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 put client interests at the heart of our business model

  • We make most of our money from the spreads that clients pay to trade with us

  • We hedge only when overall client exposure is skewed in one direction

  • We’ve invested heavily in tools to help our clients trade profitably

  • 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 CFD trading – 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

For share trading, you’ll pay commission when you buy or sell stocks or ETFs. 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.

Personal service

You’ll have a dedicated account manager on hand during your initial time with us

Help and support portal

Find answers to your general account queries in our on-site answers bank

24-hour helpdesk

Our friendly team is available from 5pm Saturday to 7am Friday

In-platform support

Buy and sell signals, live Reuters news and expert analysis

IG Academy

An interactive resource to help you develop your trading skills at your own pace

IG Community

Share ideas, opportunities and advice online with like-minded traders

Demo account

Trial strategies with nothing to lose on our free, permanent demo

Risk-managements tools

Put an absolute cap on loss with our free-to-place guaranteed stops*

Best execution

We consistently aim to get you the best possible result when executing orders on your behalf

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.

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*You’ll pay a small premium if your guaranteed stop is triggered.

Help and support

Get answers

Or ask about opening an account on 1800 601 799, or +61 (3) 9860 1799, or helpdesk.au@ig.com.

We're here 24hrs a day from 2pm Saturday to 8am Saturday (AEDT).