The CBOE Volatility Index, also known as VIX or the Volatility 75 Index, is the most used measure of volatility in the stock markets. The VIX tracks the volatility of the S&P500 stock index. Developed by the Chicago Board Options Exchange (CBOE), the index has a value between 0 and 100. A low value means low volatility, while a high reading means volatile market conditions. The Volatility 75 Index is a very popular instrument for traders, because it can be used to hedge other positions and it allows for a wide range of trading strategies.
Below is a list of the best brokers in the world that offer the Volatility 75 Index. We call them the best VIX Brokers.
1. Pepperstone
2. AVA Trade
3. IC Markets
4. Hot Forex
5. IFC Markets
If you want to trade the Volatility 75 Index using the Metatrader 4 or the Metatrader 5 platforms, we have good news for you. All the brokers presented above feature both the MT4 and the MT5 platform, meaning that you will be able to trade the VIX using the most popular (MT4) or the most advanced (MT5) trading platforms on the market. You can choose any of the above brokers and you will benefit from both MT4 and MT5 access.
There are many benefits when using a VIX broker compared to using a broker that doesn't allow you to trade the Volatility 75 Index. The first thing that comes to mind is that a high quality broker will generally have a higher range of trading instruments, so brokers who don't offer VIX trading are usually lower tier broker, and their trading conditions are more likely to be inferior on all other assets.
A big advantage of trading the VIX is that it can be used in combination with other positions to hedge the risk and act as downside protection. The stock markets use to go up when there is low volatility, and they can violently crash when there is a huge volatility spike. A trader who is long S&P500 can open a position in VIX to protect in case of a Black Swan event that can crash the market unexpectedly. This way, the VIX trade will compensate for the loss in the S&P500 position. Trading the Volatility 75 Index can be used as a form of insurance for the main trading positions, or simply as a form of speculation and day trading.
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