CFDs

CFDs are the flexible way to trade the financial markets

  • Take advantage of rising and falling markets
  • Gain greater market exposure by trading on margin
  • Manage your risk with a range of stops
  • Trade on local shares at just 0.2% commission
  • Get direct market access (DMA)

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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.

With CFDs you can 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.

How it works

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').

See more detailed examples for shares, forex and indices.

Is CFD trading for me?

CFDs are suitable for:

  • Active traders
  • Traders wishing to hedge their portfolio
  • Traders looking to add flexibility to their investment capital, through leverage

Is it for me?    What are the risks?

 

 

What are the costs?

We are committed to being transparent about our costs and charges.

  • You only pay a commission charge for share CFDs
  • In other markets, such as indices, all you pay is the spread (the difference between the buy and sell prices)
  • Small charge to fund positions overnight
  • Small premium for guaranteed stops

Costs and charges

 

 

Our trading technology

Our award-winning technology is available on desktop, tablet and mobile.Try our web-based platform for yourself.

Analyse, then trade from charts
Real-time access to market information

Trade with confidence 
Less than 0.05% platform downtime2

Join a leading global CFD provider

We've received a number of awards, both locally and abroad3.

We are a trusted, global provider of CFDs, with more than 135,000 clients in 14 countries around the world.

Advanced traders benefit from our premium-level service, professional charting packages and more.

We’re regulated by the FSB (South Africa) and the FCA (UK) and segregate individual client funds from our own accounts.

More about IG

Open a demo account

  • Trade with R100,000 practice funds for two weeks
  • Access charts and view live prices
  • Trade 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 on over 10,000 global markets: simply apply for an account and follow the instructions. 

99.51% of trades executed by IG globally in 0.1 seconds, January 2013 – May 2013.

99.95% core platform uptime, January 2010 – April 2013.

Investment Trends 2012 UK Leveraged Trading Report (November 2012).

Buying Barclays plc detailed

Buying Barclays: detailed

  CFD
Underlying market/value Barclays Plc 289.85/290
Our price 289.56/290.29
Trade

Buy at 290

Deal size 2000 shares
Margin required

£580

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

What happens next? 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 number of shares x price)/365

(2.99 % x 2000 x 2.9195)/365

Underlying market

294.85/295.05

Close

Sell at 294.85

Gross profit

£97

294.85 – 290 = 4.85p

4.85p x 2000 shares = £97

Costs

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

£76.52 profit subject to tax

What if...

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

 

Buying Discovery Ltd

Buying Discovery

  CFD
Underlying market/value Discovery Ltd 8526/8592
Our price 8526/8592
Trade

Buy at 8592

Deal size 5000 shares
Margin required

R42,960

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

What happens next? The market rises steadily to 8894
Underlying market

8827/8894

Close

Sell at 8827

Gross profit

8827 - 8592 = 235c

Gross profit = 235c x 5000 shares = R11,750

What if...

If the underlying market fell to 8200 instead, and assuming same costs:

392c x 5000 shares

Gross loss = R19,600

 

Buying the SA40 Cash CFD and FSB Light

Buying the South Africa 40

  Cash CFD
Underlying market/value South Africa 40 DEC Future 38965
Our price

South Africa 40 Cash

38857/38867

Trade

Buy at 38867

Deal size

1 contract

R50 per index point
Margin required

R6,000

Margin requirement per contract x number of contracts

R6,000 x 1

What happens next? The market rises to 38913/38923
Close

Sell at 38913

Gross profit

Gross profit subject to tax = R2,300

38913 –  38867 = 46 points

One contract is worth R50 per point

What if...

If the market fell 46 points instead:

46 x R50

R2,300 gross loss

 

Selling the FTSE 100 Cash CFD and FSB Detailed

Selling the FTSE 100: detailed

  Cash CFD
Underlying market/value FTSE 100 JUN13 Future 6400
Our price

FTSE 100 Cash

6441.05/6442.5
Trade

Sell at 6441.05

Deal size

1 contract

£10 per contract
Margin required

£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

Overall market movement & profit/loss

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 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

 

Example: buying cable (GBP/USD) detailed

Buying GBP/USD: detailed

  CFD
Market Spot GBP/USD
Price 1.55797/1.55805
Trade

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 (tom-next rate + admin fee of 0.3% pa)

£10 x 0.25 = £2.50

Price

1.5695/1.56958

Close

You sell at 1.5695

Gross profit

£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 = £2.50
Net profit

£1142.50

What if...

If the market dropped 114.5 points instead:

£1145 + £2.50

Net loss = £1147

 

Example: buying cable (GBP/USD) light

Buying GBP/USD

  CFD
Market Spot GBP/USD
Price 1.55797/1.55805
Trade

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

1.5695 - 1.56958

Close

You sell at 1.5695

Gross profit

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