Our FAQs are divided into four main areas: About CFDs; Getting started; About IG Markets and Types of fees. If you can't find an answer here, please visit our Help and Support Portal, or call us on 1800 601 799 and we'll be happy to help.
What is a CFD?
A CFD is a contract that allows you to trade on the price movements of various financial products. Please see our What is a CFD page for more information.
A Contract for Difference (or CFD) is a type of derivative that gives you exposure to the change in value of a financial asset (such as a share) without the need to physically own that asset.
What is a margin requirement?
A margin requirement is the deposit required so you can open a CFD position. As CFDs are contracts based on the value of an underlying financial asset, you are only required to deposit a fraction of the full value of the underlying asset to secure your CFD position.
For example, if you were trading physical shares through a traditional stockbroker, you would need to pay up to 100% of the total value to acquire the shares. When trading share CFDs, you pay a deposit from just 5% of the value of the underlying shares. That 5% is the margin requirement.
Margin requirements can vary depending on the market you are trading and the size of your trade.
Which markets can I trade?
CFDs are available on a range of markets, including forex, shares, stock indices, commodities, options and more. Please see our complete range of CFD markets for more information about each of these.
What is the minimum trade size?
The minimum size for a CFD trade depends on the market you are trading. We offer standard, mini and micro contracts on various markets, so please see the Contract Details for our range of CFD markets for more information.
How long can I hold a CFD contract?
CFDs on forex, stock indices and shares have no expiry dates, while CFDs on options and commodity futures expire with the underlying option or futures contract. Binary CFDs are time-specific yes/no trades that allow you to trade on the performance of a financial market over a certain time. Please see our contract details for further information regarding expiry dates.
What is Direct Market Access?
Direct Market Access (DMA) allows you to trade directly into the order book of worldwide equity exchanges. You can place orders inside the market spread, gain full access to prices in size and gauge the liquidity on either side of the exchange.
You can trade DMA with us through PureDMA. We also have a special online seminar 'A Guided Tour of PureDMA' to help get you started.
What are Guaranteed Stops?
As part of our Risk Management suite, we offer Guaranteed Stops. They put an absolute limit on your liability in the event of a violent market shift, without restricting your profit potential. When you place a Guaranteed Stop, you set a maximum/minimum exit price for your trade. Your position will be closed at exactly your selected level should the market move against you, even if there is a very sharp overnight move. In return for this level of protection, we charge a once-off premium.
See an example of how a Guaranteed Stop works.
I'm new to CFDs, how do I get started?
The first step is making sure you understand what CFDs are, how they work and what the risks are. All this information is available in our Product Disclosure Statement, and we also have a number of seminars available. Once you feel you have a good understanding, opening an account is the next step. You can apply online in just a few minutes using our automated form, or download and print a PDF form to apply by post.
Do I need to send any documents?
In the vast majority of cases, you will not need to send us any supporting documents. Occasionally, where we have not been able to confirm your identity online (for example if you have moved house recently), you will be required to provide documentation. We will contact you if this is required.
Do I need to deposit funds straight away?
You don't need to send any money to activate you account, though you will have to deposit funds to begin trading.
How can I learn more about trading CFDs?
Once you’re a client with us, you’ll have access to our free, dedicated educational resource called TradeSense. It’s a six-week course designed to guide you through your first steps in CFD trading. We also have an extensive range of seminars to help further your CFD education with IG Markets.
Can you tell me a bit more about TradeSense?
TradeSense is a six-week CFD educational programme, designed to help you become acquainted with trading CFDs and the financial markets.
When you open an account with us, you will receive the six modules for free, via email. Each module concentrates on different aspects of CFD trading.
Plus, with TradeSense, you can place trades at a reduced minimum size (from as little as 5 cents per point) and commission for the duration of the six-week programme.
Do you charge your clients for any of your seminars?
No, we provide our clients with opportunities to increase their knowledge and skills through a dedicated education area, which includes our TradeSense training resource and a range of online seminars.
Can I open a Demo account?
Yes, we offer a free two-week Demo, which enables you to become familiar with our trading platform, PureDeal, before opening a live account. We do not require a minimum opening balance and through our TradeSense programme, you can trade from as little as 5 cents per point. We also offer a full range of mini contracts on our more popular markets.
How do I fund my account?
Once your account has been approved and you have obtained your login details, you may deposit funds using any of the following methods:
| Payment Option in Australia dollars | Processing | Charges |
|---|---|---|
| BPAY® | Next day* | Free |
| MasterCard Debit Card | Instant | Free |
| Visa Debit Card | Instant | 0.5% |
| MasterCard Credit Card | Instant | 1.5% |
| Visa Credit Card | Instant | 1.5% |
*BPAY payments are usually credited the next working day subject to bank cut-off times and the inclusion of the correct reference to identify the funds.
You will receive the BPAY details including your unique reference number once your account has been approved.
Debit card and Credit card payments are also accepted and can be made electronically once you log into the platform.
| Payment Option in New Zealand dollars | Processing | Charges |
|---|---|---|
| Real Time Gross Settlement (RTGS) | Next day* | Free |
| Electronic Funds Transfer | Up to 3 business days | Free |
Will I need to download any software before I start trading?
From your PC: Our award-winning trading platform, PureDeal, is completely browser-based, which means that you don't need to download any software. If you use an iPad, download our free, customised iPad app.
From your mobile: PureDeal has been optimised for a vast range of mobile devices. Trading on the move is easy, using the following handsets:
- iPhone: Download our free app from the App Store.
- Android smartphone: You can download our app at the Android Market free of charge.
- BlackBerry and Nokia: Download this app by visiting wwwigmarkets.com.au from your mobile and selecting ‘Mobile app’ at the top of the screen.
