IG is a safe and secure platform for initiative and experienced traders. Because it was regulated by top-tier authorities, let’s see the 5 benefits of using IG trading.
IG review
IG Group Holdings plc, a public online brokerage listed on the London Stock Exchange, was founded in 1974 by Stuart Wheeler under the symbol IG. It allows for gold price speculation without buying direct assets. Now serving around 360,000 users in 19 countries, IG offers a wide range of assets such as forex, commodities, stocks, and ETFs.
It is the U.K., and U.S. and is licensed in more than a dozen countries, including Japan, and is the world’s largest CFD and forex broker provider by revenue. U.S. In, its rebranded subsidiary Tastyfx offers commission-free forex trading with 0.8 pip spreads on 80+ currency pairs, a user-friendly platform and educational resources.
Regulations
IG Group is regulated by various financial authorities in multiple countries. Ensuring compliance and security for its users worldwide. Here are the top-tier regulatory bodies that oversee the activities of the IG Group:
| Regulatory country | Regulated by |
|---|---|
| UK | Financial conduct authority |
| US | Commodity futures trading commission (CFTC) and National futures association (NFA) |
| Australia | Australian securities and investment commission (ASIC) |
| EU | Markets in financial instruments directive (MiFID) |
| Singapore | Monetary authority of Singapore (MAS) |
| Japan | Financial service agencies (FSA) |
| Switzerland | Swiss financial market supervisory authority (FINMA) |
| Dubai | Dubai financial services authority (DFSA) |
| South Africa | Financial sector conduct authority (FSCA) |
| Bermuda | Bermuda monetary authority (BMA) |
5 Benefits of using IG trading
IG Group provides several types of benefits for its traders and investors. Here are the most 5 key benefits of using IG trading:
- Wide range of markets
- Leverage may help capital go farther.
- Go long or short
- Trading the underlying market as a mirror
- Get DMA
Wide range of markets
Over 17,000 financial instruments from various asset classes are available to traders across IG’s wide range of markets. It offers considerable portfolio diversification and trading flexibility. Let’s explore some of these property classifications in more detail:
- Forex
- Stocks
- Indices
- Commodities
- Cryptocurrencies
- ETFs and bonds
- Options and interest rates
Forex
IG forex trading offers access to a wide selection of currency pairs, including major, minor, and exotic pairs. With competitive spreads and flexible forex options, traders can speculate on global currency movements, including popular pairs such as EUR/USD, GBP/USD, and AUD/JPY.
Stocks
Traders can choose from thousands of global stocks from major exchanges such as the NYSE, NASDAQ, ASX, and London Stock Exchange. IG offers both CFD trading and stock trading, allowing users to trade shares of popular companies such as Apple, Tesla, Amazon, and more.
Indices
Users of IG can trade indices such as the S&P 500, FTSE 100, NASDAQ 100, and DAX 30 that reflect the performance of major stock markets. Instead of betting on individual companies, which can give more exposure, traders can gauge the performance of entire markets through trading indices.
Commodities
IG provides trading on a range of commodities, such as energy items like natural gas and oil, agricultural products like wheat and coffee, and precious metals like gold and silver. Users can speculate on global supply and demand patterns or protect themselves against inflation by exchanging commodities.
Cryptocurrencies
IG offers users interested in digital assets access to well-known cryptocurrencies including Litecoin, Ethereum, Bitcoin, and Ripple. Traders do not need to personally hold the underlying assets to speculate on changes in the price of Bitcoin.
ETFs and bonds
Exchange-traded funds (ETFs), which track different sectors, industries, or asset classes, are another product that allows IG trading. For investors looking to diversify into fixed-income assets, IG also offers bond trading, offering alternatives such as the euro. Bonds and US Treasuries.
Options and interest rates
Users of IG have more options for managing risk or optimizing positions because they can trade options on various assets. Traders looking to speculate on interest rate changes can also use interest rate markets such as global interest rate future trades or government bond rates.
Leverage may help capital go farther
Leverage allows you to initiate positions in CFD trading by depositing a small portion of the full transaction value, known as margin. This reduces the initial cost, but profits and losses are calculated using the full trade amount. Always use caution when managing your risk.
The market and the size of your contract determine the required margin. For example, share CFDs often have 2 20% margin, 5% for major indices, 50% for cryptocurrencies, and 3.33% for major FX pairs. You can use their CFD calculator to calculate the required margin and potential profit or loss.
To trade $1000 worth of BHP shares on a 20% margin, for example, requires a $200 deposit. But the entire $1000 will be the basis of your profit or loss.
Go long or short
When trading CFDs on their platform, you will see two prices: the ‘buy’ price and the ‘sell’ price. Here you can see how this work and choose the price at which you buy or sell.
Buying price
Buy price (going long): If you believe that the market price will go up, you trade with a buy price called “going long”. If the price rises as predicted, you can sell higher, making a profit based on the full size of your position – not just the initial size.
Selling price
Selling price (going short): If you expect the market price to go down, you trade at a put price called “going short”. If the price falls, you can buy back at a lower price and profit on the entire trade volume.
