Regulated by trusted financial authorities

No commission on stock trading

Customer service available 24/7

Unlimited Demo Account

eToro DAX Trading

How to Trade GER40 on eToro?

Buying and selling DAX CFDs and other indices is possible using eToro's online investment platform. You can also follow and copy the positions of top performing traders.

TRY NOW WITH REAL ACCOUNT Get a $100,000 Practice Account

The Ultimate Guide to Trading DAX With eToro

The DAX (Deutscher Aktien Index), also known as GER40, is a stock index that represents companies that trade on the Frankfurt Stock Exchange (FSE).

The GER40 is a popular asset on the eToro platform. It can seem like a lot of work to trade it as a beginner, but we've put together an article that explains "everything" you need to know. Hopefully, this will make trading easier for you.

Table of Contents

  1. History of DAX
    When was the DAX created? (36sec)
  2. Factors to Consider When Trading DAX
    Trading tips (39sec)
  3. How to Trade DAX?
    Ways to invest (34sec)
    1. 3.1 Trading DAX via ETFs
      How do you trade an DAX ETF? (38sec)
    2. 3.2 Trading DAX via Futures
      Financial futures trading explained (34sec)
    3. 3.3 Trading DAX via CFDs
      CFD trading on DAX explained (26sec)
  1. Trading DAX CFDs with eToro
    Buy and sell the DAX index on eToro (36sec)
  2. How to Trade DAX in eToro?
    Step-by-step guide (29sec)
  3. Is It Wise to Invest in DAX?
    Is the DAX a good investment? (1min 11sec)

Thinking of trading the DAX with eToro?

If you're considering of investing on this index right now then you better click on the button below to get started. This will take you straight to eToro's GER40 trading page. Should you wish to continue, simply open an account with them but don't worry, this will only take a few minutes to do.


78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

History of DAX

Established in 1988, the DAX began with an initial index level of 1,163 points. The index previously consisted of 30 companies, but it has expanded to 40 as of September 3, 2021. The victory of these companies has bolstered what is known as the "German economic miracle" or Wirtschaftswunder, a term describing Germany's reawakening after World War II.

DAX trading
DAX trading

The DAX 40 index is used frequently as a measure of the German stock market. An electronic trading system that gives the rates used to assess the DAX index is called Xetra. The DAX (GER40) index accounts for roughly 75% of the total market capitalization, or the total dollar market value of the shares traded on the FSE.

Factors to Consider When Trading DAX

Formulating a strategy is essential to be successful in trading in the largest blue-chip companies comprising DAX40. To develop strategies, you should consider several factors that will increase the chances of succeeding in trading. The first factor to consider is security.

DAX is known for its competitiveness, so you need to choose the most suitable, tailor-fit security to your risk tolerance and trading objectives. In line with this, selecting the appropriate volume or the total number of shares to trade is essential as DAX can be volatile. It is also critical to select an investment broker who will assist you to reach your goals when trading in DAX.

Frankfurt Stock Exchange
Frankfurt Stock Exchange

A reputable and cost-effective broker, such as eToro, is regarded as one of the greatest options for investing in the DAX (GER40).

How to Trade DAX?

The DAX (GER40) measures the 40 largest German companies' performance and ranks as European investors' leading stock index. Anyone wanting exposure to the DAX (GER40) can do so by investing in financial instruments such as contracts for difference (CFDs), futures, and exchange-traded funds (ETFs).

DAX (GER40) traders can buy and hold, leaving the trade open until the price increases. When the price increases, you can close the trade for a profit. Short-term trading can range from intraday trading, where trades can run for several days and open and close within minutes. The goal for short-term trading is to earn on short-term volatility. This technique involves making more short-term trades than one long-term.

Trading DAX via ETFs

Investing entails selecting assets to add to your portfolio to retain them for the medium- to long-term and then profitably selling them. Additionally, you can earn from dividends - if the firm you invest in distributes a portion of its profits to shareholders. While it is possible to take a short position using inverse ETFs, most investors choose long positions.

Most investors will select a few equities for their portfolios and instead invest in ETFs if they wish to participate in DAX. When you purchase a DAX ETF, you invest in a fund that tracks the index's price. Numerous DAX ETFs do this by owning the index's constituent equities, which means that when you buy, you're effectively investing in all 30 firms through a single investment.

