Broker Interview | IG

Conversation with Brokers" is an interview program organized by FOLLOWME for brokers all over the world. In this column, we ask brokers about the current state of the Forex industry as well as its development, including technological progress, changes in regulatory policies, etc. The interviews also discuss issues that traders care about, such as the hardware and software environments of brokers, services provided, and security.

Established in 1974, #IG Group# is a major international broker with nearly 50 years of experience. We’ve compiled a list of questions from our community, so read through the interview and learn the answers directly from the IG group.

1.Despite recent events like COVID-19, the Fed’s interest rate hikes, and the Russo-Ukrainian War affecting many markets quite negatively, IG’s net income in the 2022 fiscal year reached 972.3 million pounds, a 16% year-on-year increase. On top of this, IG’s active customer base grew by 31% to 381,500. How did the IG achieve such impressive results in such a sluggish economic environment?

Answer: We’re proud to say our core business has historically remained strong throughout challenging times, particularly over the last two years. Our high-potential markets also saw significant growth thanks to the resilience of the talented teams responsible for them.

One of the major values for our business is championing the client. As such, new products and markets are constantly being introduced to improve our clients’ trading experience. Thanks to this we’ve continued to achieve record results year on year, even while our competitors have struggled.

2.IG provides a multi-asset platform, including CFDs on forex, commodities, futures, indices, options and cryptocurrencies, as well as share trading. What is the current number of users trading cryptocurrencies through CFDs, and which cryptocurrency instruments do you think represent the greatest investment opportunities?

Answer: There are 138,000 active accounts on our books for clients using CFDs to trade crypto products this financial year. However, we’re non-advisory and cannot recommend which cryptocurrencies present the best investment opportunities.

As the two most popular (and most liquid) cryptocurrencies, most of our flow is in BTC and ETH, but we also offer CFD trading on other cryptos like LTC, LINK, ADA, UNI, DOT and more. You can find out more here.

3.Connection stability is very important for forex and copy trading. As a community that supports COPYTRADE, FOLLOWME’s users hope to find brokers with proven performance regarding connection stability. How does IG’s platform perform in terms of stability?

Answer: Currently, our platform does not support copy trading. However, we do have targets regarding platform uptime and trade execution speeds.

Our platform uptime is currently 99.99%, and an average execution speed of 0.014 seconds. Our trading platforms are purpose-built to handle huge volumes of trades, with an average of 0.027 seconds from submission to fill.

4.The maximum leverage currently supported by IG's trading account is 200 times, but investors cannot manually adjust the leverage when trading, which can sometimes result in higher trading risks. Will this be changed in the future? In addition, what measures will the IG take to protect the safety of investors' funds?

Answer: Multi-delta products (adjusting leverage) have been suggested in the past but aren’t really on the current roadmap.

With regard to protecting client funds, we always keep client funds completely separate from our own funds in segregated trust accounts. We also provide negative balance protection to all IG international clients.

5.Compared with the global market, the forex trading potential of the Southeast Asian market has not yet been fully explored. With the constant improvement of the population’s understanding of forex market systems in Southeast Asia and the relatively strict regulations in developed countries, more and more forex brokers are choosing the Southeast Asian market as a priority in their general strategy. What strategy is IG adopting to develop its Southeast Asian market?

Answer: At IG, we aim to provide our products to ambitious individuals everywhere. We look to offer relevant markets for our clients around the world, which is why we provide over 17,000 markets to trade.

Unlike some brokers, our business model isn't about profiting from client losses. That's why we see education as key – we offer IG Academy for those new to trading, and our Trade Analytics tool once clients get started. We also provide market content through IG and DailyFX analysts, keeping our clients up to speed on market events. We provide localization, for example CFDs on palm oil trading in Malaysia, because we want traders in Southeast Asia – and everywhere else in the world – to be able to trade the markets they’re most engaged with.

6.Although IG is overseen by multiple regulatory bodies, there are differences between these regulations. Can investors in Southeast Asia choose to open their trading account under a specific regulatory body? 

Answer: Our CFD accounts are provided by IG International Limited. IG International Limited is licensed to conduct investment business and digital asset business by the Bermuda Monetary Authority. IG International Limited is also backed wholly by the wider IG Group.

Answer: IG Academy empowers investors, putting them in the driver’s seat of their education. Our online courses are self-paced and combine written content with videos, practical examples and interactive quizzes. If you’d prefer to learn from an instructor, we also have live webinars across a range of topics.

What really sets us apart though are our demo accounts. They give you the opportunity to put your learning to the test with $1,000,000 in virtual funds.

This is the perfect way to get a feel for our platform and try out any trading strategies you’ve been developing completely risk-free – ideal for honing your new and improved trading skills. You can sign up for a free demo here.

Proofreading:Melody
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