How does ig pay you

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Last updated: April 8, 2026

Quick Answer: IG pays traders through a combination of spreads, commissions, and overnight funding charges. For example, on popular instruments like EUR/USD, spreads start from 0.6 pips on the standard account. Commissions apply to certain markets like shares and US Treasuries, typically $5 per trade for US shares. Overnight funding charges apply to positions held beyond market close, calculated using interbank rates plus a small markup.

Key Facts

IG was founded in 1974 as IG Index, making it one of the oldest spread betting and CFD providers
IG serves over 313,000 active clients worldwide as of their 2023 financial reports
The company offers trading on over 17,000 financial markets including forex, indices, shares, and commodities
IG reported revenue of £973.8 million for the fiscal year ending May 2023
The company is publicly listed on the London Stock Exchange under ticker IGG

Overview

IG Group Holdings plc, commonly known as IG, is a British multinational financial services company specializing in online trading. Founded in 1974 by Stuart Wheeler as IG Index, it pioneered the concept of spread betting on gold prices. The company expanded throughout the 1980s and 1990s, launching financial spread betting on stock indices in 1986 and introducing CFD trading in 1999. IG went public on the London Stock Exchange in 2005. Today, IG operates globally with offices in 17 countries and serves clients in over 195 countries. The company has evolved from its spread betting origins to become a comprehensive online trading platform offering CFDs, forex, and share dealing. Regulatory milestones include obtaining FCA authorization in the UK and ASIC regulation in Australia. IG's technological advancements include launching mobile trading apps in 2010 and developing proprietary trading platforms like IG's web platform and MT4 integration.

How It Works

IG generates revenue through three primary mechanisms when clients trade. First, spreads represent the difference between buy and sell prices; for instance, on EUR/USD, IG might quote 1.1050/1.1056, creating a 0.6 pip spread. Second, commissions apply to specific markets: share CFDs typically incur $5-$10 per trade depending on the market, while futures and options have structured commission schedules. Third, overnight funding charges apply when positions are held beyond the daily cut-off time (usually 10 PM UK time); these are calculated using the relevant interbank lending rate (like LIBOR for USD positions) plus a 2.5% annualized markup. For long positions, clients pay funding; for short positions, they may receive it. Additional revenue streams include inactivity fees (charged after two years of no trading) and currency conversion fees for accounts in different base currencies. IG's pricing varies by account type, with raw spreads available on professional accounts that charge commissions instead of wider spreads.

Why It Matters

Understanding IG's payment structure is crucial for traders managing costs and profitability. The spread-based model makes trading accessible with no commission on many instruments, benefiting frequent traders. However, overnight funding significantly impacts long-term positions, making IG better suited for short-term trading strategies. For retail investors, transparent pricing helps compare brokers; IG's FCA regulation ensures client funds are segregated and protected up to £85,000 under the Financial Services Compensation Scheme. Institutionally, IG's revenue model supports market liquidity by hedging client positions in underlying markets. The company's financial stability, demonstrated by consistent profitability, provides security for client funds during market volatility.