Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

How to trade or invest in the NASDAQ

The NASDAQ 100 is one of the most famous indices in the world, boasting companies like Microsoft, Amazon and Tesla. Learn the different ways to trade or invest in the NASDAQ 100.

Call 0800 195 3100 or send us an email with any questions about opening a trading or investment account between 8am and 6pm (UK time) on weekdays.

Contact us 0800 195 3100

Get info fast via our instant help and support portal. Available for account queries, ProRealTime, product info and more.

Visit help and support for more information.

Get info fast via our instant help and support portal. Available for account queries, ProRealTime, product info and more.

Visit help and support for more information.

Call 0800 409 6789 or email helpdesk.uk@ig.com if you have any questions about trading or investing. We're available 24/7 between 8am Saturday and 10pm Friday.

Contact us 0800 409 6789

Call 0800 195 3100 or send us an email with any questions about opening a trading or investment account between 8am and 6pm (UK time) on weekdays.

Contact us 0800 195 3100

Get info fast via our instant help and support portal. Available for account queries, ProRealTime, product info and more.

Visit help and support for more information.

Get info fast via our instant help and support portal. Available for account queries, ProRealTime, product info and more.

Visit help and support for more information.

Call 0800 409 6789 or email helpdesk.uk@ig.com if you have any questions about trading or investing. We're available 24/7 between 8am Saturday and 10pm Friday.

Contact us 0800 409 6789

If you’d like to trade or invest in the NASDAQ 100, follow these three steps, or read our full guide below:

1. Decide whether you want to trade or invest

There are several ways to get exposure to the NASDAQ 100 – including trading or investing in ETFs and individual shares, or trading on the index’s value.

2. Create a trading plan

Before taking a position on the NASDAQ 100, you'll need to decide whether you're a short- or long-term trader – and how you're going to manage your risk.

3. Open a live account

Then, open and fund any or all of the following accounts – spread betting, CFD trading and share dealing - fill in our application form.

How can you trade or invest in the NASDAQ 100?

With us, there are a number of ways to gain exposure to the NASDAQ 100 (known on our platform as the US Tech 100) – so you can choose the one that suits you best.

You can:

Trade the NASDAQ 100 index directly

Trade the performance of USA’s largest domestic and international companies from a single position. You can trade the NASDAQ 100’s price directly on our platform under the name ‘US Tech 100’. In other words, you’ll get direct exposure to the NASDAQ 100 index with us. It’s more liquid than trading it in other ways and you can trade it 24 hours a day, Monday to Friday.

You can trade the NASDAQ 100 on leverage using spread bets or CFDs, without having to own any actual shares. Instead, you’ll put down a deposit to open a larger position, with profits and losses calculated on the full position size. This means your profits and losses can significantly outweigh your margin amount, so ensure you use risk management tools (like stop losses) when trading.

You can go long if you think the price will rise or short if you think the price will fall.

Spread bets and CFDs are commission-free when you trade the NASDAQ 100, as charges are in the spread.

Trade or invest in NASDAQ 100 ETFs

Gain broad exposure to the entire NASDAQ 100 by trading or investing in an ETF that tracks the price of the index. This means you won’t trade on the current price of the NASDAQ, but rather the ETF’s price, calculated on its net asset value (NAV).

Investing in NASDAQ ETFs is how many longer-term investors get exposure to the entire index. You can do this with share dealing. Here, you’d buy upfront, based on the full value of the ETF, and hold until you want to sell.

With our share dealing platform, you can buy and sell US shares like those on the NASDAQ for as little as £0 commission per trade.1

You could also trade NASDAQ ETFs on leverage with spread betting or CFDs, but bear in mind this offers lower liquidity and higher spreads than trading the index directly. Leveraged trades mean you can go long or short on NASDAQ ETFs. However, total profits or losses can significantly outweigh your margin amount, as both are based on the total position size.

Trade or invest in NASDAQ shares

With us, you can also trade or invest in the actual stocks included in the NASDAQ 100.

Target specific NASDAQ 100 stocks like Facebook, Tesla or Alphabet, without gaining exposure to the entire index. With this option, you choose your own NASDAQ shares based on your personal trading strategy.

