How much does it cost to trade with IG?
Opening an account is free, and our charges are competitive. Trade spreads from 0.6 points on key FX pairs like EUR/USD, 1 point on major indices like the Germany 30 and FTSE 100, and 0.3 points on Spot Gold.
Find out below exactly what costs are involved with CFDs
A breakdown of our trading costs
When you trade on leverage, you’ll need to consider – the spread, or a commission in the case of share CFDs. You’ll also want to consider some other potential charges and factors which may influence the cost of your trading.
Our spreads and commission
The spread or commission (in the case of share CFDs) is a direct charge that you’ll need to consider when trading on leverage. You can find spreads and commissions for our most popular markets below. To see the full details for a market, follow the links.
Refer to our costs and charges document for examples of how spreads, commission and margins can affect your positions.
Please note that for cash CFDs, if your position is kept open past the daily cut off time, you will be charged overnight funding.*
If you intend to keep a position open for more than one day, you may want to consider whether a futures contract could be more cost-effective over the longer term.
|Market||Minimum spread||Average spread1|
|Spot Silver (5000oz)||2|
|Oil - Brent Crude||2.8|
|Oil - US Crude||2.8|
With share CFDs you deal at the real market price, so we don't attach our own spread. Instead, we take a small commission when you open the position, and again when you close it. In each instance, a minimum charge applies.
|Market||Commission per side||Min charge (online)||Min charge (phone)|
|US||2 cents per share||$15||$25|
To speculate over the longer term, you can trade CFDs on futures for indices and commodities. We build the overnight funding charges into the spread, so that everything is included. This makes it easier to identify your break-even level on your deal.
If you are looking to take a shorter term position, you may want to consider whether a cash contract would be more cost effective
|Market||Value of one contract||Contract spread|
|Spot Silver (5000oz)||$50||2|
|Oil - Brent Crude||$10||6|
|Oil - US Crude||$10||6|
|Market||Minimum spread||Average spread|
|Oil - Brent Crude||2.8|
|Oil - US Crude||2.8|
Overnight funding is the fee you pay for holding cash CFD positions through the daily cut-off time (typically 10pm UK time, although this may vary for international markets)* . In this event we will make an interest adjustment to your account, to reflect the cost of funding your position, plus a small admin fee.
To avoid paying overnight funding you might want to consider trading via a futures contract instead
*4.50pm (Sydney time) for AUD-denominated contracts or 8pm (New York time) for all US shares
How is overnight funding calculated?
Formula for indices overnight funding charge = Nights held x (market closing price x trade size x (admin fee* +/- LIBOR)) / 365.
*Our admin fee is 2.5% for standard CFD contracts, and 3% for minis. If you’re long, you pay LIBOR (or the equivalent interbank rate). If you’re short, you receive it.
Formula for commodities overnight funding adjustment = nights held x (trade size x (basis* +/- IG charge**)).
*Formula for the basis = (P3 – P2) / (T2 – T1), where:
P2 = price of front future
P3 = price of next future
T1 = expiry date of the previous front future
T2 = expiry date of the front future
*Formula for the IG charge = undated mid price x 2.5% / 365. The undated mid price is a snapshot of the mid price of the cash CFD on the relevant date. If you pay the basis on your trade, the IG charge figure is added; if you receive the basis, it is subtracted.
*With the exception of spot metals, which follows the forex overnight funding charge formula.
(Read about how we price our undated commodity markets to find out how the basis will affect your position.)
Formula for shares overnight funding charge = nights held x (market closing price x trade size x (2.5% +/- LIBOR*)) / 365.
*If you’re long, you pay LIBOR (or the equivalent interbank rate). If you’re short, you receive it.
Guaranteed stop premiums
You can protect your position against slippage with a guaranteed stop, paying a small premium only if your guaranteed stop is triggered. This guarantees that your stop is met at the level you placed it, with zero exception.
The potential premium is displayed on the deal ticket, and can form part of your margin when you attach the stop.
