74% of retail investor accounts lose money when trading spread bets and CFDs with this provider

  1. Home
  2. Compare Forex Brokers
  3. IG review

IG Review

  • 5

Founded in 1974, IG has grown to be one of the world’s largest online brokers for spread betting and CFD trading, with trading available across a range of asset classes, including indices, forex, shares, commodities and more.

With sales offices in 14 countries, based across five continents, traders can also use IG’s investments service to buy and sell shares and ETFs in a more traditional sense, or choose a wealth portfolio that they can manage on your behalf.

Authorised and regulated by the Financial Conduct Authority, traders can also be reassured that your trading balance is held in segregated client bank (independent trust) accounts at regulated banks and that your money and assets are never merged with IG’s own money or assets. IG also doesn’t use your money or assets for business activities, including for hedging trades with other counterparties, or as margin for its own hedging trades.

Pros

  • Used by 195,000+ traders
  • Established in 1974
  • Regulated by Financial Conduct Authority and ASIC
  • Min. deposit from $250

Cons

To open a live account, you’ll need a minimum deposit of at least $250. Alternatively, IG offers a demo account that you can use to practice and familiarise yourself with their platform.

Regulated by the Financial Conduct Authority, UK (FRN: 195355), ASIC (AFSL #220440), FMA in New Zealand (FSP 18923), and Financial Services Provider #41393 in South Africa. IG puts all client funds in a segregated bank account and uses tier-1 banks for this. IG has been established since 1974, and have a head office in UK.

Before we dive into some of the more detailed aspects of IG ’s spreads, fees, platforms and trading features, you may want to open IG ’s website in a new tab by clicking the button below in order to see the latest information directly from IG.

Visit IG

Full disclosure: We may receive a commission if you sign up with a broker using one of our links.

IG screenshot Open a demo account

74% of retail investor accounts lose money when trading spread bets and CFDs with this provider

What are IG's spreads & fees?

Like most brokers, IG takes a fee from the spread, which is the difference between the buy and sell price of an instrument.

The spreads displayed below are based on the minimum spreads listed on IG’s website. The colour bars show how competitive IG' spreads are in comparison to other popular brokers featured on BrokerNotes.

IG
EUR/USD (Average: 0.7 pips) 0.6 pips + $1.00 0.7 pips 0.1 pips
GBP/USD (Average: 1.1 pips) 0.9 pips + $1.00 1.7 pips 0.1 pips
USD/JPY (Average: 1.1 pips) 0.7 pips + $1.00 0.6 pips 0.1 pips
AUD/USD (Average: 0.8 pips) 0.6 pips + $1.00 0.6 pips 0.2 pips
USD/CHF (Average: 2.3 pips) 1.5 pips + $1.00 2.3 pips 0.2 pips
USD/CAD (Average: 2.9 pips) 1.7 pips + $1.00 0.5 pips 0.3 pips
NZD/USD (Average: 3.6 pips) 2.0 pips + $1.00 2.8 pips 0.3 pips
EUR/GBP (Average: 2.4 pips) 0.9 pips + $1.00 0.5 pips 0.1 pips

Spreads are dynamic and are for informational purposes only.

As you can see, IG’s minimum spread for trading EUR/USD is 0.6 pips - which is relatively low compared to average EUR/USD spread of 0.70 pips. Below is a breakdown of how much it would cost you to trade one lot of EUR/USD with IG vs. similar brokers.

See all Spreads

How much does IG charge to trade 1 lot of EUR/USD?

If you were to buy one standard lot of EUR/USD (100k units) with IG at an exchange rate of 1.1719 and then sell it the next day at the same price you would likely pay $15.1. Here’s a rough breakdown of the fees and how this compares against XTB & Axitrader .

IG XTB Axitrader
Spread from: $ 6.00 $ 2.00 $ 1.00
Commission: $0.00 $0.00 $0.00
Total cost of a 100k trade: $ 6.00 $ 2.00 $ 1.00
$4 less $5 less
Visit IG Visit XTB Visit Axitrader

All fees/prices are for informational purposes and are subject to change.

General Fees

  • IG does charge inactivity fees
  • IG doesn’t charge withdrawal fees*

Commissions

  • IG does charge commission on CFD shares

What can you trade with IG?

IG offers over 10,000 different instruments to trade, including over 90 currency pairs. We’ve summarised all of the different types of instruments offered by IG below, along with the instruments offered by XTB and Axitrader for comparison.

