With the recent market conditions making it ideal to investigate investing overseas, it’s more important than ever to consider platforms that allow for minimal brokerage fees to maximise your investment. In considering which platforms are available, IG Markets could be one to watch with their new product offerings making investing overseas even more accessible. Canstar caught up with Kevin Algeo, Head of APAC & Africa from IG Markets to learn more.
Q: What makes IG stand out from competitors?
A: For over 45 years, IG has been leading the industry with award-winning products and platforms. The new zero commission international shares pricing is a first in Australia and coupled with Australian shares $5 commission for active investors, we offer tremendous value to active investors. Our extended hours for US shares provides even greater opportunity for investors looking to take positions around company announcements, the majority of which happen outside of the main session trading hours. We also understand that investors expect a seamless experience when trading a global portfolio and that’s why we have built our platform to use one account and work seamlessly across desktop or mobile.
Q: How does the Trade extended hours on US shares work?
A: Trading pre- and post-market enables you to take a position on key US shares outside normal trading hours. Most Australian traders can only trade the US stock market’s from 23.30 to 06.00 AEST, but with extended hours you can trade for much longer. The extended hours means that IG clients can access key US shares from 18.00 to 10.00 Monday to Thursday, and 18.00 Friday to 07.00 Saturday AEST. This additional 9 hour trading session, and the fact that most US companies release their earnings outside of the main session, means that our clients can take advantage to trade out of positions or increase exposure as announcements are being made. With, what is expected to be, a significant post-COVID US earnings season kicking off in July, these extended trading hours will be critical for clients trading during these announcements.
Q: How are you able to charge $0 on US and international shares?
A: When you trade international shares denominated in a currency other than Australian dollars, IG charges a small fee to convert your Australian dollars into the underlying currency of the shares you want to trade. This fee, along with a subscription fee charged to non-active clients who still enjoy the use of IGs trading platform and service, have allowed us to remove the main cost that clients want to see reduced.
Q: Why is it important for you to provide that service to Aussie investors?
A: We know that Australia represents just 2% of the global equity market and this is the direction the market is travelling with pricing, and our clients just keep telling us they want lower fees and access to international markets. We think zero commission brokerage will be that next big step to help clients diversify and get international exposure at cheap rates.
Q: Can you provide more information on IG Academy?
A: IG Academy offers a wide range of online courses, live webinars and in-person seminars to help our traders to succeed. We want traders to trade profitability, and to do that we deliver relevant, in-depth and practical resources for both new and experienced traders, equipping them with the knowledge and skills to successfully navigate the world of financial markets.
Q: Can you expand on what your unique collateral service means for investors?
A: Similar to how margin lending allows you to borrow against your shareholdings to buy more shares, IGs collateral service has been designed specifically for clients seeking leverage. IG clients who trade CFDs alongside their IG Share trading account, can apply to link these accounts. Clients can then use up to 95% of the value of their shareholdings as initial margin to cover their CFD positions. They will still need to have funds to cover any potential running losses that may occur, but the collateral from their shareholdings can help offset the initial margin required when taking out the position. This provides clients with the opportunity to hedge their shares portfolio, or potentially take advantage of shorter term price movements across a range of asset classes.
If you’re interested in finding out more, head to Ig.com/au/share-trading
If you’re comparing Online Share Trading companies, the comparison table below displays some of the companies available on Canstar’s database with links to the company’s website. The information displayed is based on an average of 6 trades per month. Please note the table is sorted by Star Rating (highest to lowest) followed by provider name (alphabetical). Use Canstar’s Online Share Trading comparison selector to view a wider range of Online Share Trading companies.