Trading DAX via Futures

There are exchanges wherein trading is available for European futures, particularly DAX Futures. Through it, you have the freedom to check the statistics, prices/quotes, specifications, trading hours, trading calendar, and transaction fees to help make sound financial decisions by choosing a suitable contract through in-depth analysis.

You can also obtain DAX futures in a variety of forms that have good advantages. For instance, standard futures contracts range in size from standard futures to mini-sized DAX futures with a multiplier of 5 EUR. DAX futures are priced typically in euros, which are then converted to US dollars. As individuals continue to make impressive profits from futures trading, the market have been becoming more competitive.

Trading DAX via CFDs

Investing in CFDs, a form of derivative in which the asset in line will be sold at a certain period in the future at a predetermined price, allows you to gain access to Germany's major blue-chip companies. Doing so will enable you to hedge risk through speculating price movements since this kind of financial contract does not transfer the ownership of the underlying stock.

GER40 index trading on eToro's platform
GER40 index trading on eToro's platform

Brokers like eToro are known for offering CFDs to trade DAX (GER40) that will allow you and other traders to access those companies.

Trading DAX CFDs with eToro

eToro became one of the best brokers because it is extremely user-friendly, accepts a variety of payment options, and provides commission-free investment. eToro allows you to pick from over 2,000 stocks and around 250 different exchange-traded funds (EFTs). There are over 40 forex pairings and dozens of indices to trade, including the German DAX.

At eToro, the minimum investment is $50. If you are a new investor, you do not need to invest a fortune to get started. Another outstanding feature of this broker is its social trading network, enabling you to exchange trading ideas and gain knowledge from investors worldwide. Additionally, eToro's preset portfolio selection may benefit investors, putting together the best-performing assets across several investment topics.

How to Trade DAX in eToro?

  1. Create an account on eToro or log-in your account for existing users.
    eToro web-based platform
    eToro web-based platform
  2. Click "Discover".
    Clicking "Discover" on eToro
    Clicking "Discover" on eToro
  3. Select "Indices".
    Selecting Indices on eToro's platform
    Selecting Indices on eToro's platform
  4. Look for "GER40".
    Looking for GER40 on eToro's list of indices
    Looking for GER40 on eToro's list of indices
  5. Select BUY or SELL.
    Buying or selling GER40 CFDs in eToro
    Buying or selling GER40 CFDs in eToro
  6. Key in your desired amount to invest or the number of GER40 units you want to trade.
    Entering amount to invest on GER40 via eToro
    Entering amount to invest on GER40 via eToro
  7. Review and set the stop loss, leverage, and take profit parameters.
    Reviewing stop-loss, leverage and take profit on GER40 CFD trade
    Reviewing stop-loss, leverage and take profit on GER40 CFD trade
  8. Select "Open Trade".
    Executing GER40 buy order on eToro
    Executing GER40 buy order on eToro

Is It Wise to Invest in DAX?

The DAX is comprised of blue-chip stocks from a variety of industries, including pharmaceutical companies, insurance companies, and automobile manufacturers. Investing in GER40 gives diversification benefits that individual stock investments do not. When markets are bullish, stock indices perform well, but when markets turn bearish, they plummet rapidly. It's generally a good idea to look at the underlying market circumstances before investing in an index like the DAX.

Germany, being one of the fastest growing economies in Europe and the wealthiest countries in the world, will undoubtedly help you accumulate higher profits in your portfolio even in times of volatility by purchasing long-term securities from GER40 listed companies. GER40 is also a good opportunity for those active traders into scalping, day trading, and swing trading.

Ready to trade DAX with eToro?

If you expect that Germany and the European economy will continue to grow, you should consider placing resources into the Ger40 list. To acquire a competitive advantage in the face of unexpected economic downturns, you can utilize GER40 to benchmark well-established German companies such as Porsche, BMW, Adidas, and many more. But remember, all investments contain different levels of risk so people need to be wiser in choosing the best option to trade. If you need assistance exploring the GER40, you can gather more information by visiting eToro. If you want to get started then simply click on the button below:


eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.

Copy trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission.

Cryptoasset investing is unregulated in some EU countries and the UK. No consumer protection. Your capital is at risk.

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.

Get a Free $100,000 Practice Account
78% of retail CFD accounts lose money