Charges and margins

We are clear about our charges, so you always know what
fees you will incur when you trade with us

Spreads, commissions and margins

You pay a spread on every non-share CFD and you pay commission on every share CFD trade.

Shares

Region

Commission 
per side

Min charge
(online)

Margin required

Australia 0.10% $8 From 5%
US 2 cents per share US$15 From 5%
Euro1 0.10% €10 From 5%
UK 0.10% £10 From 5%

 

1 Euro includes: Belgium, Eire, Finland, France, Germany, Italy, Netherlands, Portugal, Spain

With share CFDs you trade at the real market price, so we don't attach our own spread. Instead, we take a small commission when you open the position, and again when you close it. In each instance, a minimum charge applies.

See full shares costs and details

Forex

Market name

Value
per pip

Min spread

Average spread

Margin required

Spot AUD/USD

US$10 0.8 1.5 0.5%
Spot USD/JPY Y1000 0.8 1.5 0.5%
Spot EUR/USD US$10 0.8 1.5 0.5%
Spot GBP/USD US$10 1.0 2.0 0.5%

 

The spread is the difference between our Sell and Buy prices. We derive these prices based on the underlying market’s value.

See full forex costs and details

Learn more about our pricing and execution

 

Indices

Market name

Value of one contract

Best available spread

Margin per contract

Australia 200
24 hours
AUD25

1
 

0.5%

Wall Street
24 hours

US$10 1.8 0.5%
FTSE 100
24 hours
£10 1 0.5%
US 500
24 hours
US$250 0.4 0.5%

 

The spread is the difference between our Sell and Buy prices. We derive these prices based on the underlying market’s value.

See full indices costs and details

Learn more about our pricing and execution

 

Commodities

Market name

Value of one contract

Spread

Margin per contract

Spot Gold US$100 0.5 0.7%

Spot Silver

US$50 3 1.5%
US Light Crude US$10 6 US$650
Brent Crude US$10 6 US$750

 

 

The spread is the difference between our Sell and Buy prices. We derive these prices based on the underlying market’s value.

See full commodities costs and details

Learn more about our pricing and execution

 

View shares example

Buying BHP Billiton: detailed

  CFD
Underlying market/value BHP Billiton 33.39/33.40
Our price 33.39/33.40
Trade

Buy at 33.40

Trade size 500 shares
Margin required

$835

Number of shares x price x margin rate (5%)

What happens next? By 4.15pm (market close) the market has risen to 33.50: this is the price our funding is calculated at. It rises the next day, reaching 34.05
Funding

Overnight funding charge of $2.39

(One-month BBSW + 2.5% eg 2.7% + 2.5%) x number of shares x price)/365

(5.2% x 500 x 33.50)/365

Underlying market

34.04/34.05

Close

Sell at 34.04

Gross profit

34.04 – 33.40 = 64c

Gross profit = 64c x 500 shares = $320

Costs

Commission $33.72

Value of position x 0.10% (Minimum $8)

(500 x 33.40) x 0.10% = $16.70

(500 x 34.04) x 0.10% = $17.02

Funding: $2.39
Net profit

$283.89 profit subject to tax

What if...

If the underlying market fell to 32.60 instead:

32.60 – 33.40 = - 80c

-(80c x 500 shares + $2.39 + 33)

$435.39 net loss

 

View forex example

Buying AUD/USD: detailed

  CFD
Market Spot FX AUD/USD
Price 0.76912 / 0.76920
Trade

Buy 1 contract at 0.76920 (1 contract = A$100,000)

Margin required

One contract is A$100,000 and the margin rate is 0.5% = A$500

What happens next? AUD/USD climbs 150 points into the next day
Funding

Funding = size x (tom-next rate + admin fee of 0.3% pa)

A$10 x 0.29 = A$2.90

Price

0.78412 / 0.78420

Close

You sell at 0.78412

Gross profit

A$1492

0.78412 - 0.76920 = 0.01492

Number of contracts = 1

Value per contract A$100,000

0.01492 x A$100,000 = A$1492
Costs

0.8 point IG spread (included)

Funding cost = A$2.90
Net profit

A$1489.10

What if...

