If you’re looking to gain exposure to the US non-financial sector then the Nasdaq 100 index may just be your answer. The Nasdaq 100 gives traders and investors heaps of liquidity which results in tight spreads and higher returns. In this in-depth review, we reveal the best brokers for Nasdaq 100 and examine why the US Tech 100 index is so popular.
In This Guide
Providing the highest quality service, value, and trading features, in this section you will find the best trading platform for the Nasdaq 100 index and its top competitors. Just scroll down for a detailed review of each broker.
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There are thousands of trading platforms to choose from, all allowing you to buy and sell tradable assets from the comfort of your own home.
Choosing the right broker that suits your trading objectives can be hard, which is why we have compiled a list of the top ten best brokers for the Nasdaq 100. You need to consider what markets each platform offers, what its trading and non-trading fees are, and other key investment metrics.
To clear the fog, below you will find a compilation of the best online brokers for the Nasdaq 100 in 2023. Whether you’re looking to trade or invest in the Nasdaq 100 we have you covered.
Home to more than 20 million traders, eToro is an all-around top-rated online trading platform. This is partly due to its vast offerings of zero-commission trades from stocks and ETFs to CFDs and Bitcoin trading.
Additionally, eToro is popular for its social trading and Copy Trading features. Simply put, copy trading allows you to copy the trades of other advanced traders on the platform. By doing so, whenever your chosen experienced trader places a buy or sell position it will be copied in your own investment portfolio. Furthermore, there is no additional fee to use this feature, however, there is a $200 minimum investment.
eToro is a great trading platform for beginner traders who are just emerging into the online trading scene. Alongside its easy-to-use interface and educational resources, eToro also offers a demo account with a $100,000 paper fund balance giving you a risk-free and hands-on experience of online trading.
When it comes to the fundamentals, the account opening process is streamlined, typically taking a matter of minutes to complete. There are a bunch of payment options available with eToro including bank transfers, e-wallets like Skrill and PayPal, and credit or debit cards. Last but not least, eToro is regulated by top-tier financial authorities including ASIC, FCA, and CySEC.
Pros:
Cons:
Your capital is at risk. Other fees apply. For more information, visit etoro.com/trading/fees.
Offering more than 200 assets, Libertex is a CFD broker that was established in 1997. If you have an eye for stocks, cryptos, commodities, ETFs, and indices then Libertex is the broker for you. On top of this, Libertex is unique amongst CFD brokers in that it gives its clients access to trades with tight spread.
As a result, you also incur a small commission for the trade which is charged against the value of the order. According to Libertex, it is now home to around 2.9 million traders globally and is regulated by the Cyprus Securities and Exchange Commission. Libertex traders have a choice of several trading platforms.
Its in-house developed web and mobile trading platforms give you access to over 200 assets with zero spreads at the click of a button. On the other hand, if you are a trader with a preference for the MT4 trading platform, then you will be happy to find out that MetaTrader 4 is also supported by this CFD broker.
As for beginner traders who are looking for a Nasdaq 100 broker with plenty of educational resources then Libertex offers a demo account and its trading course that goes through the basics of online trading.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
AvaTrade is a global CFD and forex trading platform regulated by multiple financial organizations including ASIC, the Central Bank of Ireland, and the Financial Futures Association of Japan, just to name afew.
AvaTrade is a great CFD broker for day traders looking to trade CFD instruments because it offers industry-leading low spreads. For instance, the majority of currency pairs can be bought and sold with a spread of less than 1 pip.
As well as AvaTrade’s tight spread offering, the CFD broker allows you to trade CFD assets without paying any commission. When it comes to tradable markets, AvaTrade covers thousands of financial instruments. In addition to CFDs and forex, you can also gain access to bonds, indices, cryptocurrencies, and futures. Therefore, if you’re interested in a specific market, AvaTrade will have you covered.
During our comprehensive review of AvaTrade we found that there are multiple trading platforms to choose from. As such, you can trade using:
Your capital is at risk.
IG’s origins can be traced back to 1974 when it was launched and since then has become a popular CFD broker. Falling under standards and regulations from several financial authorities including the FCA and BaFin, IG is also listed on the LSE.
With its acclaim as a global CFD trading platform, it has a staggering selection of well over 10,000 stock CFDs and 1,900 ETF CFDs. Furthermore, IG’s offering of tradable assets is not capped at CFDs.You can choose from forex, cryptocurrencies, commodities, indices, options, and much more.
