71.2% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. 71.2% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider.
The Volatility 75 index, or VIX, is also known as the ‘fear gauge’ of the US stock market. South African traders can trade the Volatility 75 index to speculate on whether market volatility will increase or decrease in the future. In this guide, we’ll highlight the 10 best Volatility 75 index brokers South Africa for 2021.
71% of retail investor accounts lose money when trading CFDs with this provider.
Fees per trade
0.05 - 2%
0.13 - 0.36%
Best Volatility 75 Index Brokers South Africa Reviewed
Let’s take a closer look at our Volatility 75 index brokers list and highlight what makes these 10 brokers stand out.
1. Capital.com – Best VIX Trading Platform for New Traders
Capital.com is one of the best Volatility 75 brokers for traders who are just getting started with volatility trading. The broker offers a wide range of educational resources, including video tutorials and guides. Capital.com even has a dedicated mobile app for new traders that covers everything you need to know about CFD trading and risk management.
Even though Capital.com has resources for beginner traders, it’s charting and trading platform is anything but basic. You get access to dozens of technical indicators and drawing tools as well as a market news feed. The platform supports risk management tools like limit, stop-loss, and trailing stop orders for VIX trading.
Unfortunately, Capital.com has some of the highest spreads we’ve found among South African brokers with Volatility 75 index trading. The broker charges 7.5 pips, which is equivalent to around 3% of your trade value. On the bright side, Capital.com never charges deposit, withdrawal, or inactivity fees.
Capital.com is regulated by the Cyprus Securities and Exchange Commission (CySEC). The broker has exceptional 24/7 customer support and you can get in touch by phone, email, or live chat.
2. AvaTrade - Best MT4 and MT5 Broker with Volatility 75 Index
AvaTrade is one of the top South African brokers if you want to use MetaTrader 4 or MetaTrader 5 as your trading platform. The broker provides integrations with both, as well as its own custom Webtrader platform and AvaOptions platform (for forex trading only). With MT4 and MT5, you can deploy trading signals, automate your VIX trading strategy, or even develop custom technical indicators. On top of all of that, it is also notably the best no deposit bonus brokers as they give you a $50 bonus upon signing up!
Notably, AvaTrade also offers its own social trading network called AvaSocial. This is only available on mobile (for iOS and Android) and enables you to share ideas easily with other traders. AvaSocial also supports copy trading, so you can mimic the moves of more experienced volatility traders.
AvaTrade offers leverage up to 20:1 for professional traders and 5:1 for retail traders. There’s no commission for trading the Volatility 75 index, and the broker has an industry-leading spread of 0.75 pips (around 0.15% of your trade value). Just be sure to watch out for the inactivity fee, which is a pricey 750 ZAR after 3 months without trading.
AvaTrade is regulated by the Central Bank of Ireland and the Financial Sector Conduct Authority (FSCA) in South Africa. The broker offers 24/5 customer support by phone, email, and live chat.
Supports MT4 and MT5 integrations
AvaSocial platform offers a mobile social trading network
3. Plus500 - Trade the Volatility 75 Index with Leverage up to 20:1
Plus500 is another South African broker that offers a lot for traders who want to speculate on the Volatility 75 index. The broker offers commission-free CFD trading and leverage up to 20:1 for retail trading accounts. On top of that, Plus500’s spreads start at just 3.0 pips, or around 1.17% per trade.
Plus500 offers its own comprehensive trading platform that includes dozens of technical indicators and drawing tools to help you time the market. The platform also includes a market news feed, economic calendar, and a sentiment gauge that allows you to see whether traders are buying or selling the Volatility 75 index.
The trading platform also offers a number of helpful tools like price alerts and guaranteed stop losses to manage your risk. However, experienced traders will want to note that Plus500 doesn’t support trading signals or enable you to create your own custom indicators.
Plus500 is regulated by the UK’s FCA and all client funds are kept in a segregated bank account. The broker offers 24/5 customer support.
