IG Markets Fees Explained [year]

IG Markets Fees – Overview

Trading fees rank among the most important aspects when evaluating a broker, as they directly impact profitability. They can also reveal which strategies a broker supports, and which they seem to discourage with costs. Therefore, traders must consider calculating trading fees before opening and funding a trading account.

We have conducted a comprehensive IG Markets fee review with a complete breakdown of trading and non-trading costs. Does the IG Markets pricing environment, including commission-free Forex trading, provide a competitive edge? Find out all you need to know about IG Markets fees. For additional information about IG Markets, please read our up-to-date IG Markets Broker Review.

Overview of IG Markets Fees and Charges

IG Markets fees consist of commission-free and commission-based costs, depending on the asset class. Forex traders pay a minimum markup of 0.6 pips over market spreads or $6.00 per 1.0 standard round lot, but average trading costs are closer to $10.00, which matches the industry average. Major indices have a commission-free minimum spread of 0.8 points, while commodity traders benefit from tight spreads commencing from 0.1 points. Cryptocurrency traders pay a minimum markup of 36 dollars on Bitcoin and $1.2 on Ethereum.

Equity CFD traders get a commission-based cost structure with commissions between 0.08% and 0.25% per side, depending on the country where the companies are listed. US-based shares cost $0.02 per share. Minimum commissions range between A$7 and HKD50, with UK and EU companies at £10 and €10, respectively, and US shares have a minimum cost of $15. Phone-assisted trades have higher fees, in some instances.

IG Markets fees decrease for active traders via the three-tier rebate program. Other notable costs include swap rates on leveraged overnight positions and a 0.50% currency conversion cost of realized profit/loss back into the account base currency.

Overall, IG Markets fees remain competitive and support all trading strategies for medium-to-long-term trading. The DMA cost structure caters to demanding short-term strategies like scalping and high-frequency trading. IG Markets fully supports algorithmic trading and API trading.

Here is a snapshot of IG Markets fees:

IG Markets Fees, Spreads, and Commission Explained

IG Markets and other online multi-asset retail brokers registered explosive growth over the past fifteen years and made financial markets more accessible to retail traders while lowering trading fees. Online brokers eliminate the need for broker-assisted trade placements and have disrupted full-commissioned traditional brokers.

The primary drivers of these developments are technology and scalability. Algorithmic and electronic trading now accounts for 80%+ of daily Forex trades and 60%+ of equity trading. At the center of the global financial system is the Forex market, with a daily turnover approaching $7 trillion.

While online brokers have lowered trading costs, traders must know the IG Markets fees to understand what they must pay, why they must pay, and how those costs compare to other brokers. Trading costs at brokers fall into two categories: trading and non-trading fees.

Trading fees are:

• Spreads (the difference between the bid and the ask price of an asset, where IG Markets maintains a competitive commission-free cost structure for Forex traders and an average commission-based offer for equity traders)
• Commissions or ticket fee (IG Markets offers an average-priced commission-based trading environment with minimum commissions of $15 for US equities and £10 or €10 for European ones)
• Swap rates/overnight financing (charged on leveraged overnight positions, where IG Markets ranks between competitive and average, dependent on the asset)
• Currency conversion fee (applicable each time the currency of the asset differs from the account base currency, where IG Markets levies a 0.50% currency conversion fee)

Non-trading fees are:

• Deposit fee (not applicable at IG Markets)
• Withdrawal fee (not applicable at IG Markets)
• Inactivity fee (£12 monthly after 24 months of inactivity)
• Currency conversion fee (for deposits and withdrawals in currencies that differ from the account base currency, where IG Markets levies a 0.50% currency conversion fee)

Noteworthy:

• IG Markets features several fee-based additional services dependent on the needs of traders, based on individual preference.
• Forex traders who seek direct market access (DMA) or API trading get access to raw spreads for commissions between $1.00 and $6.00 per lot (volume-dependent)
• Live price ‘data fees’ incur a monthly fee (for certain instruments) but only apply if traders require it (traders can manage the data feed option in their IG dashboard)
• ProRealTime costs $40 monthly (IG Markets refunds the fee if traders place 4+ trades monthly)
• Account documentation fee of $50 per report (only for US-listed equities and if traders fail to submit the required documentation before the ex-dividend date on qualifying trades)
• Guaranteed stop premiums (only if traders request a guaranteed stop, markups are 0.8 pips to 2.0 pips for Forex trades and 0.30% for equity trades)

IG Markets Trading Fees

IG Markets trading fees apply to each transaction and depend on the asset. Forex traders get a commission-free or a commission-based cost structure, and both are competitively priced. Commodity and index trading is commission-free, but equity and ETF trading incur a commission, where IG Markets ranks at about the industry average. The volume-based three-tier rebate program decreases trading fees for active traders with a minimum notional monthly trading volume of $25 million or approximately 250 lots, trading EURUSD on MT4.

Here is an overview of minimum trading fees at IG Markets:

One of the most ignored trading costs is swap rates on leveraged overnight positions. Depending on the trading strategy, it may become the most significant fee per trade. Traders should check them before evaluating the total trading costs.

