Jump to content
  • 0

Question on trading charges


oxgu

Question

Hi all,

I have just created my demo CFD account on IG and needles to say that I am a total beginner to trading of any sort but would like to check some of the basic stuff with more experienced users. Any answers/comments will be greatly appreciated!

So, what I have got on my demo screen is the following positions:

image.thumb.png.68113e28e46544cf67cc8b363f042b8d.png

I can see on the transaction list some small and varying charges labelled with "Long Interest for ... " which I assume what are called as overnight charges for my long positions. The formulas for these are explained with examples on IG website which I am happy quite with.

image.thumb.png.cab2e27a6e044d81eff6836450b90ea0.png

What I am curious about are the following points.

  • Am I right to think that opening positions with UK shares, e.g., Glaxo, Lloyds and Rolls Royce, causes me to get charged by £10 per position whereas this is $15/position when you want to trade US shares, e.g. Tesla as above?
  • Am I going to be charged again at the same rate when I want to close these positions?
  • Why am I not being charged at all when I trade with US Tech 100 Cash (£1)?
  • I assume there is no charges involved in trading FX currencies? I previously opened and closed an FX position and could not see any related charges on my transaction list?

Apologies if these sound basic questions but I would like to cover the basics before I open an actual account.

Thanks!

 

 

Link to comment

2 answers to this question

Recommended Posts

  • 0
On 01/06/2021 at 13:59, oxgu said:

What I am curious about are the following points.

  • Am I right to think that opening positions with UK shares, e.g., Glaxo, Lloyds and Rolls Royce, causes me to get charged by £10 per position whereas this is $15/position when you want to trade US shares, e.g. Tesla as above?
  • Am I going to be charged again at the same rate when I want to close these positions?
  • Why am I not being charged at all when I trade with US Tech 100 Cash (£1)?
  • I assume there is no charges involved in trading FX currencies? I previously opened and closed an FX position and could not see any related charges on my transaction list?

Apologies if these sound basic questions but I would like to cover the basics before I open an actual account.

Hey, 

There's no such thing as a basic or silly question it's always best to check. 

The charges you mentioned are correct but if you go over a certain percentage or amount it may increase but you can find this data here: https://www.ig.com/uk/help-and-support/spread-betting-and-cfds/fees-and-charges/what-are-igs-shares-cfd-product-details

Shares on CFD have commission when you open and close the position. So when you close you will see another commission reduction. If you're a UK client we have a spread betting account that you pay spread on rather than commission for shares. 

Only CFD shares have commission rather than spread. 

It depends on the base currency of the market you're trading. With FX pairs the 2nd currency is the base currency (example EURUSD, the base currency is USD). You will be able to see that on the deal ticket. 

image.png

We do have an fx fee of 0.5%. However some markets have the option to trade in sterling. The market you mentioned earlier US Tech 100 Cash £1 means that it's a sterling contract. if you had selected US Tech 100 ($100) or ($20) there would have been an fx fee (if your account base currency is sterling)

image.png

I hope this helps. If you need me quote this message and let me know how I can help. 

Charlotte 

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      21,632
    • Total Posts
      91,901
    • Total Members
      41,916
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    TraderDanielDK
    Joined 25/03/23 21:50
  • Posts

    • Charting the Markets: 24 March The FTSE 100, DAX 40 and Nasdaq 100 slide on renewed banking woes while EUR/USD, EUR/GBP and GBP/USD drop as the US dollar, gold appreciate due to flight-to-quality flows. Crude oil and copper tumble on recession fears.  Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Friday 24 March 2023         This is here for you to catch up but if you have any ideas on markets or events you want us to relay to the TV team we’re more than happy to.  
    • Market Breakdown | WTI Oil, EURUSD, GBPNZD, EURAUDHere are the updates & outlook for multiple instruments in my watchlist.1️⃣ WTI Oil daily time frame️The market is trading in a long term bearish trend .After the last sharp bearish movement, the market is steadily recovering.Ahead, I see a major horizontal supply area.Probabilities are high, that the next bearish wave will initiate from there.2️⃣ EURUSD daily time frameAfter a breakout of a solid daily resistance, the market is preparing for its retest.Watch carefully the underlined zone and look for buying opportunities from there.3️⃣ EURAUD weekly time frameThe pair is currently approaching a weekly horizontal resistance cluster.Taking into consideration, that the pair is quite overbought, probabilities will be high to see a pullback from that4️⃣ GBPNZD daily time frameThe pair is currently retesting a broken neckline of an ascending triangle . As we discussed earlier, the trend line of a triangle and its neckline compose a contracting buy zone now.Chances will be high that the next bullish wave will initiate quite soon.For Additional confirmation use: Divergence Indicators
    • #CHFJPY: Classic Bearish Setup 🇨🇭🇯🇵   🔻CHFJPY has nicely respected a confluence zone based on a horizontal 4H resistance and a 0.5 retracement of the last bearish impulse.   The price formed a double top pattern on that and broke its neckline.   Probabilities will be high that the pair will drop lower soon. Goals: 141.172 / 140.363  
×
×
  • Create New...