Trade VIX with leverage up to 20:1
Low spreads for Volatility 75 trading
Custom trading platform with dozens of indicators
Supports guaranteed stop losses
24/5 customer support
Doesn’t support trading signals or custom indicators
4. IG - Best Volatility 75 Index Broker for Experienced Traders
IG is a globally renowned brokerage platform that offers advanced trading platforms for experienced traders. The broker has its own trading platform that offers customisable charts, a news feed, economic calendar, and dozens of technical indicators. You can also use MetaTrader 4, which supports automated trading, as well as the popular ProRealTime platform.
IG account holders get access to a wealth of analysis tools, too. You can analyse your past trades to spot patterns and identity ways to improve your profitability. IG also has tools to help you hone your swing trading and risk management plans. The broker even offers custom trading signals developed through Autochartist.
Another benefit to trading the Volatility 75 index with IG is that spreads at this broker start at 0 pips. That means that you’ll pay no commission and no spread, although IG’s overnight fees can be pricey. Plus, you can trade with leverage up to 5:1.
IG is regulated by the UK’s FCA. The broker offers 24/5 customer support by phone, email, and live chat.
Trade with IG’s custom platform, ProRealTime, or MT4
5. Pepperstone - Best cTrader Broker for Volatility 75 Index Trading
If you’re interested in using cTrader as your trading platform for Volatility 75 trading, Pepperstone is one of the best options in South Africa. The cTrader trading platform offers more than 70 technical indicators, automation features, algorithmic trading, and mobile apps for iOS and Android. So, it’s perfect for advanced South African traders who want the ability to capitalise on small price movements in the VIX. Pepperstone also integrates with MT4 and MT5.
Pepperstone offers both CFD trading and spread betting on the Volatility 75 index, with spreads from as low as 0.16 pips. Retail traders can trade on margin up to 10:1, while professional traders can access up to 50:1 leverage.
All trades with Pepperstone are executed in under 30 milliseconds, which can help you stay one step ahead of the market when trading volume is high. Plus, the broker offers a dedicated VPS (virtual private server), which can be very helpful for high-frequency trading strategies. Pepperstone includes access to Autochartist and Myfxbook, which include tools like trading signals and social networking.
Pepperstone is regulated by the UK’s FCA as well as by regulators in Australia, Cyprus, and Dubai. The broker offers 24/7 customer support by phone, email, and live chat.
6. Saxo Bank - Best Volatility 75 Index Trading Platform for Professionals
If you’re a professional trader, Saxo Bank offers one of the most comprehensive trading suites in South Africa. This broker’s custom analysis platform, called SaxoBankGO, is available for both web and mobile. It includes a built-in market screener, in-depth research reports from Saxo Bank analysts, watchlists, alerts, and more.
An important thing to note about trading the VIX with Saxo Bank is that you must have a professional trading account to access this instrument. Keep in mind that this waives some investor protections that are available to retail traders in South Africa. The bank requires a 150,000 ZAR minimum deposit, but it is one of the forex brokers with ZAR base currency.
Saxo Bank doesn’t disclose how much it charges for volatility trading unless you have a professional account, which makes it difficult to compare this brokerage against other options. However, Saxo Bank does offer leverage up to 40:1 when volatility trading, and professional traders can use securities as collateral for volatility trades made on margin.
Saxo Bank is based in Denmark and is regulated in both Denmark and the UK. The broker only offers customer support during market hours from Monday to Friday. Saxo Bank is a licensed bank in addition to a brokerage firm.
Advanced SaxoBankGO trading platform
Access research reports from professional analysts
Leverage up to 40:1
Accepts ZAR as base currency
Regulated in Denmark and the UK
Must have a professional account to trade the Volatility 75 index
7. XTB - Seamless Volatility 75 Index Trading with Customisable Platform
XTB is a commission-free CFD broker in South Africa that makes it as seamless as possible to start trading the Volatility 75 index. With this broker, you can trade the VIX with leverage up to 67:1 and spreads of just 0.2 pips. That makes XTB one of the lowest-cost, highest-margin brokers with the Volatility 75 index in South Africa.
