Spread bets and CFDs
Spread bets and contracts for difference (CFDs) are over-the-counter (OTC) derivative products that give you access to thousands of underlying markets. These are typically traded in the short or medium term.
No need to own assets
Speculate on underlying assets' price movements using derivatives.
Take your capital further
Use spread bets and CFDs to get full exposure with just a deposit.
Increase your opportunities
Get the opportunity to profit from rising or falling markets.
Never go below zero
UK regulation protects your funds – you'll never go below zero.
Differences between OTC products and listed products
OTC products like spread bets and CFDs differ from listed products that are in their pure form, like exchange-based options and futures.
It’s important to note that you can also trade an options or futures contract as the underlying of a spread bet or CFD trade with us. This means that they’re underlying assets of OTC products in such instances and, therefore, function differently to our exchanged-based or listed options and futures products.
Here are some of the main differences between OTC products and listed products:
| OTC products | Exchange-traded (listed) products | |
| Trading venue | Over the counter: direct trade between two parties (usually through a broker like us) | On exchange (eg CME, ICE, Euronext): centralised marketplace for buyers and sellers |
| Agreement or contract | Bespoke (can be customised) | Standardised (non-negotiable) |
| Regulation | Subject to less stringent regulatory requirements | Regulated by government authorities, eg Securities and Exchange Commission (SEC) |
| Counterparty risk** | Higher; default risk from both parties | Mitigated by an exchange’s clearinghouse |
| Liquidity | May be lower due to less participants in decentralised markets | Typically higher as there’s a higher number of market participants |
** When trading on our platform, counterparty risk is limited based on the terms and agreements that govern our relationship with you.
Spread bets
Bet on the price direction of a financial market per point movement
- Key benefit: no capital gains tax (CGT) on profits from OTC options, single-name stocks, indices, commodities, bonds, interest rates, forex and ETF positions5
- No commission, just our spread
- No stamp duty5
CFDs
Trade on the difference between the opening and closing price of a market
- Key benefit: DMA on shares and forex6
- We charge a spread, except for share CFDs, where you’ll pay commission instead
- Offset losses against profits for your CGT liabilities5
- No stamp duty5
What’s best for me?
To find a trading product that might work best for you, there are potential benefits you could consider. Equally important, is considering the possible risks.
Here are some of the key benefits of our trading products:
What are the possible risks of spread betting and CFD trading?
Here are some of the main risks of spread betting and CFD trading:
The risks |
Why this happens |
Ways we help |
Losing more than you pay to open the trade |
Spread bets and CFDs are leveraged,2 so you only need to put up a fraction of your position’s value to open it but your profit or loss could be much more than your initial deposit |
You can set an automatic stop-loss order to define the level of potential loss you don’t want to exceed. To lock in profits (if the market moves in your favour), you can set a take-profit order beforehand |
Losing more than the funds that are available in your account |
Sometimes your positions may be closed out automatically, leaving you with a negative account balance |
Financial Conduct Authority (FCA) regulations safeguard you with negative balance protection, and we bring negative accounts back to zero at no cost to you3 |
Overnight funding charges |
You’ll be charged a small fee to cover the costs of keeping your position open overnight (past 10pm UK time) |
To avoid paying overnight funding charges, you could trade CFD futures with us, which carry no extra charge for keeping your position open longer than a day, although they do incur larger spreads |
Having your positions closed unexpectedly |
You need a certain amount of money in your account to keep your trades open. This is called maintenance margin, and if your account balance doesn’t cover our margin requirements, we may close your positions |
We ensure that your running balances are always visible in our platform or app, so you can immediately see to add more funds if they’re needed. We’ll also aim to notify you if you’re on margin call |
Sudden or larger-than-expected losses (or gains) |
Markets can be volatile, moving very quickly and unexpectedly in reaction to announcements, events or trader behaviour |
Stop-loss orders, including guaranteed stops, can help you avoid significant losses. You can also set alerts to get notifications when certain price points are reached |
No shareholder privileges |
With leveraged trading, you don’t own the asset (eg shares) outright.2 This means you won’t receive any shareholder privileges like dividends and voting rights in company decisions |
To get shareholder privileges, you can also buy shares with us – in addition to trading on stocks. Our share dealing platform offers over 13,000 shares, funds and investment trusts |
Having an order (an instruction you give us, to open or close a trade for you when the market hits a certain level) filled at a different level to the one you requested |
When a market moves a long way in an instant – or ‘gaps’ – any orders you’ve placed may be filled at a worse (or better) level than the one you requested. This is called slippage |
You can use guaranteed stops for watertight protection against slippage on orders to close. They're free to place, with a small premium payable only if your stop is triggered |
What markets can I trade?
