The Volatility 75 Index, abbreviated as VIX, was launched in 1993. Since its establishment, the index has evolved into the gold standard for measuring the performance of the US stock market. As a result, it has been dubbed the ‘fear index' and ‘fear gauge.'
Encouraged by the index's increasing relevance, the Volatility 75 index's issuing organizations modified the index in 2003 to reflect its benchmark position. The VIX is currently calculated using a broader index, which provides a far more accurate representation of projected market volatility.
The Chicago Board Options Exchange (CBOE) created the index, which has a value range of 0 to 100. A low score indicates a low level of volatility, while a high reading indicates highly turbulent market circumstances.
The Volatility 75 Index is a particularly popular instrument among traders since it can be used to hedge other positions and facilitates the execution of a wide variety of trading methods.
The VIX is a volatility index, as opposed to a stock market benchmark like the S&P 500. SPX (S&P 500) Puts and Calls are averaged across a large price range to evaluate the near-term volatility of the index.
According to the methodology above, the sole substantial modification was made in 2003 when the S&P 500 was added to the index. Previously, only at-the-money options were utilized in the index calculation; however, this has now been revised to accommodate a wider range of strikes.
In terms of its importance, the Volatility 75 index chart, as the key ‘fear barometer,' is especially effective for forecasting market cycles governed by the fiscal year. In general, a high VIX value indicates increased investor panic, while a low level indicates widespread complacency.
In terms of the advantages of working with brokers that offer Volatility Indexes, as volatility rises, so does the opportunity to profit. This is what investing in volatility indexes entails.
Brokers offering volatility index products assist diversified portfolios by providing access to an uncommon asset. Brokers with volatility indices are also quite beneficial in determining market extremes.
In terms of the disadvantages of working with brokers who offer Volatility Indexes, a volatility index may disclose nothing more than what is currently known.
The history and present performance of the S&P 500 Index demonstrates this. It shows what has occurred and is occurring today. The fact is that previous success is no guarantee of future tendencies. Thus, brokers using volatility indices may provide little extra knowledge.
Plus, everyday changes are difficult to track. The frequent reviews of a volatility index may be tedious and time-consuming, with unexpected results.
In investment, it is customary to focus on a single figure rather than the whole picture, like in this example. Tracking the VIX daily yields little advantage but monitoring it monthly yields far more.
The following brokers are some of the best in the forex market that offers access to the Volatility 75 Index:
1. IC Markets
2. Pepperstone
3. IFC Markets
4. HotForex
5. AvaTrade
6. CMC Markets
7. IG Group
8. Fineco Bank
9. Interactive Brokers
10. Saxo Bank
11. XTB
12. Spreadex
13. eToro
14. Plus500
15. City Index
16. ETX Capital
17. Deriv
Top 10 Forex Brokers Broker Rating Regulators Min Deposit Leverage Sign Up Bonus Spreads Website Top 10 Brokers Broker Deposit Leverage Website
1. IC Markets
IC Markets is a well-established and recognized internet trading firm headquartered in Sydney, Australia. The firm was created in 2007 to bridge the divide between retail consumers and large institutional investors.
The online forex broker achieves this by delivering investing alternatives previously available primarily to investment banks as well as high net worth individuals. IC Markets provides forex trading but also offers futures, indices, and commodities.
Average Spread: 0.0 pips EUR/USD
Commissions: Between $3 and $7
| PROS | CONS |
| IC Markets is a well-regulated broker with a great selection of financial instruments | The broker does not accommodate United States traders |
| The online broker is one of a few true ECN brokers | IC Markets does not offer fixed spread accounts |
| There is a variety of trading strategies allowed | |
| There are no inactivity fees | |
| Great customer support service offered | |
| Social trading platforms are offered |
2. Pepperstone
For FX and CFD trading, Pepperstone is an excellent choice since it is licensed in two of the world's most reputable nations. For algorithmic and copy traders, Pepperstone's MetaTrader and cTrader platforms are ideal.
Pepperstone is one of the world's leading trading brokers, offering traders global access to all markets via sophisticated but user-friendly platforms with innovative technology, low-cost spreads, low-latency, high-speed execution, and award-winning customer support.