This brokerage offers its own trading platform, called xStation 5, and does not support platforms like MT4 or MT5. xStation 5 is available for web, desktop, and mobile, and the platform offers fast execution speeds and plenty of customisation options. You can access dozens of technical indicators, as well as set up watchlists and monitor the market with price alerts.
XTB offers a market news feed and economic calendar, as well as a sentiment gauge so you can see where other traders think the Volatility 75 index is headed. However, this broker might not be the best option for highly experienced traders because it doesn’t allow you to set up trading signals or to automate your trading strategy.
XTB offers 24/7 customer support. The broker has been in business for over 15 years and is regulated by the UK FCA and CySEC.
8. IC Markets - Trade Volatility 75 Index with Raw Spreads
IC Markets is another comprehensive South African broker that offers trading on the Volatility 75 Index. One of the best things about this broker is that it offers a wide range of account types to meet the needs of different traders. You can use a basic CFD trading account, combine a raw spread account with MT4 for discounted rates, or access raw spreads using the cTrader platform.
Typical spreads at IC Markets for the VIX start at 0.6 pips, which is highly competitive. If you choose to use raw spreads with MT4 or cTrader, you will also pay a small, variable commission that depends on the size of your trade.
In addition to MT4 and cTrader, IC Markets gives traders access to Myfxbook and to ZuluTrade. Both of these platforms include social trading networks, so you can connect with other volatility traders from around the world and keep a close eye on market sentiment. IC Markets also has VPS servers available for high-frequency trading.
IC Markets is regulated by CySEC and the Australian Securities and Investments Commission (ASIC). The broker offers 24/7 customer support by phone, email, and live chat.
9. CMC Markets - Best Mobile Platform for Volatility 75 Index Trading
CMC Markets is a global CFD and spread betting platform that offers trading on over 10,000 instruments, including the Volatility 75 index. The broker can be somewhat expensive, with minimum spreads for VIX contracts starting at 8 pips. In addition, CMC Markets only offers leverage up to 5:1.
That said, the high pricing may be worth it for CMC Market’s custom Next Generation trading platform. This incredibly comprehensive platform, available for web and mobile devices, offers 12 different types of price charts as well as 115 technical indicators and drawing tools. It also includes a built-in social network so you can share ideas with other traders.
Even better is Next Generation’s use of AI. The software will automatically recognize patterns in your charts, helping you to identify setups in real-time. This is especially helpful for day trading the Volatility 75 index, which can move quickly and may not conform perfectly to trading strategies designed for stock indices.
CMC Markets is regulated by the UK’s FCA. All client funds are held in a segregated account for extra financial security. The broker offers fast support by phone, email, and live chat 24/5.
Next Generation trading platform includes 115 indicators
Mobile apps using Next Generation platform for iOS and Android
The Volatility 75 index, also known as the VIX, is a special index created by the Chicago Board of Exchange (CBOE) to track volatility in the S&P 500. The S&P 500 tracks the 500 largest companies in the US stock market including stocks from the NYSE and NASDAQ, and as such is one of the most widely watched and traded indices in the world. This being said, you may also want to look at the best brokers with NASDAQ to diversify your portfolio. Volatility in the S&P 500 can have a big effect on global markets
The Volatility 75 index is often referred to as the ‘fear gauge’ of the US stock market. If the VIX has a value over 30, then the stock market is highly volatile and there is a high degree of selling happening. If the Volatility 75 index is less than 30, then this indicates that price trends are stable.
The Volatility 75 index is calculated in real-time during US market hours, so it changes in value throughout the trading day just like other indices. The value of the VIX is based on implied volatility from futures contracts around the S&P 500 index.
Why Should I Trade the Volatility 75 Index?
There are two main reasons that traders buy and sell the Volatility 75 index.
The first is to profit from changes in volatility in the stock market. The best Volatility 75 index brokers South Africa, enable you to speculate on whether the VIX will rise or fall. So, you can turn a profit by trading on how volatile the market will be instead of speculating about whether it will go up or down.
