CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

Pros and cons of Brexit

The UK formally left the EU on 31 December 2020. Here are the sticking points that were most important to the remain and leave camps during the Brexit process.

Call +65 63905133 or email accountopening@ig.com.sg to talk about opening a trading account. We’re here 24 hours a day, from Monday to Friday.

Contact us: +65 6390 5133

Benefits of being in the EU: the debate

The Brexit process began when the United Kingdom (UK) voted to leave the European Union (EU) in a 2016 referendum. Following the vote, there was four years of debate about the best scenario for a withdrawal agreement between the UK and EU.

Here we present the main arguments for remain and leave before the UK left the EU on 31 December 2020.

Learn about the opportunities Brexit offers traders

Benefits of being in the EU: the debate

The Brexit process began when the United Kingdom (UK) voted to leave the European Union (EU) in a 2016 referendum. Following the vote, there was four years of debate about the best scenario for a withdrawal agreement between the UK and EU.

Here we present the main arguments for remain and leave before the UK left the EU on 31 December 2020.

Learn about the opportunities Brexit offers traders

Remain

Though unsuccessful in garnering enough votes in the referendum, the remain camp continued to advocate for a close relationship with the EU in the form of close links to the EU post-brexit.

The arguments for remaining in the EU focused on the benefits of being part of a wider union, and the security and favourable trading relationship made possible through EU membership.

Key arguments for remain

Foreign affairs

As part of a community of 500 million people, Britain could have greater influence over international matters as a member of the EU.

Sovereignty

Britain has proved that it could opt out of some EU policies which it considers counterintuitive, such as adoption of the euro, the Schengen Agreement and enforced migrant quotas.

Security

A union better equipped Britain to tackle threats to security, including terrorism and cross-border crime.

Money

European businesses invest billions of pounds in the UK every year, both in the public sector and private sector.

Trade

EU membership provided unrestricted Britain access to the European single market, which was invaluable for trade and enables the easy movement of goods, services and people across member states.

Business

Free trade within the EU reduced red tapes and enabled companies to grow.

Jobs

Millions of British jobs are linked to Europe and could be put at risk. Some sectors such as nursing and manufacturing could experience a slump in skilled labour.

Consumer goods

The average person in Britain saved hundreds each year thanks to lower prices of goods and services facilitated by the EU.

Leave

While the leave campaign succeeded in the referendum, negotiating a deal with the EU proved difficult – though one was eventually agreed to by both negotiating teams.

Key arguments for why the UK should leave the EU included greater control over foreign affairs, greater national sovereignty and the potential for glitzy new trade deals with countries like the US.

Key arguments for leave

Foreign affairs

Continued EU membership would've limited Britain’s international influence, ruling out an independent seat at the World Trade Organisation (WTO).

Sovereignty

Britain will have more control of its laws and regulations, without the risk of having counterintuitive European policies forcefully imposed.

Security

Some in the Leave camp believe that Britain’s domestic security could benefit from full border controls, which it would hope to gain outside the EU.

Money

EU membership fees - amounting to billions - could be repurposed and spent on issues that matter most to the people in the UK.

Trade

Membership of the EU kept Britain from fully capitalising on trade with other major economies such as Japan, India and the US.

Business

The EU subjected Britain to slow and inflexible bureaucratic red tape, making it more prohibitive for smaller companies to do business.

Jobs

Improved global trade agreements and more selective immigration could have a positive effect on the British job market.

Consumer goods

EU VAT contributions and agricultural subsidies policies cost UK consumers hundreds of pounds each year.

Remain

Though unsuccessful in garnering enough votes in the referendum, the remain camp continued to advocate for a close relationship with the EU in the form of close links to the EU post-brexit.

The arguments for remaining in the EU focused on the benefits of being part of a wider union, and the security and favourable trading relationship made possible through EU membership.

Key arguments for remain

Foreign affairs

As part of a community of 500 million people, Britain could have greater influence over international matters as a member of the EU.

Sovereignty

Britain proved that it could opt out of some EU policies which it considers counterintuitive, such as adoption of the euro, the Schengen Agreement and enforced migrant quotas.

Security

A union better equipped Britain to tackle threats to security, including terrorism and cross-border crime.

Money

European businesses invest billions of pounds in the UK every year, both in the public sector and private sector.

Trade

EU membership provided unrestricted Britain access to the European single market, which was invaluable for trade and enables the easy movement of goods, services and people across member states.

Business

Free trade within the EU reduced red tape and enabled companies to grow.

Jobs

Millions of British jobs are linked to Europe and could be put at risk. Some sectors such as nursing and manufacturing could experience a slump in skilled labour.

Consumer goods

The average person in Britain saved hundreds each year thanks to lower prices of goods and services facilitated by the EU.

Leave

While the leave campaign succeeded in the referendum, negotiating a deal with the EU proved difficult – though one was eventually agreed to by both negotiating teams.

Key arguments for why the UK should leave the EU included greater control over foreign affairs, greater national sovereignty and the potential for glitzy new trade deals with countries like the US.

Key arguments for leave

Foreign affairs

Continued EU membership would've limited Britain’s international influence, ruling out an independent seat at the World Trade Organisation (WTO).

Sovereignty

Britain will have more control of its laws and regulations, without the risk of having counterintuitive European policies forcefully imposed.

Security

Some in the Leave camp believed that Britain’s domestic security could benefit from full border controls, which it would hope to gain outside the EU.

Money

EU membership fees - amounting to billions - could be repurposed and spent on issues that matter most to the people in the UK.

Trade

Membership of the EU kept Britain from fully capitalising on trade with other major economies such as Japan, India and the US.

Business

The EU subjected Britain to slow and inflexible bureaucratic red tape, making it more prohibitive for smaller companies to do business.

Jobs

Improved global trade agreements and more selective immigration could have a positive effect on the British job market.

Consumer goods

EU VAT contributions and agricultural subsidies policies cost UK consumers hundreds of pounds each year.

Get Brexit-ready with IG

Discover trading opportunities around Brexit – and download our free checklist – to learn how to profit from upcoming volatility and hedge against downside risk.

You might be interested in…

The latest analysis and insights from our in-house experts

Discover our award-winning web-based platform and natively-designed apps for tablet and mobile

See the major upcoming macroeconomic events and set alerts accordingly


IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

See important Research Disclaimer.