Fees and charges are not commonly discussed, whether hidden in a disclaimer or imbedded in a PDS. As an industry leader, IG Markets prides itself on a 'no hidden charges' policy to make sure you know exactly where and how much we charge. In addition, IG Markets offers client money protection, plus some of the lowest commissions, margins and tightest spreads in the country.
No hidden charges
When signing up for an account there are no administration fees, and as a client there are no margin call fees, audit fees, financial year trading statement fees or duplicate statement fees. Our trading platform, PureDeal does not incur any charges for use.
IG Markets openly discloses how we make money in the following ways:
Transaction fees – commission/spread
For equity products, IG Markets charges a commission fee. For other asset classes we quote an "all-in" spread charge which is the difference between a buy and sell price. As well as the market spread, the dealing spread is also included in the price. Find out more about our competitive rates.
Funding fees
IG Markets will charge a funding fee for the value of a long position held overnight. For fixed expiry future contracts, the funding charge is built into the price. Read more about our funding fees.
Multiple currency positions
At IG Markets we keep it simple, our fees are very clear and transparent regarding multiple currency positions. Some of our competitors charge their clients margin in one currency when their account is held in another, effectively putting the client on margin call in that currency. Our competitors can also charge marked-up debit interest on the balance in that currency, even when the client's overall account is in credit! The way our competitors disclose this information can be very confusing, even for us. Please feel free to call us on (03) 9860 1767 if you would like to discuss this further. We have also provided an example below of how uncomplicated it is with IG Markets:
- If you open a position on forex pair AUD/USD, the deposit requirement for this trade will be calculated in US dollars (but not converted), the second named currency, and you will be required to maintain the AUD equivalent as margin on your account (assuming your account is denominated in AUD). Once the position is closed, any crystallised profit or loss on the trade will then be realised in US dollars. Conversion of this profit or loss to AUD is subject your preferences (instant, daily, weekly, monthly) which can by modified by you using the self service function on PureDeal, or by request to us. This incurs a currency fee transfer, explained below.
You may also choose to maintain your account in US dollars, Sterling, NZ dollars in addition to Australian dollars.
IG Markets also exclusively offers AUD-denominated CFDs on popular indices and commodities giving you the ability to avoid currency exposure and conversion altogether for no extra cost.
Currency fee transfers
When cash balances are converted between currencies, there is a charge of 0.3%. With our AUD-denominated CFDs you are not exposed to this currency conversion.
Limited Risk Premium
As part of IG Markets' invaluable Limited Risk protection, clients can utilise a Guaranteed Stop, which puts an absolute limit on your liability if the market moves sharply against you. The one-off extra charge (essentially an insurance premium) is normally 0.3% of the underlying transaction value.
Fees passed on to clients from other institutions
- There are no fees applied on transfers from debit MasterCard cards. However, for MasterCard, Visa credit and Visa debit cards there is an administration fee on fund transfers.
- Telegraphic transfers incur a $15 charge
- If a client opts to receive live streaming data from the ASX or another stock exchange, an exchange fee is levied. This is waived though, if the required number of trades are transacted in one month. For example, the ASX data feeds are waived if at least four trades are transacted in one month. Delayed data does not incur charges. Read more about live data feeds.
- Short share CFD positions may incur an additional 'borrowing charge' (quoted as an annual interest rate and posted daily) when increased borrowing fees are applicable in the underlying market. Generally, this only affects less than 10 percent of stocks, normally small cap. Do not hesitate to call one of our dealers to find out if this charge applies to your position.
Client Money Protection
As Australia's number one CFD provider* we like to lead the industry by making sure clients know exactly where their money is. All funds are safely held in a separate regulated trust account at a top-tier Australian bank, in accordance with our Customer Agreement and governing legislation. Most importantly, what sets us apart is that we do not use client money to hedge trades; we utilise our own funds. We also segregate your net running profits, holding them in trust; this is in excess of our contractual and regulatory obligations.
If you have any further question relating to our fees and charges or anything else, please do not hesitate to contact us; we will be happy to help. You can also visit our Help and Support Portal.
* 29% of CFD traders choose IG Markets as their main provider vs. 20% for the next largest provider - Investment Trends May 2010 CFD Report.
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