Invest in NASDAQ shares with zero commission charges on our share dealing platform and own actual NASDAQ 100 company shares outright. 1

You can also trade NASDAQ companies without having to take ownership of shares, using spread bets or CFDs. These are leveraged trades, so you can go long or short.

Spread bets are commission-free as charges are in the spread, while share CFDs attract a minimum commission of $15.

Trading the NASDAQ index directly Trading or investing in a NASDAQ ETF Trading or investing in NASDAQ shares
Account types Spread betting or CFD trading account. Spread betting or CFD trading account to trade or a share dealing account to invest. Spread betting or CFD trading account to trade or a share dealing account to invest.
Market hours 24 hours a day, Monday to Thursday and until 10pm Friday (UK time) If the ETF is UK-listed, when the LSE is open - 8am to 4.30pm, Monday to Friday (UK time) When the NASDAQ 100 is open in the US – 2.30pm to 9pm, Monday to Friday (UK time)
Timeframe Short to medium term. Short to medium term for trading and long term for investing. Short to medium term for trading and long term for investing.
Liquidity and execution 0.0014 second execution speed and unique deep liquidity Higher liquidity offered by trading the index directly Higher liquidity offered by trading the index directly
Costs Commission-free, spreads from just 1 point (for spread bets).
Trading the NASDAQ on the spot (cash) incurs overnight fees, but index futures don’t incur these fees.
Invest in UK-listed NASDAQ ETFs from £3 commission per trade with share dealing.1 Commission-free for spread betting, with a commission charge of £10 for CFDs.
Spreads from just 0.1% for spread bets. Cash (spot) ETF trades incur overnight fees, but none for ETF forwards.
Invest in US shares from £0 commission per trade with share dealing.1 Spreads from 1 point for spread betting, minimum $15 commission for share CFD trades.
Cash (spot) trading incurs overnight fees, but none for share forwards.

How to start trading or investing in the NASDAQ

If you’re ready to start trading or investing in the NASDAQ 100, follow these five steps:

  1. Create your NASDAQ account
  2. Open your first trading or investing position
  3. Learn what moves the NASDAQ’s price
  4. Hone your NASDAQ strategies
  5. Discover what else you need to know about the NASDAQ

Create your NASDAQ account

You can open any one of three different NASDAQ account types:

With us, you can open and fund one, two or even all three types of accounts to begin trading or investing in the NASDAQ 100.

Open your first NASDAQ trading or investing position

How you’ll go about this depends on the type of account you’ve chosen to open:

Spread betting on the NASDAQ 100

With spread betting, you won’t own NASDAQ 100 shares outright. Instead, you’ll speculate on whether the price of the NASDAQ 100 index, a NASDAQ 100 share or an ETF will rise or fall.

You’ll bet per point of the market’s movement, making a profit or loss based on whether your prediction is correct. So, if you go long and bet £10 per point that the NASDAQ 100 index price will go up, you stand to gain £500 if the index price moves up by about 50 points (depending on the index’s current price – so here that’s £10 per point x 50 points) and lose £500 if the index price goes down 50 points instead.

Spread betting on the NASDAQ 100: cash indices

You can spread bet on the current price of the NASDAQ 100 with the cash (spot) price.

This is how many people choose to trade the NASDAQ 100 with us, as it has tight spreads, no commission charges and mirrors the real-time index price more closely than futures pricing.

It is best suited to short term traders, as cash/spot trading does incur overnight funding charges if you leave a position open after 10pm.

Our cash prices for the Nasdaq are based off our future’s price with a fair value adjustment to get to a spot price as close to the real time cash price of the index as possible. Spot trading (known as cash trading in our platform) is best done during the index’s normal market hours. The index’s hours are based on the New York Stock Exchange’s regular hours, which are 2.30pm to 9pm, Monday to Friday (UK time).

However, we also offer out of hours trading – in fact, we offer more hours than any other trading platform in the UK. This means you can get 24/7 pricing on the NASDAQ 100 – useful for the very different time zones to the UK.

