DAX, Deutscher Aktien Index, GER30 are all the names of the GERMANY 30 index. It encapsulates 30 the biggest German businesses, which are listed on the Frankfurt Stock Exchange. Germany is a well-developed and wealthy country, consequently, the GERMANY 30 index is the main index of the Euro area.
The DAX structure includes shares of such corporations as BMW, Siemens, Adidas, Deutsche Bank, Henkel, Bayer, Volkswagen Group, Deutsche Lufthansa AG, Deutsche Börse Group to name a few. These 30 companies in the index account for about 75% of the trading volume of the Frankfurt Stock Exchange. GER30 is the main stock index in Germany and its importance and influence are as big as those of the Dow Jones USA Index.
Price Drivers of the Germany 30 Index
- Shares of 80 companies from the whole planet are listed on the Frankfurt Stock Exchange. A solid share of German companies operates far beyond the bounds of Germany, so the DAX index is influenced by international markets, too.
- Germany 30 is a capitalization-weighted index, meaning its constituents are weighted according to their market capitalization of free-floating shares. Companies are added to the index based on their market capitalization and stock of orders. The list of companies constituting GER30 is reviewed on a quarterly basis.
- Most of the companies included in the Germany 30 Index are also traded on the USA exchanges. This means that DAX is a reliable indicator of US market dynamics. The trading session on the European market opens earlier than on the US market, so DAX may indicate the current pulse of the American market.
- Like it is with any other stock index, the DAX value is sensitive to natural disasters, political decisions, economic events, and military conflicts.
Brokers trading the Germany 30 Index
We made up a list of the most reputable and properly-regulated brokers which you can rely on to trade DAX:
- ETX Capital (licensed by Financial Conduct Authority and is a member of the Financial Services Compensation Scheme) offers the Germany 30 Index at a minimum spread of 1 pip.
- CMC Markets operates under the regulation from the UK Financial Conduct and trades GER30 with a spread of 1 point.
- Core Spreads is controlled by the Financial Conduct Authority, too, and, along with providing access to 1000s of global markets, it offers GER 30 index trading at a spread of 1 pt.
- Oanda is an NFA regulated brokerage company situated in the United States, allowing you to trade DAX with a spread of 4.5 pips.
- XTB is an online broker with a license issued by the UK Financial Conduct Authority. Here, you can trade the Germany 30 index (along with 1500 other global markets) at a spread of 1.1 pips.
- Capital Markets LLC. is a cutting-edge ECN broker, headquartered in Hong Kong. Рrovides access to a broad range of markets 77 currency pairs, metals, natural gas, oil. Our favorite GERMANY 30 Index is traded here at a spread – 0
As a trader, you must monitor current events and forecast the market behavior for successful trading. It is also essential to consider the macroeconomic data of Germany and the EU, such as the unemployment level, the interest rate, the number of created jobs, GDP, and other economic indicators. Before you start trading DAX, take time to carefully analyze the situation on the stock market.