CFDs are complex instruments. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money. CFDs are complex instruments. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

Best execution

Find out how we aim to consistently achieve the best possible result when handling your orders and executing your trades.

What is best execution?

Best execution refers to a firm's responsibilities to achieve the best possible result on a consistent basis when executing orders on behalf of clients. In practice there are a variety of factors that could be considered in order to achieve best execution.

In order to secure the best possible result for your share CFDs, forex, indices, commodities and cryptocurrency orders, we consider the following factors:

  • Fairness of price
  • Speed and likelihood of execution
  • The size and nature of the order

Getting you the best price and minimising the total cost of the transaction takes precedence over all other factors.

Our intelligent execution technology is designed to take into account relevant factors such as the nature of the underlying markets and any specific instructions you have given us, so that we can consistently deliver what we consider to be the best possible results.

As a client, it’s important for you to understand how we treat your orders and execute them for you. You can find important information within our customer agreement and from the information about the quality of our execution on this page.

Price

Price is the most important factor when considering best execution, and we source our prices from multiple venues. These venues are constantly reviewed, and we will always try to add liquidity venues that improve the integrity of our price and reduce the transactional charges to our clients.

Markets can move in milliseconds, meaning the price you click to trade on may have changed by the time your order reaches us. Our order management system will never fill you at a level worse than the one you requested – however, your order may be rejected.

A symmetrical tolerance level is set a certain distance either side of your requested price – if the market stays within this range by the time we receive your order, your order will be executed at the level you requested.

If the price moves outside this range, we will do one of two things:

  • If the market moves to a better level for you, our price-improvement technology will ensure you receive it.
  • If the price moves beyond our tolerance in the opposite direction, we'll reject the order and ask you to resubmit at the current level.

We do these checks to ensure the price your order is filled at is consistent with the current price that is available to our clients.

If you submit a market order it will be filled in the size and price available when we receive it.

Spreads

As getting the best price for clients is our number one best-execution consideration, reducing the spreads and transaction fees our clients face is a priority for us.

We’re clear and transparent about our spreads and commissions for all asset classes, and you can see full product details - including minimum, time-weighted average and out-of-hours spreads where applicable - at any time. For more information, follow the links below:

Over recent years we have charged our clients less and less for trading with us. For example, we have reduced our minimum EUR/USD spread to 0.6 and our oil spread to just 2.8. We have also introduced a more cost-effective way to add guaranteed stops to positions, so you’ll only pay a premium if your stop gets triggered.

Rejection rates

The main reasons why clients get rejected are price changes and issues with liquidity. We have two order types that enable you to take more control over your rejection rate and help you increase the likelihood of your orders being accepted:

Find out how to use these features and how they could help reduce your rejection rate and improve the likelihood of your orders being accepted within the price parameters you define.

Slippage

Summary

Markets Stops - Zero slippage1 Negative slippage Limits - Positive slippage
Currencies 89% 11% 38%
Indices 68% 32% 71%

Most popular currencies

Markets Stops - Zero slippage1 Stops - Negative slippage Limits - Positive slippage Average negative slippage (in pips) Average positive slippage (in pips)
AUD/USD 96% 4% 22% 0.061 0.078
EUR/USD 91% 9% 25% 0.136 0.119
GBP/USD 83% 17% 44% 0.490 0.474
USD/CAD 88% 12% 19% 0.315 0.301
USD/JPY 95% 5% 14% 0.081 0.072

Most popular indices

Markets Stops - Zero slippage1 Stops - Negative Slippage Limits - Positive Slippage Average negative slippage (in pips) Average positive slippage (in pips)
Australia 200 78% 22% 47% 0.167 0.181
FTSE 100 93% 7% 55% 0.088 0.195
Germany 40 78% 22% 58% 0.240 0.351
US 500 74% 26% 92% 0.108 0.166
Wall Street 55% 45% 92% 0.674 0.871

1This is based on global data for the IG Group on non-guaranteed stops only.