Average Spread: 0.0 pips EUR/USD
Commissions: AU$7
| PROS | CONS |
| The online broker is well-regulated and known for its award-winning support | United States clients are not accepted |
| Offers innovative and robust trading platforms | No fixed spread accounts |
| Low spreads and competitive commissions | |
| There are no deposit fees charged | |
| There is a decent selection of advanced trading tools and educational material | |
| The broker offers social trading platforms |
3. IFC Markets
FC Markets is a 13-year-old worldwide Forex and CFD broker. International bodies like the European CySEC and the BVI FSC regulate and license IFC Markets.
IFC Markets is the major trademark of the IFCM Group, whose member firms have been developing and implementing innovative, effective financial technology initiatives for over ten years.
Average Spread: 0.4 pips EUR/USD
Commissions: None
| PROS | CONS |
| The broker has strict regulations in place to ensure that it is compliant with EU regulatory entities | US clients are not accepted |
| There is an advanced and proprietary training platform offered | There are no social trading opportunities |
| There are several portfolio quoting methods and synthetic instruments offered | Spreads are not the lowest |
| There is a comprehensive education centre offered |
4. HotForex
This multi-asset broker provides Forex and commodities trading through CFDs on seven different account types and platforms, with narrow spreads averaging 0.1 pips on EUR/USD.
The broker provides unfettered liquidity, enabling traders of different sizes and profiles to choose between various spreads, liquidity sources, and strategy performance.
Average Spread: 0.0 pips EUR/USD
Commissions: from $3
| PROS | CONS |
| The broker is multi-regulated and a member of an investor compensation fund | There are restrictions on the maximum leverage ratios for EU clients |
| Negative balance protection is applied to retail investor accounts | Fixed spread accounts are not available |
| There are several premium trader tools offered | No US clients |
| Educational materials are provided | |
| The broker provides free VPS and access to AutoChartist | |
| Client funds are protected and kept in segregated accounts |
5. AvaTrade
AvaTrade was founded in 2006 and is licensed in three tier-1 and three tier-2 countries, making it a safe (low-risk) broker for CFDs and FX trading.
AvaTrade is a reputable worldwide company best recognized for delivering a comprehensive variety of FX and CFD trading platforms, as well as great instructional resources that helped it earn a Best-in-Class rating for Beginners in 2023.
Average Spread: 0.9 pips EUR/USD
Commissions: $0
| PROS | CONS |
| Multi-award-winning international broker with tight spreads and commission-free trading | Spreads are not the lowest |
| There are several trading platforms offered including innovative proprietary mobile apps | A limited selection of retail investor accounts are offered |
| Social trading platforms are offered | Variable spreads are not offered |
| Several trading strategies are allowed | |
| There are no deposit fees or withdrawal fees | |
| There is a decent selection of convenient funding options |
6. CMC Markets
CMC Markets, founded in 1989, offers more than 10,000 trading products via sophisticated and diverse trading platforms. Additionally, they give in-depth analyses, trading tools, and instructional resources.
CMC provides a broad range of tradable assets, including FX currency pairs, indices, commodities, cryptocurrencies, government bonds, metals, and energy, as well as CFDs and stock shares.
These products are traded on sophisticated platforms that provide traders with several important and advanced features.
Average Spread: 0.3 pips EUR/USD
Commissions: from $0
| PROS | CONS |
| CMC Markets is a well-regulated online trading broker | US clients are not accepted by CMC Markets |
| Protection of client funds by keeping it in segregated accounts with top-tier financial institutions | Spreads are marked-up |
| Member of the Financial Services Compensation Scheme | Fixed spreads are not offered |
| Offers powerful trading platforms | Copy-trading platforms are not offered |
| There are several innovative platform tools offered | |
| There is no minimum deposit requirement |
7. IG
IG is deemed safe since it is publicly traded, exposes its financial information, and is regulated by top-tier authorities.
IG offers traders worldwide access to over 17,000 markets, including Forex, Stocks, Cryptocurrencies, and CFDs.
They provide traders with an outstanding assortment of user-friendly trading platforms, trading tools, and instructional materials. However, retail traders should be aware that forex and CFDs are complex instruments that can present a high risk of fund loss because of their high leveraged trading.
