Is IG Markets Regulated? Is it safe? - TU Expert review
License is the most important document you have to consider when choosing a broker. Many traders, who would like to start working with IG Markets try to check whether it is regulated. Traders Union experts have already done that. In this article, you will learn whether IG Markets is regulated, what regulatory authorities supervise the broker and whether it is safe to work with the company in general.
Short summary about the broker IG Markets
IG Markets has been providing brokerage services for retail traders since 2014. It was established in 1974 in London to work with professional traders. It is a part of the IG Group with representative offices in 17 countries. IG Markets stocks are traded on the London Stock Exchange as a part of the FTSE 250 index. The broker is regulated by FCA (Financial Conduct Authority | the UK), CySec (Cyprus Securities and Exchange Commission), ASIC (Australian Securities and Investments Commission), BaFin (the Federal Financial Supervisory Authority | Germany), FINMA (Swiss Financial Market Supervisory Authority), and NFA (National Futures Association). The IG Group global representative office is supervised by BMA (the Bermuda Monetary Authority). The broker provides services of trading Forex and different CFDs through MetaTrader 4 and its in-house platforms for retail and professional traders.
| 💰 Account currency: | USD |
|---|---|
| 🚀 Minimum deposit: | $1 |
| ⚖️ Leverage: | Up to 1:200 |
| 💱 Spread: | From 0.165-0.4 pips on Forex, subject to the client's status |
| 🔧 Instruments: |
Forex; CFDs on indices, commodities, and stocks; Cryptocurrencies, options, interest rates, sectors, bonds, knock-outs, ETFs, and Futures on indices and commodities |
| 💹 Margin Call / Stop Out: | No |
Pros and cons of IG Markets
👍 Advantages of trading with IG Markets:
•Regulated activities and participation in compensation funds;
•No minimum deposit requirements when opening an account with the international division;
•Leverage is available for trading currencies and CFDs;
•Wide range of trading assets and markets;
•Fee rebates for new and active existing clients with large trading volumes;
•Floating spreads from 0.6 pips for retail Forex traders;
•Bonuses for new clients and partnership programs for different client categories.
👎 Disadvantages of IG Markets:
•The broker can reject opening accounts to traders with low capital or insufficient knowledge of derivatives trading;
•Deposits and withdrawals can’t be made with e-wallets, electronic payment systems, or cryptocurrencies;
•Trading conditions differ for various countries, so you have to look for the broker’s website in your country.
Why is it important to work with a regulated broker?
License is a document that certifies that a broker operates legally and guarantees fulfillment of its obligations to the traders. A financial license is issued by a financial regulatory authority of a country (the National Bank) or a specialized authority (for example, Securities Commission, Futures Trading Commission, etc.). It is important to choose licensed brokers for the following reasons:
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A license guarantees that the broker operates in compliance with the rules of the financial regulator that issued the document.
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In order to obtain the license, a broker must comply with certain requirements, for example, the size of the authorized capital or personnel qualification. It is simply not lucrative for scammers to comply with such requirements.
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A broker’s license provides access to real markets, and you can be sure that the quotes are real and up-to-date.
The best option is to work with a broker that holds the license of the jurisdiction, where the trader resides. You can also choose a company with a financial license of another reliable jurisdiction, for example, the U.S. or the European Union.
Is IG Markets Regulated? Broker’s license
Security (Protection for Investors)
The IG Markets brand unites over 10 licensed brokerage and investment companies. The first of them was incorporated in 1974 in the UK and has been regulated by FCA, one of the world’s most reputable regulatory authorities, since 2001. IG Markets is registered under number 04008957 as a company for trading securities and commodity contracts.
IG Markets is a member of the Financial Services Compensation Scheme (FSCS). This fund covers trader losses, if the broker faces financial difficulties. Each client can receive compensation of up to GBP 85,000.
Other companies of IG Group are also licensed. Among regulators that supervise their activities are BaFin, ASIC, MAS (Monetary Authority of Singapore), CySec, FINMA, BMA, etc.
👍 Advantages
- Client deposits are held in segregated accounts with well-known banks, such as Barclays and Lloyds
- Regular financial supervision by authorities that issued licenses for the broker
- Growth of the company’s net profit and its internal capital reserves
👎 Disadvantages
- Negative balance protection isn’t provided to all clients
- Trader loss compensation isn’t available in all regions
- Regulators of certain countries reduce leverage and forbid bonuses
Brokerage fees
Broker’s regulation is the most important choice criterion. However, before you start working with the broker, it is also important to analyze its commissions and fees. TU analysts have studied the commissions and fees charged by IG Markets, which you can see below.
