Brexit

Learn how you could profit from the market volatility surrounding Brexit – and hedge your share portfolio and exposure to sterling – with the world's No. 1 provider.1

Call 0800 195 3100 or email newaccounts.uk@ig.com to talk about opening a trading account. We’re here 24 hours a day, from 8am Saturday to 10pm Friday.

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Tips for trading Brexit

Tips for trading Brexit

Follow our Brexit timeline and make sure you understand how upcoming events could move the markets

Set price-change alerts to notify you of significant movements

Cap your maximum risk by placing guaranteed stops on your positions

Consider hedging your share portfolio or GBP exposure with tax-free spread bets2

Be ready to go long or short whenever opportunities arise, even at the weekend

Download our Brexit trading tips, explaining how to:

Why trade Brexit with IG?

Deal GBP/USD from just 0.9 points

Go long or short on a range of currency pairs including all major GBP, EUR and USD crosses

Free risk protection

Our guaranteed stops only incur a fee when triggered,3 and are backed by negative balance protection4

Trade exclusive weekend markets

Speculate or hedge 24/7,5 with the only UK provider to offer weekend trading on GBP/USD and the FTSE 100

Choose from a range of price alerts

Stay informed of market movements with percentage and point-based price alerts - exclusive to IG

How to trade Brexit

You can speculate on any Brexit news or developments by trading financial markets such as shares, forex pairs and indices. Many of these assets are highly sensitive to the outcome of negotiations, with the FTSE 100, UK stocks, GBP/USD and gold all particularly likely to experience significant moves.

Spread bets and CFDs enable you to speculate on markets that are falling as well as rising, giving you plenty of opportunity to capitalise on volatility without taking ownership of the underlying assets. When you trade, the profit or loss you make depends on whether your forecast is correct and the extent of the price movement in the underlying market.

If you prefer to buy stocks outright, you can do so with our share dealing service. This enables you to profit from increasing share prices, as well as by receiving any dividend payments issued by the company.

How will Brexit affect GBP?

How Brexit affects GBP will depend on the state of negotiations during the transition period, which ends on 31 December 2020. The UK will attempt to ‘roll over’ the existing free trade deals that are currently in place between the EU and other countries, such as Canada.

The UK will remain a member of the EU customs union during the transition period – so GBP could behave much in the same way as it has since the 2016 referendum. This means the pound will likely remain volatile, especially given the possibility of new trade deals with the US and other leading global powers which can be completed after the UK has left the EU.

The content of these trade deals will no doubt affect the value of the pound compared to other leading currencies, with the NHS and other public services being key talking points. However, there are still two outcomes for Brexit depending on negotiations – leaving with or without a trade deal with the EU. With that in mind, here are our analysts’ predictions for GBP/USD for each of these scenarios:

Market No-deal Brexit EU and parliament approve deal
GBP/USD 1.10 1.35

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

How do I hedge Brexit risk?

You can hedge your Brexit risk by opening positions that will turn a profit if the assets you own start to lose money. With IG, you can hedge against:

Weekend movements

We’re the only provider to offer GBP/USD and the FTSE 100 on the weekend, so you can offset your risk whenever volatility arises.

Share portfolio risk

We enable you to go short on major indices and over 12,000 shares, so you can protect your entire portfolio from downside risk.

Sterling volatility

We offer forex pairs including GBP/USD, EUR/GBP and GBP/EUR, enabling you to insulate yourself from currency risk.

Use our platform tools to stay ahead

Guaranteed stops

Take control with free guaranteed stops, which only incur a fee when triggered.3

Price alerts

Set alerts with the only provider to offer percentage and point-based monitoring.

Indicators

Stay ahead of volatility with indicators including average true range and Bollinger bands.

