Gaining exposure to the NYSE Composite index is a great way to diversify your portfolio. But, with so many trading platforms out there, picking the right broker can be overwhelming. In this guide, we review the best online brokers for the NYSE Composite in 2021 and beyond.
By the end, we show you how to take advantage of this unique trading opportunity and walk you through how to start your online trading journey with a trusted broker today!
AvaTrade – Best CFD Broker with Top-rated Research Tools
Robinhood – Best Discount Broker for US Stocks
Libertex – Best CFD Provider With Zero Spreads
Fidelity – Best US-based Broker for Commission-Free Stocks
TD Ameritrade – Best Trading Platform with Low Non-Trading Fees
Plus500 – Best Broker for Low Spreads on CFD trades
XM – Best Broker for Low Stock CFD Fees
Best Brokers for NYSE Reviewed
We spent the time and effort to review and compare the best free trading platforms to trade and invest in the NYSE Composite index so that you can choose the best one that suits your needs as a trader.
With this in mind, let’s kick start this guide with our top ten selection of the best brokers for trading stocks and ETFs in 2021 and beyond.
1. eToro – Overall Best Stock Trading Platform with 0% Commission
With such diversity nowadays, the online trading scene has become saturated with all kinds of brokers. Be that as it may, we had no second thoughts when picking eToro as our top-rated trading platform for the NYSE in 2021.
The social trading platform offers tons of tradable assets, a well-designed and easy-to-use platform, and is regulated by top-tier financial authorities including the UK’s Financial Conduct Authority. For these reasons and many more, eToro has become home to more than 20 million active traders.
With eToro you have access to more than 2,000 stocks from a range of different markets. Aside from the blue-chip stocks listed on the top stock exchanges including the NASDAQ, NYSE, and LSE, you can also buy and sell stocks listed on other international exchanges. Furthermore, this popular copy trading platform allows you to trade financial instruments without paying a penny in commission.
Simply put, eToro offers 100% commission-free stock and ETF trading, and for an added bonus there aren’t any annual maintenance fees. When it comes to low trading fees, the minimum stock trade is only $50, which means that you can create a diversified portfolio that replicates the performance of the NYSE Composite index with a $50 minimum per trade.
eToro secures the number one position in our review because it is designed with beginner traders in mind. The web trading platform and the mobile app are well-designed and user-friendly. This means that you can trade wherever you are with the click of a button. The search functionality is great, with relevant predictive suggestions and its ease of use, navigating your way around the platform is simple and easy.
Designed with beginner traders in mind
Trade stocks, ETFs, forex, and other tradable assets with 0% commission
67% of retail investor accounts lose money when trading CFDs with this provider.
2. Capital.com - Best Online Brokerage for US Shares
Providing real-time data that spans thousands of markets, Capital.com is one of the best indices and stockbrokers out there. From technical indicators to sophisticated charting tools, Capital.com has heaps of research and educational resources to help any trader, both beginner and experienced, reach their trading goals.
In addition to its commission-free offering and low trading fees, this trading platform is regulated by the top financial bodies including the UK’s FCA, the National Bank of the Republic of Belarus, and CySEC. In terms of investor protection, Capital.com offers negative balance protection. Capital.com traders have access to interactive charts, trading ideas via a third-party provider called Trading Central, and an economic calendar. Additionally, there are tons of educational services from a paper trading account to webinars and learning courses. On top of this, Capital.com users can pick from its web and desktop trading platforms or its mobile trading app which is compatible with both iOS and Android devices.
As for its selection of tradable assets and financial products, Capital.com has a wide range of stock CFDs and offers forex trading and 84 cryptocurrencies. On the flip side, it lacks other assets such as ETFs and funds.
Capital.com enables you to gain exposure to indices through ETF and CFD trading. Something worth noting here is that stamp duty taxes do not apply to CFD trades, which means that with low-cost investments you can open large positions.
Traders have access to industry-leading low spreads
Zero-commission with no hidden costs
Trade indices through ETFs and CFDs prompt larger positions
Low fees for CFD and forex trading
Low non-trading fees
Opening an account is easy, fully digital, and quick
Beginner and advanced traders can benefit from demo account and webinars
Regulated by CySEC and the FCA
Price alerts and push notifications not available on its web trading platform
71.2% of retail investor accounts lose money when trading CFDs with this provider.
