IG Markets is one of the largest CFD brokers in the world, having been founded in the United Kingdom in 1974. It is governed by several organizations worldwide, including top-tier regulators like the UK’s Financial Conduct Authority (FCA) and Germany’s Federal Financial Supervisory Authority (BaFin). The London Stock Exchange lists IG Group. Broker is thought to be safe because it is traded on a stock exchange, its financials are made public, and it is supervised by top-tier regulators.
IG Markets (U.S.) gives U.S. clients leveraged access to more than 80 currency pairings. Broker is a clear threat to the other forex brokers in this area because it has an easy-to-use website with clear information about services and fees, an intuitive platform, a strong commitment to client education, and helpful research tools.
List of Contents
IG Markets Broker : Website
Country of regulation: UK, EU, Switzerland, USA, Singapore, Japan, South Africa, UAE, Australia, New Zealand
Trading fees class: Average
Inactivity fee charged: Yes
Withdrawal fee amount: $0
Minimum deposit: $0
Time to open an account: 1-3 Days
Demo account provided: Yes
Products offered: ETF, Forex, Options, CFD, Stocks in some countries, Robo-advisory in UK, IPOs
Stuart Wheeler started IG Group, the world’s first spread betting company, in 1974. Broker is a division of IG Group Holdings Plc, a publicly traded company that “enables knowledgeable, proactive, and brave people to take advantage of opportunities in the financial markets.”
It is not surprising that IG Markets is a global leader in online trading and the top CFD provider at the moment, given its extensive product offering, appealing rates, over 178,000 clients spread across five continents, and long-standing business operations. Due to regulatory constraints, the majority of well-established online forex brokers avoid the U.S. market. Therefore, the fact that the broker re-entered this market in 2019 speaks to its dedication to creating a genuinely worldwide presence.
Customer Service
IG Markets customer service is available through a toll-free (U.K.) phone number from 8 a.m. on Saturday to 10 p.m. on Friday. Both prospective and current customers can communicate with a corporate representative via live chat. Email, social networking, and a comprehensive FAQ provide above-average contact options. If all else fails, a well-documented system for client complaints should aid in the resolution of complaints. IG’s multilingual online customer care attracts more customers. The broker also has branch offices in other places to help with licensed activities.
IG Markets (U.S.) provides customer service by phone (24/7), email, and Twitter client assistance. Additionally, the website’s FAQ and help pages are helpful and well-organized.
Products
Globally, IG Markets has compiled an extensive inventory of over 17,000+ marketplaces. Futures and options are accessible on a wide variety of instruments, so clients will never lack trading opportunities. IG (U.K.) provides:
- Forex
- Indices
- Shares
- Commodities
- Cryptocurrencies
- Bonds
- ETFs
- Options
- Industry sectors
- Interest rates
In the United States, its product portfolio caters exclusively to spot forex trading of more than 80 pairings categorized as follows:
- Majors
- Minors
- Australasian
- Scandinavian
- Exotic
- Emerging Markets
IG Markets (U.K.) also provides a wide range of professional and institutional services, well above the average for the industry. Through IG Markets Smart Portfolios, an account basket that incorporates savings and retirement programs as well as lowfee ETFs, accounts of all sizes can invest for the long term.
Pricing
IG’s spreads, charges, and fees for U.S. clients are competitive globally.
IG Markets profits on customer trades that “cross” the bid/ask spread. Each share-CFD trade incurs a “commission” on either side of the market spread. IG Markets (U.K.) also charges a premium for guaranteed stop-loss orders. This premium only applies if the order is activated and such extras and third-party charges are listed on the website.
IG’s U.S. platforms’ minimum major spread is 0.8 pips, while the reported average spread runs from 0.9 (EUR/USD, USD/JPY) to 5.4 (GBP/CAD).