Average Spread: 0.1 pips EUR/USD
Commissions: from 0.10%
| PROS | CONS |
| Well-regulated in several jurisdictions globally | Inactivity fees are charged |
| Offers an assortment of powerful trading platforms | High minimum deposit requirement |
| Massive range of markets offered | |
| Tight spreads, low commissions and reliable trade execution guaranteed | |
| IG academy offered, featuring several educational resources | |
| Free deposits as well as withdrawals |
8. Fineco Bank
FinecoBank is an Italian bank that provides customers worldwide with online trading, asset management, and banking services.
The bank was formed in Milan in 1999 but has since expanded to London, where it services a worldwide customer base through online trading in a variety of asset classes, including currencies, indices, stocks, commodities, bonds, futures, options, and exchange-traded funds.
In addition to being a well-known bank with a high trust score, FinecoBank is one of the most reputable market makers and retail forex brokers in the industry.
Average Spread: 0.4 pips EUR/USD
Commissions: from $0
| PROS | CONS |
| Regulated in several regions globally | Only offers forex trading and CFD trading, no crypto trading |
| Offers competitive trading conditions and transparent trading fees | There are platform fees charged |
| There are some educational resources offered | A limited selection of retail investor accounts offered |
| There is a powerful proprietary online trading platform provided |
9. Interactive Brokers
Interactive Brokers is one of the leading brokerage firms in the United States, providing online trading services to customers worldwide.
Founded in 1993, Interactive Brokers (abbreviated as “IBKR”) takes a simplified approach to brokerage services, emphasizing wide market access, low prices, and outstanding transaction execution.
From a single integrated account, customers can easily trade stocks, options, futures, currency, bonds, and mutual funds on 135 markets.
Average Spread: 0.0 pips EUR/USD
Commissions: from 0.1%
| PROS | CONS |
| Regulated by multiple regulatory entities worldwide | Restricted maximum leverage |
| Offers innovative proprietary trading platforms and mobile trading apps | There are only a few payment options supported |
| Research and analysis is provided by trusted third-party providers | Clients from some regions are not accommodated |
| Offers comprehensive education packages to retail traders | Slow customer support response |
| There are several trading tools to choose from | No fixed spread accounts |
| Offers a wide range of markets |
10. Saxo Bank
Saxo Bank, a 1992-founded Danish investment bank, offers internet trading and financial services. Saxo Bank is well-regulated by several financial agencies worldwide, including the Danish Financial Services Agency (FSA) and the Financial Conduct Authority of the United Kingdom (FCA).
Saxo Bank is a worldwide service provider with subsidiaries operating in various locations of the globe as independent legal entities.
Average Spread: 0.4 pips EUR/USD
Commissions: from $1.25
| PROS | CONS |
| Saxo Bank is a multi-regulated and reputable broker | Inactivity fees are charged by Saxo Bank |
| There are low spreads and rapid instant execution speeds | High minimum deposit requirements |
| Market analysis is offered by an experienced team of analysts (SaxoStrats) native to Saxo Bank | United States traders are not accepted by Saxo Bank |
| Advanced trading tools are abundant for professional traders who want to perform in-depth market analysis | |
| Several third-party tools like TradingView, MultiCharts, and Dynamic Trend | |
| Saxo Bank offers powerful and modern trading platforms |
11. XTB
XTB is an excellent solution for traders looking to reduce their expenses, whether it is the intrinsic cost of making a trade or avoiding additional expenditures such as bank wire fees. XTB offers non-UK retail traders maximum leverage of 500:1 while EU and UK clients can only access a maximum of 30:1.
Average Spread: 0.1 pips EUR/USD
Commissions: from $3.5
| PROS | CONS |
| XTB is regulated by several large regulatory authorities | United States clients are not accepted |
| Offers an award-winning proprietary trading platform, xStation | There is an inactivity fee applied to dormant accounts |
| XTB is a large and prominent broker that is listed on a stock exchange | |
| There are more than 2,100 financial instruments offered | |
| There is a dedicated account manager provided | |
| Live market commentary and trading academy offered |
- Spreadex
Spreadex is a London-based internet broker noted for its spread betting services. Traders may trade forex, crypto, indices, commodities, stocks, and bonds using their web-based trading platform and mobile applications.
They provide sophisticated charting and trading capabilities, including candlestick pattern identification. The Financial Conduct Authority (FCA) regulates the broker and keeps customers' assets separated in top UK banks.
