Guide to Trading FTSE250 Shares

FTSE250 Index (Financial Times Stock Exchange Index) is a share index. It is a second tier index (after FTSE100) and comprises of 250 highly capitalised companies (which are not listed in FTSE100 already). The index is maintained by the FTSE Group, an independent company which originated as a joint venture between the Financial Times and the London Stock Exchange.

Why to trade FTSE250 shares

FTSE250 shares are the second most traded and least volatile shares on the London Stock Exchange. Pension funds, banks, insurance companies and private investors around the world hold FTSE250 shares. They are appealing to people with some investment experience, who would like to diversify their portfolio or just looking for solid and fast growing companies in the UK. Unlike FTSE100 companies, FTSE250 companies usually pay smaller dividends but enjoy higher growth potential.

Where to trade FTSE250 shares

Every financial spread betting, contracts for difference (CFDs), share dealing and share ISA broker allows clients to buy and sell FTSE250 shares. It is crucial to use the right investment vehicle as they offer different benefits and not suitable for everybody.

Additional Information

  • FTSE - official website of FTSE group
  • Financial Times - official website of Financial Times
  • LSE - official website of London Stock Exchange