Getting started
I'm new to CFDs; how do I get started?
The first step is making sure you understand what CFDs are, how they work and what the risks are. All this information is available in our Product Disclosure Statement, and we also have a number of 30-minute seminars available. Once you feel you have a good understanding, opening an account is the next step. You can apply online in just a few minutes using our automated form, or download and print a PDF form if you would prefer.
Do I need to send any documents?
In the vast majority of cases you will not need to send us any supporting documents as we can verify your details online. Occasionally we will be unable to confirm your identity online (for example if you have moved house recently); in such cases you will be required to provide documentation to verify your identity, we will contact you if documentation is required.
Do I need to deposit funds straight away?
You don't need to send any money to activate you account, though you will have to deposit funds to begin trading.
How do I fund my account?
Once your account has been approved and you have obtained your login details, you may deposit funds using any of the following methods:
| Payment Option | Processing | Charges |
|---|---|---|
| BPAY® | Next day* | Free |
| MasterCard Debit Card | Instant | Free |
| Visa Debit Card | Instant | 0.5% |
| MasterCard Credit Card | Instant | 1.5% |
| Visa Credit Card | Instant | 1.5% |
*BPAY payments are usually credited the next working day subject to bank cut-off times and the inclusion of the correct reference to identify the funds.
You will receive the BPAY details including your unique reference number once your account has been approved.
Debit card and Credit card payments are also accepted and can be made electronically once you log into the platform.
Will I need to download any software before I start trading?
Our award-winning dealing platform, PureDeal, is completely browser-based and means that you don't need to download any software. You can also access your account through your mobile, PDA, BlackBerry or iPhone. Stay in touch 24-hours-a-day from anywhere around the world!
How soon can I begin trading?
If you apply online, providing we are able to verify your identity and once you have deposited funds to your account, you could be up and running within minutes.
Can I apply from outside Australia?
We can open an Australian account for people from most countries, but it may be more convenient for you to deal with an office closer to home – we have offices in the United Kingdom, Japan, Italy, USA, Germany, France, Spain and Singapore.
I would like someone to deal on my behalf. Can I appoint a Power of Attorney to trade for me?
Yes. Initially, please open an account in the usual way. Once your account is open, we will send you a Power of Attorney form which will allow a nominated third party to access your account.
Alternatively, you can download the PDF form.
Types of accounts
Which type of account should I apply for?
We offer a number of different types of accounts, each suited to varying levels of experience and risk capital. If you are new to CFDs you may want to consider our Limited Risk Account, where Guaranteed Stop Losses must be attached to all trades so that you know exactly how much is being risked.
In addition to individual accounts, we also offer corporate, trust and joint accounts. To apply for these, simply download an application form.
Can I use Guaranteed Stops on all account types?
Yes, all account types allow access to Guaranteed Stops.
Learn more about CFDs
How can I learn more about trading CFDs?
We offer a free, dedicated educational resource called TradeSense; a six-week course designed to guide you through your first steps in CFD trading. We also have an extensive range of live and archived online seminars available to help further your CFD education with IG Markets.
Can you tell me a bit more about TradeSense?
TradeSense is an educational programme for new clients, designed to help you become acquainted with trading CFDs and the financial markets. It's free to join, just check TradeSense on the application form to join the programme.
When you sign up to the TradeSense programme, you will have the option to receive the 6 modules free via email. Each module concentrates on different aspects of CFD trading.
Plus, when you join TradeSense, you can place deals at a reduced minimum size (from as little as 5 cents/point) for the duration of the programme More...
Do you charge your clients for any of your seminars?
No, we provide our clients with opportunities to increase their knowledge and skills through a dedicated education area, which includes our TradeSense training resource and a growing range of online seminars. Our educational programme is managed by our experienced Head of Client Education, Adam Lewis.
Can I open a Demo account?
Yes, we offer free two-week Demo accounts, but many of our clients find it easier to open a full account. We do not require a minimum account opening balance and through our TradeSense programme you can trade from as little as 5 cents/pip. We also offer a full range of mini contracts on our more popular markets...
What is Direct Market Access?
Direct Market Access (DMA) allows you to trade directly into the order book of equity exchanges worldwide. Place orders inside the market spread, gain full access to prices in size and gauge the liquidity on either side of the exchange.
You can trade DMA with us through PureDMA. Our Head of Client Education, Adam Lewis, has recorded a special online seminar 'A Guided Tour of PureDMA' to help get you started.
What are Guaranteed Stops?
As part of our Risk Management suite, we offer Guaranteed Stops. They put an absolute limit on your liability in the event of a violent market movement, without restricting your profit potential. When you place a Guaranteed Stop you set a maximum/minimum exit price for your trade. Your position will be closed at exactly your selected level should the market move against you, even if there is a very sharp overnight move.
