Best Index Stocks To Buy in November 2021 – How To Buy Index Stocks With 0% Commission

Fact Checked by Gary McFarlane

If you are interested in stock trading, you may wish to gain exposure to a broad market index. These investments are popular with retail and professional investors alike, as they offer a diversified and low-volatility asset that can provide scope to generate consistent returns.

In this guide, we’ll explore the Best Index Stocks this year. We’ll discuss the top ten index stocks on the market right now before highlighting where you can begin investing in index stocks today – totally commission-free!

Table of Contents

How to Buy Index Stocks – Quick Guide

If you’re looking for a quick guide on how to buy index stocks – look no further! The four short steps below will show you how to buy index stocks with eToro – all without paying a cent in commissions!

  • Step 1 – Create an eToro Account: Click ‘Join Now’ on eToro’s homepage and provide a valid email address, along with a username and a password.
  • Step 2 – Verify your Account: Upload proof of ID (copy of passport or driver’s license) and proof of address (copy of bank statement or utility bill).
  • Step 3 – Make a Deposit: Deposit a minimum of $50 using a credit/debit card, bank transfer, or e-wallet.
  • Step 4 – Buy Index Stocks: Search for your chosen index stock in the search bar and click ‘Trade’. Enter your desired position size and click ‘Open Trade’.

67% of retail investor accounts lose money when trading CFDs with this provider.

10 Best Index Stocks to Buy – Quick Overview

Are you looking for the best index stocks for 2021? You’re in the right place! The list below presents our top picks for index stocks this year, with the following section reviewing them one by one.

  1. SPDR S&P 500 ETF (SPY) – Overall Best Index Stock to Buy Today – Buy Now
  2. SPDR Dow Jones Industrial Average ETF (DIA) – Best Index Stock for Large-Cap Companies – Buy Now
  3. iShares Core FTSE 100 UCITS ETF (ISF.L) – Best Index Stock for UK Investing – Buy Now
  4. iShares China Large-Cap ETF (FXI) – Best Index Stock for Exposure to Chinese Market
  5. iShares MSCI Emerging Markets ETF (EEM) – Best Index Stock for Emerging Markets
  6. iShares MSCI EAFE ETF (EFA) – Best Index Stock for Diversification
  7. Vanguard FTSE All-World ex-US (VEU) – Best Index Stock for International Investing
  8. iShares Core S&P Small-Cap ETF (IJR) – Best Index Stock for Small-Cap Companies
  9. iPath Bloomberg Commodity Index Total Return ETN (DJP) – Best Index Stock for Commodities
  10. Invesco NASDAQ Next Gen 100 ETF (QQQJ) – Best Index Stock for NASDAQ Investing

Best Index Stocks to Buy in USA

If you are looking to invest in stocks today, you may wish to consider purchasing some index stocks. These assets provide exposure to a specific index, which offers you scope for consistent, low-volatility returns. With that in mind, let’s explore the best index stocks in the market right now.

1. SPDR S&P 500 ETF (SPY) – Overall Best Index Stock to Buy Today

Our number one pick when it comes to index stocks is the SPDR S&P 500 ETF. This asset is the largest exchange-traded fund globally at present and is designed to track the S&P 500 index. As you’ll most likely be aware, the S&P 500 tracks the performance of the 500 largest companies listed on stock exchanges in the US. So, by investing in an index stock that tracks the S&P 500, you’ll be gaining exposure to the whole U.S. stock market.

SPY index

This index has performed admirably in recent years, with Yahoo Finance reporting that it has resulted in a net loss in only one of the past eleven years. Furthermore, the SPDR S&P 500 ETF even returned a remarkable 18.25% in 2020, which is impressive considering the drop caused by the COVID-19 pandemic. Finally, this index stock only has an expense ratio of 0.09%, making it incredibly cheap. For all of these reasons, the SPDR S&P 500 ETF takes the top spot in our list of the best index stocks.

67% of retail investor accounts lose money when trading CFDs with this provider.

