Summary: Investing in the S&P 500 is a popular strategy for portfolio diversification, and the process is made easier thanks to the regulatory oversight of the U.S. Securities and Exchange Commission (SEC). Investors worldwide can efficiently allocate capital using wire transfers, ACH transfers, debit cards, and credit cards to purchase S&P 500 index funds or ETFs.
Our dedicated research team has conducted an extensive review of platforms that offer S&P 500 products and derivatives. Based on criteria such as user experience, security features, and transaction fees, we've pinpointed the most reliable and user-centric platforms for investing in the S&P 500:
Best App to Invest in the S&P 500
To identify the leading platforms and apps that enable global investors to access the S&P 500, we have developed a rigorous methodology evaluating key aspects of each platform. This includes compliance with international financial regulations, the availability of S&P 500 index funds and ETFs, user satisfaction rates, multiple currency deposit options, and associated transaction fees. Based on this comprehensive analysis, we present a streamlined list of the world's top apps for investing in the S&P 500.
Available in over 100 countries, eToro stands out as a premier platform for global investors seeking diversified exposure to assets like the S&P 500 via ETFs such as SPY SPDR and S&P 500 indices. With a user base exceeding 30 million, eToro is backed by robust compliance with international financial regulations, making it a secure choice for S&P 500 investing.
Unique features like Copy Trading enable investors to follow successful strategies, and a Virtual Account with a $100,000 demo fund offers a practice ground for refining skills. The platform is praised for its competitive fee structure, diverse asset offerings, and flexibility in deposit methods for various currencies.
- Fees: 0% commission on stocks and ETFs. Spread fees may apply.
- Assets: 3,000+ stocks, ETFs, commodities, currencies, and more. Includes the popular SPDR S&P 500 ETF.
- Regulation: Licensed by FinCEN, the Financial Conduct Authority, CySEC and other tier-1 regulators.
- Deposit Methods: Bank transfers, debit cards, credit cards, wire transfer, SEPA, Sofort and more.
2. Interactive Brokers
Interactive Brokers (IBKR) earns its reputation as the second-best platform for S&P 500 investments and is the go-to choice for institutional investors globally. With a presence in multiple countries, IBKR operates under rigorous financial regulations, ensuring a high level of security for your investments.
What sets Interactive Brokers apart is its focus on advanced trading tools, tailored specifically for professional and institutional investors. Its IB Trader Workstation offers a suite of tools for in-depth market analysis, while its FIX CTCI solutions allow for customizable, high-frequency trading. Institutional investors will find a comprehensive selection of S&P 500 assets, including SPY SPDR ETFs and S&P 500 indices, and an expansive array of other asset classes.
- Fees: 0% commissions and spreads that average at 0.3% per trade.
- Assets: 10,000+ stocks, ETFs, commodities, options, bonds and more.
- Regulation: Fully compliant with stringent international financial regulations.
- Global Deposit Methods: Bank Wire, ACH, SEPA, SIC and other local banking deposits.
3. Trading 212
Occupying the third spot on our list, Trading 212 shines as the optimal choice for S&P 500 day traders. With over 2 million funded accounts and £3.5 billion in assets, this platform has established itself as a strong contender in the trading world. It offers quick access to S&P 500 assets like SPY SPDR ETFs and S&P 500 indices, along with commission-free investing.
Unique features that set Trading 212 apart include Pies & AutoInvest, which allows for tailor-made portfolio setups, and daily interest up to 2.25% APY on uninvested currencies. Security measures like segregated accounts and protection up to £85,000 ensure peace of mind. The platform further enhances its user experience by providing access to a wide range of other global assets and round-the-clock customer support.
- Fees: No trading fees, spreads ranging from 1-1.5%.
- Assets: Specializes in S&P 500 assets along with 12,000+ global stocks and ETFs.
- Regulation: Regulated by the Cyprus Securities and Exchange Commission.
- Deposit Methods: Bank Transfers, Debit and Credit Cards, Google Pay.
Coming in fourth on our list, Robinhood excels as the platform of choice for S&P 500 options trading. Favored by a vast user base in the United States, Robinhood offers an expansive array of assets, including specialized options for S&P 500 investments like SPY SPDR ETFs and S&P 500 indices. Operating under the stringent oversight of the U.S. Securities and Exchange Commission (SEC), Robinhood provides a secure and compliant trading environment.
What sets Robinhood apart is its commitment to commission-free trading and a robust options trading suite, including puts and calls. The platform is lauded for its user-centric design, mobile applications for both iOS and Android, low spreads, and uncomplicated methods for U.S. dollar (USD) deposits.
- Fees: No trading fees, with competitive spreads around 1%.
- Assets: Specializes in S&P 500 options, along with 5,000+ other global stocks, ETFs, and treasuries.
- Regulation: Overseen by the U.S. Securities and Exchange Commission (SEC) and FINRA.
- USD Deposit Methods: ACH Transfers, Wire Transfers, Visa, Mastercard, Credit and Debit Cards.
Rounding out our top five list, DEGIRO stands as a strong platform particularly well-suited for beginners looking to invest in the S&P 500. Regulated by the Netherlands Authority for the Financial Markets (AFM) and the Dutch Central Bank (DNB), DEGIRO ensures a stable and trustworthy trading atmosphere.
DEGIRO sets itself apart with its low fee structure and access to over 50 markets across 30 countries. It offers four specific S&P 500 ETFs including SPDR S&P 500 ETF, iShares Core S&P 500 ETF, Vanguard S&P 500 ETF, and Invesco S&P 500 ETF, making it versatile for beginner investors. The platform also boasts a user-friendly, web-based interface as well as mobile applications for iOS and Android, facilitating a seamless trading experience for users of all skill levels.
What is the Best S&P Index to Buy?
The best S&P 500 index to buy for most investors is the SPDR S&P 500 ETF Trust (SPY), managed by State Street Global Advisors. This ETF is renowned for its high liquidity, low expense ratio, and accurate representation of the S&P 500 index. It offers an efficient way to invest in a diversified selection of top U.S. companies, making it a preferred choice for both individual and institutional investors seeking long-term growth.
What are the Fees?
The SPDR S&P 500 ETF Trust (SPY), managed by State Street Global Advisors, boasts a low expense ratio, usually around 0.0945%. This translates to an annual fee of about $9.45 for every $10,000 invested.
While the ETF itself has a low cost, investors should also consider additional fees like fiat deposit fees, which can vary depending on the trading platform. Spreads and commissions, if applicable, can also add to the overall cost. Therefore, it's crucial to evaluate all potential fees to get a comprehensive understanding of the total cost of investing in SPY.
Choosing the right platform for investing in the S&P 500 can significantly impact your investing experience and long-term returns. Our comprehensive research has identified eToro, Interactive Brokers, Trading 212, Robinhood, and DEGIRO as standout platforms based on their user experience, security features, and fee structures. Whether you're an individual investor or part of an institution, these platforms offer a range of specialized features to meet your specific needs.
When it comes to the S&P 500 index, the SPDR S&P 500 ETF Trust (SPY) emerges as a favored choice for its high liquidity and low expense ratio. However, it's essential to factor in additional costs like deposit fees and any applicable spreads or commissions. Always assess the full range of fees to ensure you're making the most informed investment decision.