Jump to content

why should you have to cross bid offer spread twice ??

Guest london

Recommended Posts

Guest london

why should you have to cross the ig bid offer spread twice on each trade ??


ig should get its spread on the first leg and then try to let you exit that trade at the best possible price 


so bid offer shown will be different to the price that you can exit a trade at 


and you cant add extra to the trade at that price  ie u can buy 1 and sell more than 1 at the better price 


obviously this would hurt ig bottom line short term but i would trade alot more if spreads were tighter and i didnt feel IG was taking out as much cash on each trade as possible


thus ig would make alot more money out of me long term if i felt ig actually tried or cared about making my trading a success


this meausre would also indicate to the FCA that IG takes customer care properly


at the moment IG considers itself better than the rest but it really is just a churn and burn merchant



Link to comment

Hi , thanks for the post.


Firstly, I just want to clarify that we're in no way a 'churn and burn' merchant, and as an FCA-regulated firm we can only offer products and services providing best execution to clients, so it is in our best interests to continue doing so and encouraging active traders!


We do, of course, aim to make revenue, and one of the ways we do this is by charging a spread or commission on our trades.


The spread is added around the mid-price of the underlying market as relevant, so we add to both the 'ask' and 'bid' prices to widen the quoted level.  When you open a position, you are charged the full spread because the open position will immediately look at the opposite price level to calculate the P&L.  This means if you open a long position, the 'latest' level on the platform will show the sell or bid price as this is the price you will trade at to close.  Therefore, the full spread is shown in your running P&L straight away, and you do not pay extra spread upon closing.


As I mentioned, it's in our best interests to offer attractive spreads so that more clients look to trade on our prices, so we will offer the tightest spreads we see possible.


I hope this clarifies things around our spreads.  It would be good to hear any other comments or feedback from anyone else on this as always!




Have a question? Try searching the community to see if it has already been answered.
Link to comment
Guest london

hello Hannah


ig makes a spread around a spread 


that spread is at ig's discretion .. they become very hazy at opening of markets and just before closes and seem to be much wider which just happens to trigger stops .. which the IG traders can see ... 


if u r long and want to sell out you have to cross the bid offer spread and then the ig bid spread 


ig could assist its CUSTOMERS by assisting in the exit of trades at the more economic level as possible


full one side spread (not double) on entry ... very little spread on exit 


this would of course differentiate IG and bring in more custom and more revenue 


upto IG if it wants to have clients cross wide bid offers and get tired and resentful of it or if it attempts to see a smarter way 


your message misses the point


ig should show different prices to exist trade in your open positions  to prices in your watch list


why not be open about your spreads ...  


no one argues about ig making a spread as it is their business  



and dont even get me started on your funding spread .. just pay pay pay , ridiculous during period of low interest rates


so it isnt just the bid offer where IG makes its money ... 


until that changes  churn and burn is the business model sorry 


IG is not offering best execution possible to clients as there is no transparency to spreads and no attempt to assist exit of assisting trades


i dont not believe markets are made around mid market .. i have watched live underlying markets and prices are skewed by IG one way or the other or spreads widened 


clearest way is to show market live bid offer and ig spread ... then no arguments


i suggest this would be a measure that the FCA would approve of


Link to comment

Hi , thanks for getting back to me.  I'll try and address all your points and hopefully give some more clarity regarding our spreads.


Firstly, we do always try to be as transparent as possible - and this in itself is of course a regulatory requirement - by publishing our spreads on our main website (www.ig.com).  For example, you can see our full spread details for indices here, and would be able to navigate to the same information for our other markets.


Whilst the spread is indeed at our discretion, and we will advertise it as variable because of this, we try to keep it as constant and tight as possible as this is in the clients' best interests, and happy clients are what we are aiming for.  The reason our spread will sometimes change is because we offer markets out-of-hours, when the underlying market is closed, so the pricing model is different and we would have less liquidity available.


Stops and limits are triggered basis our spread - so for example if you are long you would be closed basis the bid price, and vice versa - but we would not widen the spread to 'catch' stops; again this would breach our FCA regulations and is not at all what we are interested in.


To confirm, you essentially pay full spread upon opening as your running P&L will reflect the full difference between our bid and offer at the time.


Could you clarify what you mean by 'funding spread' so I can answer that question?


I hope this helps, please let the Community know any more questions you have.




Have a question? Try searching the community to see if it has already been answered.
Link to comment
Guest anders

The spread is there for all to see, it's the difference between the buy price and the sell price. When buying shares through a non-spreadbet account, we all still pay spread as there is always a difference between the buy and sell price. Similarly, in a non-spreadbet account, the spread widens when the market is closed.


IG make their money by reducing the sell price a little, and upping the buy price, i.e. they increase the spread. , your suggestion seems to be IG only increase the buy price OR only decrease the sell price?

Link to comment
  • 3 weeks later...
Guest london

what i am suggesting is that the exit price for a trade you have on should be better than the standard bid offer for a new trade 


re funding spread .. you pay to borrow money and earn nothing on money you effectively lend to iG

Link to comment


This topic is now archived and is closed to further replies.

