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IG Markets vs. Forex.com

In this comparison, we will take a look at two well-established industry leaders in CFD trading, IG Markets, and Forex.com. IG Markets offers traders an excellent asset selection in excess of 17,000 which spans eleven sectors from four trading platforms. In operation since 1974, IG Markets has earned the trust of traders and withstood the test of time. The excellent research capabilities and deployed technology add to the competitive trading environment. Forex.com, a trading name of GAIN Capital UK and owned by StoneX, is part of a well-capitalized international group and home to trader-friendly execution statistics. Founded in 2001, traders have over 300 assets to trade with a distinct focus, as the name suggests, on the Forex market. At IG Markets, 76.0% of retail traders operate their portfolio at a loss versus 73.0% of retail traders at Forex.com.

Headquarters
United KingdomUnited States
Regulators
FCAASIC, CFTC, CIMA, CySEC, FCA, FSA, IIROC, NFA
Tier 1 Regulator(s)?
Owned by Public Company?
Year Established
19742001
Execution Type(s)
Market MakerMarket Maker
Minimum Deposit
300€$100
Negative Balance Protection
Trading Platform(s)
MetaTrader 4, Proprietary platformMetaTrader 4, MetaTrader 5, Proprietary platform, Trading View
Average Trading Cost EUR/USD
0.9 pips1.1 pips
Average Trading Cost GBP/USD
1.4 pip1.3 pips
Average Trading Cost WTI Crude Oil
$0.03 $0.035
Average Trading Cost Gold
$0.30 $0.63
Retail Loss Rate
Undisclosed73.00%
Minimum Raw Spreads
Not applicable0.0 pips
Minimum Standard Spreads
0.8 pips0.8 pips
Minimum Commission for Forex
Commission-free$5 per $100K
Islamic Account
Signals
US Persons Accepted?
Managed Accounts
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Features and Platforms

MT4
MT5
MT4/MT5 Add-Ons
cTrader
Proprietary Platform
Automated Trading
Social/Copy Trading
DOM?
Guaranteed Stop Loss
Scalping
Hedging
One-Click Trading
OCO Orders
Interest on Margin
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IG Markets

IG Markets' flagship proprietary trading platform features an extensive charting package, analytics, alerts, signals, and IG Live. It is available as a webtrader or mobile version, while the ProRealTime platform offers advanced traders an excellent upgrade. IG Markets also offer the MT4 trading platform, complete with 18 custom indicators and Autochartist, ensuring a superior trading experience. Direct market access (DMA) trading is available on the L2 Dealer, and IG Markets fully supports automated trading solutions via numerous APIs.

New traders will benefit from IG Academy, where a combination of interactive education and online trading courses introduce financial markets. The web TV channel, podcasts, and live trading sessions add tremendous value. IG Markets also maintains quality in-house research for manual traders. IG Smart Portfolios follows a traditional approach to asset management; however, that service is not available in all geographical jurisdictions. The value-added services complement the core trading environment, allowing IG Markets to remain one of the best overall choices available.

Forex.com

Forex.com, based on active servers per broker as of April 2019, is among the largest MT4 brokers in the industry. A Reuters Live news feed, Forex.com in-house research, and technical analysis and account management tools from Trading Central enhance the out-of-the-box MT4 version. Performance analytics by Chasing Returns allows traders to optimize their strategy. The Advances Trading Platform, a proprietary alternative, houses over 100 predefined indicators and integrated trading strategies.

Professional traders with high liquidity needs can take advantage of the Forex.com direct market access account. Seven distinct educational themes offer new traders an excellent introduction to trading, complemented by three trading courses. Forex.com supports manual traders with in-house research and automated traders with MT4 VPS hosting, which is free of charge for qualifying accounts. This broker also offers the REST APIs, allowing third-party developers to create solutions.

Available Markets

Currency Pairs
Cryptocurrencies
N/A
Commodities
Crude Oil
Gold
Metals
Equity Indices
Stocks (non-CFDs)
Bonds
N/A
ETFs
Options
N/A
Futures
Synthetics
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IG Markets maintains over 17,000 assets. More than 13,000 global equity CFDs across 26 markets, complemented by index CFDs, account for the bulk of assets, followed by over 4,000 bonds, options, ETFs, and in-house created derivatives. Forex traders have access to 80 currency pairs, eight cryptocurrency pairs, and 27 commodities. While Forex.com also features 80 currency pairs, the total asset selection tops out at 330, featuring equity and index CFDs, soft and hard commodity contracts, and cryptocurrencies.