FX / Currencies IG XTB Axitrader
# of forex pairs offered 90 48 80
Major forex pairs Yes Yes Yes
Minor forex pairs Yes Yes Yes
Exotic forex pairs Yes Yes Yes
Cryptocurrencies Yes Yes Yes
Commodity CFDs IG XTB Axitrader
# of commodities offered 34 21 6
Metals Yes Yes Yes
Energies Yes Yes Yes
Agricultural Yes Yes Yes
Index & Stock CFDs IG XTB Axitrader
# of Stocks offered 8000 1606 0
UK Shares Yes Yes No
US Shares Yes Yes No
German Shares Yes Yes Yes
Japanese Shares Yes Yes No
See IG's InstrumentsSee XTB's InstrumentsSee Axitrader's Instruments

What’s the IG trading experience like?

1) Platforms and apps

IG offers the popular MT4 forex trading platform. To see a list of the top MT4 brokers, see our comparison of MT4 brokers. IG also offer their custom ProRealTime & L2 Dealer platform. The combination of downloadable platforms for both Mac and Windows allows traders to trade with their device of choice.

IG Screenshot

IG also offer mobile apps for Android and iOS, making it easier to keep an eye on and execute your trades while you are on the move.

See IG 's platforms

Trading Features:

  • Allows scalping
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Guaranteed stop loss

Accounts offered:

  • Demo account
  • Mini account
  • Standard account

Still not sure?

Open a practice account & learn to trade

2) Executing Trades

IG allows you to execute a minimum trade of £1. This may vary depending on the account you open. IG allows you to execute a maximum trade of Variable. As IG offer STP execution, you can expect tighter spreads with more transparency over the price you‘re paying to execute your trades.

As a nice bonus, IG are one of very few brokers that claim to have no requotes, so you don’t have to worry about slippage (your trades being ordered at a different price to what you executed them at ).

As with most brokers, margin requirements do vary depending on the trader, accounts and instruments. You can see the latest margin requirements on their website.

Finally, we’ve listed some of the popular funding methods that IG offers its traders on the right.

Funding methods:

  • Credit cards
  • Bank Transfer
  • PayPal
  • Payoneer

3) Client support

IG support a wide range of languages including English, French, German, Spanish, and Portuguese.

IG has a BrokerNotes triple AAA support rating because they offer a wide range of languages and support options.

4) What you’ll need to open an account with IG

As IG is regulated by Financial Conduct Authority and ASIC , every new client must pass a few basic compliance checks to ensure that you understand the risks of trading and are allowed to trade. When you open an account, you’ll likely be asked for the following, so it’s good to have these handy:

  • A scanned colour copy of your passport, driving license or national ID
  • A utility bill or bank statement from the past three months showing your address

You’ll also need to answer a few basic compliance questions to confirm how much trading experience you have, so it’s best to put aside at least 10 minutes or so to complete the account opening process.

While you might be able to explore IG’s platform straight away, it’s important to note that you won’t be able to make any trades until you pass compliance, which can take up to several days, depending on your situation.

To start the process of opening an account with IG you can visit their website here.

The L2Dealer Trading Platform

L2Dealer is a professional direct market access (DMA) platform that enables traders to trade Forex and shares CFDs without the intervention of a dealing desk. The L2Dealer is a downloadable DMA platform available from IG Markets.

L2Dealer offers the following:

  • Shares DMA – Traders can buy or sell CFD contracts on their favourite stocks, or make use of the broker’s share dealing service to trade stocks without dealing desk intervention. Traders get access to full depth of market quotes and also gain access to dark liquidity pools.
  • Forex Direct – Forex traders can get direct pricing from liquidity providers and get algorithmic trade executions for their trades.

L2Dealer is free to use, but exchanges may charge fees for data usage.

L2Dealer: Basic Functions

In this section, we will introduce the basic functions that traders will encounter on the L2Dealer platform. Some of these functions will include searching for assets to trade, opening, and closing positions, monitoring positions, placing orders and setting position sizes, etc.

  1. Searching for Assets to Trade

Assets traded with L2Dealer include Forex assets, indices, shares, and other OTC instruments. The Dictionary function (the magnifying glass on the top left of the platform toolbar) is used to display the different markets that warehouse the assets traded with L2Dealer.