  • image.png

  • Posts

    • Gold Elliott Wave Analysis Function - Counter-Trend Mode - Corrective Structure - Likely Double Zigzag Position -Wave 4 Direction - Wave 4 is still in play Details - Gold count adjusted to fit the sideways structure emerging for wave 4. The structure still supports further rallies. Gold has remained in a sideways range since the decline on April 12th, 2024. Despite this consolidation, the metal is poised for more gains and potentially a fresh all-time high. Gold is in a long-term bullish trend, with no significant bearish correction expected until the impulse cycle from September 2023 completes.   Daily Chart Analysis: Gold prices have been largely bullish, with a cycle degree impulse wave III emerging from 1810.5 in September 2023. Currently, the price is in a minor degree wave 4, which initially appeared to be a zigzag structure. However, the sustained sideways price action suggests this is a triangle structure for wave 4. Before the eventual breakout to the upside, Gold might make one more leg lower within the range. The goal now is wave 5.   H4 Chart Analysis: The H4 chart shows the sub-waves of the emerging triangle structure, which is currently on the fourth leg - wave d (circled). Wave e (circled) should follow, but it should stay above 2286 to avoid invalidating the triangle structure. Thus, the invalidation level for this setup is 2286. Provided the price remains above that level, the potential for more upside is far greater. Wave 5 should reach at least the 2500 key psychological level.   Summary: Gold has been in a sideways range since the decline on April 12th, 2024, but is expected to make further gains and potentially reach a new all-time high. The long-term trend is bullish, with no significant bearish correction expected until the impulse cycle from September 2023 ends. On the daily chart, Gold is in a cycle degree impulse wave III from 1810.5, with the current minor degree wave 4 forming a triangle structure.   On the H4 chart, wave d (circled) of the triangle is in progress, with wave e (circled) expected next. The triangle structure remains valid as long as the price stays above 2286. If this level holds, the potential for more upside increases, with wave 5 likely to reach at least the 2500 level. Technical Analyst : Sanmi Adeagbo Source : Tradinglounge.com get trial here!  
    • AVY Elliott Wave Analysis Trading Lounge Daily Chart, Avery Dennison Corp., (AVY) Daily Chart AVY Elliott Wave Technical Analysis FUNCTION: Trend MODE: Impulsive STRUCTURE: Motive POSITION: Wave {iii} of 5.   DIRECTION: Upside in wave {iii}. DETAILS: Looking for upside into wave 5, equality of 5 vs. 3 which in this case will stand as invalidation level, as wave 3 is currently shorter than 1, stands at 250$.     AVY Elliott Wave Analysis Trading Lounge 4Hr Chart, Avery Dennison Corp., (AVY) 4Hr Chart AVY Elliott Wave Technical Analysis FUNCTION: Trend MODE: Impulsive STRUCTURE: Motive POSITION: Wave (ii) of {iii}.   DIRECTION: Upside {iii}. DETAILS: Looking for minute wave {iii} to start unfolding, otherwise we could be in either a top in place, or else we could be forming an ending diagonal in wave 5.   Welcome to our latest Elliott Wave analysis for Avery Dennison Corp. (AVY). This analysis provides an in-depth look at AVY's price movements using the Elliott Wave Theory, helping traders identify potential opportunities based on current trends and market structure. We will cover insights from both the daily and 4-hour charts to offer a comprehensive perspective on AVY's market behavior.   * AVY Elliott Wave Technical Analysis – Daily Chart* In our Elliott Wave analysis of Avery Dennison Corp. (AVY), we observe an impulsive trend pattern characterized by a motive structure. AVY is currently positioned in wave {iii} of 5, indicating a continuation higher within this wave sequence. The target level for the upside movement into wave 5 is the equality of wave 5 vs. wave 3, which stands at the $250 level. This target also acts as the invalidation level, as wave 3 is currently shorter than wave 1. Traders should monitor this level closely as it provides a critical threshold for potential wave completion and validation of the current wave structure.   * AVY Elliott Wave Technical Analysis – 4Hr Chart* On the 4-hour chart, AVY continues to follow an impulsive trend mode within a motive structure, specifically in wave (ii) of {iii}. The current analysis suggests an anticipated unfolding of minute wave {iii}, which would indicate further upside potential. However, if this wave does not start unfolding as expected, it could suggest that a top might already be in place, or alternatively, we could be forming an ending diagonal in wave 5.   This potential scenario should be watched for confirmation or invalidation to adapt trading strategies accordingly.   Technical Analyst : Alessio Barretta Source : Tradinglounge.com get trial here!  
    • Asian shares are ending the week lower after recent rallies. Yesterday on Wall Street the Dow made gains while Nvidia and other tech names came under short-term pressure. The dollar continues to strengthen, pushing the Japanese yen close to levels last seen in April, which then provoked a currency intervention. European markets are expected to open flat, while US futures show slight gains. The MSCI Asia-Pacific index fell 0.6%, led by a pullback in technology stocks. Japan's inflation slowed in May, complicating the outlook for interest rate hikes. Currency markets saw the euro, sterling, and Swiss franc fall against the US dollar. Today is dominated by flash PMIs from around the globe, including Germany, the UK and the US. 
  • Create New...