Maximum automatic size

Another important metric to consider is maximum automatic size which ensures a client’s order is executed automatically without being rejected for too large a size. If the order is rejected, the resulting delayed execution is effectively a form of slippage. For example, the maximum automatic size of A$5,358,000 = 175 A$5 lots of the Australia 200 Cash (Level 6122).

Below are IG's maximum automatic sizes:

Most popular currencies

Markets Maximum automatic size (AUD* notional)1
AUD/USD 10,607,00
EUR/USD 10,611,00
GBP/USD 11,794,00
USD/CAD 9,760,00
USD/JPY 10,004,00

Most popular indices

Markets Maximum automatic size (AUD^ notional)1
Australia 200 5,358,000
FTSE 100 6,588,000
Germany 40 10,431,000
US 500 25,620,000
Wall Street 14,164,000
Hong Kong HS50 2,608,000
Japan 225 5,875,000

*GBP/AUD rate as at 27/02/2019

^GBP/AUD rate as at 22/02/2019

1This is the minimum liquidity a client should usually be able to receive per trade during main market hours. A client may be able to receive more depending on broker exposure. Automatic sizes are set in GBP, so the notional AUD value can change depending on exchange rate movement.

Active orders handled manually

The absence of manual orders increases the speed of execution you receive and improves the likelihood of us being able to execute your order at the specified price.

In instances where a greater period of time has elapsed from the order being requested to it being filled, there is an increased likelihood of the price deviating from the one requested.

Margin policy

If you don’t have enough funds in your account to keep your trades open, you’ll be put on margin call.

This refers to when the total capital you’ve deposited - plus or minus any profits or losses - drops below your margin requirement.

At this point, your positions will be at risk of being automatically closed out.

Out-of-hours markets

We offer two-way quotes on a variety of markets outside of their traditional trading hours. This enables us to offer continuous, fair trading opportunities, even when the underlying market is shut. However, in these circumstances we cannot draw on the current market price as a reference, so will instead create our own prices to reflect our view of a market’s prospects.

For example, we might price an out-of-hours index by taking into account the performance of other indices around the world that are open. We might also account for our overall clients’ trading activity on the out-of-hours market, or factor in news stories that break outside of the trading session. Since our out-of-hours prices are market made, automatically priced off of moves in correlated markets, you’ll find that our spreads are generally wider than during normal trading hours. This is all done with our clients' best interest in mind.

Remember, out-of-hours prices may be very different to those available when the market opens next, so trading on them could lead to a profit or loss that would not have otherwise been incurred if you’d waited.

Digital 100s

Digital 100s enable you to trade on whether statements about the future behaviour of a market will be true or false. For example: ‘EUR/USD to be above 11446.1 at 4pm’ or ‘Silver to be below $14.00 per ounce at the close of trading’.

Each digital 100 is priced between 0 and 100. The closer the price is to 100, the more likely it is the statement in question will be true. The closer it is to zero, the more likely it is it will be false.
Our digital 100 prices are based on the behaviour of an underlying market, but set by our dealing desk according to four factors:

  • time to expiry
  • the underlying market’s current value
  • our expectation of future volatility
  • client business

If the statement you trade on does indeed end up being true, the digital 100 would close with the price settling at 100. If on the other hand the statement turns out to be false, the digital 100 price would settle at 0.

1 An 'active' order, submitted through our platforms, is where you give us an instruction to execute an order immediately. As opposed to 'passive' orders where you give us an instruction to execute an order later, subject to the price moving to a specific level.

Contact us

Questions about opening an account: +44 (20) 7633 5430 or email: sales.en@ig.com

Existing client questions:
+44 (20) 7633 5431, Malaysia Toll Free: 1800 880 754 or email: helpdesk.en@ig.com

We’re here 24 hours a day, except from 6am to 4pm on Saturday (UTC+8).