To open a position, follow these steps:

  1. Go to the spread betting platform and:
  2. Navigate to the US Tech 100, under ‘Indices’
  3. Select ‘Cash’ instead of ‘Futures’ to trade
  4. Decide whether you want to buy (go long) or sell (go short)
  5. Choose the size of your position per point
  6. Set yours stops and limits
  7. Click ‘place deal’ to open the position

Spread betting on the NASDAQ 100: index futures

If you’re more of a medium- to long-term trader, you can also trade NASDAQ 100 futures with us.

With index futures, you’ll agree to trade the NASDAQ 100 at a specific price on a specific date in the future. While futures contracts have wider spreads, you won’t incur any overnight fees, so you can leave your position open until the contract’s expiry date. Your position will be closed once the contract expires, and you’ll take a profit or loss based on the outcome of the trade.

Spread betting on NASDAQ 100 futures is commission-free, we charge just our spread for index futures.

To open a NASDAQ 100 futures position:

  1. Go to the spread betting platform
  2. Select the US Tech 100 under ‘Indices’
  3. Choose ‘Futures’ instead of ‘Cash’ to trade and select your preferred date range
  4. Decide whether you want to buy (go long) or sell (go short)
  5. Choose the size of your position per point
  6. Set yours stops and limits
  7. Click ‘place deal’ to open the position

Spread betting on NASDAQ: options

With us you can also trade the NASDAQ 100 via options, which give you the right, but not the obligation, to buy or sell the options contract before a predetermined expiry date.

When you trade options by spread betting on our platform, you’ll be speculating on the NASDAQ 100’s price and if the index price will move beyond a certain price within the timeframe of before your expiry date is reached.

Bear in mind when spread betting options that, when buying options, you’ll only risk as much as the premium you pay when opening your trade. However, there is potentially unlimited risk when selling options, as there’s no limit to how much market prices can rise. For this reason, options trading is often only recommended for experienced traders.

To open an options position with spread betting:

  1. Go to the spread betting platform
  2. Click on Options’ instead of ‘Indices’
  3. Choose ‘Indices’ as your asset class and select the US Tech 100
  4. Decide on your preferred maturity date range – daily, weekly or monthly
  5. Select a call or put option, and whether you want to buy (go long) or sell (go short)
  6. Choose the size of your position
  7. Set yours stops and limits
  8. Click ‘place deal’ to open the position

Spread betting on NASDAQ: ETFs

You can also spread bet using Exchange Traded Funds (ETFs), investment instruments that track the performance of a range of NASDAQ stocks. In this way, ETFs can be useful for getting broad exposure in a single trade.

Spread betting on ETFs is commission-free, with spreads from as low as 0.1%. Spread betting ETFs on spot (cash) prices will incur an overnight funding fee, but trading ETFs on forwards markets has no overnight funding charges.

To open a NASDAQ 100 ETF position:

  1. Go to the spread betting platform
  2. Select ‘ETFs’ instead of ‘Indices’
  3. Click on your chosen ETF, for example the iShares NASDAQ 100 UCITS ETF
  4. Choose whether you want to trade ETFs with Cash or Forwards
  5. Decide whether to buy (go long) or sell (go short)
  6. Choose the size of your position per point
  7. Set yours stops and limits
  8. Click ‘place deal’ to open your position

Spread betting on NASDAQ: shares

If you have a particular NASDAQ 100 company in mind, you can spread bet on all the NASDAQ shares directly.

Unlike owning the shares of a NASDAQ 100 company outright, spread betting on NASDAQ shares enables you to go long or short, so you can adjust your strategy depending on what the market’s doing.

As spread betting is leveraged, you won’t own the shares outright but will instead speculate on the share price. Leveraged trading means you pay an upfront deposit to open your trade, which is fraction of the cost you would to buy NASDAQ 100 company shares outright. Bear in mind, though, that profits and losses will be calculated based on your total position size, not the margin amount.

You’ll never pay commission on share spread bets. You’ll also get low spreads with cash shares, but will incur an overnight funding fee on any positions left open after 10pm UK time. Spread betting share forwards, meanwhile, is completely free of all overnight funding and commission–the only charge is the spread (which is slightly wider than spot price spreads).

