Question on trading charges

[oxgu]

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:

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.

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!

 

 

[CharlotteIG]

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. 

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)

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

Charlotte 

[sampomiu]

when you start trading - you think you will be a millionare, but that's the trap, trade smart!