IG Securities will adjust transaction costs
IG Securities will adjust transaction costs
IG Securities, the Japanese division of IG Group, has announced changes to transaction values effective July 29, 2024.
This update includes a reduction in the minimum spread for the pound sterling and yen (GBP/JPY) pair, as well as adjustments to the additional interest rate and conversion rate for foreign currency and precious metals transactions.
IG Securities is reducing the minimum spread for the GBP/JPY pair from 1.0 sen to 0.9 sen. This change is aimed at providing more competitive trading conditions for clients working with this currency pair. However, it is important to note that spreads are not fixed and may widen due to sudden market changes, natural disasters, early morning or weekend trading when liquidity is low, or the release of important economic indicators. Traders are advised to confirm the spread during actual trading on the trading screen.
Adjustments to mark-up (interest rate) calculation formulas
The interest rate premium on foreign currency and precious metals issues is also being revised. The formula for calculating the surcharge will change as follows:
Before the change (current formula):
Overhead = average rate of the underlying asset / value of 1 point equivalent x 0.3% / 360 days x number of calendar days x value of 1 point x number of lots traded
After the change (as of 7/29)
Overhead = average price of underlying asset ÷ 1 point equivalent value x 0.6% / 360 days x number of calendar days x value of 1 point x number of lots traded.This adjustment will apply to foreign currencies, precious metals (spot gold, spot silver, spot platinum) and shares with put options using them as underlying assets.
The conversion rate, which is the exchange fee applied when clients trade in a currency other than their account currency (yen or US dollar), will be increased. Currently, realized gains/losses are calculated in the trading currency and then automatically converted to the account currency at a rate with up to 0.5% added or subtracted. After the change, this rate will be adjusted to 1.0%.
The broker emphasized that these changes are part of its ongoing efforts to provide competitive trading conditions and ensure that our clients have access to the best possible trading environment.
These trading cost adjustments reflect IG Securities' commitment to maintaining a competitive advantage in the trading industry. By reducing the GBP/JPY spread and adjusting the interest rate premium and conversion rate, IG Securities aims to improve the trading experience for its clients.
Read also: FIBO Group expands cryptocurrency trading capabilities on MT4 platforms
