HERE IS A LIST OF FOREX BROKERS THAT PROVIDE ACCESS TO USDX
Forex Brokers With U.S. Dollar Index
In the online trading space, the US Dollar Index is one of the most important assets for investors to trade. This index serves as a benchmark of the value of the US Dollar in relation to a select few foreign currencies. Forex brokers play a crucial role in facilitating trading of the US Dollar by providing platforms and tools for traders to capitalise on its movements. However, selecting the right broker to trade with is a crucial step for any investor. In this review, we are going to take a look at some of the best forex brokers with the US Dollar Index. But before we look at the individual brokers, let’s gain a better understanding of what the US Dollar Index is.
Understanding the U.S. Dollar Index
The US Dollar index is the value of the US Dollar in relation to a basket of a few foreign currencies. Currently, the Dollar index is calculated by pitting the US Dollar against six different foreign currencies. These currencies include the Euro, the Japanese Yen, the Great British Pound, the Canadian Dollar, the Swedish Krona, and the Swiss Franc. Each of these currencies contributes a small part of the index with the Euro making up for the largest part at 57.6%. Below is a summary of the percentages each currency contributes:
Euro (EUR) - The largest component, comprising 57.6% of the index.
Japanese Yen (JPY) - Accounts for 13.6% of the index.
British Pound (GBP) - Makes up 11.9% of the index.
Canadian Dollar (CAD) - Represents 9.1% of the index.
Swedish Krona (SEK) - Holds a 4.2% weight in the index.
Swiss Franc (CHF) - Constitutes 3.6% of the index.
Now that we have some understanding of what this index is, let’s take a look at some of the best brokers that offer it. So here are some forex brokers with the US dollar index.
Best Forex Brokers With U.S. Dollar Index
HFM
HFM is a global forex and CFDs broker, boasting over 2.5 million trading accounts worldwide. This broker offers its traders the opportunity to invest in more than 1,000 diverse market products. Among these products are a variety of indices, including the US Dollar Index. This index on this broker site is availed as a futures CFD under the ticker USDIndex.
When trading the US Dollar index on HFM, the spreads start from as low as 0.04 on all its accounts. On another note, this asset is available to trade on HFM from Mondays at 03:05:00 to Fridays at 23:57:59 with no daily breaks.
Beyond the US Dollar Index, traders have access to forex, ETFs, metals, other indices, stocks, energies, commodities, and bonds. The trading platforms available to use in trading include MetaTrader 4, MetaTrader 5, and the HFM Trading Platform.
Finally, this broker is under the regulation of a variety of financial institutions. These include the CMA in Kenya, the FCA in the UK, the FSCA in South Africa, and the CySEC in Cyprus. This string regulatory background is one of the reasons why HFM is one of the best forex brokers with the US Dollar Index.
Exness
Exness is one of the most popular online brokers in the world today. This broker offers its traders a wide selection of trading instruments including CFDs on the US Dollar index. On this trading site, the US Dollar index is available under the ticker, DXY. It is available to trade from Sunday 21:05 to Friday 20:59. The spreads involved when trading depends on the account that a trader chooses to use.
On the standard account, DXY is available to trade with average spreads as low as 0.061 with no commission required. In contrast, the pro account features average spreads as low as 0.039 for this index with no commission required. On the other hand, the zero account allows investors to trade this index with average spreads as low as 0.019 plus a commission of $7.75 per side per lot. Finally, the raw spread account offers average spreads as low as 0.028 on the US Dollar index with a commission of $3 per side per lot.
Other than the US Dollar index, this broker also avails over 250 other market products to invest in. This ensures that traders can comfortably diversify their portfolios. The trading instruments available to traders include CFDs on forex, other indices, stocks, commodities, and cryptocurrencies. The trading platforms available to use include MetaTrader 4, MetaTrader 5, Exness Terminal, and the Exness Trade App.
On another good note, Exness is a regulated broker in multiple jurisdictions. In particular, this broker operates under the regulation and authorisation of the FCA in the UK, the CySEC in Cyprus, the FSCA in South Africa, and the CMA in Kenya, among others.
XM.com
XM.com stands out as a platform for trading CFDs on the Dollar Index (USDX) due to its cost-effective features. For starters, XM offers commission-free trading on the USDX. On top of that, the broker boasts tight spreads, which can go as low as 0.05 in quote currency. Tighter spreads translate to lower trading costs. Finally, XM features low-margin requirements for the USDX. however, it's important to note that these margin requirements can vary depending on your location.
