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RANKING: TOP TRADING APPS FOR THE VIX INDEX

Explore the leading apps for trading the VIX Index, known as the 'fear gauge' of the U.S. stock market, crucial for understanding market volatility. Master volatility trading with these top applications. Many of these platforms are also used by market professionals — including Asset Managers and registered institutional managers — seeking effective tools to apply investment strategies. This ranking presents the top three options available today.

Ranking Methodology for VIX Trading Apps


This ranking is based on a thorough analysis of several factors crucial for effective VIX index trading. We evaluated each application based on the following criteria:


  • User Interface: Ease of use and intuitive design.

  • Trading Tools: Availability of advanced tools and features for VIX trading.

  • Market Data: Access to real-time market data and news.

  • Cost: Fees, commissions, and spreads associated with trading.

  • Customer Support: Quality and availability of customer service.

  • Security: Measures in place to protect users' funds and data.

  • User Reviews: Feedback and ratings from actual users.

  • Account Opening for Residents: Several foreign trading platforms do not enable accounts for users. Therefore, it is most important to ensure they accept residents. These options allow account opening with a simple ID and proof of residence, making the process accessible to anyone.

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    Factors Influencing Index Prices


    Index prices are determined by changes in the prices of their components. This means there is a strong correlation between the index performance and the prices of the main stocks that compose it. Some factors capable of influencing index prices include:


    • Market Sentiment: The structure of indices allows them to serve as benchmarks for the stock market. Because they are composed of multiple stocks, they tend to reflect the general market sentiment. For example, if the market is generally bullish, the corresponding index prices are expected to rise. Some factors that can influence market sentiment include economic factors like wages and inflation, corporate news reports, central bank announcements, and interest rates.

    • Corporate News: News about companies with significant weighting within an index can influence the overall direction of its prices. Some of the most impactful corporate news includes earnings reports, forecasts and profit warnings, mergers and acquisitions, and changes in management.

    • Index Rebalancing: Most indices are rebalanced periodically. This rebalancing may include the addition of new companies to the index and the removal of others. This rebalancing may also include an increase or decrease in the weightings of certain components within the index. The period from the pre-announcement to the effective rebalancing date and the post-rebalancing period can be highly volatile for index prices, depending on expected events.

    • Sector Performance: The performance of a sector can influence the overall performance of an index. For example, technology has a sector weight of approximately 27% in the S&P 500. If the sector faces challenging economic conditions and tech stock prices decline sharply, this will also cause price losses in the S&P 500.

    • Commodity Prices: Commodities support many economic activities of various companies. Many indices include stocks from commodity companies. For example, the UK's FTSE 100 has around 13% of its weight in energy. Therefore, changes in the commodity market can influence the overall price of the index.

    • Political Events: As broad benchmarks, indices are vulnerable to major political events such as elections, trade wars, or conflicts between countries. For example, the UK's Brexit event triggered volatility in the UK index market.

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