Is CFD trading for me?

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

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 market
  • 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 initial deposit.


See our forex 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 initial deposit.
 

See our indices services

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 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 of better 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 initial deposit. 
 

See our shares 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

Find out more

Options

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

Find out more

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

Find out more

Open a demo account

  • Deal with £10,000 practice funds for two weeks
  • Access charts and view live prices
  • Deal online or via our mobile apps

Open a demo account

Try our interactive preview

  • Explore our platform preview, risk-free
  • Search for your favourite pairs and open deal tickets
  • Access charts and technical analysis tools

Try our platform

Trade CFDs with IG in minutes with our quick online form: simply apply for an account and follow the instructions. 

* 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.

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 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) 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.