To open a shares position, simply go to the spread betting platform and:

  1. Select ‘Shares’ instead of Indices or ETFs
  2. Click on your chosen company, for example Tesla
  3. Choose whether you want to trade on the spot (cash) or using forwards
  4. Decide whether to buy (go long) or sell (go short)
  5. Choose the size of your position per point
  6. Set yours stops and limits
  7. Click ‘place deal’ to open your position

You can also invest in NASDAQ 100 companies’ shares outright with share dealing. Read on for more details.

Trading CFDs on the NASDAQ 100

When trading contracts for difference (CFDs) on the NASDAQ 100, you’re entering into a contract to speculate on the price of the NASDAQ 100 or share prices of the companies listed on the exchange. The amount the price of what you’re trading rises or falls (so, the difference between the price when you open versus when you close your position) determines your profit or loss.

Trading CFDs on NASDAQ 100: cash indices

One way to trade the NASDAQ 100 using CFDs is on the spot (cash) price.

Trading the spot price means you get the closer pricing to the real time NASDAQ 100 than you would with futures, as prices are based off our future’s price with a fair value adjustment to get as close to the real time cash price as possible, plus low spreads and no commission on indices.

As spot trading does come with overnight funding fees if you leave a position open overnight, this form of trading is best suited to short- and medium-term strategies.

To open a NASDAQ 100 spot position:

  1. Go to the CFD trading platform
  2. Select the US Tech 100 under ‘Indices’
  3. Choose ‘Futures’ instead of ‘Cash’ to trade and select your preferred date range
  4. Decide whether you want to buy (go long) or sell (go short)
  5. Choose your deal size in terms of number of contracts
  6. Set yours stops and limits
  7. Click ‘place deal’ to open your position

Trading CFDs on NASDAQ 100: options

With options you have the right, but not the obligation, to exercise the contract on or before its expiry date. When you trade options via CFDs, you’ll pay an initial deposit (called premium) to open a larger position. You’ll then speculate on the option’s premium for a profit or loss – but note that both can significantly outweigh your deposit amount. This is because profits and losses are calculated on the full position size, not the premium amount, so ensure you trade wisely.

Remember, buying options is limited risk as you’ll only risk as much as your margin paid, but selling options is technically unlimited risk, as there’s no restriction to how much a market’s price can rise.

To open a CFD options position on the NASDAQ 100:

  1. Go to the spread betting platform
  2. Click on Options’ instead of ‘Indices’
  3. Choose ‘Indices’ as your asset class and select the US Tech 100
  4. Decide on your preferred maturity date range – daily, weekly or monthly
  5. Select a call or put option, and whether you want to buy (go long) or sell (go short)
  6. Choose the size of your position
  7. Set yours stops and limits
  8. Click ‘place deal’ to open the position

Trading CFDs on NASDAQ 100: index futures

When you trade NASDAQ 100 futures with us, you won’t pay additional overnight funding charges or commission, as the cost is built into the spread. This is why futures have wider spreads than spot positions.

Trading index futures via CFDs means you’re agreeing to trade the NASDAQ 100 at a specific price on a specific date in the future. To open a NASDAQ 100 futures position:

  1. Go to the CFD trading platform
  2. Select the US Tech 100 under ‘Indices’
  3. Choose ‘Futures’ instead of ‘Cash’ to trade and select your preferred date range
  4. Decide whether you want to buy (go long) or sell (go short)
  5. Choose your deal size in terms of number of contracts
  6. Set yours stops and limits
  7. Click ‘place deal’ to open your position

Trading CFDs on NASDAQ 100: ETFs

If you want to gain exposure to a broad range of NASDAQ 100 shares all in one place, you can trade ETFs. Exchange traded funds (ETFs) are investment instruments that track the performance of a range of NASDAQ stocks, to give you variety with very low commissions.

ETF commissions start from just 0.1% on each side of a CFD trade, with a minimum fee of £10 for online orders. Just bear in mind that you’ll be trading on the cash (spot) price with ETFs, so there are funding charges you could incur if you leave your position open overnight.

To open a NASDAQ 100 ETF position:

  1. Go to the CFD trading platform
  2. Select ‘ETFs’ instead of ‘Indices’
  3. Click on your chosen ETF, for example the iShares NASDAQ 100 UCITS
  4. Decide whether you want to buy (go long) or sell (go short)
  5. Choose your deal size in terms of number of contracts
  6. Set yours stops and limits
  7. Click ‘place deal’ to open your position

Trading CFDs on the Dow Jones: shares

For those who don’t want broad exposure, but rather have their eye on a particular NASDAQ-listed company, try CFD share trading.

