platform. Good futures trading education is the final piece of the puzzle. Having a reliable broker is crucial to trading Nasdaq futures. What are the characteristics of a good broker? Low commissions and low margin requirements. A fantastic broker that offers both is Plus500 futures. You still need $500 in margin to trade an E-mini-Nasdaq contract. So, with a $500 account, you can trade 1 NQ contract on a day (not recommended). You must have $7,600 of margin in your account to hold the contract overnight (5:00-6:00 PM Eastern Time). The recently launched E-micro-Nasdaq futures contract, which costs $50 for day trading and $760 for overnight holding, requires much less margin. Plus500 commission fees are also very competitive; on average, it will cost you $4 to trade a stock contract in a round robin. The data provider you choose via Plus500 will also impact this amount. E-micro-Nasdaq futures are even more affordable, at about $0.75 per contract. And finally, a solid foundation in the futures markets. A successful trader can distinguish himself from a less successful trader by having a solid understanding of the fundamentals of everything to do with the markets. You have to think about psychological education in addition to business education. You have to have a healthy attitude to succeed in trading, which is a highly cerebral profession. Fortunately, you don't have to go very far. The answer is at the Plus500 trading resources.

Nasdaq Futures Types

E-mini-NQ The traditional Nasdaq contract traded on the CME is the E-mini-Nasdaq. The contract contains several chances throughout the day full of volatility. E-micro MNQ Recently, the E-micro was introduced to the trading community. One-tenth of an E-mini is an E-micro. Therefore, the E-mini tick size is worth $5.00 per contract while the E-micro tick size is valued at $0.50. Ten full E-micro contracts are equivalent to one full E-mini contract. The E-micro moves and trades in the same manner as an E-mini with comparable market depth, but it also allows ordinary investors to enter the market and learn to trade by dipping a toe in the risky waters without incurring significant losses. E-micros could reduce the cost of learning to trade.

Conclusion

Trading Nasdaq futures can be quite profitable, but only if you are prepared and have the resources. The main tools you will need to attack the Nasdaq market are described in the article above. The first is to have some knowledge of the futures contracts themselves, as well as the personality of the market and its potential influences. Then, to attack the market, arm yourself with a solid broker and a solid platform, such as Plus500. Finally, gain market knowledge, develop solid trading techniques and adopt the right attitude.

Frequently Asked Questions (FAQ)

Get answers to common queries about trading Nasdaq futures and start your journey with confidence.

 
• Can a novice trade the Nasdaq?

A novice trader may decide to trade the NASDAQ 100 in order to get an overview of the technology industry without having to look closely at specific companies. We strongly recommend that you always do your own research before trading by reading up on relevant topics, technical and fundamental analysis, the latest news and analysts' analysis. To test your trading technique, you may also consider creating a demo account.

 
• What is the minimum investment to trade the NASDAQ 100?

Online stock and CFD trading accounts allow you to make tiny trades with low transaction costs, while other mutual funds require a minimum amount of $100,000 or more. Plus500 CFDs allow you to build a larger position with a smaller initial investment by using leverage. Keep in mind that leverage increases both gains and losses.

 
• How do I start trading on the Nasdaq?

If you have decided to use Contracts for Difference (CFDs) to trade the NASDAQ 100 (US100) index, open and fund your account, review the performance of the index, enter the amount you wish to trade and choose whether you wish to create a long or short position. Remember that trading involves significant risk. Use risk control strategies such as stop-loss.

 
• What is the Nasdaq trading process?

By buying and selling exchange-traded funds (ETFs) or specific stocks included in the index, placing spread bets, or engaging in futures trading, you can increase your exposure to the NASDAQ 100 Index.

 
• How is the Nasdaq affected?

The performance of the companies that make up the index, macroeconomic statistics, and social and political events are just some of the important variables that can affect the direction of the index.