In the FX market, swap fees are levied using tom-next rates on overnight positions, which may be subject to currency conversion charges if they trade in a currency other than the account’s base currency. If no trading occurs for 24 months, there is a $12/month inactivity fee. Wire withdrawals cost $15. IG’s website clearly explains forex trading charges.
The minimum account deposit is 250 units in the base currency, which is $250 for U.S. accounts, and the greatest leverage accessible to U.S. clients is 50:1. Volume-qualified traders receive rebates. Three rebate categories range from 5% for $100 million to 15% for $500 million in monthly trading activity.
Trade Experience
Globally, IG Markets offers a range of platforms and API interfaces, starting with its customizable web-based solution. Broker recommends Google Chrome for this stable trading platform. Its simplicity, especially in the U.S., betrays its functionality. The UI lacks several features, but it makes up for them in quality. This, together with the industry-standard MT4 (downloadable) platform and viable mobile and tablet apps, is IG’s full online offering to U.S. customers.
U.K. clients can download the fee-based ProRealTime advanced charting program, free, if the monthly trading activity meets the requirements. Technologically knowledgeable clients can link their software or a Bloomberg terminal via a well-developed API interface.
Larger accounts can trade CFD shares and currencies using L2 Dealer, which bypasses IG’s dealing desk. That platform’s Forex Direct service requires ESMA-designated professionals. Except for exchange expenses, this service is free.
IG Markets (U.S.web-based )’s platform offers price alerts and stops losses. Clients can split charts across several time frames and broadcast Reuters news. Autochartist, a third-party signals provider, is incorporated.
Security
IG US LLC is an NFA and CFTC-registered RFED (#0509630). IG Markets Ltd (#195355) and IG Index Ltd (#114059) are FCA-regulated in the UK. Australian ASIC. It is listed on the FTSE 250 and has signed the “FX Global Code of Conduct, which sets a common set of guidelines for good behavior in the markets.”
IG Markets (U.K.) follows FCA client money guidelines by separating client funds from corporate funds. By keeping client monies in segregated accounts at licensed institutions, brokers can protect them from insolvency. FSCS protects assets up to £85,000.
The 2018 ESMA-mandated negative balance protection provisions guarantee IG Markets (U.K.) clients will never lose more than they have in their accounts. Guaranteed stop-loss orders protect against extreme market events like the 2015 Swiss franc currency shock. IG (U.S.) has no negative balance protection or guaranteed stop-loss orders. FDIC/SIPC does not insure client funds.
IG Markets boasts industry-leading software security. Web-based and mobile apps will lock out inactive users in addition to two-factor and biometric authentication. The broker’s counter-party dealing desk helps clients, especially large ones, trade directly with the inter-bank system using a dedicated platform.
Dealing with desk staff platforms to ensure revenue and profitability. Clients should be able to manage their trades if the web interface fails. A dealing desk legitimizes an online broker, together with good regulation.
Education
Finxpd’s study indicates that IG’s instructional resources are superior to any other online broker. A vast trader’s library, spearheaded by the remarkable “IG Academy,” will swiftly bring novices up to speed, but advanced trading strategy papers will be of great assistance to seasoned practitioners. “Subjects range from platform walkthroughs to future business opportunities” in the long list of online seminars.
This objective is accomplished by IG Academy’s course, which is designed to cover material for people at various phases of the trading spectrum. Through the convenient IG Academy mobile app, clients can also access courses and publications. The broker acquired in 2016 is poorly linked with the broker’s website, with the exception of the live seminar part. Prospective clients may not be aware of the existence of this valuable resource. The value of IG’s instructional portfolio to the client is enhanced by an effective search tool and a thorough glossary.
Pros and Cons
Pros
✔ Extensive selection of products
✔ Accepts U.S. clients
✔ NFA is governed by the FCA (U.K.) and CFTC (U.S.)
✔ The impact of education and research
✔ Provides U.K./E.U. protection client accounts
Cons
✘ American clients have no account security.