L2Dealer - Search for Assets
L2Dealer – Search for Assets

The markets will then be displayed. Click on any market to see the assets listed. These assets will be listed on the left side of the platform screen. Click on each individual asset to open up the order box in order to open a position or adjust parameters such as trade sizes.

L2Dealer - Markets
L2Dealer – Markets

Traders may also decide to use the SEARCH function to look for a specific asset rather than use the Dictionary function. This is a faster way of locating markets or specific assets.

L2Dealer - Search Function
L2Dealer – Search Function
  1. Opening a Position and Setting Order Parameters

Traders can open trade orders and adjust the order parameters using the Deal Ticket. The Deal Ticket pops up when a specific asset is clicked with the mouse.

L2Dealer - Deal Ticket
L2Dealer – Deal Ticket

Parameters that can be set include the following:

  • Order type: Buy or sell at market price, or use a limit or stop order for the trade.
  • Price direction: there are two arrows available to click. The up arrow is to Buy and the down arrow to sell.
  • Set the Stop Loss (Stop Out) or Take Profit (Limit Out) targets for the trade.
  • Select the Lot size (Forex contracts) or the Contract size (other OTC assets such as stocks CFDs or stock index assets).
  • Stop type: Select from the Stop Types available – Guaranteed or Non-Guaranteed stops.

If Limit or Stop order types are selected, there will be the opportunity to decide the expiry time of the entry (Good till Cancelled, End of Day, etc).

  1. Monitoring Positions

Use the Positions tab to check on open or closed positions.

L2Dealer - Positions Tab
L2Dealer – Positions Tab

If orders are opened using market orders, they appear in the Open Position section of the screen. If the trader has set Limit or Stop orders, they will appear on the Orders to Open section. It is only when the pending orders are executed that the position ticker is transferred to the Open Positions tab.

L2Dealer - Open Positions Tab
L2Dealer – Open Positions Tab

Manage open positions as well as trades that are awaiting execution in the Orders to Open section. Simply right click on the order ticker and select the option to manage the order in the required way in the drop-down menu.

L2Dealer - Order Ticker Options
L2Dealer – Order Ticker Options

L2 Dealer Features

L2Dealer is designed for professional traders, therefore it has the features of a professional-level dealing platform. It is possible to trade a wide range of contracts in different markets using a single account through the L2Dealer platform.

Markets that can be traded are:

  1. DMA Equities
  2. Forex
  3. Exchange-traded Futures and Options
  4. IG Markets’ OTC contracts

The L2Dealer platform has a broad range of features and trading tools:

L2Dealer - Order Depth
L2Dealer – Order Depth
  • Level 2 prices, showing the full market depth for every stock
  • Anonymous order placement – inside the spread or at key levels
  • Access to all the key UK, US, European and world equity markets
  • Professional charts
  • Realtime news
  • Research
  • Tight spreads
  • Competitive bid/ask spreads
  • Large number of currency crosses
  • A large cross-section of world currencies with over 50 currency pairs available to trade
  • Competitive margin rates
  • Maximum Leverage at 1:50, with 2% margin requirements
  • 24-hour online and telephone/voice trading
  • Non-expiring Standard FX contracts.
  • Rolling Spot FX contracts can be traded through L2 Dealer.

Installation Procedure

The first step in the process is to fill an online form on the IG Markets L2Dealer page to register to get login details for the platform. After this is concluded, the trader is sent a download link with login details to access the platform.

L2Dealer - Installation
L2Dealer – Installation

Click on the ‘Install L2Dealer’ download link sent to email. Either open the file directly, or save it locally and then run the executable file (recommended). When the installation of the L2Dealer platform is complete, open the platform by double clicking on the icon on the home page, and log in with the details provided.

The installation requires the Microsoft .NET Framework 2.0 to be installed on the PC.

For traders who want to ensure that their trades are executed at the best market price then a direct market access platform such as L2Dealer may be suitable. The platform offers the liquidity of primary exchanges and market makers for share trading, and a direct connection to the liquidity pools of major banks and other liquidity providers for Forex trading. L2Dealer is available from IG Markets, who are the providers of the product.

CFDs are leveraged products and can result in the loss of your capital. All trading involves risk. Only risk capital you’re prepared to lose. Past performance does not guarantee future results.
This post is for educational purposes and should not be considered as investment advice. All information collected from http://www.ig.com/ on 01/09/2019.