If the market dropped 115 points instead:

A$1142 + A$2.90

Net loss = A$1144.90

 

View indices example

Buying the Australia 200: detailed

  Cash CFD
Underlying market/value ASX 200 JUN15 Future
Our price

Australia 200 Cash

5500.5/5501.5
Trade

Buy at 5501.5

Deal size

1 contract

A$25 per contract
Margin required

Margin per contract x number of contracts x value of one contract x index level

0.5% x 1 x 25 x 5501 = A$687.63

What happens next? The market rallies dramatically, reaching 5650 at 10pm, when funding is calculated. It drops back a little overnight, to 5640.
Funding

Funding = A$17.97

((One-month BBSW e.g. 2.08% + 2.5% admin fee) x 1 x 25 x 5650)/360

Close

Sell at 5639.5

Overall market movement & profit/loss

5639.5 – 5501.5 = 138

Each contract is worth A$25 per point

Gross profit = A$3,450

Costs

1-point IG spread (included)

Funding cost: A$17.97

Net profit

A$3,432.03 net profit subject to tax

What if...

If the market dropped 138 points instead:

138 x A$25 + A$17.97

A$3,467.97 net loss

 

View commodities example

Buying Spot Gold: detailed

  CFD
Market and price Spot Gold 1447.96/1448.46
Trade

Buy at 1448.46

Trade size Buy 1 lot (1 lot = $100 per point)
Margin required

Margin required is 20% of total exposure = $28,969.20

What happens next? Gold rallies $10 over the day. At 10pm, the cut-off time for funding, the market is at 1458.46
Funding

0.048 x $100 = $4.80*

(tom-next rate + 0.3% pa admin fee) x deal size

Close

The market continues to rally and you sell your position to close at 1463.46

Gross profit

$1500

1463.46 – 1448.46 = 15

Value per point = $100

15 x $100 = $1500
Costs

0.5 point IG spread (included)

Funding cost = $4.80
Net profit

$1495.20

What if...

If the market dropped 15 points instead ($15):

$1500 + $4.80

Net loss = $1504.80

 

Funding and interest

Overnight funding

If you keep a position open overnight we make an interest adjustment to your account, including our fee of 2.5%.* We debit your account if your position is long, and credit your account for a short position – if the interbank rate is greater than 2.5%.*

When trading forex, the funding cost is calculated differently. See the table below.

Long positions

Short positions

Forex positions

We charge 2.5% above the relevant interbank rate.*
 
Eg. If the relevant interbank 1-month rate is 0.5%, you would be charged 3.00% (annualised).
You receive the relevant interbank rate, minus 2.5%.*

If the interbank rate is greater than 2.5%,* we credit your account; if the interbank rate is less than 2.5%,* your account is debited.

Eg. If the relevant interbank 1-month rate is 0.5%, you would be charged 2.00% (annualised).

For forex positions, we charge funding based on the current tom-next rate.

Tom-next shows, in points, the difference between the interest paid to borrow the currency that is being notionally sold, and the interest received from holding the currency.

* 3% on mini and micro CFD contracts.

Futures and forwards

We offer futures for fixed-expiry trades on stock indices and commodities. We build the overnight funding charges into the spread, so that everything is included. This makes it easier to identify your break-even level on your trade.

Non-share markets

Stock index

Futures spread

Commodity

Futures spread

Australia 200 3 Spot gold 0.6
Wall Street 6 Spot silver 3
Germany 30 6 Light Cruide oil 6
More indices More commodities

Cash vs Future example

Cash CFD vs CFD Future: FTSE 100

  CFD Future Cash CFD
Underlying market/value

FTSE 100 JUN15 Future 6400

Our market/spread

FTSE 100 Jun15

6398/6402

FTSE 100 Cash

6401.5/6402.5
Trade

Sell at 6398

Sell at 6401.5

Deal size

3 contracts

£10 per contract

3 contracts

£10 per contract
Margin required

£750

Margin per contract x number of contracts

£250 x 3

£750

Margin per contract x number of contracts

£250 x 3

What happens next? The market falls during the next 30 days and the FTSE 100 June Future reaches 6310
Funding Included in the spread on the opening of the future

30-day funding charge: £ 104.90

Assuming a 30-day average price of 6350

([one month LIBOR eg 0.49% minus 2.5% x value of underlying value at 10pm]/ 365) x number of days

(-2.01% x [6350 x £10] /365) x 30
Close

Buy at 6312

Buy at 6310.5

Gross profit

Gross profit = £2580

6398 – 6312 = 86

£30 per point

Gross profit = £2730

6401.5 – 6310.5 = 91

£30 per point

Costs

4-points IG spread (included)

Funding included in spread

1-point IG spread (included)

Funding cost: £104.90

Net profit

Net profit = £2580

Net profit = £2625.10

What if...

