IG Group is a UK-based company that provides financial derivatives trading services to retail traders and institutional clients globally. As one of the largest CFD and spread betting providers in the world, IG Group has a strong reputation in the industry. But is it a good company for traders and investors? Here we’ll examine IG Group’s background, services, fees, trustworthiness and more to help you decide.
Introduction to IG Group
IG Group was founded in 1974 under the name IG Index. It started out as a spread betting firm based in the UK and has since expanded to offer CFD and forex trading to clients around the world. The company demutualised and floated on the London Stock Exchange in 2000 under the name IG Group Holdings plc. Today, IG Group has over 239,000 active clients worldwide and reported £649 million in revenue in 2021.
IG Group now offers trading access to thousands of financial markets including shares, indices, commodities, currencies, bonds, interest rates, options and cryptocurrencies. Its platform supports mobile and web trading as well as advanced platforms like L2 Dealer and ProRealTime for professionals. IG also provides educational resources, market analysis, risk management tools and more to support clients.
As a publicly listed company, IG Group is regulated by top-tier financial authorities like the UK’s Financial Conduct Authority (FCA), the Australian Securities and Investments Commission (ASIC), and Switzerland’s FINMA. This oversight helps ensure the broker maintains good business practices and safeguards client funds.
IG Group’s Main Services
IG Group offers two primary ways for traders to speculate on financial market price movements:
CFD Trading
CFDs or contracts for difference are derivatives that allow you to trade on margin and gain exposure to price movements without owning the underlying asset. IG offers leveraged CFD trading on 10,000+ global markets with competitive spreads from just 0.6 points.
Spread Betting
Spread betting enables you to speculate on financial markets in a tax-efficient manner. Profits from spread betting are not subject to capital gains tax in the UK. IG offers over 15,000 spread betting markets across forex, shares, indices, commodities and more.
In addition to these two main offerings, IG also provides:
- Forex trading on 80+ currency pairs
- Share dealing services for UK, European and international stocks
- Options trading including binaries and vanilla options
- Cryptocurrency CFDs on Bitcoin, Ethereum, Litecoin and others
- Exchange-traded funds (ETFs) and bonds
- Stockbroking services through IG Smart Portfolios
This diverse product range allows both beginner and advanced traders to access global markets and asset classes through a single IG trading account.
IG Group Fees and Commissions
Like most brokers, IG Group charges trading fees and commissions for certain services. Understanding IG’s fee structure can help you estimate your total costs.
Spreads
You pay the spread whenever you open and close a position on IG’s CFD and spread betting platforms. Spreads represent the broker’s markup and trading costs. IG offers competitive variable spreads that start from 0.6 points on forex pairs and 0.1 points on the UK 100 index.
Overnight Financing Fees
For leveraged CFD trades held open beyond the market close each day, you pay a small overnight financing fee. Long positions pay the interbank borrowing rate while short positions receive the deposit rate. Typical financing rates are around 1.5% to 3% per year depending on the asset.
Commissions
Certain instruments like shares and options have commissions when you open and close trades. IG share dealing commissions start from £3 per trade on UK shares. Options trades have commissions of £1 to £2.50 depending on volume tiers.
Account Inactivity Fees
If your IG account stays inactive for 2 years or more, a quarterly account fee of £12 is charged to maintain your account. This helps offset IG’s regulatory and compliance costs for inactive accounts.
In summary, IG Group’s fees are very competitive compared to other online brokers. Active traders can benefit from low spreads and financing rates. Long-term investors may find the share dealing commissions and account fees more expensive, however.
Is IG Group Safe and Reliable?
With decades of operating history and a lengthy track record, IG Group has earned a reputation as a trusted broker within the industry. Here are some key facts about IG’s safety and reliability for your peace of mind:
- IG Group is listed on the FTSE 250 index and has a market capitalisation of over £2 billion as of October 2023.
- The company is authorised and regulated by top-tier authorities like the FCA, ASIC, FINMA, and more across the jurisdictions it operates in.
- IG Group segregates all client funds from its own money as per regulatory standards. This prevents co-mingling of funds.
- IG holds client money with top-tier banks and the broker’s accounts are reconciled daily.
- The company has strong financials, with an investment grade credit rating and minimal debt.
- With over 46 years in business and 17,600 employees, IG has a well-established reputation in the industry.