Extra services and charges
For CFDs and share trading, there are some extra services that we charge for.
|Direct Market Access (DMA)||There’s no charge for using DMA to trade CFDs on forex and shares, or to buy and sell shares via our share dealing service. However, you’ll need to pay a monthly exchange fee to access live DMA prices for some shares.|
|Live price data feeds||Obtaining live share prices from an exchange, whether that's to trade share CFDs or buy and sell shares via a share dealing account, incurs a monthly fee.|
|ProRealTime Charts||Subscribing to real-time charts costs $40 per month. This is refunded if you place four or more trades a month. We reserve the right to charge you for the service if your qualifying trades are of an extremely low value.|
|Inactivity fee||While there is normally no fee for IG accounts, we charge a $18 fee on the first of every month if no dealing activity has occurred for two years or more.|
|Account documentation fee||We charge a US$50 fee on accounts which have not supplied a mandatory W-8 or W-9 form prior to the dividend ex-date of a qualifying trade on a US-incorporated stock. We do not apply this fee to accounts with up-to-date documentation or accounts which have not entered into qualifying trades. We will notify you if you have entered into a qualifying trade and need to complete a form.|
|Currency conversion charge||CFDs traded in a currency other than your account’s base currency may incur a currency conversion charge. Our default setting is instant conversion, where foreign-currency profit is converted to your base currency and funding, commission and dividend charges are taken into account before your account is credited. We also offer daily, weekly and monthly conversion settings. Our standard charge is 0.5%. For relevant share dealing transactions on share dealing accounts, we will convert currencies at the time of execution based on the best available bid / offer exchange rates, plus our spread of 0.5%.|
|Direct Market Access (DMA)||To access DMA trading for share CFDs, you may need to pay a monthly exchange fee. The exchange fees are visible on the data feed options, in MY IG settings.
Forex Direct has no monthly exchange fee. This feature will allow you to trade on reduced spreads, however, you will be charged a variable commission.
|Live price data feeds||Obtaining live share prices from an exchange, whether that's to trade share CFDs or buy and sell shares via a share trading account, incurs a monthly fee. The exchange fees are visible on the data feed options, in MY IG settings.|
|ProRealTime Charts||Subscribing to ProRealTime, an advanced charting package, costs $40 per month. This is refunded if you place four or more trades a month. We reserve the right to charge you for the service if your qualifying trades are of an extremely low value.|
|Inactivity fee||While there is normally no fee for IG accounts, inactive CFD accounts are charged a A$18 fee on the first of every month if no dealing activity has occurred for two years or more.|
|Subscription fee||For share trading accounts, a quarterly $50 subscription fee is charged depending on your trading activity that quarter.|
|Account documentation fee||We charge a $50 fee on accounts which have not supplied a mandatory W-8 or W-9 form prior to the ex-dividend date of a qualifying trade on a US-incorporated stock. We do not apply this fee to accounts with up-to-date documentation or accounts which have not entered into qualifying trades. We will notify you if you have entered into a qualifying trade and need to complete a form.|
|Currency conversion charge||CFDs traded in a currency other than your account's base currency incurs a currency conversion charge of 0.5%. Your account by default will instantly convert any foreign currency transaction to your base currency. This calculation considers funding, commission and dividend charges before the account is credited. We offer daily and instant conversion settings.
For share trading we offer manual and instant conversion settings. The rate charged on conversion is based on the best available bid/offer exchange rates, plus our 05% fee.
Charges passed on from third parties include2:
- Fees for PayPal and credit card payments
- Same day transfers fee of A$15
How does overnight funding work?
When you trade CFDs with us, you trade on margin. This means you provide only a deposit to open a position, and we in effect lend you the rest of the money required. If you keep it open overnight, we charge a small fee to cover the cost of the money you’ve effectively borrowed.
For share and stock index trades, our funding fee is comprised of our admin fee plus or minus the relevant interbank rate for the currency in which the underlying instrument of your trade is denominated (depending on whether your position is long or short).
For forex and spot metals trades, it is the tom-next rate plus a small admin fee.
For futures markets there is no overnight funding fee because the cost of funding is built into the spread.
Do you offer guaranteed stops?
Yes, we do offer guaranteed stops, when trading CFDs. If triggered, these stops incur a fee, which can be viewed on the platform. For share CFDs, for example, this starts at 0.3% of the underlying transaction value.
What are interbank and tom-next rates?
The interbank rate is the interest rate charged between banks for short-term loans. It is a key indicator for other interest rate charges, which is why we use it as a basis for calculating our overnight funding fees for your share and stock index trades.
Tom-next is the rate used to calculate the funding adjustment when a forex position is held overnight. It is an industry-standard rate, derived from the interest rate differentials of the pair's currencies and market expectations of interest rate change.
What is the spread?
For CFDs, the spread is the difference between our sell and buy prices. We derive these prices based on the underlying market's value.
Need anything else clarified?
Please don't hesitate to reach out. Our offices are open 24 hours a day, except from 9am to 3pm Saturday (AEDT)
Australia domestic: 1800 601 799
International: +61 (3) 9860 1799
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1Average spread (Monday 00:00 - Friday 22:00 GMT) for the 12 weeks ending 31st May 2019.
2There may be other charges related to your bank's withdrawal and deposit process, please ensure you check these with your bank.