XM empowers traders with a robust selection of trading platforms. The industry-leading MetaTrader 4 and MetaTrader 5 software are both available. They provide access to a vast array of charting tools for in-depth market analysis. However, the benefits go beyond platform choice.
XM boasts a massive selection of over 1,000 tradable instruments in eight main categories. These include CFDs on forex, energies, commodities, stocks, and other indices. Finally, XM is regulated by the FCA in the UK, the FSC in Belize, and the ASIC in Australia.
Pepperstone
Pepperstone was launched in Australia in the year 2010 and quickly grew to become one of the most respected online brokers in the market. Pepperstone offers the US Dollar Index (USDX) alongside a diverse selection of other CFD tradable assets. Notably, the spreads on the US Dollar index are somewhat high averaging 0.06.
As we mentioned, the market products that this broker offers go beyond just indices. The platform boasts a wide selection of CFDs on forex, indices, commodities, ETFs, shares, and cryptocurrencies. This extensive selection allows traders to diversify their portfolios, regardless of whether the Dollar Index is their primary focus. The trading platforms available to use include MetaTrader 4, MetaTrader 5, cTrader, TradingView, and Pepperstone Trading Platform.
Pepperstone operates under the strict regulations of multiple financial authorities. This includes the CMA in Kenya, the FCA in the UK, the ASIC in Australia, and the DFSA in the DIFC, among others. This extensive regulatory oversight positions Pepperstone as one of the most trusted brokers offering the US Dollar index.
FP Markets
Another reputable CFD broker to trade the US Dollar index on is FP Markets. This broker allows its investors to access over 10,000 different market products including forex currency pairs and CFDs on indices, commodities, shares, metals, bonds, ETFs, and cryptocurrencies. Among the indices that FP Markets offers is the US Dollar index available under the ticker USDX. On this broker site, the spreads involved when trading the US Dollar Index are competitively low averaging 0.05.
Notably, FP Markets allows traders to pick a trading platform from 5 different choices available. These include MetaTrader 4, MetaTrader 5, Iress, cTrader, and TradingView. Traders can pick the platform with features that best suit their needs.
Let’s now see how this broker’s activities are regulated. FP Markets holds regulatory licenses from the ASIC in Australia, the CySEC in Cyprus, and the FSCA, among others. While regulations alone are not enough, traders are always safer with a broker with regulations from several recognised organisations.
XTB
XTB avails the CFD US Dollar index under the symbol USDIDX. Notably, the broker offers competitive features for trading the Dollar Index (USDIDX). This starts with tight spreads, starting from a mere 0.012. This makes it one of the most cost-effective options available. USDIDX is also tradable from 2:00 am to 11:00 pm in whatever time zone a trader is in. Beyond the Dollar Index, XTB shines with a vast selection of over 20 other major indices.
For traders seeking further diversification, XTB also provides access to CFDs on forex, indices, commodities, stocks, ETFs, and cryptocurrencies. Their user-friendly, in-house trading platform, xStation 5, complements these offerings with its intuitive design and swift execution speeds.
XTB adheres to the regulations of multiple financial authorities. These include the FCA, the CySEC, the KNF, and the FSC. This commitment to regulatory oversight has earned XTB a strong reputation in the market.
Benefits of Trading the US Dollar Index
The USDX is crucial for forex traders for several reasons
- Diversification - Rather than focusing on individual currency pairs, the US Dollar index offers exposure to a basket. This can potentially help in mitigating risk from specific currency fluctuations.
- Efficiency - Trading the USDX can be more efficient than managing multiple individual currency positions.
- Benchmark for Dollar Strength - The US Dollar index provides a clear gauge of the dollar's performance against a basket of major currencies.
- Liquidity - The USDX is a highly liquid instrument, ensuring smooth entry and exit from trade
In conclusion, the US Dollar Index (USDX) is a valuable tool for traders. It offers diversification, efficiency, a clear performance benchmark, and high liquidity. This article explored several reputable brokers that offer the US Dollar Index for trading. It highlighted their features and regulations to see what makes them stand out. However, there are many other brokers that offer this trading instrument in the market and we did not cover them all. Ultimately, the choice falls upon each individual broker and their trading needs.