- IG Group has won awards from Investment Trends for having the top CFD provider, best trading platform and highest overall client satisfaction.
Based on these credentials, IG Group appears to be a financially stable company that takes risk management and compliance seriously. The regulatory oversight from bodies like the FCA also provides an extra layer of protection for your funds as a trader.
IG Group Trading Platforms
IG provides clients with access to both simple web-based platforms and more advanced downloadable platforms designed for active traders. Some of IG’s trading platform options include:
IG Web Trading Platform
The browser-based IG trading platform provides quick access from any device. It has customisable charts, technical analysis tools, alerts, sentiment tools, automated pattern recognition and integrated news feeds.
IG ProRealTime Platform
ProRealTime is IG’s premium downloadable platform packed with 100+ technical indicators, advanced drawing tools, intelligent alerts, customisable workspaces, automated trading and more.
IG L2 Dealer Platform
L2 Dealer provides professional traders with Level 2 pricing, direct market access, enhanced sentiments tools, automated trading and more for fast execution.
IG Mobile Trading Apps
IG offers mobile apps for Android and iOS devices so you can trade on the go. The apps include alerts, sentiment tools, integrated news and comprehensive charts.
This selection of robust trading platforms gives traders access to essential tools for analysing the markets and executing precision trades when needed. Both novice and experienced traders can find platforms that suit their requirements with IG.
IG Group Customer Support
IG Group provides customer support through the following channels:
- Phone support – Available 24/5 and reachable through local or freephone numbers depending on your country.
- Live chat support – Available 24/5 directly through their trading platforms.
- Email support – For non-urgent inquiries, you can contact their support team 24/5 via email.
- Twitter support – You can also reach their support team by tweeting @IGcom.
- Localised support – Phone support and client services are localised for key countries they operate in.
In addition to the above, IG Group also maintains an extensive Help & Support section on its website. This provides FAQs, educational articles, seminars, documentation and more to assist you.
Overall, IG Group’s customer support options are very comprehensive. Support is available through multiple channels on a near 24/7 basis. The company also makes substantial investments into trader education and local client services.
IG Group Educational Resources
IG puts a strong emphasis on trader education by providing clients with the following resources:
- IG Academy – This provides structured online courses for learning CFD trading, forex trading, and more from scratch. The modules cover everything from technical analysis to risk management.
- Webinars and seminars – IG regularly conducts free educational webinars and in-person seminars/workshops to teach trading skills.
- IG Community – The IG Community forums allow you to interact with fellow traders and IG staff to exchange trading ideas.
- Daily market update videos – IG posts daily video updates analyzing trending macro news and markets.
- Trading and risk management tools – Tools like IG’s risk management matrix and proprietary sentiment tools help traders make informed decisions.
For beginning traders, IG Group provides some of the best educational resources in the industry. Experienced traders can also benefit from the risk management tools, seminars and market updates provided.
IG Group Pros and Cons
Let’s summarise some of the key advantages and potential drawbacks of using IG Group:
IG Group Pros
- Trusted broker with decades of operating history
- Regulated across multiple jurisdictions for safety
- Excellent trading platforms with advanced functionality
- Low trading fees such as competitive spreads
- Wide range of tradable markets across different asset classes
- Strong emphasis on trader education for beginners
- Around-the-clock customer support
IG Group Cons
- Share dealing and account fees can be expensive for buy-and-hold investors
- Website navigation and menus could be improved
- Limited brand recognition in some countries outside the UK
- Phone support can experience long wait times during volatile markets
Overall, IG Group has more benefits than drawbacks for active traders seeking a well-regulated broker with low fees. The high share dealing and account fees make it less ideal for passive long-term investors though.
Conclusion
In summary, IG Group is generally considered an excellent choice for active CFD, spread betting and forex traders seeking a reputable broker. Key advantages include:
- Heavy regulation by top authorities like the FCA for security
- An extensive range of tradable markets across diverse assets
- Low trading fees and competitive spreads
- Advanced yet user-friendly trading platforms
- A strong focus on trader education, especially for beginners
Potential downsides to consider are the high fees for long-term share dealing or inactive accounts. Phone support during volatile markets can also have long wait times.
Overall, IG Group’s decades of reliable trading operation, low fees, and top-tier regulation make it one of the best brokers for CFD, forex and spread betting trading. Active traders who value regulatory oversight, platform technology and comprehensive trader education are well served by IG Group as their broker of choice.
