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.

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.

Find out more about margin with IG

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

• 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.

• 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%.