CFD trading

Contracts for difference (CFDs) with IG –the flexible way to trade the financial markets

Create account   Or try a free demo account

Losses can exceed your deposits

 

 

Why trade CFDs with IG?

It takes less than five minutes to open a CFD trading account, and you get reduced commissions for your first two weeks.1

  • Join the UK's No.1 CFD provider* for superior service and support

  • Competitive rates: FX from 0.8 pips, indices from 0.4 points, shares from 0.1% commission

  • Never miss an opportunity, wherever you are, with our mobile trading app 

  • Opportunities in over 10,000 markets: indices, forex, shares, commodities and more

  • Take control with our extensive range of stops, limits and alerts

  • Access our free research tools to become a better-informed trader

Choose from more than 10,000 markets

We’re proud to offer a huge range of trading options across the financial markets. It's another reason why more than one in three UK CFD traders have an account with us.*

  • Indices

    FTSE 100, Wall Street, Germany 30 and more

  • Shares

    Competitive rates on over 6000 shares, plus DMA trading

  • Forex

    Choose from over 60 currency pairs with the UK's No.1 retail forex provider1

  • Commodities

    Trade on gold, silver, oil and dozens more commodity markets

  • Binaries

    Huge range of binary types, timescales and markets, from the original provider

  • Options

    Trade volatility with our comprehensive, flexible options

  • Other markets

    Deal on interest rates, bonds, sectors, ETPs and more

  • IPOs

    Take a position before and after key Initial Public Offerings

 

 

Start CFD trading with IG today

Open a CFD trading account in less than five minutes. It’s free to do and there’s no obligation to trade.

 

 

What are CFDs?

Contracts for difference (CFDs) allow you to open a contract for the difference in price of an asset, from the point of opening to when you close. 

  • Importantly, CFDs are a leveraged product. This means you only have to put down a small deposit for a much larger market exposure.
  • Leverage comes with significant benefits and risks: your investment capital can go further, but you can also lose more than your initial deposit.

CFD trading allows you to take a position on the future value of an asset whether you think it will go up or down. While this means the product is very flexible, it also requires a high level of risk management.

It's important to remember you're trading contracts with IG, not physically trading in the underlying market. This means you don’t actually own any assets.

You might be interested in...

*  No.1 spread betting and CFD provider: for CFDs, based on revenue excluding FX, published financial statements, July 2014; number of active accounts (Investment Trends UK Leveraged Trading Report October 2014).

1 Introductory offer. See more details.

 

FAQs

What's the difference between spread betting and CFDs?

These two types of trading offer alternative ways of trading financial markets.

Compare spread betting and CFDs

How do I trade CFDs?

We set a price for a contract based on the underlying market, which you can buy or sell.

With each market you are given a 'buy' and 'sell' price either side of the underlying market price. You can trade on a market to go up (known as 'buying' or 'going long'), or you can trade on it to go down (known as 'selling' or 'going short').

Learn more about trading CFDs

How much does it cost to trade CFDs?

It depends on the market you choose. Generally you only pay a commission charge for share CFDs, or a spread (the difference between the buy and sell prices) for all other markets. There is a small charge to fund positions overnight, a small premium for guaranteed stops, and other fees.

See our full charges and fees

Is it risky?

Yes, CFDs do carry risk - if the market moves against you, you lose money. And because CFDs are leveraged products, you could lose more than your deposit.

IG offers a full range of tools to help you manage your risk.

See risk management tools

Losses can exceed your deposits

Contact us

We're here 24hrs a day Mon-Fri, and 9am to 5pm Sat-Sun.

0800 409 6789

You can also call
0207 896 0079 or
email helpdesk.uk@ig.com

Latest market news

Buying Barclays plc detailed

Buying Barclays: detailed

  Spread bet DFB CFD
Underlying market/value

Barclays Plc 289.85/290

Our price 289.56/290.29 289.85/290
Deal

Buy at 290.29

Buy at 290

Deal size £20 per point 2000 shares
Margin required

£580.58

Deal size x price x margin rate (10%)

£580

Number of shares x price x margin rate (10%)

What happens next? By 4.35pm our price has risen to 292.25: this is the level our funding is calculated at. It rises steadily the next day, reaching 295.35 By 4.35 the market has risen to 291.95: this is the price our funding is calculated at. It rises steadily the next day, reaching 295.05
Funding