The second reason traders use the Volatility 75 index is to hedge their positions. Typically, the value of the VIX rises when traders are selling and the market is dropping. So, if you hold both stock positions and a position in the VIX, the rise in the value of your VIX position can help offset losses from your stock positions
Volatility 75 Index Trading Strategies
Trading the Volatility 75 index can be complex, even for experienced stock traders. Since the VIX is based on implied volatility in options contracts and not on supply and demand, the value of the VIX can move counterintuitively to the price of the S&P 500 index at times.
Still, you can use some of the same technical analysis tools as for stock trading to develop Volatility 75 index trading strategies.
For example, one popular strategy uses Bollinger Bands, which create an envelope around the value of the VIX over time. When the Volatility 75 index touches the bottom band, it is likely to bounce upward back into the envelope. So, this is a good time to buy the index. When the Volatility 75 index touches the top band, it is likely to bounce downwards and this is a good opportunity to sell.
Another strategy looks at moving averages to detect changes in the direction of the Volatility 75 index. When a short-term moving average crosses above or below a longer-term moving average, it indicates a reversal in the VIX index. This reversal offers an opportunity for swing trading.
How to Trade Volatility 75 Index on Capital.com
Ready to trade the Volatility 75 index in South Africa? We’ll show you how to get started using Capital, our pick for the overall best broker with the Volatility 75 index.
Step 1: Create an Account
To begin, you will need to create a new account with Capital. Head to the broker’s website and click ‘Join Now, then ’enter your name and email to create a new account. You can also sign up using your Google or Facebook login information.
Step 2: Verify Your Identity
Capital requires you to verify your identity in order to comply with financial regulations. You can complete this step online by uploading a copy of your driver’s license or the photo page of your passport. You will also need to upload a copy of a recent utility bill or bank statement.
Step 3: Fund Your Account
Before you can start trading, you must add funds to your Capital account. You can pay by credit card, debit card, bank transfer, PayPal, Neteller, or Skrill. Capital requires a 330 ZAR minimum deposit.
Step 4: Trade the Volatility 75 Index
Now you’re ready to trade the Volatility 75 index with Capital. From your account dashboard, search ‘VXX,’ which is an exchange-traded note that tracks the VIX. Click on the instrument when it appears and then click ‘Trade’ to open a new order form.
Enter the amount of money you want to trade (you must trade at least 750 ZAR). Then select how much leverage you want to apply to your trade and select a stop-loss price and take-profit price according to your trading strategy.
When your trade is ready, click ‘Open Trade’ to execute your order.
Best Volatility 75 Index Brokers South Africa - Conclusion
The Volatility 75 index tracks volatility in the US stock market and is frequently referred to as the market’s ‘fear gauge.’ By using one of the trading platforms in our best Volatility 75 index brokers South Africa list, you can speculate on the VIX to profit from uncertainty or hedge your existing stock positions.
Ready to start trading the Volatility 75 index? Click the link below to get started with Capital, one of the best Volatility 75 brokers in South Africa.
Capital - Best Volatility 75 Index Broker in South Africa
67% of retail investor accounts lose money when trading CFDs with this provider.
Does XM have Volatility 75 index?
No, XM does not offer trading on the Volatility 75 index.
What moves Volatility 75 index?
The Volatility 75 index moves in response to the pace of buying and selling action in the S&P 500. Typically, when the pace of selling in the US stock market increases (the market drops), the Volatility 75 index increases as well.
Is the VIX the same as the Volatility 75 index?
The Volatility 75 index is often abbreviated as VIX. The two names represent the same index.
Can I buy the Volatility 75 index through an ETF?
Some brokers offer trading on exchange-traded notes (ETNs) that track the VIX. However, most South African brokers that offer trading on the Volatility 75 Index offer CFDs because they offer more liquidity and leverage.
Can I speculate on volatility in the NASDAQ?
The Volatility 75 index tracks volatility in the S&P 500 index, which includes stocks from both the NYSE and NASDAQ exchanges. The CBOE Nasdaq Volatility Index specifically tracks the volatility of the NASDAQ 100, but this index is not offered by most South African brokers.