With our transparent pricing, you can be confident you understand the value of each trade. Spread can be as little as 0.8 pips.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. You could sustain a loss of some or all of your initial investment and should not invest money that you cannot afford to lose. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Forex trading costs
Spreads and margins
You pay a spread on every trade. Find these forex trading fees for individual markets below, or see our ‘costs and charges’ document for examples of how spreads and margins can affect your positions.
Major forex pairs
Major
For every pair we offer a standard contract size (one contract = 100,000 of the first-named currency), with a minimum trade size of 0.01 lots (equivalent to 1000 of the first-named currency).
Currency pair [1] |
Value per pip |
Minimum spread |
Average spread* [2] |
Margin required [3] |
|---|---|---|---|---|
| AUD/USD | $10 | 1 | 1.4 | 3% |
| EUR/GBP | £10 | 1 | 1.8 | 5% |
| GBP/EUR | €10 | 2 | 2.3 | 5% |
| GBP/USD | $10 | 1 | 1.7 | 5% |
| USD/JPY | Y1000 | 0.8 | 1.2 | 4% |
*Average spread (Monday 00:00 - Friday 22:00 GMT) for the 6 weeks ending September 25, 2020
Minor forex pairs
Minor
For every pair we offer a standard contract size (one contract = 100,000 of the first-named currency), with a minimum trade size of 0.01 lots (equivalent to 1000 of the first-named currency).
Currency pair [1] |
Value per pip |
Minimum spread |
Average spread* [2] |
Margin required [3] |
|---|---|---|---|---|
| CAD/CHF | CHF10 | 3 | 4.3 | 3% |
| GBP/CAD | C$10 | 4 | 6.5 | 5% |
| GBP/ZAR | ZAR10 | 200 | 275.8 | 7% |
| USD/SGD | SGD10 | 4 | 6 | 5% |
| USD/ZAR | ZAR10 | 110 | 158.3 | 7% |
*Average spread (Monday 00:00 - Friday 22:00 GMT) for the 6 weeks ending September 25, 2020.
Understanding margin
Margin trading gives you full exposure to a market using only a fraction of the capital you’d normally need. It is the amount of money you need to open a position, defined by the margin rate.
Margin with IG
When trading on margin, it's important to be aware that your risk is also based on your full exposure to the market.
Funding and interest
We apply funding and interest charges to forex trades, as explained below. You can also see our ‘costs and charges’ document for examples of how these forex trading costs can affect your positions.
If you keep a position open overnight (after 10pm LDN, normally 5pm EST) we will make an adjustment to your account, to reflect the cost of funding your position.
Forex trading cost and charges
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Overnight funding fees
When you trade derivatives with us, you trade on margin. This means you provide a deposit to open a position, and we in effect lend you the rest of the money required. If you close your position on the same day, there is no funding fee. If you keep it overnight, we charge a small fee to cover the cost of the money you've effectively borrowed.
The fee is calculated as the tom-next rate plus a small admin fee.
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Currency conversion charges
Forex trading in a currency other than your account's base currency may incur a currency conversion charge. Our default setting is instant conversion, where foreign-currency profit is converted to your base currency and funding or commission charges are taken into account before your account is credited. We also offer daily, weekly and monthly conversion settings. Our standard charge is 0.5%.
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Extra services and charges
There are some extra services that we charge for.
Service |
Charge |
|---|---|
| Inactivity fee | We charge a $12 fee on the first of every month, if no trading activity has occurred for two years or more. |
-
Charges passed on from third parties include:
- Fees for international deposits or those not made in US dollars
- Withdrawals via wire payments ($15)
Charges and funding FAQs
Our offices are normally open 24 hours a day between 4pm on Sunday and close 5pm on Friday night (EST).
Trading hours vary between markets, but standard UK market hours are 08.00-16.30 (London time).
Spreads
Our forex spreads vary depending on underlying market liquidity. The more liquid the market, the narrower our spread – as low as 0.8 pips. As the underlying market spread widens, so does ours – but only to our maximum cap.
Forex overnight charges
The overnight funding fee is calculated using the tom-next rate. These rates change daily, varying the funding fee each day. Mini and micro forex contracts are subject to a higher funding rate.
Tom-next is the rate used to calculate the funding adjustment when a forex position is held overnight. It is an industry-standard rate, derived from the interest rate differentials of the pair’s currencies and market expectations of interest rate change.
The spread is the difference between our sell and buy prices. We derive these prices based on the underlying market's value.
Only if you haven’t placed any trades on your account for two years or more, and there is still a balance on your account. We’ll then charge a $12 fee on the first day of every month.
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