See an example of how a Guaranteed Stop works.
More about IG Markets
IG Markets – First for CFDs
IG Markets specialises in financial derivatives, principally Contracts for Difference (CFDs) on shares and indices, as well as being a leading dealer in margined Foreign Exchange. Clients include brokers, fund managers and trading companies plus private investors.
Originally founded in 1974 as IG Group, a spread betting company in London, the group rapidly expanded its offerings and markets.
In July 2002, IG Markets became the first CFD provider in Australia.
IG Markets is a leading CFD provider with offices in Melbourne, London, Tokyo, Milan, Chicago, Dusseldorf, Paris, Madrid and Singapore.
IG Markets is part of IG Group Holdings plc which is listed on the London Stock Exchange. The publicly listed company is currently valued at over A$2 billion which ranks the group just outside the FTSE100.
IG Group currently employs over 800 people worldwide. Read more...
Is my money safe with IG Markets?
Yes, when your funds are held by us they are in a separate trust account and are not passed on to any third parties. They cannot, under any circumstances, be passed on to any third parties unless agreed by both you and us in writing. See Strength and Security.
Where can I find out more about the IG Group of companies?
To learn more about IG Group's range of successful brands, please visit www.iggroup.com.
Types of Fees
How do you charge commission?
IG Markets either quotes a commission charge (for equity products) or a spread charge (difference between a buy and sell price).
Our standard commission rate for Australian share CFDs is a competitive 0.1% with a minimum charge of just $8. For more information, see our Market Leading Rates.
What is the funding rate charged for holding a position overnight?
When positions are held overnight, IG Markets will charge a funding fee for the value of the position, or if a position is held in a fixed expiry future contract this funding charge is built into the price of the product.
Long Positions: The cost of borrowing is based on the London Interbank Offered Rate (LIBOR, a rate charged on overnight loans between financial intermediaries). So, for a long position, you will pay 2.5% above LIBOR.
Let’s say LIBOR is currently 3.25%, you would therefore pay 5.75%. This is an annual rate, but the financing is calculated on a daily basis. For each day that you hold the position, you therefore accrue a financing cost that is calculated and debited from your account of a daily basis.
Short Positions: Funding short positions works in the opposite manner for long positions. In most cases, rather than pay interest, you receive interest for being short.
In the same way that rates on loans are generally higher than savings rates, the amount you receive for being short is not as much as the amount you pay for being long.
Are there any hidden charges?
At IG Markets, we have no hidden charges. There are no administration charges such as margin call fees, tax statement fees, audit fees for disputes or platform fees.
You will also not be charged for withdrawing funds, phone dealing or incur any monthly account keeping fees.
What fees will IG pass on to the client?
- Administration fees on fund transfers from MasterCard and Visa credit cards, and Visa debit cards. There is no fee applied on transfers from debit MasterCard cards
- Telegraphic transfers $15
- Exchange fees are levied if a client opts to receive live streaming data ASX Exchange fees are waived if at least four trades are transacted in a given month on ASX shares - there is no charge for delayed data
- Charting fees will be charged if a client opts get access to our pro-level charting package
- Charting fees will be waived if at least four trades are transacted in a given month
What is the cost of DMA?
You can access DMA for free via our PureDMA platform.
What is the cost of Data feeds?
The share prices on PureDeal are actual exchange prices. When you open your account, we automatically grant you free access to delayed shares data, allowing you to view data from several exchanges from around the world without incurring any exchange fees.
For Live Prices: You will need to subscribe to live prices via the ‘Data Feeds’ section of the ‘My Account’ area in PureDeal. This does incur a fee from any exchange to which you subscribe. Exchange fees are waived on ASX data feeds if at least four trades are transacted in a given month on ASX shares.
For example, let’s say you are interested in dealing Australian shares that trade on the ASX. The data fee for this is $37.50 and will be debited from your account on a monthly basis and reimbursed at the end of the month when at least 4 trades have been completed.
For Real-time Charts: You will need to activate Real-time charts in your Account Preferences within PureDeal. This does incur a fee of $60 per month to which you subscribe. This fee will be waived if at least four trades are transacted in a given month.
What is the cost of Guaranteed Stops?
There is a one-off extra charge, in effect an insurance premium, for this Limited Risk protection. In most cases this is just 0.3% of the underlying transaction value. Limited Risk protection is not available on all shares and the size of the position on which we may be able to offer this facility may be limited. We will be happy to advise you of the facilities available for any particular share.
Learn More at http://www.igmarkets.com.au/
Having an advisor or trading guide who is able to explain the concept of CFDs and help you to spot trading possibilities can often be a very safe way for new CFD traders to gain exposure to financial markets.
ReplyDelete