Introduction
IG is one of the most well-known and respected forex brokers in the world, with over 45 years of experience in the financial markets. Established in 1974 in the UK, IG offers a wide range of financial products including forex, indices, commodities, stocks, and CFDs. As a leading player in the forex trading space, IG serves clients across the globe and is heavily regulated by top-tier authorities, including the Financial Conduct Authority (FCA) in the UK and the Australian Securities and Investments Commission (ASIC).
This review will take a comprehensive look at IG’s offerings, regulatory framework, trading experience, costs, fees, and customer service. It will also highlight the pros and cons of trading with IG, giving you a balanced perspective on whether this broker is right for you.
Warning About Forex Trading
Forex trading involves a high level of risk and is not suitable for all investors. The forex market is highly volatile, and the use of leverage can magnify both profits and losses. It is important to fully understand the risks involved before entering the market, and it is recommended that only risk capital be used for forex trading. Moreover, retail forex traders often face challenges in managing risk effectively, so a solid risk management plan is essential for anyone considering trading in this space.
Make sure to also consider your level of experience, and use a demo account or paper trading to gain more experience before committing to live trading with real money.
Pros and Cons of IG
Pros Explained
- Well-Regulated and Trusted
IG is regulated by several respected authorities, including the UK’s FCA, the ASIC in Australia, and the CFTC in the U.S. This regulatory oversight provides a sense of security for traders as it ensures IG adheres to high standards of operation, protecting client funds and ensuring a safe trading environment. - Wide Range of Offerings
IG offers a diverse range of financial products, including forex, stocks, commodities, indices, options, and cryptocurrencies. The ability to trade across multiple asset classes makes it easier for traders to diversify their portfolios and access different markets. - Advanced Trading Platforms
IG provides a choice of trading platforms, including the proprietary IG trading platform and MetaTrader 4 (MT4). Both platforms are feature-rich and offer a wide range of analytical tools, charting options, and fast order execution. IG’s platform is known for its user-friendly interface and advanced charting tools, while MT4 is more suited for traders who require robust technical analysis features. - Educational Resources and Tools
IG offers a vast range of educational resources, including video tutorials, webinars, market analysis, and trading strategies. These resources help traders improve their skills, whether they are beginners or more experienced. The availability of live webinars and trading workshops provides real-time insights and opportunities to interact with professional traders. - Research and Insights
IG provides extensive research tools, including technical analysis, market reports, and live news feeds. These resources are beneficial for traders who want to stay informed about market trends and make informed decisions. Additionally, IG offers detailed analysis from renowned financial institutions, which adds credibility to the research.
Cons Explained
- High Fees and Spreads
IG’s fees and spreads can be higher than some of its competitors. While the spreads on major currency pairs are competitive, they may widen significantly on less liquid pairs or when trading after hours. Additionally, IG charges commission fees for some accounts and products, which can increase the overall cost of trading, especially for active traders. - Limited Customer Support Options
IG provides customer support via phone, email, and live chat. However, their support team is not available 24/7, which may be inconvenient for traders in different time zones. Response times can also be slow during peak trading hours. Furthermore, while the support team is generally knowledgeable, some traders have reported that their inquiries take longer to resolve compared to other brokers. - Complex Fee Structure
IG’s fee structure can be confusing, especially for new traders. The broker charges various fees for different account types, platforms, and services. This includes fees for spreads, commissions, withdrawal fees, and overnight financing charges. Traders need to carefully review the pricing structure before trading to avoid unexpected costs. - Limited Range of Cryptocurrencies
While IG does offer cryptocurrency trading, the range is relatively limited compared to other brokers. IG primarily offers CFDs on cryptocurrencies, and the list of available coins is narrower than what other brokers, such as eToro or Binance, provide. This may be a drawback for traders looking to invest in a broader selection of digital currencies.
Usability
Desktop Experience
IG’s desktop platform is intuitive and easy to navigate, making it suitable for both beginners and experienced traders. The interface is clean, with customizable charts, multiple timeframes, and a broad range of technical indicators. The platform offers advanced order types and real-time market data, helping traders execute strategies effectively.
Additionally, IG’s platform includes news feeds and economic calendars, keeping traders informed of market events. However, some users report that the platform can sometimes lag during peak trading hours, especially if you’re running multiple charting setups.
Mobile Experience
IG’s mobile trading app is one of its standout features. The app provides almost all the same functionalities as the desktop platform, including charting tools, order types, and the ability to monitor open positions. The mobile interface is user-friendly and responsive, allowing traders to manage their accounts and trade on the go. The app is available for both iOS and Android devices, with a focus on seamless functionality for quick trading.
However, advanced charting and technical analysis might feel slightly limited on the mobile app, especially for traders who rely on multiple indicators and complex chart setups. Overall, the mobile experience is solid but not as feature-rich as some of the desktop alternatives.