With CFD share trading, you won’t own company shares outright. Unlike owning company shares, which means you can only make a profit if the share price goes up, you can go long or short.

While owning shares means paying the full share price upfront, CFD trading is leveraged. This means you’ll pay only a small deposit amount (called margin) to open a larger position.

However, as profits and losses will be calculated based on your total position size, these can substantially outweigh your margin amount, so ensure you always trade within your means.

CFD share trading enjoys very low spreads, as we charge no spread on our side with you only having to pay the underlying spread price, and a minimum commission charge of $15.

To open a shares position, simply go to the CFD trading platform and:

  1. Select ‘Shares’ instead of Indices or ETFs
  2. Click on your chosen company, for example Tesla
  3. Choose whether you want to trade shares on the spot or using futures
  4. Decide whether you want to buy (go long) or sell (go short)
  5. Choose your deal size in terms of number of contracts
  6. Set yours stops and limits
  7. Click ‘place deal’ to open your position

Investing in the NASDAQ with share dealing

Want to own funds tracking the NASDAQ 100, or actual shares of a company listed on the NASDAQ? Then you may want to invest in the NASDAQ 100 with our share dealing platform.

Share dealing is the outright purchasing of ETFs or company shares, in this case of a company listed on the NASDAQ 100, with the intention of making a profit or earning income from dividends.

When you invest in shares this way, you’ll pay the full value of the share price upfront, with no leverage. This means you’re not at risk of your losses or profits outweighing the amount you put in. Instead, you’ll make a profit if the share price rises, or none if it falls.

Buying NASDAQ ETFs with share dealing

If as an investor you want to gain exposure to the whole NASDAQ 100 index, rather than just one stock, try buying NASDAQ ETFs.

Because this is a form of investing, NASDAQ ETFs are best suited to long-term or medium-term positions or a ‘buy and hold’ strategy.

When investing in NASDAQ ETFs with us in the UK, look out for NASDAQ ETFs with UCITS in the name. This means they are fully regulated to be traded in the UK. You’ll pay commission as low as £3 per trade for those who open three or more positions in the prior month,1 with a standard rate otherwise of £8.2

Buying NASDAQ shares with share dealing

If you’re interested in specific NASDAQ 100 company stocks rather than a broad-range ETF, you can buy shares on our share dealing platform.

This means you won’t get exposure to the entire NASDAQ 100 index, but does mean that you can choose the stocks most closely aligned to your individual trading strategy.

Investing in a managed portfolio

Not sure where to start? Or perhaps you just want things managed for you by a professional? You can also invest in the NASDAQ 100 by means of a managed portfolio with us.

With managed portfolios, we create a bespoke collection of stocks and funds for you according to your individual needs and goals. A managed portfolio invests on your behalf, including into the NASDAQ 100, and takes care of the details so you don’t have to. You’ll pay a 0.72% establishment fee on your first £50,000 and 0.22% thereafter.

Our actively managed portfolios are called IG Smart Portfolios, which combine low costs with innovative technology for an actively managed solution that’s as cost-effective as it is tailored to your needs. Powered by BlackRock asset allocation, Smart Portfolios have no additional set up or exit fees and can be started with just £500.

Learn what moves the NASDAQ’s price

The key to making a profit on the NASDAQ 100 is knowing the right moment to open and close a position. For this, you need to have a good understanding of the index itself – including what drives the NASDAQ 100 price up or down.

Some of the main factors that affect the NASDAQ 100 price include:

  • The strength of the US dollar
  • Economic events
  • News releases
  • Individual NASDAQ companies’ share prices
  • Earnings reports of those companies

Ultimately, if the above cause rises in NASDAQ 100-listed companies share prices – particularly larger companies like Microsoft, Amazon or Apple – the index’s price will climb. If the companies’ share prices by and large fall, so will the NASDAQ 100.

Hone your NASDAQ trading strategies

Once you understand what moves the NASDAQ 100 and have created your trading or investing account and are ready to open positions, it’s time to perfect your NASDAQ 100 trading or investing strategy.

