How does IG make money?
We make our money primarily through our spreads, with other fees making up a small proportion of our revenue. We aim to build lasting relationships with our clients, and provide a range of tools to support their trading.
We want our clients to trade profitably
We make most of our money from the spreads that clients pay to trade with us
We’ve invested heavily in tools to help our clients trade profitably
We put client interests at the heart of our business model
We hedge only when overall client exposure is skewed in one direction
We aim to build long-lasting relationships with our clients based on trust
Where does IG’s income come from?
The main way we earn money on our leveraged products – eg CFDs – is through the spreads that we wrap around the market price.
The costs of any given trade are factored into these two prices (known as the offer and the bid), so you will always buy slightly higher than the market price, and sell slightly below it.
If the FTSE 100 is trading at 6545.5 and has a one point spread, for example, it might have an offer price of 6546 and a bid price of 6545.
Sometimes you’ll also need to pay other fees when trading with us:
- Share CFD commission
- FX conversion
- Overnight fees
- Inactivity fees
You can find out all about these on our charges page.
There’s also a quarterly custody fee depending on your trading activity. Share prices are offered in local denominations, and our fee to convert to your chosen base currency is just 0.3%.
Does IG aim to profit from client losses?
No. Our business model is based on providing individuals with the opportunity to trade the world’s financial markets, in exchange for fair and proportionate transaction fees. It is a well-known fact that trading successfully is difficult, and most speculative traders tend to lose. However, we do not typically benefit from trading losses that an unsuccessful client may experience.
Mostly, our clients offset each other’s positions. For example if client A buys one lot of the DAX and client B sells one lot of the DAX, both sides of the trade are covered. This means IG is not exposed to the profit or loss of either client. Instead, we make our money via the spread (i.e. the transaction fee) that each client pays to trade.
Sometimes, a large majority of clients will trade in one direction. When this happens, we will protect our exposure to risk by hedging in the underlying market. For example, if client A and client B buy the DAX, we may buy actual DAX futures. This then covers the amount we will pay out if both clients are successful.
Resources to assist your trading
We’ve invested in plenty of resources to ensure we offer the right balance of educational tools and personal support for your trading.
You’ll have a dedicated account manager on hand during your initial time with us
Find answers to your general account queries in our on-site answers bank
Our friendly team is available 24hrs a day, 7 days a week, except for Saturday from 1am to 11pm (Dubai time).
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Fast execution on a huge range of markets
Enjoy flexible access to more than 16,000 global markets, with reliable execution
Deal seamlessly, wherever you are
Trade on the move with our natively designed, award-winning trading app
Feel secure with a trusted provider
With 45 years of experience, we’re proud to offer a truly market-leading service
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All retail client funds are held in a segregated client bank account, in line with DFSA rules.
Find out how we aim to achieve the best result for you for every trade.
Discover the tools we offer to help you manage your exposure.
* You’ll pay a small premium if your guaranteed stop is triggered.