Trade Experience
IG provides an overall smooth trading experience with fast order execution and a range of trading instruments. The broker’s platforms are optimized for all types of traders, including scalpers and long-term investors. IG offers several order types, including market orders, limit orders, and stop-loss orders, which suit different trading strategies.
However, some traders have reported occasional slippage during high-volatility periods, which could affect execution prices. Additionally, the fee structure can make active trading less cost-effective, especially for traders with high-frequency strategies.
Regulation and Security
IG is one of the most trusted brokers in the industry, thanks to its strong regulatory standing. It is authorized and regulated by top-tier bodies, including the FCA, ASIC, and the CFTC, which are known for their strict oversight of brokers. These regulations provide a high level of protection for clients, including fund segregation, ensuring that client funds are kept separate from the broker’s own operating funds.
IG also implements robust security measures, including two-factor authentication (2FA) for added protection of user accounts. Additionally, the broker encrypts all sensitive data and adheres to industry-standard protocols to ensure the safety of its clients.
Range of Offerings
IG offers a wide range of financial products, including:
- Forex: Over 80 currency pairs, including majors, minors, and exotics.
- CFDs: Commodities, indices, cryptocurrencies, and stocks.
- Stocks: Shares from global exchanges, including the U.S., UK, and European markets.
- Options: A wide selection of options contracts for various underlying assets.
- Cryptocurrencies: CFDs on a limited selection of cryptocurrencies, including Bitcoin, Ethereum, and Litecoin.
The diversity of IG’s offerings allows traders to access multiple markets and create diversified portfolios. However, its limited range of cryptocurrencies may disappoint those looking for a broader selection.
Order Types
IG offers a comprehensive range of order types to cater to various trading strategies:
- Market Orders: Immediate execution at the current market price.
- Limit Orders: Enter a trade at a specific price or better.
- Stop-Loss Orders: Automatically exit a trade when the price reaches a certain level to limit losses.
- Trailing Stop Orders: Lock in profits by adjusting the stop-loss level as the market moves in your favor.
These order types are standard in the industry and provide traders with the flexibility they need to execute different strategies.
Trading Technologies
IG’s platform incorporates high-performance trading technologies designed for fast execution and smooth trade management. The broker offers low-latency execution, particularly on its proprietary platform, and uses robust infrastructure to ensure the platform remains stable even during high market volatility.
IG’s charting tools and technical indicators are powered by TradingView and other advanced analytics, providing traders with reliable and accurate data.
Costs and Fees
IG’s fee structure can be complex, and traders should be aware of the various charges they may incur. While the broker’s spreads are competitive, there are additional costs, including:
- Commission Fees: Applicable to certain account types and products, particularly on shares and options.
- Overnight Financing: IG charges swap rates for holding positions overnight, which can add up over time.
- Inactivity Fees: IG charges an inactivity fee if you don’t trade for a certain period.
It is important to carefully review the fee schedule on IG’s website to ensure that you understand all potential costs before opening an account.
Account and Research Amenities
IG provides a solid selection of research tools and amenities for traders. This includes:
- Market News: Real-time news feeds and reports from leading financial institutions.
- Analysis: Daily and weekly technical analysis reports, as well as economic calendars.
- Economic Events: The platform features an economic calendar to keep traders updated on important market-moving events.
However, some traders may find that IG’s research offerings are not as in-depth as those offered by other brokers like Saxo Bank or Interactive Brokers, which provide more detailed research reports.
Portfolio Analysis
IG provides
a variety of performance tracking tools, such as trade history, P&L reports, and advanced charting capabilities. Traders can analyze their overall performance and evaluate whether their strategies are successful. However, IG lacks more advanced portfolio management tools compared to specialized platforms like Interactive Brokers, which offer deeper insights into portfolio diversification, risk, and performance.
Education
IG offers extensive educational resources that cater to traders of all levels:
- Video Tutorials: A range of beginner-to-advanced videos explaining everything from the basics of forex trading to advanced technical analysis.
- Webinars: Regular webinars hosted by market analysts and professional traders, covering current market trends, trading strategies, and expert insights.
- Guides and Articles: IG provides educational content in the form of articles and downloadable guides, making it easy for traders to learn at their own pace.
- Demo Account: A risk-free demo account for practicing trading strategies without financial risk.
While IG’s educational materials are comprehensive, they may not be as detailed as those offered by some of the other leading brokers, such as CMC Markets, which are known for providing more advanced, hands-on learning experiences and personalized guidance.
Customer Service
IG offers customer support through multiple channels, including:
- Live Chat: A responsive and efficient live chat service.
- Phone Support: Available during business hours, with multilingual support available in several languages.
- Email Support: Available for more complex inquiries, with a decent response time.