2. SPDR Dow Jones Industrial Average ETF (DIA) – Best Index Stock for Large-Cap Companies

If you’re looking for an index stock that will provide exposure to the industrial sector, then it may be worth considering the SPDR Dow Jones Industrial Average ETF. This asset seeks to track the performance of its benchmark index, the Dow Jones, which is a stock market index containing 30 of the most influential companies in the US. These companies are large-cap in nature and include Goldman Sachs, Microsoft, McDonald’s, Boeing, and more.

SPDR index

Like other index stocks, the SPDR Dow Jones Industrial Average ETF has performed consistently well over the past decade. The only drawdown was in 2018 when the index lost 3.60%; however, it bounced back well the following year and produced a return of 25.09%. Furthermore, with an expense ratio of only 0.16%, this index stock is ideal for long-term buying and holding. So, if you’re looking to gain exposure to large-cap companies in the US, it may be worth considering this asset.

67% of retail investor accounts lose money when trading CFDs with this provider.

3. iShares Core FTSE 100 UCITS ETF (ISF.L) – Best Index Stock for UK Investing

If you’re looking to buy stocks that will give you exposure to the UK market, then it may be worth considering the iShares Core FTSE 100 UCITS ETF. This index stock is designed to track the performance of the FTSE 100 index, which contains the 100 largest companies in the UK as measured by market cap. The FTSE 100 has been around since 1984 and includes individual stocks such as AstraZeneca, BP, Rio Tinto, Unilever, and more.

ishares ftse index

In terms of performance, this index stock has created a return of over 25% since this date last year. This is off the back of a loss in the calendar year 2020 – although the impact of the COVID-19 pandemic can be used as context here. The iShares Core FTSE 100 UCITS ETF displays remarkable consistency and has generated an annualised return of 6.51% over the past decade. Due to this, we’d recommend this index stock if you’re looking to gain exposure to the UK equity market.

67% of retail investor accounts lose money when trading CFDs with this provider.

4. iShares China Large-Cap ETF (FXI) – Best Index Stock for Exposure to Chinese Market

The Chinese market continues to grow rapidly, and one of the best index stocks that provides exposure to it is the iShares China Large-Cap ETF. This index stock seeks to track the returns of a selection of 50 large-cap equities that are listed on the Hong Kong Stock Exchange. Furthermore, this index stock is diversified across various sectors, including consumer discretionary, healthcare, financials, and communication. This strategy helps to reduce overall risk.

ishares china index

Looking at performance data, iShares reports that this index stock has generated a positive return in four of the last five years. 2017 was an excellent year as the iShares China Large-Cap ETF generated 34.48% for investors! Aside from capital gains, this index stock will also provide you with a passive income stream through its 2.14% yield. Distributions are made twice per year, meaning you get a two-in-one combo when investing in the iShares China Large-Cap ETF!

67% of retail investor accounts lose money when trading CFDs with this provider.

5. iShares MSCI Emerging Markets ETF (EEM) – Best Index Stock for Emerging Markets

Emerging markets are some of the best things to invest in UK as they can provide scope for more significant gains than developed markets. Due to this, the iShares MSCI Emerging Markets ETF is one of the best index stocks for exposure to this area. This index stock tracks large-cap and mid-cap equities in various emerging markets, including China, Taiwan, India, South Korea, and Brazil. Furthermore, with over 800 stocks included, this is an ideal asset for diversification.

ishares emerging markets

The iShares MSCI Emerging Markets ETF has made a return of over 10% in four of the last five years and only made a negative return in 2018 – although many index stocks also had a poor year that year. The average annual return over the past decade is 5.46%, which is pretty good for an emerging markets tracker. Although the expense ratio is a little higher at 0.70%, you will get access to 12 different sectors. Overall, the iShares MSCI Emerging Markets ETF is one of the best index stocks if you’re looking to expand into developing markets around the world.

67% of retail investor accounts lose money when trading CFDs with this provider.

