Comparing the Different Spread Betting Companies

Markets Covered

Widest range of markets possible throughout the industry (about 10,000 in all). Thousands of international shares (7000+ shares including AIM shares) plus stock indices, forex currencies, binaries, options and many others.

Training Facilities

TradeSense (a 6 week education program with reduced trade sizes). Tradesense will allow you to bet for 50% of the minimum bet sizes for the first 2 weeks after opening the account to give you sometime to familiarise yourself with the platform. After this initial period, the bet sizes are changed to standard minimum bet sizes.

Webinars and seminars are also available for clients to view and attend. Plus online information, manuals, training, support and 24 hour phone support.

Typical Spreads

IG Index uses variable spreads which mean they will widen their spreads sometimes up to 3 times their typical spread (maximum) depending on the market conditions. In normal market conditions, the typical spread applies.

Dealing Commissions and Fees

IG Index will charge 1.75% for credit (not debit) card payments that reach £1,000 or equivalent in one day. Deposit using Switch/Maestro/Solo/ or CHAPS/BACS to avoid incurring fees for amounts larger than this.

Financing Charges

2.50% over LIBOR if Long - 2.50% under LIBOR if short. Funding is calculated based on the whole position size including the amount you have laid down as margin.

Accounts Available and Credit Facilities

You can either choose a Plus Account or Limited Risk Account type. Credit facilities are available to eligible clients.

The Plus Account has the tightest spreads on offer and the widest range of order types, including limited risk orders and trailing stops. IG will monitor your account by you still stand to lose more than your initial deposit.

With the Limited Risk Account all your trades carry a guaranteed stop loss order (for an additional charge in the form of a wider spread) which means that you cannot lose beyond your chosen stop level. Please note, Limited Risk Account holders can choose to upgrade to a Plus Account at a later stage.

Mobile Dealing

The new IG Index iPhone application lets you deal and it has charts, indicators and moving averages; with clients . It's quite cool actually - select IG, tilt your phone - that brings up a few main quotes prices - FTSE, Dow, Gold etc...then you can press on the individual instrument and it will bring up a chart, and that's all before you even log into your IG Index's account. IG supports both Anroid and Apple devices and has also developed platforms for Blackbery and the Windows 7 phones. The full range of functionality is provided including stops, limits and working orders while charts are also covered.

Minimum Stake and Deposit

Minimum Stake depends on the market. Minimum stake for the FTSE Spread is £2 while the minimum stake for the Dow Spread is £1. City Index also allow fractional bets which is good to control the risk exactly. £10 is the minimum accepted deposit.

Rolling Policy

In the past profits/Losses on daily rollovers used to be crystalized every day however this changed in April when IG introduced its Daily Cash Bets which are essentially spread bets with a long expiry date extending out till April 2016. The new Daily Cash Bets mean that bets are not closed every night and will remain open until you close the spreadbet. You are still charged for overnight costs, but this amount is reflected on your cash balance, instead of being part of a reopened cash bet which makes it easier to keep track of profits/losses since the trades will now keep rolling until you close the positions without profits/losses being crystallised every night.

Futures

For rolling over a UK Shares or Index spread bet to the next quarter the following applies, close at the closing price minus if long/plus if short normal closing spread. Re-open at the next contract with no spread.

Dividend Policy

IG Index pays out 90% on dividends on rolling daily positions.

Stop and Limit Orders Available

Market orders, stops, limits, OCO's, guaranteed stop orders, trailing stops and if dones (contingent orders) are available. Guaranteed Stop Orders available on all markets.

Basis for Triggering of Stops

The majority of IG Index's FX, Commodities and Indices are based on the underlying markets price, including IG's spread, hits your stop. For example, if position X is trading at 99 / 101 on the underlying market, and you have a sell stop at 90 and IG's spread is +/- 1, the platform would show the price 98 / 102. The stop loss will only be triggered when a trade in the underlying market is executed at 91, which would put IG's bid price inclusive of spread/premium at 90.

For market maker shares, stop losses are triggered basis corresponding bid/offer prices in the underlying market, meaning that a trade does not necessarily need to be executed in the underlying market in order to trigger the stop. Therefore, using the same example as above this time the stop would be triggered if the underlying market went bid at 91 even if no trade had been executed at that level.

Finally, for markets which IG quotes an out of hours price for and IG Index is therefore acting as a market maker, such as out of hours Indices, a stop level is triggered when their bid/offer price hits the required level. As in this instance there is no underlying market and IG are generating the price based on the business that they see and the movement of other relevant markets, the price IGIndex generates will already have their spread included and will act as the determining factor.

Opening Hours

Round-the-clock. 7 - 24 hour trading on popular markets.

Research and Charting

Professional charting systems are provided by 'Pro-Realtime' - 3 different levels of charts are offered from dead simple to dead not-simple, charts come with indicator builder/creator too, all free. You can trade/manage trades right off the charts too... Technical detailed useful commentary research covering shares, indices, forex, commodities and fixed income is also freely available to clients (provided by Trading Central and Investors Intelligence).

Support

I've had to use IG Index's customer services and am impressed with their helpfulness and knowledge...and a business is only as good as the customer services department.

Details and Signup Incentives

A more detailed review of IG Index UK is available here.

Or click here to sign up for a IG Index spread betting account. No vouchers or sign-up offers are offered but IG have graciously agreed to offer new signups a free forex spread betting book written by their Chief Market Strategist (David Jones) to any new clients who sign up from my site. However, your real reason for signing up (!) - if anything should be for the superb charting package and the huge range of markets covered.

Comments? Inaccuracies!!? Send your comments to traderATfinancial-spread-betting.com The spreads of a particular firm have changed? E-mail us and we will post and update.