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Over 40 years’ heritage
185,800 clients worldwide
Over 15,000 markets

CFDs

Contracts for difference (CFDs) with IG Bank – the flexible way to trade the financial markets

Why trade CFDs with IG Bank?

It takes less than five minutes to complete the form and open a CFD trading account, and you get reduced commissions for your first two weeks.1

  • Join the world's No.1 CFD provider2 for superior service and support

  • Competitive rates: FX from 0.8 pips, indices from 0.4 points, Swiss shares from 0.1% commission with a minimum of 10 CHF

  • Never miss an opportunity, wherever you are, with our mobile trading apps

  • Opportunities in over 15,000 markets: global indices, forex, shares, commodities and more

  • Take control with our extensive range of stops, limits and alerts

  • Access our free research tools to become a better-informed trader

Choose from more than 15,000 markets

  • Indices

    Switzerland Blue Chip, Wall Street, FTSE 100, Germany 30 and more

  • Shares

    Competitive rates on over 7500 shares, plus DMA trading

  • Forex

    Choose from over 90 currency pairs with the world's No.1 retail forex provider5

  • Commodities

    Trade on gold, silver, oil and dozens more commodity markets

  • Options

    Trade volatility with our comprehensive, flexible options

  • Other markets

    Deal on interest rates, bonds, sectors, ETPs and more

  • IPO grey markets

    Take a CFD position before and after key Initial Public Offerings

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.

CFD trading allows you to 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 do I trade CFDs?

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').

Exemples

Indices

Selling the Swiss Blue Chip

  Cash CFD
Underlying market/value SMI 8088
Our price

Swiss Blue Chip
8087/8089

 

Trade

Sell at 8087

Trade size

1 contract
CHF 10

Margin required

CHF 280

What happens next? The market falls and we quote 7945/7947. You decide to buy at 7947.
Close

Buy at 7947

Gross profit

Gross profit subject to tax = CHF 1400
8087 – 7947 = 140 
One contract is worth CHF 10 per point

What if...

If the market rose 140 points instead:
140 X CHF 10
CHF 1400 gross loss

 

Forex

Buying USD/CHF

  CFD
Market Spot USD/CHF
Price 0.8967/0.8969
Trade

Buy 1 contract at 0.8969 (1 contract = $100,000 or CHF 10 per point)

Margin required

One contract is $100,000 and the margin rate is 0.5% 

 

Margin = Number of Contracts x Contract Size x Price x Margin Rate

 

Margin= 1 x $100,000 x 0.8969 x 0.5% = CHF 448.45

What happens next? CHF climbs throughout the day and you decide to hold the position overnight
Price

0.8989/0.8991

Close

You sell at 0.8989 

Gross profit

0.8989 - 0.8969= 0.0020 = 20 points 

 

Value per point = CHF 10 
20 points x CHF 10 = CHF 200
Gross Profit  = CHF 200

What if...

CHF fell 20 points

 

0.8949 - 0.8969= -0.0020 
Value per point = CHF 10
-20 points x CHF 10 = CHF 200
Gross Loss  =    - CHF 200

Shares

Buying UBS

  CFD
Underlying market/value UBS AG
Our price 16.8300/16.8600
Trade

Buy at 16.8600

Trade size 1000 shares
Margin required

CHF 1686
Number of shares x price x margin rate (10%)

What happens next? By 4.35 (London time) the market has risen to CHF18.81: this is the price our funding is calculated at. 
Close

Sell at 18.8800

Gross profit

CHF 2020
18.8800 - 16.8600 = CHF 2.02
CHF 2.02 x 1000 shares = CHF 2020

What if...

the market fell and you sold at 15.44 instead
15.44-16.86 = -CHF 1.42
(-CHF 1.42 x 1000 shares + CHF 1.56 + CHF 32.30)
Net loss = CHF 1453.86

 

CFD FAQs

How much does it cost to trade CFDs?

It depends on the market you choose. Generally you only pay a commission charge for share CFDs, or a spread (the difference between the buy and sell prices) for all other markets. There is a small charge to fund positions overnight, a small premium for guaranteed stops, and other fees.

See our full charges and fees

Is it risky?

Yes, CFDs do carry risk - if the market moves against you, you lose money. And because CFDs are leveraged products, you could lose more than your deposit.

IG offers a full range of tools to help you manage your risk.

See risk management tools

Can I trade CFDs with direct market access (DMA)?

Yes. We offer DMA on both shares and forex

It’s important to remember that while you’re trading on underlying market prices and depth with our DMA service, what you’ll actually receive on placing a trade is a CFD from us. It works like this:

  • DMA displays the best bid and offer price available for a particular market, plus further prices on either side of the order book
  • You place an order, and we instantaneously conduct a margin check to ensure you have sufficient funds to cover the margin on your proposed trade
  • If the margin check is satisfied we place an order in the market and, at the same time, create a parallel CFD between you and us

So while you’re trading at market prices, you won’t gain any ownership rights over the equities or currencies that form the subject of your CFD.

 

Open an account now

It’s free to open an account and there’s no obligation to fund or trade.

You might be interested in...

1 Introductory offer. See more details.

2,3 The world's largest retail CFD provider based on revenue excluding FX (published financial statements, October 2016).

4 IG globally, May 2017

 

Contact us

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