6. iShares MSCI EAFE ETF (EFA) – Best Index Stock for Diversification

If you’re looking for one of the best index stocks for diversification, then it may be worth checking out the iShares MSCI EAFE ETF. This asset tracks the performance of companies in Europe, Australia, Asia, and the Far East. Furthermore, with over 900 stocks included in the portfolio, the iShares MSCI EAFE ETF is ideal for investors looking to hold an asset long-term and achieve consistent returns.

ishares msci index

This index stock has made positive gains in four of the last five years and has returned over 20% in two of those years. Furthermore, the average annual return over the past five years is sitting at 8.68%, which is impressive considering the results in 2018 and the COVID-19 pandemic’s effects. If you invest in this index stock, you’ll also get the benefit of a dividend yield of 2.30%, paid in June and December each year. Overall, this index stock is ideal for investors looking to benefit from capital gains and passive income over many years.

67% of retail investor accounts lose money when trading CFDs with this provider.

7. Vanguard FTSE All-World ex-US (VEU) – Best Index Stock for International Investing

The Vanguard FTSE All-World ex-US is an index stock that seeks to track the performance of the FTSE All-World index. This index contains over 3400 stocks and primarily focuses on large-cap and mid-cap companies. As the name suggests, this index invests in firms located in various countries around the world – except the US. Some of the top constituents of this index stock include Nestle, Tencent, Alibaba, and Samsung.

vanguard ftse all-world

The Vanguard FTSE All-World ex-US might be ideal if you’re looking to invest $1000 or more as this fund has generated a return of over 10% in three of the last four years. Furthermore, in two of those years, the fund has made investors more than 20%! The expense ratio is only 0.08%, which is incredibly cheap for an index stock that invests internationally. Overall, the Vanguard FTSE All-World ex-US displays great consistency with low fees, making it ideal for people looking to invest internationally.

67% of retail investor accounts lose money when trading CFDs with this provider.

8. iShares Core S&P Small-Cap ETF (IJR) – Best Index Stock for Small-Cap Companies

If you’re looking to invest $5000 (or any amount) in small-cap stocks, then the iShares Core S&P Small-Cap ETF might be ideal for you. This index stock seeks to track the returns of 673 small companies based in the US. With a net asset value of over $75bn, this index stock is incredibly popular with investors worldwide, as it seeks to provide a low-cost way to generate positive returns over the long term.

ishares small cap

The iShares Core S&P Small-Cap ETF has only made a negative return twice since 2009 – and even returned a remarkable 41.36% in 2013. As this index stock is focused on smaller companies, it does have a higher risk level, as noted by the 25.05% standard deviation over the past three years. However, this risk is balanced out by a low expense ratio of 0.06% and exposure to a vast range of sectors. Overall, if you are happy with some additional risk, this index stock might be ideal for your portfolio!

67% of retail investor accounts lose money when trading CFDs with this provider.

9. iPath Bloomberg Commodity Index Total Return ETN (DJP) – Best Index Stock for Commodities

The iPath Bloomberg Commodity Index Total Return ETN is an ideal index stock if you’re interested in diversifying into a different asset class, as it tracks the performance of the Bloomberg Commodity Index. This index, in turn, tracks the prices of futures contracts that are traded in the commodity markets. Examples of commodities included in this index are Crude Oil, Natural Gas, Gasoline, and ULD Diesel.

ipath commodities index

As this index stock steers away from equities, it can act as a hedge when the stock market is down. Looking at returns, we can see that this index stock hasn’t performed as well as others – although performance has picked up recently. As noted by iPath, this index stock has had a price increase of 52.50% over the past year, which represents a massive return in the market. So, although this index stock may not generate as much returns as equity index stocks, it is ideal for investors looking to gain exposure to another asset class.

67% of retail investor accounts lose money when trading CFDs with this provider.