Typical Spreads and Fees

Average Trading Cost EUR/USD
0.9 pips1.1 pips
Average Trading Cost GBP/USD
1.4 pip1.3 pips
Average Trading Cost WTI Crude Oil
$0.03 $0.035
Average Trading Cost Gold
$0.30 $0.63
Average Trading Cost Bitcoin
$90 $60
Minimum Raw Spreads
Not applicable0.0 pips
Minimum Standard Spreads
0.8 pips0.8 pips
Minimum Commission for Forex
Commission-free$5 per $100K
Deposit Fee
Withdrawal Fee
Inactivity Fee
$12 per month after 24 months$15 monthly after 12 months
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IG Markets offers traders a commission-free minimum spread of 0.6 pips, while Forex.com displays a less competitive one at 0.8 pips. The average mark-up is approximately the same and closer to 1.0 pips, making both brokers neither highly competitive nor overly expensive. Equity trading at IG Markets carries a 0.10% commission with a £10/€10 minimum, except for US shares, where the commission is $0.020 per share with a $25 minimum. Forex.com maintains a lower cost structure with 0.08% commissions and £10 for UK equities and $0.018 and $10 for US ones.

At both brokers, swap rates on leveraged overnight positions and corporate actions such as dividends, splits, and mergers are transparently passed on to all affected portfolios. While neither broker levies internal deposit or withdrawal charges, third-party costs exist. Both IG Markets and Forex.com charge a £12 per month inactivity fee. Several other costs apply at IG Markets, depending on the activity level and trading preference of clients. Overall, Forex.com has a more competitively priced environment.

Security and Trust

Country of the Regulator
Australia, Bermuda, Switzerland, Cyprus, Germany, Japan, New Zealand, Singapore, United StatesAustralia, Canada, Cyprus, Japan, Cayman Islands, Singapore, United Kingdom, United States
Name of the Regulator
FCAASIC, CFTC, CIMA, CySEC, FCA, FSA, IIROC, NFA
Regulatory License Number
195355, 378/19, 10148759, confirmed, but no regulaary license number, F001780, 41393, 1489, unconfirmed, 220440, 18923, 0509630, 54814 0339826,291, Undisclosed, 446717, 400/21, 25033, 345646, Undisclosed
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While the UK Financial Conduct Authority (FCA) remains the primary regulator of IG Markets, most international traders will deal with the Bermuda-based entity, regulated by the Bermuda Monetary Authority (BMA). A total of ten global regulators have oversight over various operating subsidiaries, and IG Markets maintains full compliance across the board. Being a constituent of the FTSE 250 index, this broker adheres to strict capital requirements. IG Markets is one of the most transparent brokers in operation and grants all clients a very secure trading environment, maintained since its founding in 1974.

The UK's FCA is also the primary regulator for Forex.com. The international subsidiary operates out of the Cayman Islands, where the Cayman Islands Monetary Authority (CIMA) authorizes it. Four additional regulators complete the global framework. The corporate owner of Forex.com, StoneX, is listed on the NASDAQ stock exchange, and thus faces controls on capital requirements. Both brokers fully segregate client deposits from corporate funds, and select jurisdictions enjoy additional features, such as negative balance protection and an investor compensation fund.

IG Markets Vs. Forex.com – Verdict

IG Markets and Forex.com both offer traders a very trustworthy trading environment, have excellent capitalization and are equally well-established brokers. IG Markets grants traders a superior choice when it comes to trading platforms and asset selection, where more than 17,000 assets are available versus just over 330 at Forex.com. While the average commission-free cost structure is roughly equal between the brokers. New traders will find the educational section excellent at both, together with a quality in-house research division. Those demanding access to a wide range of markets will determine IG Markets superior. High-frequency traders with a focus on a significantly smaller selection of instruments but a more cost-effective pricing environment will find a home in the Forex.com. IG Markets and Forex.com both represent a competitive choice.

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FAQs

Does IG Markets or Forex.com offer lower pricing?

The commission-free spreads are roughly the same at both, but the Forex.com DMA account offers overall lower pricing for high-frequency traders. Equity commissions are also more competitive at Forex.com, where traders will find a friendlier cost structure.

Is IG Markets or Forex.com safer for Forex and CFDs trading?

Both brokers offer an equally secure and safe trading environment, are transparent, and in full compliance with multiple global regulators.

Which trading platform is better: IG Markets or Forex.com?

While both brokers offer excellent trading platforms, either via proprietary solutions or upgraded MT4 versions, the overall choice at IG Markets remains superior, both in the MT4 category (due to more high-quality add-ons) and in the DMA alternative.

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