Jump to content
  • 0

Share dealing Question !HELP!


DanLord

Question

I recently joined IG and my friend who is a Forex Broker told me that on IG when you 'buy' shares, you dont actually own them so it is essentially spread betting..?

To my uneducated brain in this world of trading, I was confused as I opened a Share  Dealing account on IG...is this information correct or with my Share Dealing account, the shares  I 'buy' I do own?

Any light that can be shed on this would be greatly appreciated.

 

Thanks,

Dan

Link to comment

3 answers to this question

Recommended Posts

  • 1

@DanLord, yes you can either have a share dealing account where you can buy actual shares or a spread betting or cfd account where you are simply taking a position on the direction of movement of the shares. If you feel you have opened the wrong type of account it should be no problem to shift funds across. You will need to jump through some extra hoops to open a sb/cfd account though as they are leveraged as Trendfollower points out.

  • Thanks 1
  • Great! 1
Link to comment
  • 0
1 hour ago, TrendFollower said:

@DanLord,

IG is known for trading and more specifically Spread Betting and CFD trading in the UK. It offers 'Margin Trading' and the ability to use 'Leverage'. For this you would open either a Spread Betting account or a CFD account.

Now IG does offer a Share Dealing account and though I have never used it, I can only think it is like any other UK share broking account where the client actually acquires the shares though I believe IG use a separate company for the nominee whom they will not disclose but suggest other brokers use them too. 

Your shares in IG's share dealing account will be held in a nominee account. Now from my understanding the shares are owned by a non-trading subsidiary of the stockbroker. This will be similar with certain other brokers in the UK as well so it is not just IG that adopt this. 

Thank you for your quick reply, this has helped me understand...I do have one more question just to clarify though,

For example, my friend told me to open an account with HL (Hargreaves Lansdown) because when you buy the share you own it. As you said it is held in a nominee account so does this mean I do not personally 'own' these.

 

Thanks again for your help!

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
      20,142
    • Total Posts
      88,261
    • Total Members
      69,126
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    Sybin
    Joined 06/10/22 17:07
  • Posts

    • Why is this stock unavailable to open for non-Pro clients? Surely a fund is less risky than an individual stock.
    • Hi @Kgrp74 Thank you for reaching out.  HMRC rules don't allow you to hold foreign currency in an ISA, but you can still buy international shares. The gains on currency conversions are only seen and credited in the account once you sell the shares if the currency rate is favorable to you. We also have to consider the 0.5% spread added to the exchange rate and commission charges which would normally offset your profits.  Thanks, OfentseIG
    • DAX/CAC Technical Highlights: DAX reclaimed broken support, but rally still not viewed as bullish CAC 40 has trend-line resistance ahead to watch on further strength   DAX and CAC 40 Technical Outlook: Rally Viewed as Likely to Fail Soon   DAX Daily Chart   DAX Chart by TradingView   The CAC is trading around resistance in the 6k area, with a trend-line from the summer high lying not too far ahead. A turn down could find some initial support in the 5700s, but the low at 5628 is the big level to watch. Broad outlook is of course very similar to the DAX.   CAC Daily Chart   CAC 40 Chart by TradingView   Oct 6, 2022 | DailyFX Paul Robinson, Strategist
×
×
  • Create New...