Last updated: 18th Nov 2024
As one of Australia’s oldest and largest providers of Contracts for Difference (CFDs) trading and foreign currency exchange (FX), IG is a popular choice of broker. The Australian version of the online brokerage also lets locals invest in both ASX-listed and international stocks.
One of IG’s main draws is its reliability.
The company has been around for 50 years, operates globally in compliance with a broad range of regulators, and is publicly-listed.
But does it offer the best trading experience that’s also kind to your hip pocket?
Best Parts Of IG:
- Competitive share trading fees, which has seen the platform win multiple industry awards for offering value-for-money for investors.
- Extended trading hours including the ability to open positions on US shares pre and post market hours and weekend trading on indices, some major FX pairs and crypto.
- Large global CFD provider that brings with it the reassurance of longevity, multi-country compliance, innovation, and the financial transparency that comes with a public company.
Worst Aspects Of Using IG:
- Higher spreads than some key competitors means IG is not the most cost-effective option for casual traders or those placing a high volume of trades or using a high frequency strategy.
- Limited product range, as IG focuses on CFDs and stocks/ETFs, with no direct access to options, futures, bonds, cryptocurrencies or forex spot trading.
- Customer service is accessible most of the week but most users agree it could be snappier and more consistent.
IG Trading Platform At A Glance.
| Trading Fees To Watch Out For | Additional charge to access guaranteed stops. |
| Non-Trading Fees To Watch Out For | AU$15 Same-day bank transfer fee with a minimum withdrawal amount of AU$2000. |
| Available Share Markets | 13,000+ stocks from across ASX, NASDAQ, NYSE, DOW, LSE. |
| Available CFD Markets | Forex, shares, indices, IPOs, cryptocurrencies, commodities, ETFs, options, futures, interest rates. |
| Available Crypto Markets | CFDs on Bitcoin and 10 altcoins including ETH, ADA, DOGE. |
| Available Forex Markets | 80+ major, minor and exotic pairs with 30:1 leverage on majors. |
| Support | 24 hour support Sunday to Friday via phone, email, live chat. Unavailable 7am-5pm Saturdays AEST. |
| Trading Platforms | Proprietary web-based platform and mobile app for iOS & Android, MT4, ProRealTime, L2 Dealer, TradingView. |
Is IG Good For Beginner To Intermediate Traders?
Yes, IG brokers can be a good option for investors and traders with minimal experience through to more intermediate skills (and beyond, covered below). That’s because the platform:
- Makes setting up an account easy, with a reasonable minimum deposit amount.
- Provides access to a wide range of leading and user-friendly trading software/tools.
- Lets you practice trading with $20K in virtual cash using its free demo account.
- Offers a broad number of resources to guide research and skills development.
- Has competitive charges on trades and respectable trade execution speeds.
However, IG Australia’s focus is squarely on Contracts for Difference (CFDs), which are inherently risky because they encourage the use of leverage.
If you’re rusty on how to assess and manage risks when opening and closing positions using leverage, or you don’t understand key concepts around slippage, you’re probably not ready to trade CFDs on any platform.
Like all brokers that operate in Australia, IG is bound by local regulations around limits on leverage ratios — the maximum available for ordinary investors is 30:1 but it varies depending on the asset.
ASIC rules also protect you from negative account balances, but you can still lose every cent held in your account if a trade moves against you.
Important!
Inexperienced investors might be put into a ‘limited risk’ account (or you can manually switch in the settings). It ensures you won’t lose more than the initial deposit required to open your trades by requiring you to attach a guaranteed stop to all your positions, but it costs more.
The customer service from IG in Australia can be hit and miss. The live chat can be highly responsive and helpful, but not always, and phone and email support is sometimes slow.
IG has an average rating of 3.6 on Trustpilot and less than 10K reviews. For comparison, IC Markets has over 38,000 reviews and a rating of 4.8.
(Related: What You Need To Know About ASIC’s Leverage Rules.)
Is IG Good For Expert Investors And Traders?
Experienced and professional traders will find a lot to like about IG’s platform such as:
- A broad range of CFD trading instruments with options not readily available on all platforms like interest rates, IPOs and thematic sectors.
- Access to best-in-class trading platforms like MetTrader 4 and TradingView in addition to IG’s own web-based platform and fully-featured mobile app.
- Reliable execution with an average 0.014 second execution speed, as well as a good range of order types, alerts, and access to guaranteed stops.
- Platforms and advanced charting tools designed to cater to algorithmic trading strategies whether you use pre-determined algos or customise your own.
