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How to trade forex with IG

Forex is one of the most popular markets among IG clients, and we offer two flexible ways of speculating on currency markets. Find out more about contracts for difference (CFDs) and digital 100 trading with forex.

CFD trading

A forex CFD is a contract that allows you to exchange the difference in price of a currency pair between the time you open your position and the time you close it. Open a long position, and if the forex position increases in price you’ll make a profit. If it drops in price, you’ll make a loss. Open a short position, and the opposite is true.

You can trade using leverage and won’t have to pay commission to open a position. CFDs are liable for capital gains tax, but you can offset your losses against profits for tax purposes, making them a good product for hedging.1

Find out more about CFD trading with IG

Forex Direct

Experienced CFD traders can interact directly with market makers’ order books using Forex Direct, our DMA service. So you can buy and sell forex without the spread – instead trading at the prices offered by currency providers, plus a variable commission.

Forex Direct provides full transparency over the prices available in the market, allowing you to see extensive data on currency pair prices. You can use it to be more flexible about the price you trade at, or to act as market maker.

CFD trade on forex example

1. You open a short position on EUR/CHF, when the pair is trading at 1.0815.

2. You choose the size of your position. Each CFD contract is equal to a single lot in the base currency, so trading a single CFD is equivalent to selling €100,000, or an equivalent of 10 CHF per point of movement.

3. EUR/CHF drops to 1.0790, and you buy a single CFD to close your position.

4. The profit on your short trade is 2300 CHF. If you’d chosen to go long instead, you would have lost 2700 CHF. Profit or loss is realised in the base currency of your account.

Opening a forex CFD

To open a forex CFD with IG, you can first of all choose whether you’d like to trade at our price, or whether you’d like to use Forex Direct. Forex Direct is recommended for advanced traders, with trades charged via commission instead of the spread.

To trade forex at our price, choose which pair you’d like to trade and then open a deal ticket by hitting its name on our platform. You can choose the number of contracts you’d like to trade, which are usually equal to a single lot in the given base currency. 

Open an account now

There's no minimum balance to open an account, it takes less than five minutes, and there's no obligation to fund or trade.

1 Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the Australia.

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