Overnight funding charge of £0.48

(One-month Libor + 2.5% eg 0.49% + 2.5%) x deal size x price)/365

(2.99% x £20 x 292.25)/365

Overnight funding charge of £0.48

(One-month Libor + 2.5% eg 0.49% + 2.5%) x number of shares x price)/365

(2.99 % x 2000 x 2.9195)/365

Underlying market 294.85/295.05
Close

Sell at 294.55

Sell at 294.85

Gross profit

£85.20

294.55 – 290.29  = 4.26

Value of one point = £20

4.26 x £20 = £85.20

£97

294.85 – 290 = 4.85p

4.85p x 2000 shares = £97

Costs

0.1% spread of price (included)

Funding: £0.48

Commission £ 20

Value of position x 0.10% (Minimum £10)

(2000 x 2.90) x 0.10% = £5.8

(2000 x 2.9485) x 0.10% = £5.90

Funding: £0.48
Net profit

£84.72 profit tax-free*

£76.52 profit subject to tax

What if...

If the underlying market fell to 281.95 instead:

281.95 – 290.29 = -8.34 pts

-(8.34 x £20 + £0.48) 

£167.28 net loss

If the underlying market fell to 282.25 instead:

282.25 – 290 = -7.75p

-(7.75p x 2000 shares + £0.48 + £20) 

£175.48 net loss


Daily funded bets (DFBs) are long-term bets on the cash price of an underlying instrument. DFBs have no expiry date, so we make a cash adjustment to your account to reflect funding charges. 

*Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.

Buying Barclays plc light

Buying Barclays

  Spread bet DFB CFD
Underlying market/value

Barclays Plc 289.85/290

Our price 289.56/290.29 289.85/290
Deal

Buy at 290.29

Buy at 290

Deal size £20 per point 2000 shares
Margin required

£580.58

£580

What happens next? Our price rises steadily to 295.35 The market rises steadily to 295.05
Underlying market 294.85/295.05
Close

Sell at 294.55

Sell at 294.85

Gross profit

294.55 – 290.29  = 4.26

Gross tax-free* profit = 4.26 x £20 = £85.2

294.85 – 290 = 4.85p

Gross profit = 4.85p x 2000 shares = £97

What if...

If the underlying market fell to 281.95 instead:

-8.34 pts x £20

Gross loss = £166.80

If the underlying market fell to 282.25 instead, and assuming same costs:

-7.75p x 2000 shares

Gross loss = £155

 

To calculate your net profit or loss, you would need to factor in any spread, commission or funding charges. See our detailed example for more information.

Daily funded bets (DFBs) are long-term bets on the cash price of an underlying instrument. DFBs have no expiry date, so we make a cash adjustment to your account to reflect funding charges.

* Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.

Selling the FTSE 100 Cash CFD and FSB Light

Selling the FTSE 100

  Spread bet DFB Cash CFD
Underlying market/value

FTSE 100 JUN13 Future 6400

Our market and price 

FTSE 100 DFB

6441.05/6442.5

FTSE 100 Cash

6441.05/6442.5
Deal

Sell at 6441.05

Sell at 6441.05

Deal size

£10 per point

1 contract

£10 per contract
Margin required

£250

Margin factor x deal size

25 x £10

£250

Margin requirement per contract x number of contracts

£250 x 1

What happens next? The market drops falls to 6310
Close

Buy at 6310.5

Gross profit

Gross tax-free* profit = £1305.50

6441.05 – 6310.5 = 130.55

£10 per point

Gross profit subject to tax = £1305.50

6441.05 – 6310.5 = 130.55

One contract is worth £10 per point

What if...

If the market rose 130.5 points instead:

130.5 x £10

£1305 gross loss

 

 

To calculate your net profit or loss, you would need to factor in any spread or funding charges. See our detailed example for more information.

Daily funded bets (DFBs) and Cash CFDs are no-expiry deals on futures markets. We make a cash adjustment to your account to reflect funding charges for any DFB or Cash CFD held open overnight.

* Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.

Selling the FTSE 100 Cash CFD and FSB Detailed

Selling the FTSE 100: detailed

  Spread bet DFB Cash CFD
Underlying market/value

FTSE 100 JUN13 Future 6400

Our market and price 

FTSE 100 DFB

6441.05/6442.5

FTSE 100 Cash

6441.05/6442.5
Deal

Sell at 6441.05

Sell at 6441.05

Deal size

£10 per point

1 contract

£10 per contract
Margin required

£250

Margin factor x deal size

25 x £10

£250

Margin requirement per contract x number of contracts

£250 x 1

What happens next? The market drops dramatically, reaching 6300 at 10pm, when funding is calculated. It rises a little overnight, to 6310
Funding

Funding = £3.47

(One-month LIBOR eg 0.49% minus 2.5% x £10 x 6300)/365

Close

Buy at 6310.5

Buy at 6310.5

Overall market movement & profit/loss

Gross profit = £1305.50

6441.05 – 6310.5 = 130.55

£10 per point

Gross profit = £1305.50

6441.05 – 6310.5 = 130.55

Each contract is worth £10 per point

Costs

1-point IG spread (included)

Funding cost: £3.47

Net profit

£1302.03 tax-free* net profit

£1302.03 net profit subject to tax

What if...