3. IG - Best Stock Trading Platform for MetaTrader 4
Established in 1974, IG has a reputation as one of the largest CFD brokers in the financial sector. This UK-based trading platform is regulated by top-tier financial bodies including the FCA and BaFin. In addition to this, IG is listed on the LSE under the ticker symbol IGG and has a market cap of 3.50 billion pounds.
IG clients can access heaps of CFDs, forex, and options. For example, there are more than 10,000 stock CFDs to choose from. However, UK-based traders also have access to real stocks. If you are a trader with an eye for other popular financial instruments then you will be disappointed to find out that IG only offers CFDs, forex, options, and stocks.
Another feature that only UK-based clients have access to is IG Smart Portfolio which offers iShares ETF portfolios which are actively managed by the investment management company BlackRock. Simply put, this is a robo-advisory service that offers automatically managed discount portfolios.
When it comes to trading fees this varies depending on the country. For instance, certain countries have access to 0% commission on stock CFD trades, where as other countries incur low commission charges. IG traders can choose between its proprietary trading platform and MetaTrader 4.
MetaTrader 4 is a perfect match for more experienced investors who want to take advantage of a variety of technical indicators, screeners, and charting tools, in addition to using an automated trading robot.
FCA-regulated CFD and forex platform home to more than 200,000 traders
Offers MetaTrader 4 trading platform
Tight spreads averaged at 0.8 pips with 100% zero-commission
Web trading platform and mobile trading app available
4. AvaTrade - Best CFD Broker with Top-rated Research Tools
Regulated by a range of financial authorities including ASIC, the Central Bank of Ireland, and the Financial Futures Association of Japan, AvaTrade is a global CFD and forex broker.
AvaTrade is a great option for day traders looking to trade CFD assets as it provides market-leading tight spreads. For example, the majority of forex pairs can be traded with a spread of less than 1 pip.
AvaProtect is an innovative feature that AvaTrade offers. Simply put, AvaProtect is a hedge that you can purchase for a fixed price depending on the length of time you want your trade to be covered. In the event that you suffer losses on the trade, AvaTrade will compensate you. Something worth mentioning is that this industry-leading and the unique feature can only be used on market orders.
Currently, most brokers do not charge any commission for trading or investing. AvaTrade is no exception to this trend. Zero commission means that the trading platform of your choice will not charge a fee for executing buy and sell orders. As a result, the broker is compensated via the market bid and ask spread, which is the gap between the bid and ask price.
AvaTrade supports five base currencies. Hence, your options for obtaining other trading accounts in various currencies are rather limited. This means that you will face a conversion fee when making a deposit that is in a different currency than the one already in your trading account.
The account opening process is simple and easy
Low trading and non-trading fees
Plenty of research and charting tools available for advanced traders
No withdrawal fees
You cannot set price alerts or push notifications on the web trading platform
Launched in 2013, Robinhood is a US-based discount broker that is now home to more than 10 million traders. Regulated by top-level financial bodies including the US SEC and FINRA. Aside from the trading platform services, Robinhood also piloted the Cash Management system to allow its users to earn interest on dormant or uninvested funds. The uninvested funds are deposited with banks that are covered by the Federal Deposit Insurance Corporation.
For active traders with an eye for US stock and ETF trading, Robinhood is the perfect broker as it offers commission-free trades of these popular financial instruments. In addition, options and cryptocurrencies including Bitcoin trading are free from commission charges. So, Robinhood offers a cost-effective way to trade your favourite assets without paying a dime in commission.
Robinhood’s 100% zero-commission trading foundation is also reflected in its low non-trading fees with no account or inactivity fees. You can choose between three account types: Robinhood Instant, Robinhood Gold, and a Cash Account. There is no minimum deposit for the Instant account, but there is a $2,000 minimum deposit for the Gold account.
Earn 0.30% APY on your uninvested funds with Robinhood’s Cash Management
Regulated by the US SEC and FINRA
Mobile trading platform compatible with iOS and Android devices
US Stock and ETF trading is free
Low non-trading fees
No minimum deposits for Robinhood Instant accounts
Established in 1997, Libertex is a CFD broker with a global reputation for offering trades with zero spreads. Trading platforms across the industry charge spreads as a way of making money for providing their services. Simply put, the spread is the gap between the bid and ask price.
