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How to trade indices on MT5 in 5 steps

With several available tradable instruments on the MT5, finding the right market for you can turn into an unplanned research project.

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However, with so much available information and education online, deciding on an instrument or market is actually much simpler than you think.If you’re not interested in currencies or commodities, but you’re a trader following region-based or sector-based news, then trading indices might be the best choice for you. 

Indices give a good indication for the prevailing market sentiment, and these instruments are more prone to react to global economic events. 

But in such a competitive market, how does one trade indices on the MT5?

  • Find an index or more you’re comfortable to trade
  • Decide whether you want to spread bet or trade CFDs
  • Choose to trade in a bullish or bearish market
  • Place your trades
  • Monitor and close your trades


1 – Choose Which Indices

Do your due diligence on which global indices are available on the MT5. Major indices are from the UK, US, Asia, Europe and Australasia region. Research the economic events impacting indices and analyse what type of trading opportunities different indices offer. A thorough analysis of these assets will also show you the volatility of these markets and how price movements work.


2 – Choose How To Trade

Choosing how to trade indices plays a crucial part in trading these assets. Spread betting is not as popular as CFD trading, which has been retail traders’ favourite approach. Deciding the right type of trade is imperative since there are significant differences between the two types, which can heavily influence your trading decisions.

3 – Choose Your Direction

Once you’ve carried out your research and identified a trading opportunity with your chosen index or indices, it’s time to choose the direction to trade in. If you buy or sell, spread betting and CFD trading are great ways to profit in both falling and rising markets. The flexibility can unveil further trading opportunities.

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4 – Choose Your Time

Unlike traditional stock trading, index CFD trading has extended hours, sometimes even 24 hours a day, Monday to Friday. This can be an essential aspect when trading as news ultimately has an immediate impact or a more long-term effect on the value of an asset. Having the option to place your trades during extended periods is critical, especially if you’re a fundamental-analysis type of trader.

5 – Stay On Top Of Market Moves

It’s utterly important to stay on top of any market movement. This ensures you can lock in profits and avoid potential losses. MT5 is a powerful platform with plenty of risk-analysis tools and a mobile version that gives you control at any point even if you are on-the-go. 

Ensure you set alerts for your trades which can help you spot further trading opportunities, trading patterns, and potential risks.

At TIOmarkets, we offer several indices and instruments to trade from. Choose to trade with an FCA-regulated, reputable broker.


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