Traders must pay swap rates on leveraged overnight positions, which triple on Wednesday to account for trades kept open over the weekend. Closing positions before 5 p.m. EST allows traders to avoid swap rates if it suits their trading strategy.

MT4 traders can access swap rates from their platform by following these steps:

1. Right-click on the desired symbol in the Market Watch window and select Specification.

2. Scroll down until you see Swap Long and Swap Short.

Noteworthy:

• The proprietary IG Markets web-based trading platform lists swap rates
• IG Markets has an admin fee of between 0.80% and 3.00% over market rates

Forex traders may face frequent currency conversion fees as currency pairs consist of two currencies. IG Markets levies a 0.50% currency conversion fee each time it must convert currencies. Forex traders can lower currency conversion fees by trading in a US Dollar base account, as the US Dollar is part of 80%+ of the daily Forex trading volume, but if you trade non-US denominated instruments, please factor this in.

IG Markets Non-Trading Fees

Non-trading fees refer to account transactions other than trading, like deposits, withdrawals, and inactivity. While they are notably less frequent, traders should know about them to avoid confusion.

IG Markets has non-trading fees, including live price data charges, ProRealTime costs, account documentation fees, and guaranteed stop premiums, which depend on the products and services traders use. All traders should know about the below IG Markets non-trading fees.

IG Markets Deposit Fee

IG Markets does not charge an internal deposit fee, meaning a trader making a $1,000 deposit will receive $1,000 in their IG Markets trading account. Traders could face potential third-party payment processing costs and a 0.50% currency conversion fee if their deposit currency does not match their account base currency.

IG Markets Withdrawal Fee

There is no internal withdrawal fee at IG Markets, but traders should consider potential third-party payment processor fees and currency conversion costs. Follow-on costs may apply for traders who use their IG Markets withdrawal for follow-on transactions like bill payments, consumption, or other purposes, to the destination of funds.

IG Markets Inactivity Fee

IG Markets levies a monthly inactivity fee of £12 after 24 months of dormancy. Given the extended period before IG Markets applies this cost, most traders will never face this fee. Long-term and low-frequency traders can contact customer support for clarification on inactivity. Clients who check their portfolio once per year might avoid this fee while managing their positions without adding revenue-based events.

IG Markets Safety and Security

IG Markets is one of the most established multi-asset brokers and a pioneer in online trading. Founded in 1974, IG Market complies with twelve regulators and maintains a clean record. Therefore, it has not only stood the test of time but established itself as a primary liquidity provider for other brokers and a Top Five global brokerage.

Traders get negative balance protection, vital for leveraged portfolios as it ensures traders cannot lose more than their deposit. IG Markets also segregates client deposits from corporate funds at tier-1 banks. Some subsidiaries provide an investor compensation fund, like the ones in the UK or Cyprus. The Bermuda entity, which delivers the best combination of regulation and competitive trading conditions, is where most international traders will manage their portfolios.

IG Markets, headquartered in London, is also a publicly listed company in the UK and an FTSE250 constituent. It complies with strict financial regulations, including capital requirements and best business practices. Overall, the IG Markets trading environment ranks among the safest ones, industry wide.

IG Markets Fees Bottom Line

IG Markets fees are competitive, especially for Forex and commodity traders, while equity and ETF traders have an average cost structure. Commission-free Forex costs commence from $6.00 per 1.0 standard lot, while DMA costs can drop as low as $2.70. High-volume traders can lower their IG Markets fees via a three-tier volume-rebate program. Non-trading costs depend on the products and services traders require but are minimal for most retail traders.

The competitive IG Markets fees in the DMA environment make it ideal for demanding traders, from scalpers to high-frequency traders, including algorithmic traders. With 18,000+ trading instruments, deep liquidity, and a secure, trustworthy, and safe trading environment, IG Markets has established itself as a primary choice among traders.

FAQs

Does IG Markets charge raw account commission?

The commission for its raw DMA (Direct market access) account for Forex traders ranges between $1.00 and $6.00, which depends on trading volume.

Does IG Markets charge inactivity fees?

IG Markets levies a monthly inactivity fee of £12 after 24 months of dormancy.

When does IG Markets charge fees?

It depends on the fee. For example, spreads and commissions apply the instant a trader opens a position, swap rates on leveraged trades after the cut-off time for end of trading day, currency conversion costs only if applicable, and inactivity fees after 24 months of dormancy.

How much does IG Markets charge for withdrawal?

There are no internal withdrawal fees at IG Markets, except for a potential 0.50% currency conversion fee, but traders may incur third-party processing costs.

What trading fees does IG Markets charge?

IG Markets trading fees consist of spreads, commissions, swap rates, and currency conversion fees, if applicable.

Does IG Markets charge a monthly fee?

Monthly fees exist on select services, for example, live price feeds or ProRealTime access, but IG Markets refunds the costs if traders meet minimum requirements.

Does IG Markets have commissions?

IG Markets charges commissions for DMA and API trading. Commissions also apply for equity and ETF trading. Minimum commissions for the former are $6.00 and between A$7 and HKD50 for the latter.

By DailyForex.com Team

The DailyForex.com team is comprised of analysts and researchers from around the world who watch the market throughout the day to provide you with unique perspectives and helpful analysis that can help improve your Forex trading.