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FTSE 250 Index

The FTSE 250 Index, short for the Financial Times Stock Exchange 250 Index, is another key stock market index in the United Kingdom. It represents the performance of the next 250 largest companies listed on the London Stock Exchange (LSE) after the top 100, based on market capitalization. Established in 1992, the FTSE 250 is managed by FTSE Russell, a subsidiary of the London Stock Exchange Group.


The FTSE 250 is often considered a broader and more domestically focused index than the FTSE 100 Index, as it includes mid-cap companies that are typically more tied to the UK’s domestic economy. These companies often have a more significant impact on the nation’s economic activities, providing investors with insights into the overall health of the UK’s business environment.

Similar to the FTSE 100, the FTSE 250 is a market-capitalization-weighted index, with larger companies having a greater influence on its movements. Investors and analysts use the FTSE 250 to assess the performance of medium-sized companies and gain a more comprehensive view of the UK stock market beyond the larger multinational corporations featured in the FTSE 100. The index is widely monitored for indications of economic trends, investment opportunities, and market sentiment.

The FTSE 250 is a capitalisation-weighted index: this means that companies are included based on the size of their market capitalisation, the value of the shares they have out there in the market. The companies included in the FTSE 250 will be the 101st to 350th largest companies listed on the London Stock Exchange.

The FTSE 250 also contains a large number of investment trusts. These are investment vehicles which issue shares on the stock market. They are managed like mutual funds, but investors buy into them by acquiring shares. At the time of writing, J.P.Morgan alone had six of its investment trusts as constituents of the FTSE 350.

While the FTSE 100 represents the biggest companies with shares traded in London, the 250 includes the group below the FTSE 100.

Many fund managers and investors feel the FTSE 250 Index is a better indicator of the performance of the UK market, because more of the companies included it in derive the bulk of their revenues from business done in the UK. The FTSE 100 Index (or UK 100) is composed of a much higher proportion of multi-nationals or large foreign firms that have chosen to list in London for capital raising purposes.

There is no official FTSE 350 index. Investors will typically combine the FTSE 100 and FTSE 250 indexes in order to correlate a FTSE 350 index.

There are a number of ways in which investors can gain exposure to the FTSE 250 Index. Exchange Traded Funds or ETFs will track the performance of the index at a relatively low cost with the added benefit of paying dividends. This means that investors will enjoy the effects of compounding over the longer term.

Invest in the FTSE 250 Index with these ETF platforms

ProviderDepositFeesISAsInvestment Options
Interactive Brokers
Interactive Brokers
£1 initial depositno platform fee
£3 per trade
Stocks & Shares ISAs
Junior ISAs
UK Shares
Non-UK Shares
Funds
ETFs
£3 / €3 per trade for Western European stocks, with no added spreads, account minimums or platform fees. Pricing on US stocks starts at just USD 0.005 per share. There is a minimum monthly activity fee of £3
 
Charles Stanley Direct
Charles Stanley Direct
£500 initial deposit
£50 monthly minimum
0.30% platform fee
£10 per trade
Stocks & Shares ISAs
Junior ISAs
UK Shares
Funds
ETFs
Bonds
Minimum charge of £5, maximum of £50 per month for all individual accounts held with Charles Stanley Direct. £10 transaction fee on shares, £4 for funds. £50 of trading credits available every six months from October 2024.
 
IG
IG
£500 initial deposit
£50 monthly minimum
£96 platform fee
£8.00* per trade
Stocks & Shares ISAsUK Shares
Non-UK Shares
Funds
ETFs
Robo Advisor
Trade 3+ stocks per month for active trader cost of £3.00 on UK stocks. Clients holding investments will be charged a platform fee of £8 per month which can be offset against a trade over the period. IG's Smart Portfolio's are a low cost option for those who are unsure where to invest their money.
 