- The ability to choose your preferred base currency for trading to take control of FX conversion fees.
The biggest downside for experienced traders is probably the cost of trades, but it depends on how you weigh up all-round platform features in terms of their importance. IG isn’t the cheapest, nor is it exorbitant.
IG Australia offers a Pro account for highly experienced traders and high net-worth individuals, which comes with lower margins and volume-based rebates. However, negative balance protection isn’t available when you’re considered a pro.
You can also open Corporate and Trust accounts or an account for your self-managed super fund (SMSF).
Is IG Ideal For Online Share Trading?
In addition to CFD trading, you can invest directly in over 13,000 shares and ETFs across Australian, US and some European stock markets with an account on IG’s platform.
IG Australia operates under a custodial model where your shares are held on your behalf by a custodian — in the case of IG, that’s Citibank. In theory, a custodial model could make it harder to retrieve your assets/funds should the broker fail, but that’s a rare occurrence.
When buying ASX-listed shares, many Aussie investors prefer a CHESS (Clearing House Electronic Subregister System) sponsored broker because you’ll be legally recorded as the shares’ owner via the ASX and be issued a Holder Identification Number (HIN).
Other more salient disadvantages of a custodial model compared to CHESS-sponsored include:
- Less portable: A HIN makes it easier to transfer your holdings between brokers. If you buy ASX shares via IG, you can move them in future, but keep in mind it may be more complicated if you want to move to a broker with a CHESS-sponsored model.
- Less control: Direct legal ownership via a HIN means you can arrange for returns to be paid directly to your bank account (rather than your brokerage account) and you’ll be directly contacted about voting on decisions as a shareholder. But IG does offer proxy voting.
As CHESS-sponsorship is only relevant for Australian shares, if you plan to buy international stocks you’ll be doing so through a custodial model regardless of the broker. It’s good to be aware of, but it’s nothing to be highly wary of.
IG’s Fees, Spreads, Commissions And Account Charges.
IG’s spreads and commissions are not the lowest available but they are competitive.
Trading Fees.
- Spreads starting from 0.6 points on key FX pairs, 0.8 on major indices and 0.1 on commodities.
- Share CFD commissions. It’s a minimum of $7 for Australian share CFD trades per side (or 0.08%, whichever is higher), but is much more expensive for UK stocks (minimum £10) and US stocks (minimum US$15).
- Overnight funding fees vary depending on the underlying asset.
- Guaranteed stop premium which varies depending on the asset being traded. For share CFDs its 0.3% of the underlying transaction value.
- Australian share trading commission when you buy or sell ASX-listed stocks or ETFs. You’ll pay $8 each time you trade Australian stocks (or 0.1%, whichever value is higher). The commission drops to $5 per trade (or 0.05%) if you make three or more trades per month.
- International share trading commission when buying and selling US, UK, Germany and Ireland shares and ETFs. You’ll pay $0 commission but a 0.7% foreign currency exchange fee. That FX fee is a bit high but comparable to many other leading brokers.
Non-Trading Fees.
- No cost to open an account.
- No inactivity fee on share trading accounts, so you can confidently use IG for a buy-and-hold investing approach.
- An AU$18 monthly fee will apply if you haven’t made a trade from your CFD account for two years or more. If you haven’t made a trade for two years and have no funds deposited or open positions, your CFD account may be closed.
Details Of Deposit And Withdrawals On IG.
What you need to know about funding your IG account and retrieving your money when it’s needed:
What’s The Minimum Deposit On IG?
You can add funds to your IG Australia account using credit and debit cards, Apple Pay, PayPal, and BPAY via your bank account. Paying by debit card is probably the fastest in terms of money showing up in your account and attracts no fees.
- AU$100 is the minimum deposit amount if you use these payment methods: credit/debit card, Apple Pay and PayPal.
- AU$10 is the minimum deposit amount if you pay by BPAY (bank transfer).
- You can deposit up to AU$1m into your account depending on the funding method.
What About Withdrawals From IG?
Withdrawals are typically free and processed within a few days. Credit card providers and other third-party payment platforms may add fees to transactions. Transferring fro IG to a foreign bank account can attract a conversion fee and an extra charge.
Like a number of other brokers, you may encounter more delays if you withdraw funds using a different method than used to deposit funds, so keep that in mind.
- AU$200 is the minimum withdrawal amount, unless your balance is below $200, in which case you can withdraw whatever is available.
- AU$35,000 is the maximum daily limit if you’re withdrawing funds to a debit/credit card.
- There’s no maximum limit when you withdraw cash directly to a bank account.
