Does IG pay interest on my unused funds?

[SAS98KGJ]

HI, I have been with IG-Index since last September.I keep an average of £50K in my trading account as a buffer for my opened positions in GBP/USD and gold. I have noticed though I have been charged daily interest on my margin of about 8-10K GBP, I don't get a penny paid as interest on my unused fund (though according to the TV ad I have seen, TRADING 212 pay 5% interest on unused funds in the account) and feel it is terribly unfair. I contacted the IG help desk for an answer, all I got was a link to how my overnight funding is charged (https://www.ig.com/uk/help-and-support/spread-betting-and-cfds/fees-and-charges/why-is-overnight-funding-charged-and-how-is-it-calculated-) . My issue is not there.

Can somebody answer my question please? Below is the reply I received:

Dear Jay, Thanks for your email.   The interest you see on the statement is not interest you receive on unused funding.    The interest you have paid/received on the statement is trade related. More information can be found here - https://www.ig.com/uk/help-and-support/spread-betting-and-cfds/fees-and-charges/why-is-overnight-funding-charged-and-how-is-it-calculated-   If you have any further queries, please do not hesitate to contact us. Regards, Trading Services IG

[neueneuen]

@SAS98KGJ,

1. AFAIK, IG does not pay interest on unused funds, unfortunately; I would appreciate them starting doing so as well

2. but you do pay interest for full margin usage, no matter if you have free funds on top of required margin

Helpdesk answer seems to be right, although a little confusing.

Edited April 22 by neueneuen

[KoketsoIG]

On 20/04/2024 at 12:55, SAS98KGJ said:

HI, I have been with IG-Index since last September.I keep an average of £50K in my trading account as a buffer for my opened positions in GBP/USD and gold. I have noticed though I have been charged daily interest on my margin of about 8-10K GBP, I don't get a penny paid as interest on my unused fund (though according to the TV ad I have seen, TRADING 212 pay 5% interest on unused funds in the account) and feel it is terribly unfair. I contacted the IG help desk for an answer, all I got was a link to how my overnight funding is charged (https://www.ig.com/uk/help-and-support/spread-betting-and-cfds/fees-and-charges/why-is-overnight-funding-charged-and-how-is-it-calculated-) . My issue is not there.

Can somebody answer my question please? Below is the reply I received:

Dear Jay, Thanks for your email.   The interest you see on the statement is not interest you receive on unused funding.    The interest you have paid/received on the statement is trade related. More information can be found here - https://www.ig.com/uk/help-and-support/spread-betting-and-cfds/fees-and-charges/why-is-overnight-funding-charged-and-how-is-it-calculated-   If you have any further queries, please do not hesitate to contact us. Regards, Trading Services IG

Dear @SAS98KGJ,

Thank you for the post.

Please note that IG does not operate as a bank and you will therefore not earn any interest on cash balances. The interest paid you refer to is the overnight funding for holding positions past 10 PM UK time.

When placing a spread bet or CFD, you’re using leverage. This means you are effectively being lent the money required to open your position, outside the initial deposit you’ve paid. To keep your position open after 10 PM UK time, an interest adjustment will be made to your account to reflect the cost of funding your position overnight.

Thanks,

KoketsoIG

[SAS98KGJ]

Thanks very much for the both answers. sas