IG Markets Review 2026

IG Markets sits in the competitive tier for spread betting and CFD costs. For UK day traders, the headline number that matters most is the EUR/USD spread: from 0.6 pips. That compares favourably against the industry average of 1.0 to 1.2 pips for retail brokers, and it means a round-trip trade on a standard lot costs roughly £6 in spread, with zero commission on top.

Spread Betting Cost Advantage

The real cost story for UK traders is the tax treatment. Spread betting profits are exempt from Capital Gains Tax and Stamp Duty under current HMRC rules. For an active trader generating £20,000 in annual gains, that exemption could save £3,400 or more compared to trading standard CFDs or shares subject to CGT at the basic rate. IG's spread betting market coverage is among the broadest in the industry, covering indices, forex, commodities, and individual equities.

Where Costs Add Up

Overnight funding is the fee that catches beginners off guard. Holding a leveraged position past the daily close incurs a charge based on the prevailing interbank rate (typically SONIA for GBP positions) plus an IG administrative margin. During periods of elevated interest rates, this cost compounds quickly on multi-day positions. For pure day traders who close everything before market close, overnight fees are irrelevant.

The FX conversion charge of 0.5% to 1.5% applies when your account currency differs from the instrument's denomination. UK traders with GBP accounts trading US-listed equity CFDs will encounter this regularly. The €12/month inactivity fee after 24 months is easy to avoid by simply placing one trade every two years, but it is worth noting for casual users.

Most broker reviews focus on spreads and commissions. The fees that actually erode returns tend to be the ones buried in the terms and conditions.

Overnight Funding: The Compounding Cost

IG calculates overnight funding as the relevant interbank rate (for GBP positions, this is SONIA) plus an administrative charge that varies by instrument. On index positions, this is typically expressed as an annual percentage applied daily. During 2024-2025, with UK base rates elevated, traders holding FTSE 100 spread bets overnight were paying meaningfully more than in the low-rate era. The exact rate is displayed on each instrument's dealing ticket before you open the position, so there is no excuse for being caught unaware.

Currency Conversion

The 0.5% to 1.5% FX conversion fee is applied automatically when you trade an instrument denominated in a different currency from your account. A UK trader with a GBP account buying US tech stock CFDs will have USD exposure converted back to GBP at this rate on each trade. For active traders, this can accumulate to a meaningful annual cost.

Inactivity Fee

The €12/month inactivity fee activates after 24 consecutive months without a trade. This is longer than many competitors (some charge after 12 months), but it does apply. IG will notify you before charging, and a single trade resets the clock entirely.

Card Deposit Fees

Bank transfers over £250 are free. Deposits below that threshold or via debit/credit card may incur small processing fees depending on the payment method and currency. Always check the current fee schedule on IG's website, as these can be updated.

IG Markets delivers the strongest value proposition for a specific type of trader. Understanding whether you fit that profile matters before committing.

Best Fit: Active UK Spread Bettors

UK-based traders who use spread betting as their primary instrument get a genuinely compelling package. The combination of tight spreads (from 0.6 pips on EUR/USD), zero commission, and the HMRC tax exemption on spread betting profits creates a cost structure that is hard to beat. A trader making 50 round-trip EUR/USD trades per month saves roughly £30-50 versus a broker charging 1.0 pip spreads, before the tax advantage is even factored in.

Good Fit: Beginners With Long-Term Commitment

The unlimited demo account, comprehensive Trading Academy, and no minimum deposit make IG accessible for beginners. That said, the platform's depth means there is a real learning curve. Beginners who are serious about developing trading skills will find the educational resources excellent. Those wanting a simpler, more guided experience might initially find brokers with streamlined mobile-first interfaces more comfortable.

Weaker Fit: Occasional or Position Traders

Traders who hold positions for days or weeks will find overnight funding fees eating into returns. And anyone who trades infrequently should note the 24-month inactivity threshold. For long-term investors, IG's Stocks and Shares ISA wrapper is a better vehicle than leveraged spread betting.