IG Review 2024: Pros & Cons

IG, a trading pioneer established in 1974, has significantly shaped the financial markets. Originating as a leader in spread betting, IG has evolved into a versatile investment platform, offering an extensive range of trading opportunities.

From stocks, shares, and funds to CFDs, forex, and cryptocurrencies, IG provides a comprehensive suite of assets.

The platform's commitment to innovation is evident in its tax-efficient trading options, educational resources like the online academy, and a fully managed service for expert-guided investing. Regulated by the Financial Conduct Authority (FCA) and the Federal Financial Supervisory Authority (BaFin), IG stands out for its transparency and reliability.

Trading Types with IG:

1. Spread Betting:

• IG pioneered spread betting.
• Involves making bets on future asset prices.
• Tax-efficient in the UK and Ireland.
• Leverage trading available, amplifying gains and losses.
• Risky and requires a responsible trading strategy.

2. CFDs (Contract for Differences):

• Similar to spread betting but involves buying a CFD share of a stock.
• A contract with the broker to settle price differences in the future.
• No time limit; can be held indefinitely.
• Profits are not tax-free, but losses can be offset.
• Allows 'going short' and trading with leverage.

3. Shares and Funds:

• Enables direct purchase of stocks, shares, and investment funds.
• Low-cost and commission-free for US shares.
• £3 commission for UK shares.

4. Options and Futures:

• Involves trading the right to buy or sell an asset in the future.
• Options and futures are traded via spread bets or CFDs.
• Complex and requires learning.

5. Cryptocurrencies:

• Allows trading of cryptocurrencies (Bitcoin, Ethereum) via spread betting and CFDs.
• For actual coin ownership, alternative crypto exchanges are recommended.

6. Forex Trading:

• Offers a comprehensive suite of 80+ currency pairs.
• Competitive spreads starting from 0.1 pips on major pairs.
• Accessible on the proprietary web platform, mobile app, or MetaTrader 4.

7. Stock Trading:

• Provides access to 13,000+ shares for trading or investment.
• Zero commissions on US shares.
• Out-of-hours trading available for 70+ shares, ETFs, and trusts.

8. CFD Trading:

• Offers a vast selection of 17,000+ CFDs on various markets.
• Allows trading on stocks, currencies, commodities, and cryptocurrencies.
• Custom price alerts and educational resources enhance the trading experience

IG Fees and Pricing

1. Account Charges:
   • No account charges to open or maintain an account.
   • In contrast, traditional platforms like Hargreaves Lansdown charge 0.45% of investment value.
2. Trading Costs - Spread Fees:
   • Common fee structure involving the difference between buying and selling prices.
   • Spread varies by asset: 0.6 points for forex, 0.8 points for indices, 0.1 points for commodities.
3. Other Fees:
   • Overnight fees for keeping positions open past 10 pm.
   • Margin fees for leveraged trading.
   • Borrow fees for trading price declines.
   • Additional fees for advanced trading features.
4. Share Dealing:
   • UK shares: £8 per trade (£3 after 3 trades in the previous month).
   • US shares: £10 per trade (£0 after 3 trades in the previous month).
   • Competitive pricing compared to other brokers.
5. Phone Dealing and FX Conversion Fee:
   • Phone dealing: £40-50, relatively expensive.
   • FX conversion fee for swapping currencies: 0.50%.
6. Inactivity Fee:
   • If fewer than 3 trades per quarter, a £24 custody fee is charged.
   • Comparable to Hargreaves Lansdown's 0.45% annual fee.
7. CFD Account Spreads and Rebates:
   • Average spreads of 0.69 pips for mini and standard-size contracts.
   • Active trader rebates for volume traders, up to 20% spread rebate.
   • DMA account (Forex Direct) for deeper discounts based on trading volume.
8. DMA Account Average Spreads:
   • DMA account offers even lower spreads (0.62 on EUR/USD in July 2023).
   • Commission-based pricing with tiered structure.
   • Savvy traders can achieve competitive spreads, especially with high volume.

IG Safety Overview:

1. Regulatory Approval:

   • Authorized by the Financial Conduct Authority (FCA) , ensuring adherence to regulatory standards.
   • Regulated by eight Tier-1 regulators, including ASIC, JFSA, MAS, FINMA, FCA, FMA, CFTC, and EU via MiFID.

2. Financial Transparency:

   • Part of IG Group Holdings Plc, a publicly traded company on the London Stock Exchange.
   • Over 50 years of industry experience, earning awards for trading platforms and innovations.

3. Protection Measures:

   • Client funds and assets are held in separate banks under individual names.
   • In the unlikely event of IG's insolvency, clients are protected, and funds/assets returned.
   • Investor protection up to £85,000 (UK), €20,000 (EU), CHF 100,000 (Swiss), and equivalent protections for other clients.