To further this idea, let’s say that the spread equals 0.5%. This would mean that you would need to make a minimum of 0.5% in returns just to break even. Having said this, the spread of the trade makes you open a position at a partial loss. Therefore, by offering trades on a zero spread basis, Libertex has changed the way we trade online.
On the flip side, while there are no spreads to pay for trading with Libertex there are commissions. The actual amount of commission depends on the tradable asset and market that you pick. For example, if you want to trade stock CFDs you will typically pay a 0.1% commission. When it comes to trading platforms Libertex offers a mobile trading app, a web trading platform, and the third-party platform MetaTrader 4 which is best suited for advanced traders who want to make use of the diverse charting tools and fundamental data features it offers.
For those of you who are just starting in the world of online trading, you can use the Libertex demo account. A demo account allows you to test and trial your investment strategy without the risk of losing your capital. Moreover, the Libertex demo account gives you $50,000 worth of paper funds to use at your discretion.
Trade CFDs and pay zero spreads
Competitive commissions for forex and stock trades
83% of retail investor accounts lose money when trading CFDs with this provider.
7. Fidelity - Best US-based Broker for Commission-Free Stocks
Fidelity is a US-based broker that was founded in 1946. It is regulated by top financial bodies including the US SEC and the FINRA. Fidelity offers zero commission on US stock and ETF trades. As well as its low trading costs, Fidelity provides heaps of research tools such as trading ideas for exchange-traded funds, stocks, and mutual funds. On the topic of researchtools, with Fidelity, you can set 50 different technical indicators with the option to save and download the charts.
Fidelity also tailors its experience for beginner traders. There is a paper trading demo account available on the desktop platform. Demo accounts offer a great way to experience online trading without having to worry about your volatility threshold. There are around 16 base currencies to choose from with Fidelity which means that you can avoid conversion fees. In terms of your deposit fees and payment options, Fidelity does not charge for deposits. On the other hand, you cannot deposit funds with a credit or debit card. Needless to say, you can use e-wallets like PayPal and bank transfers. Also, you might like to check out our Fidelity vs TD Ameritrade review for more details about these US-based brokers.
No deposit or withdrawal fees
Offers web and desktop platforms and mobile trading app
A user-friendly and well-designed interface
Heaps of order types to choose from
Wide range of price alerts and push notifications to stay in the loop about potential trading opportunities
Offers tons of tradable assets from stocks, ETFs, and bonds, to options and funds.
SEC and FINRA-regulated
Good selection of charting tools including 50 technical indicators
Customer support is not available 24/7
Paper trading account is only available on the desktop trading platform
8. TD Ameritrade - Best Trading Platform with Low Non-Trading Fees
TD Ameritrade is a US-based broker that was established in 1975. Since then it has become one of the largest industry-leading brokers out there. In terms of the fundamentals, it is regulated by top-level financial bodies including FINRA, the CFTC, and the SEC.
TD Ameritrade clients have access to free ETF and stock trading, with low trading fees for other popular products such as forex, bonds, and options. If you have a preference for trading stocks on margin then you should consider TD Ameritrade’s annual margin rates. So what is a margin rate? In short, when you trade on margin, you are essentially trading with money that you have loaned from the broker to make a trade. With these borrowed funds you will be charged interest, or in financial trading terms a margin rate. As such, TD Ameritrade charges a 9.5% annual margin rate.
In regards to the types of tradable assets on offer at TD Ameritrade, you can take your pick from stocks and ETFs to cryptocurrencies and futures. Additionally, you can access social trading through its desktop trading platform called Thinkorswim. Social trading gives users the ability to interact and communicate with other traders on the platform. Also, if you are looking for a more passive approach to trading TD Ameritrade offers a managed portfolio called Essential Portfolios which is a robo-advisory service. But, there is a $500 minimum deposit to start an Essential Portfolio.
The paperMoney demo account, or paper trading account is designed with new traders in mind. This is accessible via the Thinkorswim desktop trading platform and gives users access to a wide variety of advanced trading and charting tools allowing you to test your trades free from the risk of losing real funds. When you open a paperMoney account you start with a $100,000 default amount of paper funds.