If you are reading this guide then chances are you are looking for a top-rated and trusted broker to trade and invest in the Nasdaq 100 index. Put simply, with IG you will not be disappointed. You can pick from some of the industry’s most popular indices and gain exposure to the Nasdaq 100 from just 1 point.
For traders searching for a more passive approach to investing then IG has you covered with its Smart Portfolio. Simply put, this robo-advisory service is offered to UK-based clients and provides iShares ETF portfolios which are managed by the investment management corporation BlackRock.
Fidelity is a US-based broker that was launched in 1946 and offers 100% zero-commission on US stocks, indices, and ETF trades. Furthermore, this broker charges $0.65 per option contract and users have access to analyst reports for thousands of stocks and cover dozens of third-party research providers. In terms of the fundamentals, Fidelity is regulated by the SEC and FINRA.
Moreover, Fidelity provides advanced charting tools, real-time analyst quotes, and the ability to manage multiple stocks at once, giving it its strong reputation as one of the leading index brokers in the trading scene. For mobile traders, the Fidelity mobile trading platform also provides great research tools and features on a single user-friendly interface.
In terms of account types, there are heaps of options to choose from including Roth IRA accounts to a Fidelity account for Businesses. Fidelity also offers low non-trading fees including no inactivity fees or account fees. To see how we compared and contrasted Fidelity with another US-based top-rated broker, check out our Fidelity vs TD Ameritrade review here.
Pros: Set a wide range of price and research alerts and push notifications with the desktop, web and mobile trading platforms Wide range of order types to choose from including Stop Limit orders and Multi-contingent orders Advanced investment research tools including trading ideas and industry analysis Free stock and ETF trades Low non-trading fees Regulated by the US SEC and FINRA Cons: Demo account only accessible on the desktop trading platform Above average margin fees Visit Fidelity Now
Established in 1975, TD Ameritrade is one of the largest US-based trading platforms out there. In terms of regulation, TD Ameritrade is regulated by top-level financial authorities including the SEC, CFTC, and FINRA. Additionally, it is also listed on the Nasdaq stock exchange under the ticker symbol AMTD.
TD Ameritrade users have access to low non-trading fees and an abundance of advanced research and charting tools. From the comfort of your own home, you can trade everything from stocks to options with just a small commission per contract of $0.65. If you are interested in futures contracts and other more advanced assets, TD Ameritrade provides its own desktop trading platform, Thinkorswim.
The Thinkorswim trading platform has more tradable assets on offer compared to its web trading platform including forex and futures, as well as an array of technical research features. There is also a wide range of educational resources for both beginner and advanced traders looking to develop their trading knowledge. These features include a demo account with $100,000 worth of paper funds, educational video content, webinars, and more.
Being a niche broker, Plus500 is one of the best index providers for CFDs on the market today. Plus500 is a trusted CFD and index trading platform as it is regulated by the FCA, CySEC, FMA, ASIC, ISA, MAS, and FSA. In terms of insurance for CFD trading, Plus500 provides negative balance protection for EU-based traders.
When it comes to trading and non-trading fees, Plus500 has average fees when compared to its main competitors. Having said this, this index broker offers a $100 account minimum with zero withdrawal fees. Plus500 traders have access to just under 2,000 stock CFDs, 26 stock index CFDs, and 95 ETF CFDs. There are also a bunch of educational tools including a demo account and tutorial videos for beginner traders who want a risk-free introduction to the world of online trading.
In terms of deposit fees and options, this CFD broker does not charge deposit fees. Additionally, there are many options to choose from including debit and credit cards, bank transfers, and e-wallets. Plus500 traders benefit from its user-friendly mobile trading app which is available on both iOS Apple and Android devices. This is great for trading while on the move.
Plus500 is 100% commission-free making it very popular amongst traders searching for a low-cost trading platform. The majority of Plus500’s trading fees are included in the spread. Simply put, the spread is the gap between the ask and bid price of a CFD contract.
72% of retail CFD accounts lose money.
XM is a popular CFD and forex trading platform that offers more than 1,200 stock CFDs, 28 stock index CFDs, forex trading, commodity trading, shares, and stocks. XM offers tight spreads as low as 0 pips on some forex pairs.
CFD trading at XM is 100% commission-free, however, spreads can differ depending on the type of assets you pick. Typically, XM offers very tight spreads that are lower than the industry average. For instance, XM charges a spread of 2 pips for the Nasdaq 100 equity index.