If the market rose 86 points instead

-(86 x £30)

£2580 net loss

If the market rose 91 points instead

-(91 x £30 + £104.90)

£2834.90 net loss

 

How is funding calculated?

Shares funding

Size for CFDs means number of shares.

Closing price means underlying market price when underlying market closes.

If your trade is in GBP

Size × closing price × LIBOR +/- 2.5% ÷ 365

Based on LIBOR one month overnight rate

If your trade is in USD

Size × closing price × US LIBOR +/–2.5% ÷ 360   

If your trade is in EUR

Size × closing price × EURIBOR +/–2.5% ÷ 360   

The formula uses a 365-day divisor for UK, Singapore and South African shares, and a 360-day divisor for shares in other markets.

 

Forex funding

A tom-next rather than an interbank rate is used in the calculation of funding costs for forex and spot metals.

Tom-next is the day’s market swap rate for that pair or metal.

Example tom-next rate: -1.39/-0.39.

-0.39 would be used to calculate the funding cost on a long position.

-1.39 would be used to calculate the funding cost on a short position.

Size x (tom-next rate + admin fee) 

CFD

Size means total value of lots (number of lots x value per lot)

Tom-next is the day’s market swap rate for that pair or metal

Admin fee is no more than 0.3% per annum (0.8% for mini contracts)

Three-day funding is charged on Wednesday 10pm UK time. For more information please visit our FX contract details.

Other markets

Size for CFDs means total contract value (number of contracts x value per contract).

Closing price means underlying market price when underlying market closes.

If your trade is in GBP

Size × closing price × LIBOR +/- 2.5% ÷ 365 Based on LIBOR one month overnight rate

If your trade is in USD

Size × closing price × US LIBOR +/–2.5% ÷ 360

If your trade is in EUR

Size × closing price × EURIBOR +/–2.5% ÷ 360

Please note: when trading a non-standard GBP-denominated index CFD, or a mini contract on any asset class, the funding rate is +/-3% rather than +/-2.5%

Understanding margins

Our margins are among the lowest in the CFD industry. Through a system of tiered margining we can offer lower rates for the majority of positions.

What is margin?

Margin trading gives you full exposure to a market using only a fraction of the capital you’d normally need.

Margin is the amount of money you need to open a position, defined by the margin rate. 

CFD are leveraged product, you don’t need to pay the full value of your exposure in order to trade. Instead, you’ll only need to put up a fraction of your total exposure to open your position.

There are two types of margin to consider:

Initial margin

The initial margin is the minimum amount you’ll need to put up to open a position. It is sometimes called the deposit margin, or just the deposit.

Maintenance margin

The maintenance margin, also known as variation margin, is extra money that we might need to request from you if your position moves against you. Its purpose is to ensure you have enough money in your account to fund the present value of the position at all times – covering any running losses.

Margin at IG

At IG we offer competitive margins across our full range of markets.

We operate a tiered margining policay on all our markets, excluding binaries.

Smaller trade sizes generally benefit from better market liquidity and these positions attract our lowest margin rates.

Things to remember

  • Ensure you have enough funds in your account to cover both margin and losses.
  • Your CFD account is margined independently, funds in one account will not cover the margin requirement or losses in another.
  • Limit potential losses and reduce your margin requirement by using stops (tier one only).

How are margins calculated?

Shares margins

Share margins

Margin requirements for CFD positions with non-guaranteed stops are capped at the amount of margin for no stop (ie if the stop is wide then the calculations used may give a higher margin requirement than the calculation for no stop. If this happens then we limit the margin to the amount required for the same position with no stop).

 

CFD

No stop

Number of shares x share price x margin percentage

E.g. 1000 Vodafone shares at a price of £1.94:

1000 x 1.94 x 5% = £97 margin
 

Stop

(Margin for equivalent trade with no stop x slippage factor) + value per point* x stop distance

E.g. 1000 Vodafone shares at price of £1.94, with a non-guaranteed stop 3 points away:

(£97 x 30% + (£10 x 3) = £59.10 margin

* Note: 100 UK shares = £1 per point, 100 US shares = $1 per point, 100 Euro shares = €1 per point etc

 

Guaranteed stop

Value per point x stop distance:

E.g. 1000 Vodafone shares at a price of 194, with a guaranteed stop 11 points away:

£10 x 11 = £110 margin

Forex margins

FX margins

Margin requirements for CFD positions with non-guaranteed stops are capped at the amount of margin for no stop (ie if the stop is wide then the calculations used may give a higher margin requirement than the calculation for no stop. If this happens then we limit the margin to the amount required for the same position with no stop).

