Bid offer spread shares

[Jeremykam]

Hi

I have just opened an isa with IG. I have an existing isa with ii and am considering transfering it to IG because of the cheaper currency exchange fees when buying shares.

However, I have noticed that the buy price of shares (particularly uk) on IG is very slightly higher than the buy price at exactly the same time for exactly the same shares on ii. 

I thought IG doesn't make money off spreads for normal share dealing as you pay commission on the deal.

Could someone please explain why they have different spreads for exactly the same shares at precisely the same time compared to ii?

Thanks

Jeremy

[CharlotteIG]

On 06/05/2020 at 22:57, Jeremykam said:

Hi

I have just opened an isa with IG. I have an existing isa with ii and am considering transfering it to IG because of the cheaper currency exchange fees when buying shares.

However, I have noticed that the buy price of shares (particularly uk) on IG is very slightly higher than the buy price at exactly the same time for exactly the same shares on ii. 

I thought IG doesn't make money off spreads for normal share dealing as you pay commission on the deal.

Could someone please explain why they have different spreads for exactly the same shares at precisely the same time compared to ii?

Thanks

Jeremy

Hey @Jeremykam

Thanks for your post. 

IG is always looking for ways in which we can improve our clients’ experience. In order to improve our free price offering and to reflect the most up to date prices for all US, UK, European and Australian shares, rather than providing free delayed pricing, IG has introduced live 'derived pricing,' at no cost to clients. Clients who subscribe to paid non-derived live prices will be unaffected.

Derived prices change in real time. They are created by IG by adjusting the real-time prices feeds from the exchange in a way that makes the price non-reverse-engineerable (as required by the exchange).1 Derived prices may come from one or more exchanges.

It’s important to note this doesn’t affect the execution of your orders. Execution is always against the underlying exchange price, the change is only to the price displayed on your platform so you may even get a better price than the price you click on. This includes stops and limits that are only ever triggered by non-derived prices.

I hope this helps.