November 30, 2011
IG Index Reduces Spreads On Forex Pairs
IG Index have brought good news to a lot of forex traders this week with the announcement that they are cutting spreads on many different currency pairs once more. They were already really competitive, but now you will be hard pushed to find a spread betting firm or forex broker that offers tighter spreads.
For example the dealing spreads for the EUR/USD and USD/JPY pairs start at 0.8 pips, whilst the spread for the GBP/USD and EUR/GBP pairs start at 1 pip. This is a big improvement because I've used IG Index to trade these pairs with a spread of 2 or 3 pips in the past.
The only downside is that these low spreads are not fixed at this level all the time. For example I've just spent the last minute watching the GBP/USD spread, and although the spread often stays at 1 pip with every tick, it sometimes goes up to 2.5 pips.
Overall, though, it is still a very welcome announcement because I use IG Index quite a lot, and I know quite a few people who read this blog use them as well.