Additionally, XM has low cost account fees. For example, you won’t pay a withdrawal or deposit charge, and there are no account fees. On the flip side, there is a £15 inactivity fee charged after 12 months of inactivity.
In terms of how trading platforms go, XM is unusual in that it does not provide its own in-house developed trading platform. Instead, it provides the popular and top-rated third-party trading platforms - MT4 and MT5. The main difference between the two is that you can only trade stock CFDs with the MetaTrader 5 platform.
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Established in 1989, CMC Markets is a renowned and globally recognized CFD broker. It is regulated by many top-level financial authorities such as the FCA, ASIC, MAS just to mention a few. As far as transparency is concerned, CMC Markets is listed on the London Stock Exchange under the ticker symbol CMCX.
When it comes to product selection and tradable assets, CMC Markets is mainly a CFD and forex broker and therefore only provides CFD, cryptocurrency, and forex trades. So, if you are a trader with an eye for other asset classes including bonds, real stocks, and futures, this broker is perhaps not for you.
With CMC Markets you have access to 8,000 stock CFDs and 1,000 ETF CFDs. CMC Markets charges a $0.02 commission per share for stock CFD trades. It's a similar story when it comes to non-trading fees as CMC Markets does not charge an account or deposit fee. Users can pick between its in-house developed trading platform Next Generation or the third-party platform MetaTrader 4.
The Nasdaq 100 index, otherwise referred to as the US Tech 100, is an index that is made up of 100 of the largest non-financial companies. These companies are listed on the NASDAQ stock exchange and are valued by their market capitalization. The constituents that make up the Nasdaq 100 index span across various industries such as computer engineering and biotechnology.
Investing in or trading the Nasdaq 100 index begins by choosing a top-rated and regulated broker. For this, we recommend eToro because you can trade without paying a penny in commission, and you can take advantage of its copy trading features. But more on this in the next section.
Simply put, the Nasdaq 100 is an index that tracks the performance of the biggest 100 non-financial companies in the United States. However, there are some key gaps between investing in and trading the US Tech 100 index.
Gaining exposure to the Nasdaq 100 index can be broken down into two areas:
One important note to bear in mind is that trading the Nasdaq 100 index through spread betting and CFDs is best suited to short-term investors whereas gaining exposure to the index through investing in shares and ETFs is best suited for long-term investors.
Cash indices allow active traders to speculate on the current market price of the US Tech 100. Cash indices are commonly used by short-term investors due to their tight spreads. It is important to remember that overnight fees are not built into the spreads, so closing your positions before the end of the trading hours may be a good idea to avoid overnight fees.
Index futures give traders the opportunity to speculate on the market price of the Nasdaq 100 at some point in the future. Trading index futures is a trading strategy that is typically used by long-term investors. This is due to the fact that the overnight fees are built into the spread. As a result of this, the spreads are somewhat wider in comparison to cash indices, however, you do not have to worry about overnight fees or closing your positions at the end of the trading day.
Investing is used as a means to gain returns from increasing price movements in the Nasdaq 100 index. Despite not being able to directly invest in the index itself, you can invest in shares of the 100 non-financial companies that make up the Nasdaq 100, or you could invest in ETFs.
Those who choose to invest in the Nasdaq 100 are required to offer the full value of the position as leverage is not provided for investment positions.
ETFs track the price of the underlying asset, which in this case is the Nasdaq 100 index. ETFs are typically made up of a variety of shares of the non-financial firms that constitute the Nasdaq 100 index. Therefore purchasing ETF shares will replicate the exposure you would expect to gain if you were to buy Nasdaq 100 shares.
Buying individual shares of stocks that make up the Nasdaq 100 is another effective way of gaining exposure to the index through investing. Every time you buy stocks, you take ownership of them. The most popular stocks that most investors focus on when it comes to gaining exposure to the Nasdaq 100 index are Apple and Microsoft stocks. The Nasdaq 100 is weighted by market capitalization, which therefore means that price movements of these large tech companies will have a greater influence and impact on the overall performance of the index.
Alternatively, investing in Nasdaq 100 tracker funds is an effective way of gaining exposure to the index. Much like index funds, tracker funds track the performance of the underlying index. Put simply, when you invest in Nasdaq 100 tracker funds, its value will depend on the price movements of the actual Nasdaq 100. Basically, when the price of the Nasdaq 100 index rises so does the value of the tracker fund.