If the market rose 130.5 points instead:

130.5 x £10 + £3.40

£1308.40 net loss

 

 

Daily funded bets (DFBs) and Cash CFDs are no-expiry deals on futures markets. We make a cash adjustment to your account to reflect funding charges for any DFB or Cash CFD held open overnight.

* Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.

Example: buying cable (GBP/USD) detailed

Buying GBP/USD: detailed

  Spread bet DFB CFD
Market Spot GBP/USD
Price

15579.7/15580.5

1.55797/1.55805

Deal

Buy £10 a point at 15580.5

Buy 1 contract at 1.55805 (1 contract = £100,000)

Margin required One contract is £100,000 and the margin rate is 0.5% = £500
What happens next? GBP/USD climbs one hundred points into the next day. 
Funding

Funding = size x (daily tom-next rate + admin fee of 0.8% pa)

£10 x 1.05 = £10.50

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

£10 x 0.25 = £2.50

Price 15,695 - 15,695.8 1.5695 - 1.56958
Close

You sell at 15,695

You sell at 1.5695

Gross profit

£1145

15,695 – 15,580.5 = 114.5

Value per point = £10

114.5 x £10 = £1145

£1145

1.5695 – 1.55805 = 0.01145

Number of contracts = 1

Value per contract £100,000

0.01145 x £100,000 = £1145
Costs

0.8 point IG spread (included)

Funding cost = £10.50

0.8 point IG spread (included)

Funding cost = £2.50
Net profit

£1134.50 tax free*

£1142.50

What if...

If the market dropped 114.5 points instead:

£1145 + £10.50

Net loss = £1155.50

If the market dropped 114.5 points instead:

£1145 + £2.50

Net loss = £1147

 

What are DFBs?

Daily funded bets (DFBs) are long-term bets on the cash price of an underlying instrument. DFBs have no expiry date, so we make a cash adjustment to your account to reflect funding charges.

Why do CFD and spread betting FX prices look different?

  • You trade forex via CFD in contracts or lots. We therefore display CFD forex prices in the same way you would expect to see them on an FX exchange: e.g. 1.31425
  • Because you spread bet on forex in currency per point, we display prices differently e.g. 13142.5. This makes it easier to see per point movements.

This makes no difference to the price you deal at or your potential profit or loss: it simply makes it easier to track per point movements.

*Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.

Example: buying cable (GBP/USD) light

Buying GBP/USD

  Spread bet DFB CFD
Market Spot GBP/USD
Price

15579.7 - 15580.5

1.55797 - 1.55805
Deal

Buy $10 a point at 15580.5

Buy 1 contract at 1.55805 (1 contract = £100,000)

Margin required One contract is £100,000 and the margin rate is 0.5% = £500
What happens next? GBP/USD climbs over one hundred points. 
Price 15695 - 15695.8 1.5695 - 1.56958
Close

You sell at 15695

You sell at 1.5695
Gross profit

 

Gross tax-free* profit = £1145
 

15695 - 15580.5 = 114.5

Value per point = £10

114.5 x £10 = £1145

 

 

 

Gross profit = £1145


1.5695 - 1.55805 = 0.01145

Value per contract = £100,000

0.01145 x £100,000 = £1145

What if...

If the market dropped 114.5 points instead:

Gross loss = $1145


To calculate your net profit or loss, you would need to factor in any funding charges. See our detailed example for more information.

What are DFBs?

Daily funded bets (DFBs) are long-term bets on the cash price of an underlying instrument. DFBs have no expiry date, so we make a cash adjustment to your account to reflect funding charges.

Why do CFD and spread betting FX prices look different?

  • You trade forex via CFD in contracts or lots. We therefore display CFD forex prices in the same way you would expect to see them on an FX exchange: e.g. 1.31425
  • Because you spread bet on forex in currency per point, we display prices differently e.g. 13142.5. This makes it easier to see per point movements.

This makes no difference to the price you deal at or your potential profit or loss: it simply makes it easier to track per point movements.

*Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.