- Other handsets: Download our easy-to-use trading software by visiting www.igmobile.com from your handset's browser.
How soon can I begin trading?
If you apply online, providing we are able to verify your identity and once you have deposited funds to your account, you could be up and running within minutes.
Can I apply from outside Australia?
We can open an Australian account for New Zealand residents. We can also open them for people from most countries, but depending on your location, you may need to apply through one of our other offices. We are also located in the United Kingdom, Japan, Italy, USA, Germany, France, Spain and Singapore. Alternatively, you can find your local IG Markets office. Please contact us if you would like further information regarding applying outside Australia.
I would like someone to deal on my behalf. Can I appoint a Power of Attorney to trade for me?
Once your account is open, you can download a Power of Attorney application form or contact us and request a form be sent to you, which will allow a nominated third party to access your account.
IG Markets – First for CFDs
IG Markets specialises in financial derivatives, principally Contracts for Difference (CFDs) on shares, indices, and commodities, as well as being a leading dealer in margined Foreign Exchange. Clients include brokers, fund managers and trading companies, plus private investors.
Originally founded in 1974 as IG Group, a spread betting company in London, the group rapidly expanded its offerings and markets.
In July 2002, IG Markets became the first CFD provider in Australia.
IG Markets is a leading CFD provider with offices globally, including Melbourne, London, Tokyo, Milan, Chicago, Dusseldorf, Paris, Madrid, Luxembourg, Netherlands, Johannesburg, Lisbon, Stockholm and Singapore.
IG Markets is part of IG Group Holdings plc which is listed on the London Stock Exchange. As at November 2011, IG Group Holdings plc’s market capitalisation was AUD$2.5 billion, which ranks the group just outside the FTSE100.
IG Group currently employs over 1000 people worldwide. Read more...
Is my money safe with IG Markets?
Yes, when your funds are held by us they are in a separate trust account and are not passed on to any third parties. We do not under any circumstances, be passed on to any third parties unless agreed by both you and us in writing. See Client Money Protection.
Where can I find out more about the IG Group of companies?
To learn more about IG Group's range of successful brands, please visit www.iggroup.com.
What’s the difference between Market Maker and Direct Market Access, and what is IG Markets?
Market Makers are CFD providers who provide their own prices for the underlying assets (forex, shares, indices, etc.) on which CFDs are traded. In contrast, Direct Market Access (DMA) providers place your order directly into the market, which means that your price will be determined by the underlying market.
DMA providers typically hedge all client trades in the underlying market, while market makers may or may not hedge the CFDs they offer.
IG Markets offers both market made and DMA CFDs through our online trading platform, PureDeal.
How do you charge commission?
IG Markets either quotes a commission charge (for equities) or a spread (difference between a buy and sell price). Our standard commission rate for Australian share CFDs is a competitive 0.1%, with a minimum charge of just $8. Trading spreads start from 0.8 pips on our most popular forex pairs, and less than one point on some stock indices and commodities.
For more information, see our Competitive Rates.
What is the interest charged for holding a position overnight?
When long positions are held overnight, IG Markets will charge interest, or financing, for the value of the position (for fixed expiry future contracts, this charge is built into the price of the product).
Long Positions: The cost of borrowing is based on the London Interbank Offered Rate (LIBOR, a rate charged on overnight loans between financial intermediaries). So, for a long position, you will pay 2.5% above LIBOR.
Let's say LIBOR is currently 3.25%, you would therefore pay 5.75%. This is an annual rate, but the financing is calculated on a daily basis. For each day that you hold the position, you therefore accrue a financing cost that is calculated and debited from your account of a daily basis.
Short Positions: Funding short positions works in the opposite manner for long positions. In most cases, rather than paying interest, you receive interest for being short.
In the same way that rates on loans are generally higher than savings rates, the amount you receive for being short is not as much as the amount you pay for being long.
Please see our contract details for further information on interest charges.
Are there any hidden charges?
At IG Markets, we have no hidden charges. There are no administration charges such as margin call fees, financial year statement fees, audit fees for disputes or platform fees.
You will also not be charged for withdrawing funds, phone trading, or incur any monthly account keeping fees.
What fees will IG pass on to the client?
- Administration fees on fund transfers from MasterCard and Visa credit cards, and Visa debit cards. There is no fee applied on transfers from debit MasterCard cards
- Telegraphic transfers $15
- Exchange fees are levied if a client opts to receive live streaming data. ASX Exchange fees are waived if at least four trades are transacted in a given month on ASX shares - there is no charge for delayed data
- Charting fees will be charged if a client opts get access to our pro-level charting package
- Charting fees will be waived if at least four trades are transacted in a given month
What is the cost of DMA?
You can access DMA for free via our PureDMA platform.
What is the cost of Data feeds?
The share prices on PureDeal are actual exchange prices. When you open your account, we automatically grant you free access to delayed shares data. It allows you to view data from several exchanges from around the world without incurring any exchange fees.
For Live Prices: You will need to subscribe to live prices via the 'Data Feeds' section of the 'My Account' area in PureDeal. This does incur a fee from any exchange to which you subscribe. Exchange fees are waived on ASX data feeds if at least four trades are transacted in a given month on ASX shares.
For example, let's say you are interested in dealing Australian shares that trade on the ASX. The data fee for this is $37.50 and will be debited from your account on a monthly basis and reimbursed at the end of the month when at least 4 trades have been completed.
For Real-time Charts: You will need to activate Real-time charts in your Account Preferences within PureDeal. This does incur a fee of $60 per month to which you subscribe. This fee will be waived if at least four trades are transacted in a given month.
What is the cost of a Guaranteed Stop?
In most cases, a Guaranteed Stop is just 0.3% of the underlying transaction value.