PaperMoney demo account available on the Thinkorswim desktop trading platform
Paper trading starts with $100,000 worth of virtual funds
Free stock and ETF trading
Low non-trading fees
Wide variety of account types to choose from
Account opening is user-friendly and fully digital
No minimum deposit required
Web and desktop trading platforms offer loads of assets and tons of research tools and fundamental data
Two mobile trading apps are available, both compatible with Apple and Android devices.
TD Ameritrade mobile is better suited for beginner traders and Thinkorswim Mobile Trader is a better match for more advanced investors and traders
Clients have access to social trading through the Thinkorswim platform.
Regulated by the SEC, FINRA, MAS, and the CFTC
Clients are covered by the SIPC
TD Ameritrade is listed on the NASDAQ stock exchange
Negative balance protection is not provided
E-wallets and credit/debit cards are not available deposit options
9. Plus500 - Best Broker for Low Spreads on CFD Trades
Plus500 is a trusted CFD broker which is regulated by top financial authorities including the FCA, FMA, ASIC, ISA, and many more. In terms of security and protection, Plus500 offers negative balance protection for trading CFDs, however only EU-based retail customers are covered by this protection. In short, negative balance protection covers you if your account balance goes into the negatives.
According to Plus500, scalping occurs when day traders open and close a position within 2 minutes as a way of making a profit from acute price fluctuations. As such, if you are deemed to be using scalping tactics your account could be barred. So, if day trading is your preferred trading method then Plus500 may not be the best choice for you.
With regards to trading fees, Plus500 has competitive fees when compared to its competitors. Seeing as it is a CFD broker it would make sense to examine those first. You will not pay any commission for CFD trading, but the costs are included in the spread. At Plus500 you can only trade with CFDs, nevertheless, the selection is very broad. Plus500 offers everything from stock CFDs and stock index CFDs to crypto CFDs and ETF CFDs.
Plus500 keeps it very simple when it comes to account types as it only offers a Retail account. However, you can submit an application for a Professional account provided that you meet certain criteria. These include having a financial instrument portfolio greater than $500,000 and having extensive experience in the financial services industry.
Great market analysis and charting tools
0% commission as the costs are built into the spread
Low non-trading fees including no deposit or account fees
Account opening is fast, fully digital, and has a low minimum deposit of $100 for e-wallets and credit/debit cards
There is a minimum deposit of $300 for bank transfers
Plus500 does not charge deposit fees
Deposit options include e-wallets (PayPal and Skrill), bank transfers, credit and debit cards
The mobile trading app is supported by Apple, Android, and Windows devices
You can set various alerts and push notifications as well as email and SMS alerts
XM is an online broker which is owned by the CFD and forex broker Trading Point Holding. XM falls under the regulation of CySEC, the IFSC, and the Australian Securities and Investments Commission, or ASIC for short.
This trading platform provides around 60 forex pairs and over 1,000 CFDs, in addition to zero-commission account options. One of XM’s most attractive features is that it allows its clients to use the full MetaTrader suite, which gives you access to automated trading, advanced charting tools, and technical indicators, and much more.
Although XM is primarily a forex broker, it has also gained a strong reputation as a stock broker. You can pick and choose from more than 1,200 stock contracts for difference (CFDs) with a leverage up to 20:1. There are heaps of stocks as XM covers markets from the US, UK, Europe, and others. On the flip side, this broker does not offer popular trading instruments such as ETFs, options, and bonds.
0% for US shares. Trading spread bets and CFDs 0.10% min commission
$50 per 3 months after 3 months
0.13%- 0.15% average
0.13% for NYSE stock
$12 per month after 180 days (if funds are less than $10,000
Commission varies depending on the market’s current spread level
0.1% - 0.2%
0.0251 % for Nasdaq 100 index CFD
$49.95 transaction fee
$10 per 3 months after 3 months
Tight spreads - e.g iShares UK 100 spread = 1
Tight spreads - e.g AAPL stock spread = 0.99
4.16 spread for NYSE FANG+ Index futures CFD
$15 one-off fee after 1 year then $5 per month
Cash CFDs stocks - spread as low as 0.49
Spreads as low as 2
What is the NYSE Composite Index?