Here are six things you can do to up your game on the NASDAQ 100:

  • Find the best trading style for you: do you want to buy and hold over the long term? Or rather trade specific market events in the space of hours and minutes, not days? Understanding whether you are a short term, medium term or long term trader will determine your best trading strategy. Some of these are scalping, day trading, swing trading and position trading
  • Use technical analysis and indicators: trading or investing to cash in on market sentiment and trends is the key to profits, but how do you spot them? Trading indicators and technical analysis are vital, as they can help to identify tell-tale signals and trends within the market, so you can strategise accordingly
  • Look for trading signals: another thing that can help you determine current trends are trading signals with momentum indicators such as the stochastic oscillator or relative strength index (RSI)
  • Study charts and price action: studying price charts and price action, both recent and older, can help you recognise patterns to determine current market sentiment and help you spot lucrative trends to trade when they appear
  • Set trading alerts: of course, no one can watch the market all the time, which is why we give our clients access to trading alerts. Input your chosen alerts when opening a position and you’ll be notified once your alerts are triggered by email, SMS or push notification
  • Follow industry news: significant macroeconomic news will affect the NASDAQ index price, as will company and sector news that affect share prices. So, it’s a good idea to keep an eye on breaking news. To help you, we have a current news feed on the trading platform that is updated in real time, as well as our news and trade ideas page of articles analysing the latest, most relevant market news

Discover what else you need to know about the NASDAQ

There are still many things to learn about an index as well-traded as the NASDAQ 100. Here are just a few more answers to common questions:

What are the NASDAQ’s trading hours?

The NASDAQ’s normal market hours are 9.30am to 4pm EST (Eastern Standard Time), which is 2.30pm to 9pm UK time. However with us, you can trade 24 hours a day, from Monday to Friday, to best take advantage of significant market events that may not keep office hours, like earnings season.

How is the NASDAQ price calculated?

The NASDAQ price is determined by a host of factors, most importantly its constituent companies’ latest share prices. The constituent companies of the NASDAQ are the 100 largest non-financial companies (for example, not banks) on the NASDAQ stock exchange by market capitalisation. This, plus other factors, are calculated into an average value for the stock exchange as a whole.

The NASDAQ is a modified capitalisation-weighted index. This means that not all NASDAQ stocks have equal weighting but, rather, the largest stocks will contribute a higher percentage to the total aggregate. So, if Apple’s share price goes up significantly and Apple is one of the largest stocks by market cap on the NASDAQ, the NASDAQ price will almost definitely go up too.

FAQs

What are the ways you can trade or invest in the NASDAQ?

There are a few ways you can trade or invest in the NASDAQ 100 with us. You can open a spread betting account or a CFD trading account to trade the NASDAQ 100 index, NASDAQ 100 stocks or a NASDAQ ETF. You can also trade the NASDAQ via options and trade on the cash (spot) price or futures. Alternatively, if you’d prefer to invest, you can open a share dealing account with us and buy NASDAQ 100 companies’ stocks outright or invest in a NASDAQ-tracking ETF.

What are the stocks on the NASDAQ 100?

The NASDAQ 100 is comprised of the 100 biggest companies (or 102 biggest securities, if you want to get technical) trading on the NASDAQ stock exchange in the United States. These include household names like Google’s Alphabet Inc, Apple, Facebook, Microsoft, Amazon and Tesla.

How do companies join the NASDAQ 100?

Companies come onto the NASDAQ 100 automatically. This is because the NASDAQ 100 is a capitalisation-weighted index. This means that, if a company is listed exclusively on the NASDAQ, it is weighed by size (market cap) and the 100 biggest companies by market cap on the NASDAQ exchange are included in the NASDAQ 100 automatically.

Each year, the NASDAQ 100 index is reranked in this way. So, all a company needs to do to ‘join’ the NASDAQ 100 list is be of the 100 biggest companies listed on the exchange in that year.

Note that they must be non-financial companies, as insurers, banks and other financial firms are instead included on the separate NASDAQ Financial 100 index.

1 Trade in your share dealing account three or more times in the previous month to qualify for our best commission rates. Please note published rates are valid up to £25,000 notional value.
2 See our full list of share dealing charges and fees.