10. Invesco NASDAQ Next Gen 100 ETF (QQQJ) – Best Index Stock for NASDAQ Investing

The final component of our best index stocks list is the Invesco NASDAQ Next Gen 100 ETF. This index stock seeks to gain exposure to the 100 companies outside of the NASDAQ 100 index. These companies represent the ‘next-generation’ of non-financial companies and tend to be mid-cap in size. Some of the companies that comprise the Invesco NASDAQ Next Gen 100 ETF include Fortinet Inc, Horizon Therapeutics, and Etsy Inc.

invesco nasdaq next gen

This index stock has only been launched recently, so there isn’t much in the way of historical data. However, since inception, the Invesco NASDAQ Next Gen 100 ETF has made a return of 41.02%, which is impressive considering the volatility caused by the COVID-19 pandemic. As the fund contains smaller companies, the distribution yield is only 0.30% – so this index stock would only be suitable for investors seeking capital gains. Overall, if you are happy taking on a little extra risk for the chance at high rewards, this index stock might be ideal for you!

67% of retail investor accounts lose money when trading CFDs with this provider.

Are USA Index Stocks a Good Investment?

Now that you have an idea of the best index stocks, let’s discuss the merits of investing in them. Much like when you invest in the best ETF stocks, buying index stocks will provide you with exposure to a vast selection of assets in one single investment. This is ideal for beginner investors or investors who wish to generate passive income, as you will not need to construct or rebalance a portfolio regularly.

Furthermore, index stocks tend to be very well diversified, which is great for optimising your risk/return ratio. By their very nature, index stocks will contain equities from various sectors and regions. If one area of equities was to fall, there’s a chance that another would rise. Ultimately, this negative correlation can help compensate for any losses made while still generating positive returns on top!

How Do You Find the Best Index Stocks USA?

So, what should you look for when buying index stocks in the USA? There are plenty of factors to consider, although this section will highlight the top three to look out for when conducting your research:

Past Performance

The performance of your chosen index stock is worth considering, as historical returns can provide an idea of what you can expect going forward. Although there is no way to tell for sure how much an index stock will return in the short-term, you can often see patterns in returns data that will help you decide whether to invest or not. Furthermore, different index stocks will offer different degrees of returns – for example, index stocks will small-cap equities may offer higher returns than those with bonds.

index stocks returns

Distribution Yield

If you’re someone who likes to invest in stocks to generate a passive income, then it’s wise to review the index stock’s distribution yield. This can be thought of as similar to a dividend in the sense that investors will be paid a consistent cash payment from the index. Different index stocks will offer different yield levels – and some can even offer high-yields of above 3%! So, if you’re interested in passive investing on top of capital gains, definitely consider the index stock’s yield.

Risk Level

Finally, it’s also essential to consider the index stock’s risk level. This can usually be measured by its standard deviation of returns, which tends to be quoted on the provider’s overview page. A higher standard deviation means that returns are more spread out, while a lower means returns are more consistent. If you are a risk-averse investor, you may wish to seek out an index stock with a lower standard deviation so that volatility levels over the long term are reduced.

Where to Buy Index Stocks?

Before buying index stocks, you’ll have to decide which stock broker to use when facilitating your investment. Fortunately, we’ve done the research and found ten of the best trading platforms in the US for investing in index funds. Read on to learn more about these platforms and how they can benefit you!

1. eToro – Overall Best Broker to Buy Index Stocksetoro review

Our top pick when it comes to US index stock brokers is eToro. We recommend using eToro because you’ll be able to trade all of the index stocks we’ve mentioned in this guide commission-free. What’s more, eToro also offers a vast range of alternative assets, including commodities, ETFs, cryptocurrencies, and forex. All of these assets can be traded using eToro’s handy web-based platform or their mobile app.

eToro accepts deposits from as little as $50, which can be made via credit/debit card, bank transfer, or various e-wallets – including PayPal. In addition, eToro offers a range of valuable features, including their beloved ‘CopyTrader’ feature. This allows you to copy the trades and investment strategy numerous top traders employ on the platform, which is ideal if you’re looking to generate a passive income stream!

Pros

  • Commission-free broker
  • Innovative CopyTrader feature
  • Low minimum deposit
  • Accepts PayPal
  • Heavily regulated

Cons

  • Small inactivity fee charged

67% of retail investor accounts lose money when trading CFDs with this provider.