The NYSE Composite Index tracks the performance of all New York Stock Exchange-listed stocks, as well as ADRs (American Depositary Receipts) given by companies outside the US, tracking stocks, and REITs (Real Estate Investment Trusts). The NYSE Composite Index is market-weighted which means that the companies that make up the index are included based on their market capitalization. The New York Stock Exchange lists over 2,000 companies, and a large proportion of that figure is made up of international companies.
Ways to Trade and Invest in NYSE
The NYSE Composite Index is one of the most popular indexes in the US as it offers heaps of opportunities for both beginner and advanced traders and investors alike. In this section, you’ll learn how to gain exposure to the NYSE price movements through ETFs, individual stocks, cash indices, index futures.
If you are interested in opening a position on the NYSE Composite, here are a few simple steps you should follow.
Firstly, you will need to pick between trading or investing. Gaining exposure to the NYSE Composite can be achieved in two ways. You could trade on the index’s value or you could invest in ETFs and shares.
Before taking a position on the NYSE Composite you need to determine if you prefer short or long-term investments.
With this said you can trade or invest in the NYSE Composite Index by trading spread bets and CFDs or purchasing exchange-traded funds and individual shares of stock that make up the underlying index.
Trade the NYSE Composite with Cash Indices
Trading cash indices involves dealing at the current price of the market. Cash indices are typically sought-after by those who prefer short-term trades since they provide the lowest spreads. Nevertheless, by keeping your cash index positions open overnight, you will incur a funding fee.
Trade the NYSE Composite with Index Futures
Trading index futures involves agreeing to trade the chosen index at a specified price on a specified date. Index futures are favored amongst long-term traders as overnight fees are built into the spread which means you can hold positions for long periods without being charged overnight fees. Index futures give you access to a wide range of markets, indices, shares, and currency pairs.
Invest in the NYSE Composite with ETFs
In short, by investing in an NYSE Composite Index ETF, you spread your investment across all companies that make up the index itself. The most popular form is a weighted tracker which replicates the performance of the underlying index. An example of a popular NYSE Composite ETF is the iShares NYSE Composite Index Fund ETF.
Invest in the NYSE Composite with Stocks
Alternatively, you can invest directly in the companies that make up the NYSE Composite, with the intention of selling them for a profit later on. NYSE Composite stocks are popular within the investing community due to their high returns. Examples of NYSE Composite stocks include Alibaba Group Holding Ltd under the ticker symbol BABA, American Express (AXP), Herbalife Nutrition Ltd (HLF), Morgan Stanley (MS).
NYSE Composite tracker funds
There is also the option of investing in NYSE Composite tracker funds to gain exposure to the index. Much like index funds, tracker funds monitor the performance and price movements of the underlying index. In simple terms, when you invest in NYSE Composite tracker funds, the value will rest heavily upon the price movements of the actual NYSE index. Basically, when the price of the NYSE Composite index rises so will the value of the tracker fund.
Why Trade or Invest in the NYSE Composite?
Bearing in mind that the combined market cap for the top four NYSE Composite stocks alone is estimated to be around the sum of $2 trillion, the NYSE Composite index can be a great investment. However, this depends on a range of factors from the health and performance of the global and US economies, to recent developments with the coronavirus pandemic and how the rollout of an effective vaccine could bring back some sense of normal to business and consumer sentiment. The NYSE Composite is made up of the largest companies in the world which means they are most likely to be unmoved in the midst of market volatility. But, if bearish sentiments overwhelm the markets then all indices including the NYSE Composite will feel the effects.
The NYSE Composite lists over 2,400 companies, including international ones which make up approximately 33% of the total market cap. This means that if you choose to invest in individual shares of companies that constitute the NYSE Composite then you can easily diversify your investment portfolio with shares of NYSE listed companies that meet stringent listing regulations and criteria.
In summary, the two most prominent reasons why investors and traders choose the NYSE Composite Index is because:
It has a high-quality reputation as all the companies that make up the index need to meet the strict listing criteria as set out by the New York Stock Exchange itself.
The diversification that it offers is highly desirable for investment portfolios especially as one-third of the index’s constituents are based outside the United States.