Hargreaves Lansdown
Hargreaves Lansdown
£100 initial deposit
£25 monthly minimum
0.45% platform fee
£11.95* per trade
Stocks & Shares ISAs
Junior ISAs
Lifetime ISAs
UK Shares
Non-UK Shares
Funds
ETFs
Bonds
Robo Advisor
Trade 10+ stocks per month for active trader cost of £8.95 or 20+ at £5.95. Additional charge of up to £45 per annum on stocks and shares. There's no dealing charge for buying or selling funds but you'll pay a holding fee of up to 0.45% per annum. Ready-made portfolios are available for investors that are unsure where to invest their money for an additional fee.

For short term exposure to the FTSE 250, traders can use Contracts for Difference or CFDs to track the index. CFDs provide an opportunity for traders to make trades on a rising or falling index. UK investors may prefer to trade with a spread betting provider where any gains are tax free.

Trade the FTSE 250 with these CFD brokers

BrokerMinimum DepositMarketsProducts
Pepperstone
Pepperstone
£0Bonds
Commodities
Currencies
Indices
Stocks & Shares
CFDs
FX
Spread Betting

With a strong focus on the trading experience, industry leading technology, low costs and award-winning client support, we feel that Pepperstone is a good option for the more established high volume day trader.

 
FP Markets
FP Markets
$100Bonds
Commodities
Currencies
Indices
Stocks & Shares
CFDs
FX

FP Markets is an established ASIC, CySEC FSP and CMA regulated broker. They offer access to the industry leading MetaTrader platforms and provide pricing directly from the market meaning fast execution and transparent pricing. A 24/7 multilingual client support service has won recognition through the highly respected Investment Trends awards.

 
FxPro
FxPro
$100Bonds
Commodities
Currencies
Indices
Stocks & Shares
CFDs
FX

FxPro is a fully regulated CFD provider offering Forex, Metals, Indices, Futures, Cryptos and Stocks. Clients have access to over 2000+ financial instruments and the company serves clients in 173 countries worldwide. FxPro was voted ‘Best Forex Provider’ by The Armchair Trader readers for 2024.

Futures are derivative contracts that set a specific price for the sale of an asset at a specific time in the future. A futures contract is a legal agreement between two parties to buy or sell an asset at a predetermined price on a future date. It’s a binding commitment traded on exchanges like CME Group.

Trade the FTSE 250 with these Futures Brokers

BrokerMinimum DepositMarketsProducts
Interactive Brokers
Interactive Brokers
$0Bonds
Commodities
Currencies
Indices
Stocks & Shares
CFDs
ETFs
FX
Futures & Options
ISA
Stocks & Shares

Interactive Brokers is one of the world’s leading futures brokers with the ability to offer direct market access to a range of securities. With previous personal experience of trading with this broker, The Armchair Trader knows that they offer excellent platform stability, an excellent range of markets, and solid customer support

 
IG
IG
£0Bonds
Commodities
Currencies
Indices
Stocks & Shares
CFDs
ETFs
FX
Futures & Options
ISA
Spread Betting
Stocks & Shares

Widely recognised as the largest broker of its kind for CFDs and Spreadbetting, IG has now expanded its services to include Equities and ETF trading. Their range of markets is wide reaching while both trading and share dealing costs are low. We really like their Smart Portfolio's which are ideal for inexperienced investors to gain exposure to the markets.

With deeper pockets to invest in their services than most brokers, IG's platform suite and trading support tend to lead the way. IG is a good all-rounder for novice through to experienced traders and investors.

Risk Warning: Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% 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.

 
Tickmill
Tickmill
£100Bonds
Commodities
Currencies
Indices
Stocks & Shares
CFDs
Futures & Options

Tickmill is an established, regulated broker. With a focus on platform technology, fast reliable trading and low costs, it is a good choice for the experienced high volume trader.

FTSE 250 ETFs

WisdomTreeFTSE 250 1x Daily ShortTheme: FTSE 250
Ticker: LON:1MCS
Currency: GBP
Buy Here
Buy at Hargreaves Lansdown Buy at IG
WisdomTreeFTSE 250 2x Daily LeveragedTheme: FTSE 250
Ticker: LON:2MCL
Currency: GBP
Buy Here
Buy at Hargreaves Lansdown Buy at IG

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