Average Spread: 0.6 pips EUR/USD
Commissions: $0
| PROS | CONS |
| Spreadex is regulated by several strict market regulators | US clients are not accepted |
| There is a powerful proprietary trading platform offered | There are limited payment methods supported |
| Traders can use advanced charting options | Restricted leverage offered |
| There are several advanced trading tools provided |
13. eToro
As a low-risk FX and CFD broker, eToro was launched in 2007 and is licensed in two Tier-1 and one Tier-2 country. eToro is noted for its easy-to-use online platform and mobile app for casual and new investors.
eToro is a multi-asset broker that continues to increase its market variety with over 3,000 tradable instruments.
Average Spread: 3 pips EUR/USD
Commissions: $0
| PROS | CONS |
| Offers commission-free trading | Lack of live chat support |
| Well-regulated broker with a high level of trustworthiness | There is an inactive fee charged |
| Offers an investor program | Hedging and scalping is not allowed |
| There is a large online trading community offered | No US clients |
| Offers demo accounts and Islamic accounts | |
| Users can receive push notifications when there is market volatility and events in the financial markets |
14. Plus500
Plus500, a registered brand of Plus500 Ltd, describes its primary business as the online trading in Contracts For Difference (CFDs) supplied through a proprietary trading platform over the web and other electronic channels.
The Israel-based firm was founded in 2008 and worked via many subsidiaries around Europe and the Asia-Pacific area. It is registered with the appropriate regulatory agencies.
Average Spread: 0.6 pips EUR/USD
Commissions: None
| PROS | CONS |
| Plus500 offers more than 2,000 CFDs that can be traded across several asset classes | United States clients are not accepted |
| The proprietary trading platform is user-friendly and feature-rich | The trading platform is incompatible with other trading tools and platforms |
| Regulated by the Financial Conduct Authority (FCA) and other reputable regulators | |
| Guaranteed stop-loss orders | |
| Reliable instant executions | |
| Offers margin trading and several trading opportunities to beginner traders and professional investors |
15. City Index
City Index is a multi-jurisdictionally licensed broker that provides traders with access to over 12,000 marketplaces.
City Index has over 35 years of industry expertise, offering a worldwide clientele with quick and dependable transaction execution speeds, competitive spreads, user-friendly interfaces on a variety of devices, trading tools, and superior customer service.
Average Spread: 0.5 pips EUR/USD
Commissions: From 0.08%
| PROS | CONS |
| The online trading broker offers an impressive portfolio of tradable instruments | There are no high-volume trading discounts |
| There is adequate coverage for crypto trading | There is no social trading data |
| There is sophisticated backtesting for experienced traders who employ their own trading strategies | Margin discounts are only applied to professional accounts |
16. ETX Capital
ETX Capital is an FCA-regulated broker situated in London that offers competitive spreads across a wide variety of markets.
They provide professional client services to qualified professional clients, as well as complimentary guaranteed stops on the TraderPro platform. Additionally, customers may trade the top 250 most popular stock CFDs commission-free.
Average Spread: 0.6 pips EUR/USD
Commissions: from 0.1%
| PROS | CONS |
| Well-established and regulated online broker | Limited trading tools offered |
| There are several asset classes offered with a wide range of instruments | Several regions are not accepted |
| There are several payment options for deposits and withdrawals | The analysis is not comprehensive |
| There are innovative trading platforms that accommodate all types of traders |
17. Deriv
Deriv is a market leader in volatility index products, delivering synthetic volatility indices in addition to the VIX 75. It enables traders to take advantage of huge leverage, narrow spreads, and a choice of two strong platforms.
There are ten volatility index instruments available for margin trading, options, and multipliers, enabling any technique to be used. Deriv is also renowned for its lightning-fast order execution and extensive liquidity, making it a suitable platform for both small and big traders.
Average Spread: 0.1 pips EUR/USD
Commissions: None
| PROS | CONS |
| Multi-regulated and transparent broker | Spreads are not the tightest |
| There are several advanced trading platforms offered across devices | There is a limited selection of standalone trading tools |
| There is a wide range of tradable instruments offered | US clients are not accepted |
| Educational material supplied to beginner traders |
Which Forex Broker with Volatility 75 Index is considered the best?
The best forex broker with the Volatility 75 Index is AvaTrade.