How to Get Started with a NYSE Composite Broker
In this part of our guide, we will walk you through the process of how to start investing in or trading the NYSE Composite with eToro, our top-recommended broker for 2021. The social trading platform is regulated by top-tier financial authorities and provides trading on a zero-commission basis.
67% of retail investor accounts lose money when trading CFDs with this provider.
Step 2: Upload Your ID and Proof of Address
As eToro is regulated by top-level financial authorities including the UK’s Financial Conduct Authority you will be required to verify both your address and identity to withhold high levels of compliance and standards. You can upload a copy of your passport or ID card and a utility bill dated within the last six months.
Step 3: Deposit Funds into Your eToro Account
Depositing money into your eToro account is free, easy, and available with a wide range of options. These include via bank transfer, credit or debit cards, e-wallets including PayPal, Neteller, China UnionPay, Skrill, and more. A bank transfer typically takes around 4-7 working days, on the other hand, credit/debit card and e-wallet deposits are processed immediately.
Step 4: Search for NYSE Composite Stocks to Invest in
eToro has a wide variety of tradable assets on offer with 100% zero-commission trading. Simply click on the search bar and type in the name or ticker symbol of the stock you wish to invest in. For this tutorial, we have chosen Alibaba.
67% of retail investor accounts lose money when trading CFDs with this provider.
Step 5: Place Your Trade
After you have picked your NYSE Composite stocks click on the trade button. Then the trading ticket will give you the ability to specify the exact amount you wish to invest, the leverage amount, and place order types such as stop loss. If there are any overnight fees to hold the position open after the end of the trading day then they will be displayed on the ticket itself.
All that’s left is to click on Open Trade and you will have invested in your chosen asset.
Throughout this guide, we have reviewed and examined 10 of the best brokers for trading and investing in the NYSE Composite Index, and we have gone through how you can either trade or invest in the index. As the coronavirus pandemic loosens its grip over the global economy and business sentiment, companies are beginning to plan for the long-term.
The NYSE Composite Index is home to a wide variety of companies some of which are based outside the US. Whether you decide to trade or invest in the NYSE Composite you will find it is a hugely diversified index with plenty of potentials to yield profits.
What’s more, to do all of this you will need to choose a top-rated, trusted, and competent broker. We recommend eToro for this as it is not only designed with beginner traders at the forefront of its services but it also provides great Copy Trading tools to help you learn from advanced traders before you step into the world of online trading alone.
Opening an account is quick and easy, and the best part is you won’t pay a penny in commission!
eToro – Invest in NYSE Stocks – 100% Commission-Free
67% of retail investor accounts lose money when trading CFDs with this provider.
What is the NYSE Composite index?
The NYSE Composite is a stock market index that is made up of more than 2,000 companies listed on the New York Stock Exchange. About one-third of those constituents are international companies. In addition, the top four largest companies that make up the index have a combined market capitalization of approximately $2 trillion.
How do you track the NYSE Composite?
You can track the performance of the NYSE Composite index by investing in ETFs such as the iShares NYSE Composite Index Fund. Alternatively, you could also invest in NYSE Composite tracker funds.
What does the NYSE Composite measure?
The NYSE Composite tracks and measures the performance and price movements of all stocks that are listed on the New York Stock Exchange. Did you know that the four top companies that make up the index have a combined market capitalization of around $2 trillion? What’s more, around 33% of the stocks that make up the NYSE Composite are international companies.
What is the NYSE FANG index?
The NYSE FANG+ is an index that allows traders and investors to gain exposure to the world’s most traded and largest tech companies. Most investors use futures and options contracts to diversify their investment portfolios but also gain direct exposure to this influential collection of industry-leading stocks in a cost-efficient way. These tech giants include Facebook, Alibaba, Apple, Baidu, Amazon, NVIDIA, Netflix, Tesla, Google, and Twitter.
What is the NYSE Bitcoin index?
The NYSE Bitcoin index measures the performance and value of the digital currency Bitcoin in USD. The index is calculated with data from the following exchanges; itBit and GDAX. However, for Bitcoin transactions to be included in the index they have to have been made in US Dollars.
Dassos Troullides is an experienced finance writer who specializes in ETF, stock, and crypto trading. In particular, Dassos is skilled at breaking down complex financial topics to help new and advanced investors make better trading decisions. Dassos has also written for BuyShares as well as TradingPlatforms.