 

CFD

No stop

Number of contracts x contract size x price x margin percentage

E.g. 2 contracts AUD/USD:

2 x A$100,000 x 0.7690 x 0.5% = $769 margin requirement
 

Stop

(Margin for equivalent trade with no stop x slippage factor)  + (Number of contracts x value per pip x stop distance)

E.g. 2 contracts AUD/USD with a non-guaranteed stop 15 points away:

($769 x 50%) + (2 x $10 x 15) = $684.50 margin requirement

 

Guaranteed stop

Number of contracts x value per pip x stop distance

E.g. 2 contracts AUD/USD with a guaranteed stop 15 points away:

2 x $10 x 15 = $300 margin

 

Index margins

Index margins

Margin requirements for CFD positions with non-guaranteed stops are capped at the amount of margin for no stop (ie if the stop is wide then the calculations used may give a higher margin requirement than the calculation for no stop. If this happens then we limit the margin to the amount required for the same position with no stop).

 

CFD

No stop

Number of contracts x value per point x price x margin percentage

E.g. one contract of FTSE 100:

1 x £10 x 7000 x 0.5% = £350 margin
 

Stop

(Margin for equivalent trade with no stop x slippage factor) + (Number of contracts x value per point x stop distance)

E.g. 1 contract FTSE 100 with a non-guaranteed stop 12 points away:

(£350 x 50%) + (1 x £10 x 12) = £295 margin

 

Guaranteed stop

Number of contracts x value per point x stop distance:

E.g. 1 contract FTSE 100 with a guaranteed stop 12 points away:

1 x £10 x 12 = £120 margin

 

See our full tiered CFD margin list (PDF, 835KB). Please note, preferential rates may be available for tiers three and four. Please see our premium services for more information.

Charges and funding FAQs

What are your trading hours?

Our helpdesk team is available 24 hours a day Monday to Friday, and from 9am-5pm (UK time) on the weekend:

Email: helpdesk.au@ig.com
Freephone: 1800 601 734
International: +61 (3) 9860 1734

Trading desk

Freephone: 1800 601 733
International: +61 (3) 9860 1733

From 8am to 6pm Monday to Friday, you can also place an order or speak to a dealer in Cantonese or Mandarin through 1800 601 818.

How does overnight funding work?

When you trade with us, you trade on margin. This means you provide only a deposit to open a position, and we in effect lend you the rest of the money required. If you keep it open overnight, we charge a small fee to cover the cost of the money you’ve effectively borrowed.

For share and stock index trades, this funding fee is based on the relevant interbank rate for your traded currency, plus or minus our small admin fee, depending on whether your position is long or short.

For forex and spot metals trades, it is the tom-next rate plus a small admin fee.

For commodities and other futures markets there is no overnight funding fee because the cost of funding is built into the spread. 

Are charges fixed or do they vary? 

Spreads

Our forex spreads vary depending on underlying market liquidity. The more liquid the market, the narrower our spread – as low as 0.8 pips.

Our stock index spreads vary by the time of day. During the underlying market hours we offer our standard and tightest spreads. When we offer an out-of-hours market, so that you can benefit from 24-hour trading, we offer a wider spread.

Commission

Our share CFD commissions vary depending on the host country for your stock. All Australian shares are subject to a flat 0.10% commission with a minimum of $8, while all US stocks are subject to a commission of 2 cents per share with a minimum of USD 15. Please see our contract details page for all our share CFD commissions.

Overnight funding

The overnight funding fee is calculated using the relevant interbank rate for stock index and share trades. The fee for forex trades is calculated using the tom-next rate. These rates change daily, varying the funding fee each day. Do note that mini and micro CFD contracts are subject to a higher admin fee.

Do you offer guaranteed stops?

Yes. There is a small, one time fee when you choose to attach a guaranteed stop to your opening trade. Guaranteed stops allow you to pass the risk of slippage to us and ensure that your trade is closed at the price that you specify

What are interbank and tom-next rates?

The interbank rate is the interest rate charged between banks for short-term loans. It is a key indicator for other interest rate charges, which is why we use it as a basis for calculating our overnight funding fees for your share and stock index trades.

Tom-next is the rate used to calculate the funding adjustment when a forex position is held overnight. It is an industry-standard rate, derived from the interest rate differentials of the pair’s currencies and market expectations of interest rate change. 