4. Regulatory Compliance:

   • Compliant with regulations from CFTC, FCA, ASIC, JFSA, MAS, FINMA, FMA, and MiFID.

5. Industry Recognition:

   • IG has built a strong reputation, frequently cited in the news for market analysis.
   • Numerous awards received for trading platforms and technological advancements.

6. Long-Standing Presence:

   • Over 50 years in the industry, indicating stability and reliability.

IG Customer Support Overview

IG boasts a TrustScore of 4 out of 5 on Trustpilot , based on 6,582 reviews, reflecting the sentiment of a verified and satisfied customer base, marking it as a trusted and well-regarded company in the financial industry

1. Availability:

   • Available 24 hours a day, every day, except Friday evenings from 10 pm to 8 am Saturday (GMT).

2. Channels:

   • Support provided over the phone and email.
   • No live chat, but a community forum for user-generated answers.
   • Comprehensive help center on the website.

3. Community Support:

   • IG's online trading community is extensive, offering forums, blogs, tutorial videos, and webinars.
   • Peer support available through the Community portal.

4. Language Support:

   • Help available in multiple languages.

5. Online Resources:

   • Help center covers a wide range of topics, ensuring users have access to answers for various queries.
   • Extensive online resources, including tutorials and webinars.

6. Areas of Improvement:

   • While not available 24/7, customer support is praised for its responsiveness.
   • Live chat support is considered important, but the automated chatbot is sometimes frustrating.

IG's customer support is highly regarded for its availability, responsiveness, and comprehensive online resources. The extensive trading community and multiple support channels contribute to a positive customer experience, although some users express a desire for improved live chat functionality.

IG Pros

1. Instrument Range: Wide array of instruments, including stocks, forex, indices, commodities, and cryptocurrencies for diversified trading opportunities.

2. Web-Based Platform: Proprietary web platform caters to traders of all levels with advanced charting tools and real-time market data, ideal for day trading.

3. Mobile Trading: IG app provides an excellent mobile trading experience with a clean design, earning recognition in the Best Trading App category.

4. Regulatory Compliance: Well-established broker operating under strict regulatory guidelines in multiple jurisdictions, ensuring a high level of trust.

5. Educational Resources: Offers an extensive collection of professional and engaging educational resources, including webinars, articles, and analysis.

6. Advanced Charting: ProRealTime advanced charting platform is free with modest monthly trading activity requirements.

7. Awards and Recognition: Ranked as the most trusted broker for forex and CFDs, finishing 1st Overall in the 2024 Annual Awards. Recognized in multiple categories, including Platforms and Tools, Research, Education, Mobile Trading, and Professional Trading.

8. Market Expansion: Acquisition of tastytrade for $1 billion introduced options and futures trading to U.S. clients, expanding the range of offerings.

9. Comprehensive Offerings: Provides listed derivatives, including options and futures trading in the U.S. and Europe, alongside forex, CFD, and Spread Betting for U.K. clients.

IG Cons

1. Complex Fee Structure: Beginners may find IG's fee structure complex, with various fees for different trade types or services, leading to potential confusion and unexpected charges.

2. Limited Protections for U.S. Clients: While there is negative balance protection in the UK and EU, U.S. clients lack account protection and guaranteed stop losses.

3. Discontinued Swap-Free Account: IG's discontinuation of the swap-free account reduces its appeal to Islamic traders.

4. Spread Comparisons: Stock and CFD spreads are still higher compared to the cheapest brokers like CMC Markets, despite IG's industry-leading web platform.

5. Web Platform Configuration: Although IG's web platform is excellent, the lack of predefined layouts may require manual configuration, impacting user convenience.

6. MetaTrader Limitations: IG's MetaTrader offering, despite premium MT4 add-ons and Autochartist integration, only provides access to barely 80 tradeable instruments.

7. MT5 Unavailability: While IG's flagship platforms are top-notch, MetaTrader 5 (MT5) is not yet available.

Conclusion

In summary, IG emerges as a top-notch trading platform in the UK, offering a plethora of investment options and a comprehensive learning academy. While it may seem overwhelming for beginners, the platform's reasonable fees and the ability to buy shares within a tax-free ISA enhance its appeal.

The inclusion of expert-managed smart portfolios provides diversified and low-cost alternatives for traders. With the best trading hours and numerous accolades in 2024, including Best in Class in various categories, IG is a highly recommended choice for retail forex and CFD traders.

Its recognition for excellence in offerings, fees, tools, and overall trading experience solidifies its position as a leading platform, garnering a well-deserved 5-star rating.