Before anything else, no we’re not referring to Instagram. IG Markets is an online trading platform specialising in Contract for Difference (CFD) trading, but what does that mean, exactly?
If you’re still a total beginner, then this article is for you. We’ll go over CFDs, IG Market’s features, as well as other essential stuff you need to know before using their platform.
So if you’re ready, let’s start!
What’s a CFD, anyway?
Essentially, a CFD is a financial contract between a buyer and seller, which involves paying the differences between the opening and closing of a trade. If you invest in CFDs, note that you don’t really own the asset in question.
Instead, you’ll receive the profit based on the price changes. In other words, the profit or loss in your investment will ultimately depend on your forecast of the financial market you wish to trade.
Pros of IG Markets
What sets IG Markets apart from other trading platforms is that it specialises in CFD trading on indices, forex, shares, commodities, and cryptocurrencies, among others.
While it operates globally, it’s also authorised and regulated by the Monetary Authority of Singapore (MAS). This is an important safeguard because unregulated trading platforms are prone to higher risks, especially fraud.
On top of that, IG Markets is also regulated by several financial institutions abroad, which pretty much guarantees your safety.
A unique feature of IG Markets is the option to do Knock-Outs, which allows you to select the level of risk you’re willing to take before making a trade.
Overall, we found IG Markets to be a solid choice when it comes to its diversity in trading CFD assets. Apart from those mentioned above, you can also expand your portfolio to ETFs, futures, spot markets, and more if you’re a more experienced trader.
They aren’t exactly the best option for total beginners, but they do have an interesting education platform through IG Academy. This platform helps new traders understand the basics of trading, which is a huge plus for beginners!
What’s also great is that IG Markets allows users to create demo accounts. We found this feature to be a great tool for beginners to practise trading using their simulator.
IG Markets is available in mobile and desktop versions. We highly recommend using the desktop version for more intensive trades and research though!
Cons of IG Markets
Perhaps the biggest drawback about IG Markets is its relatively high commission fees (called “spreads”) compared to other CFD trading platforms. For instance, their commission for stocks and ETFs are set at 0.10%, which is higher than other platforms set at 0.08%.
Customer service can either be a hit or miss too. Their customer service team can be incredibly busy at times, which is why the queue can be long sometimes.
IG Markets’ specialisation in CFD assets can also be a source of confusion for some, especially beginners. The lack of other available financial products you can trade is also a potential deal breaker for some.