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Deal seamlessly, wherever you are

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Open an account now

Fast execution on a huge range of markets

Enjoy flexible access to more than 16,000 global markets, with reliable execution

Deal seamlessly, wherever you are

Trade on the move with our natively designed, award-winning trading app

Feel secure with a trusted provider

With 45 of experience, we’re proud to offer a truly market-leading service

Markets to watch during Brexit

The table below shows live prices for some of the markets which have been, and which could be, most affected by Brexit. Read on to find out more about each of these.

Bid
Offer
Change
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Prices above are subject to our website terms and conditions. Prices are indicative only. All shares prices are delayed by at least 15 mins.

How will Brexit affect the FTSE 100, UK shares and gold?

  • Indices
  • Shares
  • Gold

How will Brexit affect the UK stock market?

The impact of Brexit on the UK stock market largely depends on the terms of any future trade deal between the UK and EU, because the level of access to international will have a direct effect on the UK stock market.

Whatever the outcome, volatility will likely remain for some time. However, market uncertainty is not necessarily something to be feared. Through CFDs and spread bets, you can speculate on asset prices rising as well as falling – meaning that you could profit regardless of what the underlying markets are doing.

IG is the only UK provider to offer weekend trading on the FTSE 100, which means you never have to miss an opportunity to trade on any increased uncertainty in the markets during the ratification and transition stage of the Brexit process.

What share opportunities will Brexit bring?

The continued volatility surrounding Brexit provides plenty of opportunities for traders looking to go long or short. Here, we focus on some shares which might be good buying options for traders – and investors – to consider, because they demonstrate the fundamentals required to weather the storm of the UK’s European departure.

Best shares to watch

The below list includes some shares which could increase in value if trade negotiations during the transition period are successful. As domestic UK shares – with operations almost exclusively within the UK – these shares have the most to gain from a ‘soft’ Brexit:

  1. Persimmon (PSN) – one of the UK’s largest new home builders, with considerable operations across the UK
  2. Travis Perkins (TPK) – the UK’s largest builders’ merchants, supplying over 23,000 trade products and already a go-to for many UK building companies
  3. Lloyds Banking Group (LLOY) – has primary operations in England and Wales, so stands to gain from a smooth transition

Despite these shares being highlighted as ones to watch in a soft Brexit, you might also find that they rally on the news of a hard Brexit. This is because of the potential for new trade deals that will need to be done down the line.

Either way, these shares are very likely to experience some volatility in the aftermath of a final Brexit decision, so it’s worth watching their charts closely for opportunities to go long or short.

How will Brexit affect gold?

As ever in times of uncertainty, investors look to commodities such as gold to provide a haven. After experiencing a spike following the initial referendum in June 2016, gold’s price has largely settled over the last couple of years. That is not to say that it couldn’t spike again, especially given the uncertainty surrounding the next steps for the UK’s departure.

FAQs

Can you make money from Brexit?

The volatility caused by Brexit uncertainty offers a wide range of opportunities to realise a profit. For example, you might decide to go long on key UK stocks and indices if you think they’ll rise ahead of a possible soft Brexit scenario, or you might decide to go short if you think they’ll fall as a result of a no-deal Brexit.

CFDs and spread bets are popular ways to take advantage of such price movements because they enable you to go long or short without taking ownership of any underlying assets.

How can I stay up to date with Brexit's impact on the financial markets?

You can stay up to date with Brexit’s impact on the financial markets through our comprehensive collection of Brexit news, alerts and trade ideas. We also offer live market updates and opinions, an in-platform newsfeed, as well as subscription-based newsletters for the coming week’s trading insights.

Find out more about IG’s news offering

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Take a position on how Brexit is affecting the FTSE and the pound.

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1 Based on revenue excluding FX (published half-yearly financial statements, June 2019); for forex based on number of primary relationships with FX traders (Investment Trends UK Leveraged Trading Report released July 2019).
2 Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.
3 A small premium is payable if a guaranteed stop is triggered.
4 Negative balance protection applies to trading-related debt only, and is not available to professional traders.
5 Trading is available around the clock, apart from 10pm Friday to 4am Saturday and 20 minutes just before market open on Sunday.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% 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. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.