- You can make a same-day bank transfer provided you withdraw a minimum of AU$2,000 to an Australian bank account and make the request before 11am, but it incurs a AU$15 charge.
Are There Fees For Transferring My Assets?
If you decide to change platforms down the line, there’s no fee to transfer your assets to another broker unless you’re sending them to a share registry — such as Computershare — which attracts a AU$50 fee per line of stock.
Can You Trust IG?
IG is a multi award-winning share trading platform with a long track record spanning five decades, so it’s a trustworthy online broker.
IG is one of several brands that form part of an international company called IG Group, headquartered in London. It started as a spread betting company that let people speculate on the price of gold — known as Investors Gold, which is what IG stands for.
- Established as Investors Gold in 1974 by Stuart Wheeler with just three employees.
- Formed its holding company, IG Group, in 2000.
- Opened its first overseas office in Melbourne in 2002, becoming Australia’s first CFD provider.
- Listed on the London Stock Exchange (LSE) in 2005 and became part of FTSE 250 index.
- Delivered profits of £400.8m (before tax) in 2024, with total revenues over £980m.
IG Group now employs thousands globally and has operations across 18 countries catering to hundreds of thousands of customers. The company is listed on the LSE under the ticker symbol IGG with a market capitalisation at the time of writing of £3.3b.
It’s one of the largest CFD providers globally and makes the claim of being Australia’s number one platform for CFD trading. In Australia, IG is:
- Operated by IG Australia Pty Ltd, which is located in Collins Street, Melbourne.
- Registered with the Australian Securities and Investments Commission (ASIC) with an active Financial Services Licence.
In compliance with local regulation, IG Australia keeps your money separate from funds it uses to run its business — so your cash remains yours and you can be paid in the unlikely event the broker becomes insolvent. It maintains multiple segregated bank accounts under trustee arrangements to protect client funds, with reputable banks like CommBank, Westpac and HSBC.
Quick Fire: Answers To Top FAQs About IG.
Here are some snappy responses to basic questions about using IG in Australia for your investing and trading needs:
Is IG Available To Australian Investors?
Yes, IG offers Australians the ability to trade Contracts for Difference (CFDs) as well as invest in Australian and international shares. The company has an Australian office located in Melbourne and is regulated by ASIC.
What Kind Of Company Is IG?
IG Group Holdings is the parent company that runs a variety of brands including IG share trading platforms that operate internationally. IG group is a publicly-listed company based in London that describes itself as a global fintech.
In addition to IG for share and CFD trading, the company includes IG Prime for institutional investors, the DailyFX investment news site, and other trading brands Spectrum Markets, Raydius, BrightPool and tastytrade.
Do I Own My Shares With IG?
IG Australia uses a custodial model rather than providing you with CHESS (Clearing House Electronic Subregister System) sponsored shares.
Under IG’s custodial model, ASX-listed shares you buy are held on your behalf by Citibank in a direct custody capacity. The shares are still yours to trade as you wish, and you’ll receive all returns such as dividends.
However, you won’t legally be registered as the shares’ owner via the ASX or be issued a Holder Identification Number (HIN). Some Australians prefer having a HIN as added protection in case their broker goes belly up.
Can I Move Assets To IG From A Different Broker?
Yes, you can move your assets from a different broker to your IG account. First you’ll need to open an account with IG Australia. Then you can initiate a transfer from within your account settings, which will involve completing a form to provide details about your current broker and assets held. It can take between 2-6 weeks to finalise.
Should You Choose IG As Your Trading Platform?
There are many alternatives to IG in Australia, but it’s one of the most reputable with reasonable fees. If your investing strategy centres on forex and stocks, it’s a great one-stop platform regardless of your experience level.
If you only want to own stocks, or you want to trade using methods other than CFDs, IG may not be ideal.
IG made our list of the 10 best share trading platforms in Australia, but why not check out the rest to see how they stack up?
Jody
Nelson says:
I attempted to use the “hack” to dodge conversion fees, but sadly after converting AUD to USD on a Wise account, there doesn’t seem to be a way to deposit that money into eToro; i.e. eToro recently disabled Wire transfers and Wise doesn’t support SWIFT transfers for sending USD to a bank in the US?
John Keys says:
CMC Invest are an abysmal in turning around new accounts.
Over 1 month to setup up an account with an investment trust, and still waiting. I was promised 5 business days.
Reg Watson says:
Given that China’s economy is going down the toilet how the heck do we expect an appreciation of the Aussie in 2024 ? We are tied to China.