However, profits and losses are calculated based on the total position value, not just the margin you paid in advance. So, if your prediction is wrong, the losses will reflect the entire trading volume.
This means losses can exceed the margin amount and it is important to manage your risk carefully and trade only within your financial limits. It is one of the ways of loss protection.
Trading the underlying market as a mirror
CFDs closely follow the performance of their underlying markets, allowing you to trade them just like real assets. For example, buying an Apple share CFD is equivalent to buying one Apple share, so to get the equivalent exposure to 2,000 shares, you would buy 2,000 Apple CFDs.
In Forex CFDs, buying or selling involves trading a base currency against an equal amount of the quoted currency, in various sizes: standard, mini, micro, and Nano. Larger locations require more capital; For example, a CFD of GBP/USD in a fixed lot represents £100,000 in USD, while a mini lot represents £1,000.
For commodities and indices, CFD movements are directly linked to real-time price changes in the underlying markets.
Get DMA
Direct Market Access (DMA) enables you to view and engage with stock market order books, which is an advantage for experienced traders.
Instead of being limited to the buy and sell prices established by the brokerage firm, the DMA allows you to examine all available bids and offer prices at any given time, allowing you to trade at the market price of your choice.
One advantage of using a DMA is that you pay a commission fee rather than a spread on your transactions. Although DMA gives you more control and transparency, there is no guarantee that the rates you find will be higher than the rates offered by the broker.
Only traders with considerable expertise and a thorough grasp of market dynamics are advised to use DMA due to its risks and complexity. Before considering this option, you should be aware of the pitfalls of DMA trading.
IG group’s added benefits
Here are some more advantages of trading with IG Group in addition to its extensive market selection:
Advanced trading platform
A variety of advanced instruments are available to traders on IG to improve their trading experience. In-depth research tools, such as ProRealTime, which provides comprehensive charting and technical analysis skills for accurate market insights are available on their user-friendly proprietary trading platform.
IG integrates with MetaTrader 4 (MT4), a popular platform that offers automated trading and various technical indicators. Traders benefit from alerts and trading signals for timely updates, while customizable charts enable a more relevant and informed approach to analysis.
Competitive spread and low fees
IG offers attractive pricing with competitive spreads and low fees on popular markets such as major forex pairs, indices, and stock CFDs. For frequent traders, IG provides an economic advantage by offering commission-free trading on certain account types, significantly reducing trading costs.
This cost-effective structure allows traders to maximize their returns, especially when trading frequently or on high-volume markets. IG’s competitive pricing model makes it a favorable choice for both new and experienced traders seeking value and efficiency in their trading activities.
24/7 customer support
IG offers extensive customer service, which is accessible via phone, email, and live chat around the clock (except on Saturdays). This makes it possible for customers to get timely support anytime they need it, whether they have queries about accounts, trading, or technical difficulties.
No matter the time zone, traders may rely on the support staff to provide them with assistance by calling +44 (20) 7633 5431 or sending an email to sales.en@ig.com IG’s dedication to ongoing assistance is a reflection of its emphasis on client happiness and preserving a smooth trading environment.
Customizable account types
IG offers a variety of account types to meet different trading styles and tax preferences. A spread betting account allows traders to speculate on price movements without owning the underlying asset and is tax-free for UK residents under current law.
A CFD (Contract for Difference) trading account enables traders to leverage their positions and gain greater market exposure with a smaller initial investment, while also providing flexibility to trade in rising or falling markets.
For those who want to own assets, the share dealing account enables direct stock purchases, with the potential for dividend income and long-term holding. IG’s range of account options allows traders to choose the approach that best matches their financial goals and personal needs.
Other benefits
- IG’s IG Academy offers online courses and live webinars on financial markets for all skill levels. It also has a community forum where users can connect, share insights, and learn together.
- IG provides tools like guaranteed stop-loss orders, trailing stops, and price alerts to help traders manage risk. These features help limit exposure and protect capital, especially in volatile markets.
- IG has a community forum where traders can share ideas, strategies, and insights, helping foster a collaborative environment where traders can learn from each other.
- IG has no internal fees for deposits and withdrawals, making it cost-effective for traders, especially those who frequently manage their funds. There’s no minimum deposit to open an account, but U.S. users must deposit $250 to start trading.
Conclusion
IG Group offers many benefits to traders of all levels. With a wide range of markets, advanced trading tools, and IG Academy’s robust educational resources, users can improve their trading skills.
No internal fees for deposits and withdrawals, along with a flexible minimum deposit policy, make trading affordable and accessible. Additionally, the community forum encourages collaboration and knowledge sharing among traders.
Overall, the IG team creates a user-friendly trading environment that focuses on meeting the needs of customers for a valuable trading experience.
Pro Tip
We recommend you invest in this IG group without any hurdles. Consult our trusted forex broker for any investment doubts. Here you can know the investment opportunities like stocks, CFDs, banking, cryptocurrency, and forex.
