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Recent market volatility has made it more important than ever to diversify your trading strategy by including a range of instruments in your portfolio. One type of instrument that is growing in popularity amongst traders is the Index Fund.
An Index Fund is a type of financial instrument that tracks the performance of a specific asset against a group of other assets. Index Funds are a popular investment option because they offer low costs and consistent returns, and are relatively easy for the everyday investor to understand. 

To trade Index Funds, you will need to find a broker that offers futures or CFD (contract for difference) trading. Here, we reveal the 3 best online brokers that offer Index Funds in 2023. 

1. TD Ameritrade 

TD Ameritrade is a U.S.-based broker that offers commission-free Index Fund trading. This means that you can invest in popular Index Funds without paying any fees. Furthermore, the platform offers a variety of advanced tools and educational resources to help you navigate the market before you trade. This includes access to the Thinkorswim charting platform, third-party analytics and an innovative comparison tool.  
What’s more, TD Ameritrade offers a range of other asset varieties including Forex, commodities, futures contracts, options and more. This makes it easy to diversify your portfolio in one place. 

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2. Capital.com

Through Capital.com you can trade popular index funds such as CFDs. This is a type of asset that allows investors to speculate on the price movements of an underlying asset without actually owning the asset. CFD trading often comes with lower fees than traditional trading. 

Furthermore, Capital.com allows users to trade with leverage which means that it is possible to trade with more capital than you have in your account. If the market moves in your favour, this could increase the profits that you make. However, it could also increase potential losses if the market moves in the other direction. 

Capital.com provides an advanced demo trading account that can be used to practise trading CFDs before you put any real money at risk. This is a great way to test that platform and get a better idea of whether it is the best option for you. Users can also access the advanced TradingView charting tool to analyse assets and make informed decisions about the market. TradingView offers in-depth price charts for a range of index funds, such as the DXY. It is a good tool to use if you are looking to conduct in-depth analysis using indicators and charting tools. 

3. Forex.com

Forex.com is a popular CFD and forex broker that provides trading services to clients in over 180 countries. Forex.com offers a range of trading platforms, including MetaTrader 4, MetaTrader 5 and it's native platform ForexTrader.
On Forex.com, you can trade Index Fund CFDs as well as traditional FX currency pairs. The broker offers competitive pricing and low spreads, with leverage of up to 200:1 available to clients in certain regions. Forex.com also offers a lucrative mobile app that allows you to trade from your phone. 

Advancements in Fintech mean that traders can invest in a range of instruments from their laptops and mobile phones. In this article, we have taken a look at 3 online platforms that offer Index Funds which are a great way to diversify your portfolio in 2023. As with any type of financial instrument, trading Index Funds puts your capital at risk. It is important to conduct thorough research before trading.