AvaTrade has established itself as a prominent participant in the online financial industry for over 15 years, with a demonstrated track record of high client satisfaction.
AvaTrade offers more than 1,250 financial instruments, including the VIX, forex, crypto, stocks, options, and several other asset classes. The broker also offers several trading platforms that can be used on desktops, tablets, and smartphones.
There is a range of automated trading platforms that are compatible with Expert Advisors (EAs), fixed and competitive spread accounts, and the complete safety of client funds.
AvaTrade offers competitive spreads from 0.9 pips EUR/USD and the benefit that there are no commissions charged.
Which Forex Broker with Volatility 75 Index offers boom and crash?
Deriv is the best Forex Broker with Volatility 75 Index, with Boom and Crash.
Boom and Crash are Deriv-exclusive indexes. These include the Boom 500 and Boom 1000, as well as the Crash 500 and Crash 1000.
Boom indices refer to 500 and 1000, and they include something like a default sell circle. When users open a Boom 500 or Boom 1000 chart, regardless of the trend, Boom's default features are sold.
Whereas the Crash Indices are constantly in the purchase zone but sell at irregular intervals due to the influence of several market dynamics.
How to trade the Volatility 75 Index
When retail investors realize that there is a negative correlation between volatility and overall financial market performance, they typically try to use volatility instruments to help them hedge their investment portfolios.
To trade the Volatility 75 Index safely, traders must:
- Research and understand how VIX works
- Choose whether to trade CFDs or spread bet
- Decide whether to go long or short on VIX
- Register a live trading account or practice trading using a demo account
1. Research and understand how VIX works: The VIX tracks the price of S&P 500 options instead of the direct stock market. They let the trader trade the S&P 500 at a specified price and expiration date. The VIX is computed using the live values of S&P 500 options, which include monthly CBOE SPX options and weekly CBOE SPX options.
Options with expiration dates between 23 and 37 days are eligible for the VIX index. The VIX and stock prices are strongly correlated. If the VIX rises, investor anxieties are likely to be driving down the S&P 500.
If the volatility index falls, the S&P 500 is likely to remain stable, and investors may relax. Trading volatility is not synonymous with a market fall since the market might decrease while volatility remains low.
Trading the VIX is like trading any other index since there is no real asset to purchase or sell. Instead, you may trade the VIX using derivatives intended to follow the index's price.
2. Choose whether to trade CFDs or spread bet: When individual traders trade the VIX with CFDs, they agree to swap the difference in price between when the trader entered and closed the position. As with spread betting, the more the VIX goes in the direction traders anticipated, the more they can earn; conversely, the more it travels in the other way, the more the trader will lose.
While CFDs are subject to capital gains tax, traders can balance their losses against other earnings for tax reasons.
3. Decide whether to go long or short on VIX: When opening trade on the VIX, individual retail traders have two basic options: long or short. It is important to understand that volatility investors are not concerned with whether the S&P 500 will increase or fall – they could profit from either – but with whether the market is most turbulent.
4. Register a live trading account or practice trading using a demo account: The best way to start trading VIX is to register a demo account with a reputable broker that offers Volatility 75. This will allow traders to formulate and test their trading strategies before applying them in a live market where they can lose their funds.
Is it advisable to invest in a Volatility 75 Index?
Yes, it is a good investment.
Because the VIX is inherently volatile, trading it is risky and extremely speculative, which can be a benefit for some traders while it is a disadvantage for others depending on their approach and trading strategy.
Thus, self-directed investors are urged to do their own research and ensure that they understand the dangers associated with losing part or all their original investment.
While traders cannot purchase the VIX in the same way they typically purchase a stock or bond, they may invest in products that track its movements, for instance, the CBOE's VIX futures and options.
What is the definition of a Forex Broker?
A broker is an independent individual or business that organizes and performs financial transactions on another party's behalf. They can do this by investing in a variety of asset types, including stocks, currency, real estate, and insurance.
Typically, a broker will charge a fee for executing an order in the form of the spread or commission charges.
Certain brokers will supply market data and provide investment advice on the items traders want to purchase or sell – depending on whether the online trading broker is a full-service broker or an execution-only broker.
In addition, an online trading broker, as a financial services provider, must be licensed to provide financial advice and execute the sale, and they will only conduct deals on the trader's behalf when they are permitted to do so.