While the customer service is generally effective and knowledgeable, IG’s lack of 24/7 support can be a drawback for traders in different time zones. Additionally, response times can be slower during peak hours, which may be frustrating for traders requiring immediate assistance.
Transparency
IG is highly transparent about its pricing, fees, and regulatory standing. The broker provides clear information regarding spreads, commission charges, and overnight financing rates. Additionally, IG displays its regulatory status prominently, reassuring traders about the broker’s legal standing and adherence to strict regulatory requirements.
However, while IG’s fee structure is clear, it could still benefit from providing more detailed breakdowns of specific fees or a more detailed FAQ section addressing potential hidden charges.
Available Account Types
IG offers several account types to cater to a variety of trader needs:
- Standard Account: This is the most commonly used account type and is suited for retail traders. It offers access to a wide range of instruments, including forex, CFDs, and indices. The minimum deposit requirement is generally low, and traders can benefit from competitive spreads.
- Professional Account: Aimed at more experienced traders, this account provides access to higher leverage, tighter spreads, and lower commissions. It is designed for active traders with significant capital.
- ISA and SIPP Accounts (UK Only): These accounts allow UK-based traders to trade tax-efficiently using an Individual Savings Account (ISA) or a Self-Invested Personal Pension (SIPP).
While IG offers a solid variety of accounts, it lacks specialized accounts like social trading or Islamic accounts that may be offered by some competitors.
The Bottom Line
IG is a reputable and established forex broker with a strong track record in the industry. It offers a wide range of financial instruments, competitive spreads, and advanced trading platforms. Its educational resources and research tools are helpful for traders at all experience levels, and its regulatory framework ensures a high level of security and protection for client funds.
However, its relatively high fees and spreads, limited customer support hours, and complex fee structure might be drawbacks for some traders, especially those seeking lower-cost trading options or those in need of 24/7 customer service.
Overall, IG is well-suited for traders who prioritize reliability, a broad range of offerings, and regulatory security, but may not be the best fit for those looking for the most competitive fees or advanced portfolio management tools.
Compare with Similar Forex Brokers
IG vs. CMC Markets
CMC Markets is another well-regarded broker that offers a similar range of products, including forex, CFDs, and spread betting. CMC Markets’ trading platform, Next Generation, is highly praised for its powerful charting tools and research features, making it a great choice for more advanced traders. However, IG offers lower spreads on some currency pairs and has a wider selection of educational resources.
IG vs. eToro
eToro is a popular social trading platform that allows traders to copy the trades of experienced investors. While IG offers more advanced trading features and a wider range of instruments, eToro’s social trading aspect may be appealing to beginner traders or those looking for a more hands-off trading experience. Additionally, eToro does not charge commission fees, but its spreads are often wider than IG’s.
How to Open an Account with IG
Opening an account with IG is a straightforward process:
- Visit the IG Website: Navigate to the IG homepage and click on “Open Account.”
- Fill Out Your Details: Provide your personal information, such as your name, contact details, and financial background.
- Verify Your Identity: IG requires KYC (Know Your Customer) documentation, including proof of identity (e.g., passport or driver’s license) and proof of address (e.g., utility bill).
- Choose Your Account Type: Select whether you want to open a standard retail account or a professional account.
- Fund Your Account: Make your initial deposit using one of IG’s accepted payment methods, such as a bank transfer, debit/credit card, or PayPal.
- Start Trading: Once your account is funded and approved, you can begin trading on IG’s platform.
Frequently Asked Questions
1. Is IG Safe to Use?
Yes, IG is highly regulated by the FCA, ASIC, and CFTC, which ensures a high level of security and protection for clients. The broker also uses industry-standard encryption and security measures.
2. What is the Minimum Deposit for IG?
The minimum deposit varies by account type and region. For most accounts, the minimum deposit is around $250.
3. Does IG Offer Leverage?
Yes, IG offers leverage, but the amount varies based on the asset class and regulatory jurisdiction. Retail clients can access leverage up to 30:1 for forex in most regions, although leverage is lower for other asset classes.
4. Does IG Charge Inactivity Fees?
Yes, IG charges inactivity fees for accounts that remain dormant for a prolonged period. However, these fees are generally not charged for accounts that are actively used.
5. What Platforms Does IG Offer?
IG offers its proprietary IG platform as well as MetaTrader 4 (MT4) for more advanced traders. Both platforms are fully equipped with charting, analysis, and order execution features.
6. Can I Trade Cryptocurrencies on IG?
Yes, IG offers CFDs on cryptocurrencies, including popular coins like Bitcoin and Ethereum. However, the range of cryptocurrencies is limited compared to other brokers like Binance.
7. How Can I Contact IG’s Customer Support?
You can contact IG’s customer support team via phone, email, or live chat. Support is available during business hours, but not 24/7.