2. WeBull – Best Broker to Buy Index Stocks for SafetyWeBull review

If you’re looking for an alternative to eToro, we’d also recommend WeBull. WeBull is a commission-free broker and allows you to open a trading account without having to make any hefty minimum deposits. Furthermore, if you’re looking to invest in cryptocurrencies as well as index stocks, WeBull offers commission-free trading on eleven different coins! The great thing about WeBull is that the platform provided is very sleek and designed to appeal to casual investors.

WeBull’s mobile app features a massive range of tools, including price alerts, charting, indicators, and more. In terms of deposits, WeBull only accepts ACH transfers, although these are entirely free to make. Wire transfers are much faster, although these will cost $8 if made domestically. Finally, as WeBull is regulated by the SEC and FINRA, it is considered one of the safest platforms for US-based traders.

Pros

  • Sleek trading platform
  • Regulated by the SEC
  • Huge range of trading tools
  • Commission-free stock trading
  • Free ACH deposits

Cons

  • Doesn’t accept credit/debit card

Or go to WeBull>

67% of all retail investor accounts lose money when trading CFDs with this provider.

3. Robinhood – Best Broker to Buy Index Stocks with No Feesrobinhood review

Robinhood is one of the most popular brokers in the US and has been around since 2013. This broker is regulated by the SEC and FINRA and offers free stock, options, and crypto trading. Furthermore, Robinhood does not charge any deposit, withdrawal, or monthly account fees – making them one of the cheapest brokers in the US to partner with.

There is no minimum deposit at Robinhood, making it easy for beginner traders to create an account. Robinhood has multiple brokerage accounts depending on your experience level, although most traders will be suited to the Instant Account, which offers most of the functionality you’d ever need. The great thing about Robinhood is that Instant Account deposits arrive instantly, with a maximum amount of $1000. However, if you deposit more than this, it can take up to five business days.

Pros

  • Heavily regulated broker
  • Free stock trading
  • Instant deposits via ACH
  • No non-trading fees

Cons

  • Only accepts bank transfer

Or go to Robinhood>

67% of all retail investor accounts lose money when trading CFDs with this provider.

4. IG – Best Broker to Buy Index Stocks with Great ReputationIG review

IG has been around since 1974 and is regulated by numerous entities worldwide, such as the FCA and BaFin. What’s more, as IG is listed on the LSE, this adds enormous levels of credibility to the platform. As IG is a CFD broker, the fee is built into the spread. Notably, IG offers commission-free trading on US shares and also provides out-of-hours trading on specific US markets.

IG doesn’t charge a deposit, withdrawal, or monthly account fee – although there is an inactivity fee of $12 per month after two years of inactivity. There is no minimum deposit if you use a bank transfer, although the minimum deposit increases to $300 if you use an alternative payment method. Finally, IG’s web-based and mobile platforms are super easy to use and feature advanced customisation options, along with numerous tools such as price alerts and indicators.

Pros

  • Listed on the LSE
  • Zero commissions on US stocks
  • User-friendly trading platforms
  • Huge range of assets to trade

Cons

  • High minimum deposit if using credit/debit card

Or go to IG>

67% of all retail investor accounts lose money when trading CFDs with this provider.

5. TD Ameritrade – Best Broker to Buy Index Stocks with SEC RegulationTD Ameritrade review

TD Ameritrade has been around since 1975 and is regulated in the US by the SEC, FINRA, and the CFTC. TD Ameritrade is so popular because this platform offers commission-free trading on a huge range of US stocks and ETFs. Furthermore, TD Ameritrade doesn’t charge any deposit or monthly account fees – and withdrawals are also free if you use an ACH transfer.

There is no minimum deposit at TD Ameritrade if you open a basic account, and accounts can be opened digitally – although the process can take around a day or so to complete. TD Ameritrade only accepts ACH transfers and wire transfers, with the former only taking around one business day to arrive in your account. Finally, traders can operate in the market via TD Ameritrade’s browser-based platform or the mobile app. Both options offer charting capabilities, along with various order types.

Pros

  • Heavily regulated broker
  • Over 45 years of industry experience
  • Free stock trading
  • No minimum deposit

Cons

  • Accounts can take a day or so to open

Or go to TD Ameritrade>

67% of all retail investor accounts lose money when trading CFDs with this provider.