✘ There are no guaranteed stop losses for U.S. traders.
✘ There is no backtesting or copy trading integration on the IG Markets platform.
✘ Expensive share-CFD fees
Pros Clarified
- Globally, IG Markets provides clients access to various asset class-spanning solutions. Forex, indices, shares, commodities, Cryptocurrencies, bonds, ETFs, options, industry sectors, and interest rates are available to clients.
- IG Markets accepts U.S. clients for FX trading alone, expanding its already substantial global operation.
- IG US LLC is a registered member of the CFTC and the NFA (#0509630). The FCA also regulates UK-based IG Markets Ltd (#195355) and IG Index Ltd (#114059). These are the world’s most powerful regulators. Simply said, it is governed by a credible, government-backed institution that boosts a company’s legitimacy. Traders understand market risk, but they want to be sure their funds are not exposed to other dangers like counter-party risk. In addition, U.K. and E.U. Tier 1 banks have separate accounts for client funds.
- Finxpd’s study shows that IG’s learning resources are much better than those of any other online broker and that the company is very committed to giving its clients timely and relevant research.
- For its U.K. and European Union clients, the broker offers “negative balance protection,” a provision that has become fairly standard among online brokers in recent years. January 15, 2015, the SNB event was most likely the impetus that shook the markets, notably the heavily leveraged retail FX market. IG Markets(U.K.) also offers guaranteed stop-loss orders (GSLO) for an extra fee to protect traders from the risk of a market gap.
Cons Clarified
- For U.S. clients, IG Markets does not offer “negative balance protection.” This means that a client could lose more than their account balance and owe the broker money.
- For U.S. clients, IG Markets does not offer guaranteed stop-loss orders (GSLO).
- Broker does not offer social trading (copy trading) via its web interface. In addition, backtesting and automated trading capabilities are exclusive to third-party programs.
- IG’s costs for trading share CFDs (for clients in the United Kingdom) are higher than the industry average.
Is IG A Worth Broket to Get?
IG Markets offers an excellent fit for both small traders and market professionals, with competitive spreads, thousands of trading instruments, and a state-of-the-art news, research, and educational portal. Clients can choose from a choice of platform alternatives and upgrade with ease as their accounts accumulate equity. Direct market access (DMA) that circumvents the dealing desk will be valued by professionals.
IG’s NFA, CFTC, and FCA regulation reassures investors and underlines its global broker status. Still, it’s odd that negative balance protection and guaranteed stop losses aren’t available in the U.S., as the first give investors peace of mind, and the second helps control risk in unpredictable markets.
The fact that IG Markets is now an online forex broker in the U.S. is excellent news for U.S. clients since the company has a history of being a reliable and highly skilled business.
FAQs
Yes, IG is a trustworthy broker that has been in business for almost four decades. It is governed by authorities of the highest rank, including the FCA, ASIC, and MAS. Additionally, it has a solid reputation in the market and has received several honors for its services.
IG has many account kinds, including a demo account for novices, a basic account for frequent traders, and a professional account for seasoned traders. Each account has unique needs and benefits.
Among the trading platforms offered by IG are the proprietary IG Trading platform and the common MetaTrader 4 platform. Both platforms include sophisticated charting, analytical capabilities, and an intuitive interface.
Yes, IG’s mobile trading platform, IG Trading, is compatible with iOS and Android smartphones. The mobile application has the same capabilities as the desktop version, including sophisticated charting and analysis tools.
Related Articles:
- Awonar: Another Outstanding CFD Trading Platform
- IUX Markets Review: A Reliable, Low-Priced Brokers in 2022
- Merrill Edge Review: Start Investing with Bank of America’s Financial Platform
- Fidelity Investment Review: The Best of Overall
- TradeStation Review : Best Online Broker for Stock Trading and Research
- Ally Invest Broker: Excellent for Leveling Up Your Investing Goals
Read more: Popular Brokers
Source: Investopedia