Forex trading
Trade forex with spread bets, CFDs and pure-form futures to get access to our wide range of major, minor and exotic currency pairs, through powerful platforms.
- UK’s No.1 FX provider9
- Competitive spreads
- More 24-hour markets than anywhere else
Other markets
Low spreads. 15,000+ markets, exclusive 24/7 opportunities.10
Investing and stockbroking
Take a longer-term position with a more traditional way of investing.
Share dealing
Buy and sell 12,000+ global stocks commission free.
IG Smart Portfolios
Get a fully managed, diversified investment portfolio.
ISAs
Put a tax-efficient wrapper around your investments.
SIPPs
Save for retirement with tax-free profits5 and more.
Try these next
We're clear about our charges, so you always know what fees you’ll incur.
All retail client funds are held in segregated bank accounts, in line with FCA rules.
See how we've been changing the face of trading for 50 years.
1 Based on revenue (published financial statements, 2023).
2 Leveraged products such as spread bets and CFDs are complex financial instruments, with which an upfront deposit, called margin, is used to open a larger trade. Your margin will only be worth a certain percentage of your trade, but potential profits and losses will be calculated based on the total position size, not your margin. This makes leveraged trading inherently risky and should never be approached without a trading strategy and adequate risk management in place. You may also need to provide additional funds to keep a position open, with little or no notice.
3 Negative balance protection applies to trading-related debt only, and isn’t available to professional traders.
4 tastytrade was awarded the best options trading platform at the 2024 ADVFN International Finance Awards. It was ranked the best overall options trading platform of 2024 by Investopedia. The criteria, evaluation, and ranking were determined by Investopedia. tastytrade is the No.1 desktop options trading platform and the no.1 desktop futures trading platform as awarded at the 2024 StockBrokers.com annual awards. Our streamlined platform gives you access to the tastytrade options and futures products from My IG.
5 Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.
6 To trade with forex DMA, you’ll need to qualify for an IG professional account.
7 You can use options strategies for a range-bound, neutral market assumption when you think prices will move sideways.
8 $1.00 commission to open per options contract, $0 commission to close per options contract. Applicable exchange, clearing, and regulatory fees still apply to all opening and closing equity options trades. Some additional applicable commissions are capped at $10 per leg on equity option trades. The following index products are excluded from the capped commissions offer: SPX, RUT, VIX, OEX, XEO, DJX, and XSP. Trade futures from $0.85 commission to open and $0.85 commission to close on micro futures. Learn more about our charges.
9 By number of primary relationships with FX traders (Investment Trends UK Leveraged Trading Report, May 2023).
10 24/7 excludes the hours from 10pm Friday to 8am Saturday (UK time), and 20 minutes just before the weekday market opens on Sunday night.
11 Please note published rates are valid up to £25,000 notional value. See our full list of share dealing charges and fees.
Trade with UK’s number one provider.1
- Tax-free spread betting.2
- 16,000 markets to explore.
- Trade indices, shares, commodities, forex , and pre-IPO.
Over 16,000 ways to trade with IG.
Products
Choose how you trade.
16,000 markets. Unlimited potential.
Forex. Indices. Shares. Commodities. All at your fingertips. Trade your way, with access to global markets from one platform.
Why trade?
Trade with leverage.
Amplify your market moves without tying up all of your funds. Gain full exposure with a smaller outlay and act decisively whenever opportunity strikes.
Negative balance protection.
Your risk has a hard stop. UK regulation protects your funds, so your trading account can’t go below zero, no matter how the markets move.
No underlying ownership.
Speculate on price movements without owning the underlying asset, giving you flexibility and freedom in how you trade, with contracts cash-settled immediately.
Go long or short.
Expect a market to rise? Go long. Expect it to fall? Go short. Trade across global markets and get exposure to rising and falling prices.
Tools and analysis
Trading tools.
Get the edge with IG. Analyse deeper. Trade sharper. Act faster.
- TradingView
- MetaTrader 4
- Trading apps
- ProRealTime
- L2 Dealer
Advanced analysis.
Use over 400 pre-built indicators and 110 drawing tools for advanced technical analysis and refine your strategy.
Chart options.
With over 20 chart types, get the insights you need to identify trends that others miss, and make moves others don’t.
Custom alerts.
Receive custom trading alerts on any device so you’re always in the know and ready to act.
Automate your trades.
With custom-made algorithms, you can spend your time spotting the next opportunity, not trading manually.
Customisable charts.
See the market your way with fully customisable layouts and indicators and make decisions with confidence.
Mobile app.
The free MT4 mobile app keeps you connected to every market swing, wherever you are.
Powerful trading options.
Take control of your trades with partial fills, expiry options, and preference saving. You make the calls.
Live alerts.
Be in the know with live news, price alerts, and pinpoint charts, giving you the insights you need to act fast.
