Is CFD trading for me?

Losses can exceed your deposits

If you’re knowledgeable about the financial markets and actively trade them, CFDs could be an essential part of your strategy

I'm new to trading

CFD trading gives you the opportunity to deal on thousands of financial markets without the need for large amounts of money to get started.

  • No stamp duty to pay**
  • Low commissions on shares and only the spread on most other markets
  • Gain full exposure by putting down a small initial deposit
  • Take advantage of rising and falling markets
  • Take a position on forex, indices, shares, commodities and more

Please be aware that CFD trading is not suitable for everyone as it can result in losses which exceed your deposits.

Learn more about CFD trading

I'm a shares trader

With CFDs, you can use your existing knowledge and approach to researching the stock market to diversify your portfolio with stock indices, sectors and more.

CFD trading can be used to make your investment capital go further (via leverage) and protect your physical portfolio (by hedging). 

  • No stamp duty and the ability to offset losses against future profits as a tax deduction**
  • Potentially profit from falling and rising prices
  • Trade UK and international shares from the same account
  • Trade inside the market spread using direct market access
  • Short-sell to protect your physical portfolio from adverse movements
  • Be confident that we try to find the best prices, which we source from primary exchanges and dark pools of liquidity
  • CFDs are traded in the same notional amounts as the underlying market, so there’s no need to learn a new trading language
  • You still get dividends from share CFDs

Be aware that CFD trading is not suitable for everyone as it involves leverage, which can result in losses which exceed your deposits. 

See our shares services

I'm an indices trader

If you already trade stock indices, CFD trading can give you 24-hour access to a wide range of cash and futures markets.

  • Trade more than 30 global indices
  • Spreads from 1 point on majors, including the FTSE 100
  • 24-hour dealing 
  • Take a position on entire sectors, including banking, retail and mining
  • Greater flexibility – chose your position size for standard or mini contracts 
  • Benefit from no expiry dates on cash CFDs
  • Mobile and tablet apps to trade and track your positions on the go
  • Low margin rates to help your investment capital go further
  • Round-the-clock support

Please be aware that CFDs are leveraged products and losses can exceed your deposits.

See our indices services

I'm a forex trader

If you’re an active forex trader you’ll already benefit from leverage on your forex trades. By trading forex as a CFD with us, you gain a range of other benefits too.

  • ProRealTime - deal from technical charts
  • Metatrader 4 – automate your strategies
  • Forex Direct – trade directly into the exchange and get inside the spread
  • Leverage – our margin starts at 0.5%
  • Guaranteed Stops place an absolute limit on your risk, no matter how volatile the market1
  • Access to binaries – daily opportunities for extremely short-term forex trading
  • No requotes on your forex trades when using our technology*
  • Stay on top of the FX markets with our range of mobile dealing apps
  • Discover opportunities beyond currency pairs; access 10,000 markets from the same account

As with any leveraged product, you should be aware that trading forex via a CFD may not be suitable for everyone as it can result in losses that exceed your deposits.

See our forex services

 

I trade other markets

  • Commodities

    • Go long or short on energies, metals and agriculturals
    • Choose from a range of contracts
    • Good for speculative traders, hedgers and producers
  • Options

    • One of the most comprehensive options markets in the industry
    • Take daily, weekly, quarterly and future positions
  • ETPs

    • Trade on exchange-traded funds and exchange-traded commodities
    • Track a basket of shares or goods with a single transaction
    • Continuous pricing lets you trade at any time during market hours

Open an account today

It takes less than five minutes to open an IG account and start CFD trading 

Create account

Or test-drive our platform with a free demo account

You might be interested in...

  • Spread betting vs CFDs

    Compare the benefits and advantages of spread betting and CFD trading.

  • Our charges

    We're clear about our charges, so you always know what fees you will incur.

  • Learn about IG

    See how we've been changing the face of trading for more than 40 years.

* Excludes MT4, a third-party platform licensed to IG
** Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.
1 Please be aware that Guaranteed Stops are an optional feature that involve a small cost

Example: buying cable (GBP/USD) light

Buying GBP/USD

  Spread bet DFB CFD
Market Spot GBP/USD
Price

15,579.5 - 15,580.5

1.55795 - 1.55805

Deal

Buy £10 a point at 15,580.5

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 15,695.0 - 15,696.0 1.5695 - 1.5696
Close

You sell at 15,695

You sell at 1.5695

Gross profit

 

Gross tax-free* profit = £1145
 

15,695 - 15,580.5 = 114.5

Value per point = £10

114.5 x £10 = £1145

 

 

 

Gross profit = $1145


1.5695 - 1.55805 = 0.01145

0.01145 is 114.5 pips
Value per pip = $10

114.5 x $10 = $1145

What if...

If the market dropped 114.5 points instead:

Gross loss = £1145

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.

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 CFDs 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) detailed

Buying GBP/USD: detailed

  Spread bet DFB CFD
Market Spot GBP/USD
Price

15,579.7/15,580.5

1.55797/1.55805

Deal

Buy £10 a point at 15,580.5

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 0.0022% per day)

£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.

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