Forex trading costs

• Understanding margin

  Margin trading gives you full exposure to a market using only a fraction of the capital you’d normally need. It is the amount of money you need to open a position, defined by the margin rate.

• Margin with IG Option

  When trading on margin, it's important to be aware that your risk is also based on your full exposure to the market.

• Funding and interest

  We apply funding and interest charges to forex trades, as explained below. You can also see our ‘costs and charges’ document for examples of how these forex trading costs can affect your positions.
  
  If you keep a position open overnight (after 5pm EST) we will make an adjustment to your account, to reflect the cost of funding your position.

Forex trading cost and charges

• Overnight funding fees

  When you trade derivatives with us, you trade on margin. This means you provide a deposit to open a position, and we in effect lend you the rest of the money required. If you close your position on the same day, there is no funding fee. If you keep it overnight, we charge a small fee to cover the cost of the money you've effectively borrowed.
  
  The fee is calculated as the tom-next rate plus a small admin fee.

• Currency conversion charges

  Forex trading in a currency other than your account's base currency may incur a currency conversion charge. Our default setting is instant conversion, where foreign-currency profit is converted to your base currency and funding or commission charges are taken into account before your account is credited. We also offer daily, weekly and monthly conversion settings. Our standard charge is 0.5%.

• Extra services and charges

  There are some extra services that we charge for.