What we pay your introducing broker
We may share with your introducing broker (IB) a percentage of the IG dealing spread, commission or funding (as appropriate) that you pay us, to reflect the services they provide you.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% 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. 71% 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.
Do I pay more because of these arrangements?
In most cases the spreads, commissions and funding rates on your account are the same as those given to our direct clients. We simply agree to pay a portion of these fees back to your IB because they have agreed to offer you an additional ongoing service.
To find out more about your personal arrangements, please give our helpdesk a call on 0800 409 6789 or email helpdesk.uk@ig.com.
How much do you pay my IB?
How much we share varies according to the product and market that you’re dealing. In all cases your commission or spread will be charged when you trade, and we’ll then pass the relevant percentage value onto your introducing broker (IB) on a monthly basis.
You’ll receive a monthly breakdown of these payments via email, showing you the total payment made to your IB that month broken down by asset class.
How are the payments calculated?
| Spread | We may rebate your IB up to 30% of our standard dealing spread.
CFDs Say that you buy one standard lot of FTSE Cash (£10 contract) which is trading at 7020/7021, you will pay 1 point of spread round trip to open, then close the position. Therefore the spread payable is £10 x 1 = £10.
Spread betting Say that you buy £10 per point FTSE Cash which is trading at 7020/7021, you will pay 1 point of spread round trip, to open, then close the position. Therefore the spread payable is £10 x 1 = £10. |
| Commission | We may share with your IB up to 60% of the commissions that you pay us.
CFDs Say that you buy 13,000+ CFD shares at 150.0p. Our standard commission for UK shares is 0.10%. This means that your opening commission is: 0.1/100 x 13,000+ shares x 150.0p = £12. If our arrangement with your IB is to share 60% of this commission charge, then we’d pay £7.20 to your IB for this trade. Our commercial terms on share dealing are standard across our various introducers.
IG keep 0.07% of the commission charged on your account, with an £8.10 minimum ticket.
You can find the commissions applicable to your account on your share dealing rate card, which will have been emailed to you.
Your IB will be paid the difference between what you are charged and what we keep.
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| Funding | We may share with your IB a percentage of the funding that you pay us.
Say that you buy 13,000+ UK CFD shares at 150.0p.
For a long position you will pay 3% above the SONIA rate to hold your position overnight. The calculation is as follows: Daily interest adjustment = size x closing price x SONIA +/- 3% / 365
For each day that you hold the position overnight, you accrue a financing cost. This is calculated and debited from your account on a daily basis.
With the above example and a SONIA rate of 0.50706, let’s say the stock closes at 151p on the first day. The first daily interest adjustment is calculated as follows: Adjustment = 13,000+ shares x 151p x 3.00706% /365 = £0.99
If we have agreed to pay your IB 50% of funding for equities, we would share 0.49p with your IB for the first night that you held the above trade. |
We may sometimes provide minor non-monetary benefits to your IB where we believe they are likely to enhance the quality of service to you, and unlikely to create a conflict of interest between us. These might include training material or invitations to seminars, and will always be of a reasonable value. These sorts of benefits are determined in line with our conflicts policy, and are paid by IG on an ad-hoc basis rather than being reflected on your account.
To find out more about these arrangements, please give us a call on 0800 409 6789 or email helpdesk.uk@ig.com.
