Major global stock indices are popular trading vehicles among retail traders, especially when they can be traded as CFDs. The main reason for this is that CFDs allows for high leverage, which is a major benefit when trading the relatively stable asset that a stock index is. In addition, CFDs also makes it easy to short stock indices, which is something that used to be difficult and expensive in the traditional stock market.
As a result of their popularity among traders, more and more social trading forex brokers are offering their clients the chance to trade stock indices. Although most social trading brokers have chosen to focus on the biggest and best-known stock indices, such as the S&P 500, the NIKKEI, and the DAX, some brokers also offer smaller indices like Singapore’s Straits Times Index or Sweden’s OMX 30.