6. Interactive Brokers – Best Broker to Buy Index Stocks with Large Asset Selectioninteractive brokers review

Interactive Brokers is an award-winning brokerage and was established back in 1978. They are regulated by the SEC and FCA, ensuring that all users are protected whilst trading. If you are a US-based trader, you’ll be able to open an IBKR Lite account, which will enable you to trade US stocks free of charge. If you opt for another account type, there will be a commission per trade, which is a minimum of $1.

Interactive Brokers offers stocks, ETFs, bonds, options, futures, cryptos, and more – making them one of the best FCA brokers UK for asset selection. There is no minimum deposit, and American clients can fund their accounts via ACH, check, and online bill payment. Finally, Interactive Brokers does not charge any non-trading fees whatsoever, making them incredibly cost-effective to trade with.

Pros

  • Commission-free trading on US stocks
  • Regulated by SEC and FCA
  • No non-trading fees
  • Established over 40 years ago

Cons

  • Commissions on certain accounts

Or go to Interactive Brokers>

67% of all retail investor accounts lose money when trading CFDs with this provider.

7. E*TRADE – Best Broker to Buy Index Stocks with No Minimum DepositE*Trade review

E*TRADE has a stellar reputation in the US and is regulated by the SEC and FINRA. Furthermore, E*TRADE was recently acquired by Morgan Stanley, adding a considerable level of credibility to the platform. E*TRADE offers commission-free investing on a range of US stocks and ETFs, whilst the margin rate is quoted at 9% if you trade on margin. Aside from stocks, E*TRADE also offers a vast range of bonds, futures, options, and cryptos to trade.

There is no minimum deposit with E*TRADE if you use a basic account, although margin accounts will require an initial deposit of $2,000. The account opening process can be completed online but can take up to a week to finalise. Deposits are accepted at E*TRADE via ACH, wire transfers, and checks. Although withdrawals are free to make, E*TRADE does not accept credit/debit cards at this time.

Pros

  • Regulated by the SEC and FINRA
  • Subsidiary of Morgan Stanley
  • Commission-free trading
  • Fully digital account opening

Cons

  • Does not accept credit/debit cards

Or go to E*Trade>

67% of all retail investor accounts lose money when trading CFDs with this provider.

8. Fidelity – Best Broker to Buy Index Stocks for Experienced Investorsfidelity review

If you’re looking to invest $10k or more, then Fidelity might be best for you. Fidelity was initially established in 1946 and is regulated by the SEC and FINRA, making it one of the most respected brokers in the industry. Like others, Fidelity offers commission-free trading on US stocks and ETFs – although international stocks will come with a pretty high commission.

The USD margin rate with Fidelity is 8.3%, and the broker does not charge any account fees, deposit fees, or inactivity fees. If you open a basic account, there is no minimum deposit, and US traders can use ACH, checks, and even PayPal to fund their accounts. Withdrawals are also free if you use ACH. Finally, Fidelity’s trading platform is incredibly user-friendly and offers features such as two-step authentication and a massive range of order types.

Pros

  • Fantastic reputation in the US
  • Commission-free broker
  • Accepts PayPal
  • Large range of order types

Cons

  • High fees when trading international stocks

Or go to Fidelity>

67% of all retail investor accounts lose money when trading CFDs with this provider.

9. Zacks Trade – Best Broker to Buy Index Stocks with Industry ExperienceZacks Trade review

Zacks Trade is owned by LBMZ Securities, regulated by the SEC and FINRA – ensuring that strict protocols protect all traders. Zacks Trade is partnered with Interactive Brokers, meaning that many of the services offered are similar. Small commissions are charged when trading stocks, with the minimum fee being $1 for US-based stocks. However, international stock trading can be a little more expensive.

Zacks Trade does not charge any non-trading fees and offers a wide range of account types. There is no minimum deposit for the individual trading account, although account opening and verification can take a few business days. US clients can fund their accounts via ACH, wire transfer, check, or online bill payment. Finally, the first withdrawal each month at Zacks Trade is free, whilst subsequent withdrawals will come with a charge depending on the specific method.