Investing in or trading the Nasdaq 100 index is popular amongst the online investing community because it gives you exposure to the 100 largest non-financial companies that are also listed on the NASDAQ stock exchange. Furthermore, the US Tech 100 is amongst the most popular and widely tracked indices.
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Additionally, the Nasdaq 100 offers high levels of liquidity which are perfect for day traders who benefit from very tight spreads allowing them to open and close positions with inexpensive costs.
Now that you have a clear understanding of how to invest in or trade the Nasdaq 100 index and all the key metrics you need to bear in mind, it's time to take you through the starting process with a broker you can trust. We recommend eToro when it comes to trading and investing in the Nasdaq 100 as they are FCA-regulated and offer 100% commission-free trades on heaps of assets.
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Opening an account with eToro couldn’t be simpler, just head over to the eToro trading platform and click ‘Sign up’. You will then be prompted to enter your personal information including your National Insurance Number.
Part and parcel of being regulated by the FCA, a top-tier financial authority, is that you are required to confirm your identity and address with eToro. This is for added security as online phishing attempts and scams are becoming more common and more elaborate. The verification process is seamless and is fully digital. Simply upload a copy of your passport or driving licence accompanied by a bank statement or utility bill.
eToro then verifies the uploaded documents in a matter of minutes.
You are just one step away from trading the Nasdaq 100 index, all you need to do is fund your account. eToro supports a range of payment options including e-wallets, bank transfers, and credit or debit cards. Users who deposit with an e-wallet or credit/debit card find their funds in their accounts immediately. On the other hand, if you use a bank transfer the processing time is typically around 3 business days.
Navigate to the search bar and type in Nasdaq 100 or NSDQ100. Then click on the first option in the dropdown menu.
After you have funded your account and located the Nasdaq 100 index you want to invest in, simply click the trade button where you will be prompted to specify the investment amount, which is set to a minimum investment of just $200, confirm your choices, and press the open trade button.
Gaining exposure to the popular Nasdaq 100 index can be achieved by either investing in ETFs, stocks, or tracker funds or trading the index with cash indices or index futures. Nevertheless, with so many brokers out there, making the right decision can be difficult.
eToro also offers a paper trading account with an initial $100,000 worth of paper funds so you can experience trading the Nasdaq 100 without the risk of losing your real funds. Furthermore, you can also take a more passive approach to online investing through its Copy Trading features. Simply put, you can copy the trades of other experienced traders like-for-like.
Making the most of this investment opportunity requires you to pick the best broker and tradable instruments. From our reviews and analysis, eToro secures the top spot as the overall best commission-free social trading platform in 2023.
Built with new traders at its core, online trading has never been easier!
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The Nasdaq 100 or US Tech 100, as it is otherwise known, is an index that tracks the price movements and performance of the 100 biggest non-financial constituents, based on their market capitalization, that make up the index. These include Apple, Google, Intel, Microsoft, and Tesla just to mention a few of the most popular companies.
As the name suggests there are 100 companies that make up the index. Some of the largest companies, in terms of market capitalization, include Amazon.com Inc (AMZN), Alphabet Inc (GOOG), Facebook Inc (FB), Microsoft Corporation (MSFT), NVIDIA Corp (NVDA), Qualcomm, Inc (QCOM), etc.
The Nasdaq 100 index tracks the performance of the 100 largest non-financial companies that make up the index itself. The Nasdaq 100 is a market capitalization-weighted index, which means that the performance of the biggest firms will have a greater impact on the performance and price movements of the index as a whole.
Opening an account is free with eToro, and you can trade with 0% commission on stocks and other tradable assets. eToro offers some of the tightest spreads for cryptos and CFDs.
To start copy trading all you need to do is open an account and deposit funds. Then using the eToro search function simply look for the top-rated social traders and start copying their trades. eToro makes its money from the buy and sell spread. The best part is that whether you choose to use CopyTrader or simply do it yourself, the spreads stay the same.
Dassos Troullides is an experienced finance writer who specializes in CFD, stock, and crypto trading. He uses his experience and time spent in the forex industry to simplify complex financial topics for easy, informative reading. Dassos also writes for BuyShares.com, InsideBitcoins.com, LearnBonds.com, ForexCrunch.com, and EconomyWatch.com
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