IG Markets charges trading fees for CFDs on stocks and variable spreads for Forex and other types of CFDs. For trading CFDs on U.S. stocks, the broker withholds $0.02 per share, but not less than $15 when trading online and $25 when placing orders by phone. On other stocks, the broker charges 0.08%-0.25% of the trade amount subject to the market. Also, there is a minimum fee. For example, it is €10 for EU stocks. Minimum spreads for spot gold are 0.3 pips; for silver, it is 2 pips; for oil, it is 2.8 pips; for indices, it is 1 pips; and for cryptocurrencies, it is 0.17 pips. Spreads for Forex when using the DMA model, start at 0.165 pips; however, this type of trading is available only to professional traders. Spreads for retail clients start at 0.6 pips. Swaps are charged for transferring positions overnight.
| Account type | Spread (minimum value) | Withdrawal commission |
| Standard | From $6 | YES |
Brokers that are similar to IG Markets
Many brokers operate legally, obtaining relevant licenses and permissions. However, when choosing a broker, it is important to compare their trading conditions. TU experts have prepared a comparative analysis of IG Markets conditions with its closest competitors.
Comparison of IG Markets with other Brokers
| IG Markets | RoboForex | Pocket Option | Exness | Libertex | 4XC | |
|---|---|---|---|---|---|---|
Trading platform |
MetaTrader4, API, ProRealTime, IG Trading Platform |
MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader |
Pocket Option, MT5, MT4 |
Exness Trade App (mobile), Exness Terminal (web), MetaTrader5, MetaTrader4 |
Libertex, MT5, MT4 |
MT5, MT4, WebTrader |
Min deposit |
$1 |
$10 |
$5 |
$10 |
$100 |
$50 |
Leverage |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
Trust management |
No |
No |
No |
No |
No |
No |
Accrual of % on the balance |
No |
No |
No |
No |
No |
No |
Spread |
From 0.4 points |
From 0 points |
From 1.2 point |
From 1 point |
From 0.1 points |
From 0 points |
Level of margin call / stop out |
No |
No |
No |
No |
No |
No |
Execution of orders |
Market Execution |
Market Execution, Instant Execution |
Market Execution |
Market Execution, Instant Execution |
Market Execution, Instant Execution |
Market Execution |
No deposit bonus |
No |
No |
No |
No |
No |
$50 |
Cent accounts |
No |
Yes |
No |
No |
No |
No |
IG Markets is a well-known international company focused on financial market services. It is one of the largest CFD and Forex providers. The broker is regulated by reputable supervisory authorities and provides a high level of security for client assets.
The minimum deposit in RoboForex is $10. Leverage up to 1:2000. Traders choose RoboForex for reliability, favorable trading conditions, minimum spreads, and commission fees. The company is recommended for beginner traders and experienced investors.
Pocket Option offers a wide range of trading instruments and copy trading services. It constantly improves its service quality and expands the list of assets and trading platforms. The broker is suitable even for novice traders without significant capital due to the low initial deposit. Experienced traders who work with CFDs and binary options can also use Pocket Option’s services.
Exness broker is a trusted broker partner that is compliant with all relevant terms. Exness complies with all payment obligations and pays money earned.
Libertex is a reputable broker. It would be worthwhile to look at the platform as a technical solution. It will appeal to those who can not imagine their life without gadgets and are eager to keep up with the time.
The broker is suitable for traders with a basic trading experience, who are prepared to start trading on a real account right away.
Conclusions
IG Markets is a quite reliable broker for trading. IG Markets operates on the license of a reliable jurisdiction and its operation is regularly monitored. However, the company does not offer the best trading conditions compared to competitors. You can choose this broker and not worry about the safety of your funds, but there are better options in terms of trading conditions.
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FAQ
How difficult is it to obtain a brokerage license?
The procedure for obtaining a license differs depending on the jurisdiction, but it is very difficult and expensive to get the document in a reliable jurisdiction. This is why only reliable brokers obtain licenses.
Why is it not recommended to work with offshore brokers?
Offshore brokers have to meet minimum requirements for obtaining a license and reporting, which is why often scammers get such licenses.
Can an offshore broker be reliable?
Yes, although there are not many of such brokers. There are brokers with a good reputation, but with an offshore license. You still need to be very cautious when working with such companies.
How do I check a broker’s reputation?
In order to check a broker’s reputation, you need to read user reviews. However, it is recommended to only use independent websites for that.
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.