Mobile app.
Keep pace with the market and deposit, withdraw, and trade on the go with a seamlessly smooth app.
Custom algorithms.
Build and automate custom algorithms that work for you 24 hours a day, meaning you never miss a move.
Market analysis.
Analyse everything from price to volatility with over 100 indicators, and spot opportunity before anyone else.
Fast filtering.
Filter options by expiration date and strike price, helping you get to the trades that matter most, quickly.
Direct market access.
Take charge of your trades and get direct market access to shares and forex, so you can move on your terms.
Bid monitoring.
Monitor bids and offers in real time so you can respond immediately to shifting market conditions and sentiment.
Advanced order types.
Take part in auctions and advanced order types, giving you the best chance to maximise every trade.
Proven. Trusted. Secure.
50 years’
experience
Our history isn’t just long, it’s influential. From pioneering gold trading to shaping today’s markets, our experience sets the standard.
The UK’s number
one provider1
Trade with the UK’s number one trading provider. Recognised with awards including ADVFN’s 2024 Best Platform for the Active Trader and Best Finance App.
Over 200,000
active traders
Join a global community of traders with more than $1tn traded every month. Welcome to a platform that handles serious markets at scale.
Know your risks
Understand your risks. Stay in control.
You could lose more than you pay to open the trade.
Why this happens: Spread bets and CFDs are leveraged. You only need a fraction of the position to trade, but profits or losses can exceed your initial deposit.
How we help: You can set automatic stop-loss orders to limit losses and take-profit orders to lock in gains when the market moves your way.
You could lose more than the funds that are available.
Why this happens: Positions may be closed automatically, leaving a negative balance.
How we help: FCA regulations protect you with negative balance protection. We reset negative accounts to zero at no cost, so you’re never overexposed.
Overnight funding charges.
Why this happens: Small fees apply to keep positions open past 10pm UK time.
How we help: You can trade CFD futures to avoid overnight fees while keeping control of your positions, though spreads may be slightly higher.
Positions could be closed unexpectedly.
Why this happens: Your account needs enough margin to maintain trades. Insufficient funds can trigger automatic closure.
How we help: Balances are always visible in our platform or app, with notifications if you’re on a margin call, keeping you in control.
Sudden or larger-than-expected losses or gains.
Why this happens: Markets move fast and unpredictably in response to events or trader behaviour.
How we help: Stop-loss orders, including guaranteed stops, can help limit losses. Price alerts keep you informed so you can act fast.
You have no shareholder privileges.
Why this happens: Leveraged trades don’t give you ownership of the assets, so you have no dividends or voting rights.
How we help: Buy shares outright through our share dealing platform to access dividends, voting, and over 12,000 shares and ETFs.
What our customers say about IG:
1 Based on revenue (published financial statements, 2023).
2 Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.
Connect with us
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
Professional clients trading spread bets and CFDs can lose more than they deposit.
Options and futures are complex instruments which come with a high risk of losing money rapidly due to leverage. They’re not suitable for most investors. Before you invest, you should consider whether you understand how options and futures work, the risks of trading these instruments and whether you can afford to lose more than your original investment.
Trading stocks and shares ‘on margin’ within a US options and futures account – meaning that you only finance part of the cost of acquiring a position in a security – carries additional risks over buying securities on a fully funded basis and may result in losses exceeding your original investment. Trading on margin will also result in additional costs to you as the investor and any securities purchased using margin may be held as collateral by the lender, restricting both your rights as shareholder, and your ability to use the securities until the margin trade is closed. You should familiarise yourself with these risks before trading on margin.
The value of shares, ETFs and other ETPs bought through a share dealing account, a US options and futures account, a stocks and shares ISA or a SIPP can fall as well as rise, which could mean getting back less than you originally put in. Past performance is no guarantee of future results. Some ETPs carry additional risks depending on how they’re structured, investors should ensure they familiarise themselves with the differences before investing.
Share dealing and IG Smart Portfolio accounts provided by IG Trading and Investments Ltd, CFD accounts and US options and futures accounts are provided by IG Markets Ltd, spread betting provided by IG Index Ltd.
IG is a trading name of IG Trading and Investments Ltd (a company registered in England and Wales under number 11628764), IG Markets Ltd (a company registered in England and Wales under number 04008957) and IG Index Ltd (a company registered in England and Wales under number 01190902). Registered address at Cannon Bridge House, 25 Dowgate Hill, London EC4R 2YA. IG Markets Ltd (Register number 195355), IG Trading and Investments Ltd (Register Number 944492) and IG Index Ltd (Register number 114059) are authorised and regulated by the Financial Conduct Authority.
The information on this site isn’t directed at residents of the United States, Belgium or any particular country outside the UK and isn’t intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