Pros

  • Regulated by the SEC and FINRA
  • Accepts a variety of payment methods
  • The first withdrawal per month is free
  • Wide range of account types

Cons

  • Commissions charged on US stocks

Or go to Zacks Trade>

67% of all retail investor accounts lose money when trading CFDs with this provider.

10. SoFi – Best Broker to Buy Index Stocks for Automated InvestingSoFi review

SoFi is regulated by the SEC and FINRA and is one of the most innovative brokers in the industry. The great thing about SoFi is that users can utilise their Automated Investing feature, which will build a portfolio for you with no management fee! However, you can also open an active investing account if you wish to be more hands-on.

SoFi offers free stock trading, whilst cryptocurrencies are charged at a 1.25% markup. There are no non-trading fees to contend with and no minimum deposits for the active account. US clients can use ACH, wire transfer, or check to fund their accounts, with the whole process taking around one day to complete. Finally, SoFi’s trading platform is designed with casual investors in mind and features two-step login, pre-set alerts, and portfolio reports.

Pros

  • New and exciting broker
  • Innovative Automated Investing feature
  • Free stock trading
  • Sleek and user-friendly platform

Cons

  • Crypto fees are pretty high

Or go to SoFi>

67% of all retail investor accounts lose money when trading CFDs with this provider.

How to Buy Index Stocks in the USA

The final section of this guide will focus on how to buy index stocks right now. Many of the best trading platforms will offer the index stocks we have noted in this guide simply because they are incredibly popular with investors. However, as eToro is our recommended broker, the four quick steps below will show you how to buy index stocks with eToro – all in less than ten minutes.

Step 1 – Create an eToro Account

Proceed over to eToro’s website and click the ‘Join Now’ button on the homepage. Enter a valid email address and choose a username and password to open your account.

etoro sign up

67% of retail investor accounts lose money when trading CFDs with this provider.

Step 2 – Verify your Account

As eToro is registered with FinCEN, new users must verify themselves before trading. To do so, head to your account dashboard and click ‘Complete Profile’. You’ll then be asked for some personal details, after which you’ll have to upload proof of ID (a copy of your passport or driver’s license) and proof of address (a copy of a bank statement or utility bill). eToro will then verify these documents, which usually takes minutes.

Step 3 – Make a Deposit

New eToro users must deposit at least $50, which is free to make. In terms of payment methods, eToro accepts the following for US-based traders:

  • Credit card
  • Debit card
  • Bank transfer
  • PayPal
  • Skrill
  • Neteller

Step 4 – Buy Index Stocks

Search for your chosen index stock in the search bar and click ‘Trade’. In the order box that appears, enter your desired position size (minimum investment of $50), opt for leverage if you wish, and then click ‘Open Trade’.

buy index stocks eToro

And that’s it! You’ve officially invested in an index stock with eToro – totally free of charge!

Best Index Stocks – Conclusion

To summarise, this guide has discussed the best index stocks available in the market today, highlighting their advantages and disadvantages. As you’ll now be aware, index stocks can offer a simple and effective way to gain exposure to an extensive range of assets. So, if you’re looking to diversify your portfolio into a different area, you’ll be able to do so by investing in one of the many stocks we’ve noted in this guide!

If you’d like to begin investing today, we’d recommend using eToro. eToro is our favoured broker for index stocks as you’ll be able to invest commission-free and from only $50 per trade. Moreover, eToro is regulated by numerous top entities, ensuring you’re as safe as possible when trading.

Best Broker to Buy Index Stocks – eToro

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About Connor Brooke PRO INVESTOR

Connor is a Scottish financial expert, specialising in wealth management and equity investing. Based in Glasgow, Connor writes full-time for a wide selection of financial websites, whilst also providing startup consulting to small businesses. Holding a Bachelor’s degree in Finance, and a Master’s degree in Investment Fund Management, Connor has extensive knowledge in the investing space, and has also written two theses on mutual funds and the UK market.