How does IG make money?
We make our money primarily through our spreads, with other fees making up a small proportion of our revenue. We aim to build lasting relationships with our clients, and provide a range of tools to support their trading.
We want our clients to trade profitably
We make most of our money from the spreads that clients pay to trade with us
We’ve invested heavily in tools to help our clients trade profitably
If our clients’ account balances go negative, we bring them back to zero at no extra cost1
We hedge only when overall client exposure is skewed in one direction
We aim to build long-lasting relationships with our clients based on trust
Where does IG’s income come from?
The main way we earn money on our leveraged products – eg spread betting and CFDs – is through the spreads that we wrap around the market price.
The costs of any given trade are factored into these two prices (known as the offer and the bid), so you will always buy slightly higher than the market price, and sell slightly below it.
If the FTSE 100 is trading at 6545.5 and has a one point spread, for example, it might have an offer price of 6546 and a bid price of 6545.
Sometimes you’ll also need to pay other fees when trading with us:
- Share CFD commission
- FX conversion
- Overnight fees
- Inactivity fees
You can find out all about these on our charges page.
For share dealing, you’ll pay commission when you buy or sell stocks or ETFs. There’s also a quarterly custody fee depending on your trading activity. Share prices are offered in local denominations, and our fee to convert to your chosen base currency is just 0.5%.
Does IG aim to profit from client losses?
No. Our business model is based on providing individuals with the opportunity to trade the world’s financial markets, in exchange for fair and proportionate transaction fees. It is a well-known fact that trading successfully is difficult, and most speculative traders tend to lose. However, we do not typically benefit from trading losses that an unsuccessful client may experience.
Mostly, our clients offset each other’s positions. For example if client A buys one lot of the DAX and client B sells one lot of the DAX, both sides of the trade are covered. This means IG is not exposed to the profit or loss of either client. Instead, we make our money via the spread (i.e. the transaction fee) that each client pays to trade.
Sometimes, a large majority of clients will trade in one direction. When this happens, we will protect our exposure to risk by hedging in the underlying market. For example, if client A and client B buy the DAX, we may buy actual DAX futures. This then covers the amount we will pay out if both clients are successful.
Resources to assist your trading
We’ve invested in plenty of resources to ensure we offer the right balance of educational tools and personal support for your trading.
You’ll have a dedicated account manager on hand during your initial time with us
Find answers to your general account queries in our on-site answers bank
Our friendly team is available from 8am Saturday to 10pm Friday
Trial strategies with nothing to lose on our free, permanent demo
Benefit from negative balance protection1 and cap losses with our free-to-place guaranteed stops2
We consistently aim to get you the best possible result when executing orders on your behalf
Open an account now
Fill in our simple online form
We’ll ask a few questions about your trading experience.
Get swift verification
We can usually verify your ID in just a few seconds.
Fund your account and trade
Or practise on a risk-free demo if you’d prefer.
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
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1 Negative balance protection applies to trading-related debt only, and is not available to professional traders.
2 You’ll pay a small premium if your guaranteed stop is triggered.