CFD Commissions & Charges - Confusion

[SixEight]

Hello All,

I've been using IG recently as a demo for Spreadbetting, but I am leaning more towards CFDs in conjunction with ProRealTime Premium. The question I have is, what are the CFD commissions for US/UK shares? They state 0.1% in most places but when you dig deeper is also states £10 per transaction - is it both? If so, seems to make it hard to use CFDs via IG for day trading scalping.

Any help would be greatly appreciated.

Many thanks,

J

[Caseynotes]

52 minutes ago, SixEight said:

Hello All,

I've been using IG recently as a demo for Spreadbetting, but I am leaning more towards CFDs in conjunction with ProRealTime Premium. The question I have is, what are the CFD commissions for US/UK shares? They state 0.1% in most places but when you dig deeper is also states £10 per transaction - is it both? If so, seems to make it hard to use CFDs via IG for day trading scalping.

Any help would be greatly appreciated.

Many thanks,

J

Hi, there are 2 basic types of account, leveraged or non-leveraged and the two have different costs, it's easy to get them mixed up.

The non-leveraged is the Share Dealing account where you buy and sell shares on which you pay spreads and commissions (£10 per transaction).

Leveraged is a CFD account where you can trade shares (and everything else) CFDs  and again pay the spread and also a commission but which is far less than the commission on buying the actual shares (0.1%) 

see this page on Shares CFDs;

https://www.ig.com/en/help-and-support/cfds/fees-and-charges/what-are-igs-shares-cfd-product-details

[SixEight]

Hi @Caseynotes, I've been following a lot of your posts on here which have been invaluable, thanks for replying to this one. I was getting really confused as the CFD Shares and ETF page was stating 0.1% commission plus the £10. 

 

So just to clarify, you pay the Spread on FX, Indices but you pay a commission (0.1%) for Share CFDs? Think link with the examples seems to imply the minimum charge does apply: https://www.ig.com/en/cfd-trading/charges-and-margins

[Caseynotes]

55 minutes ago, SixEight said:

Hi @Caseynotes, I've been following a lot of your posts on here which have been invaluable, thanks for replying to this one. I was getting really confused as the CFD Shares and ETF page was stating 0.1% commission plus the £10. 

 

So just to clarify, you pay the Spread on FX, Indices but you pay a commission (0.1%) for Share CFDs? Think link with the examples seems to imply the minimum charge does apply: https://www.ig.com/en/cfd-trading/charges-and-margins

The commission fee is the value of the position x 0.1%. If this comes in less than £10 then the minimum charge (£10) is paid instead. You also pay the spread.

Yes, everything else there is no commission you just pay the spread.

Do take note of the overnight interest charge though, usually this is fairly minimal but as with Oil just lately can suddenly sky rocket.

Edited April 25, 2020 by Caseynotes