Is there a currency conversion charge?

CFDs traded in a currency other than your account’s base currency will incur a currency conversion charge. Our default setting is instant conversion and we also offer daily conversions. When there is a credit or debit to your account, for example, when you close a position and realise a profit/loss, the amount is converted to your base currency at the prevailing rate including our charge of 0.3%.

 

Extra services and charges

For shares CFD trading there are some extra services that we charge for.

Service

Charge

Direct Market Access (DMA) There’s no charge for using DMA to trade CFDs on forex and shares, though in order to access live DMA prices for some shares you’ll need to pay a refundable monthly exchange fee. 
Live price data feeds Obtaining live share prices from an exchange to trade share CFDs will incur a monthly fee. This is refunded if you place a minimum number of trades a month.
ProRealTime Charts Subscribing to real-time charts costs $40 per month. This is refunded if you place four or more trades a month.
Inactivity fee We charge a $18 fee on the first of every month, if no trading activity has occurred for two years or more. 

 

Open an account now

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Or try our platform first with a free demo account

Shares margin

Share margins CFD

Margin requirements for CFD positions with non-guaranteed stops are capped at the amount of margin for no stop (ie if the stop is wide then the calculations used may give a higher margin requirement than the calculation for no stop. If this happens then we limit the margin to the amount required for the same position with no stop).

 

No stop

Number of shares x share price x margin percentage

E.g. 1000 Vodafone shares at a price of £1.94:

1000 x 1.94 x 5% = £97 margin

 

Stop

(Margin for equivalent trade with no stop x slippage factor) + value per point* x stop distance

E.g. 1000 Vodafone shares at price of £1.94, with a non-guaranteed stop 3 points away:

(£97 x 30% + (£10 x 3) = £59.10 margin

* Note: 100 UK shares = £1 per point, 100 US shares = $1 per point, 100 Euro shares = €1 per point etc

 

Guaranteed stop

Value per point x stop distance:

E.g. 1000 Vodafone shares at a price of 194, with a guaranteed stop 11 points away:

£10 x 11 = £110 margin

Forex margins

Forex margins CFD

No stop

Number of contracts x contract size x price x margin percentage

E.g. 2 contracts GBP/USD:

2 x $100,000 x 1.53470 x 0.5% = $1,534.70

 

Stop

(Margin for equivalent trade with no stop x slippage factor) + (Number of contracts x value per pip x stop distance)

E.g. 2 contracts GBP/USD with a non-guaranteed stop 20 points away:

($1,534.70 x 20%) + (2 x $10 x 20) = $706.94 margin

 

Guaranteed stop

Number of contracts x value per pip x stop distance

E.g. 2 contracts GBP/USD with a guaranteed stop 20 points away:

2 x $10 x 20 = $400 margin

Index margins

Index margins CFD

No stop

Number of contracts x value per point x price x margin percentage

E.g. one contract of FTSE 100:

1 x £10 x 7000 x 0.5% = £350 margin

 

Stop

(Margin for equivalent trade with no stop x slippage factor) + (Number of contracts x value per point x stop distance)

E.g. 1 contract FTSE 100 with a non-guaranteed stop 12 points away:

(£350 x 50%) + (1 x £10 x 12) = £295 margin

 

Guaranteed stops

Number of contracts x value per point x stop distance:

E.g. 1 contract FTSE 100 with a guaranteed stop 12 points away:

1 x £10 x 12 = £120 margin

Tiered margining

What is tiered margining?

Tiered margining enables us to set margin rates that reflect and best fit the size of your aggregate position* in a particular market. The majority of positions will attract our lowest margin rates, reflecting the liquidity of the market at smaller deal sizes. The largest positions may require greater margin, as it is more difficult to trade out of these positions quickly.

We will determine your initial margin using a table of four incremental tiers. The margin rate will increase progressively as your aggregate position moves up from one tier to the next. However, only the portion of your position that falls into a higher tier will be subject to its increased margin rate.

The range of the four tiers differs for every market.

See our tiered margining list for share CFDs. For our tiered margining levels on other markets, please use Get Info inside our trading platform. 

* For the purposes of tiered margining, your aggregate position includes your non-limited-risk open positions and orders to open.

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Contact us

We're here 24hrs a day Monday to Friday.

1800 601 734

You can also call +61 (3) 9860 1734, email helpdesk.au@ig.com or tweet us at @IGHelpAU