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Profit from Gold, Silver & Platinum with IG Index

Precious Metals Available: Positions Mirror Price of Gold, Silver & Platinum
Additional Info: Principally Directed at UK Citizens, for Whom Profits are Tax Free; Leverage Possible;
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IG Index is part of IG Group Holdings plc, a world leader in financial derivatives trading listed on the London Stock Exchange. IG Index offers an alternative to conventional dealing in gold, silver, platinum, forex, commodities, equities and other markets. It offers a “spread betting” service which enables you to profit from rising as well as falling prices 24 hours a day.

When you spread bet, you never physically buy or sell an instrument (i.e. gold bullion or a share in Barclays), you simply bet on the direction in which you think the instrument will move. This means that you 'buy' if you think the price of, say gold, is set to rise and 'sell' if you think the price will drop. The degree to which you are correct dictates how much you win or lose.

What is the 'spread'?

The 'spread', also known as the 'dealing spread', is simply the difference between the price at which you can 'buy' and the price at which you can 'sell' a particular market. When opening or closing a bet, you buy at the upper end of the spread and sell at the lower end.

For example, say IG Index are offering Spot Gold Daily at 9994 / 9996. The spread is two points: if you want to 'buy' you do so at 9996 and if you want to 'sell' you do so at 9994.

Ability to go long or short:

When you open a spread betting position with IG Index, you simply speculate on whether you think the markets will move up or down. This means that the more a price moves in your favour, the more money you make; the more the price moves against you, the more money you lose.


Leverage (or gearing) enables you to open positions against relatively low deposits so you don't have to put down the full transaction value. You should, however, note that this magnified exposure also means you can lose more than your initial outlay. WhichWayGold does not recommend the use of leverage when deploying positions... “If you don’t bet, you can’t win. But if you lose all your chips then you can’t play anymore”.

Tax-free profits

Spread betting with IG Index means that all your profits are absolutely free in the UK from capital gains tax and stamp duty. The only charge you incur is their dealing spread. Please note however that tax law can be changed or may differ depending on your personal circumstances.

Limited risk betting

WhichWayGold does recommend the use of limited risk betting. To avoid open-ended liabilities IG Index offer a full limited risk service. You pay a small “Controlled Risk” premium to guarantee your bet is closed out at a specified level if the market moves against you. This doesn't place a cap on your profits, however, which are potentially limitless.

Small minimum bet sizes

With many bets, you can trade in amounts that are smaller than the equivalent of one lot in the underlying futures market.

Wide range of markets

Depending on your location around the world, IG Index offers an exceptional choice of shares, plus indices, forex, commodities and more. You can trade a number of different financial products on one account and their deal sizes are flexible so you can bet in amounts which feel comfortable.

The range of markets available may be limited in certain locations. For example, all services are available for U.K. residents, but residents of the U.S. are limited to only forex spread betting products.

Competitive spreads and low charges

IG Index are committed to providing narrow spreads on all of their products: from just 2 points on major indices and 0.1% per side on major shares. For example, forex spreads start from 1 pip on EUR/USD and USD/JPY. The dealing spread is the only charge you pay.

Immediate dealing at a fair price

The IG Index “PureDeal” trading platform provides full account management and one-click dealing, so you can make the most of your know-how. To spread bet most effectively, their 'Price Improvement' facility gives you their best available price when your deal is executed. This is especially valuable in volatile markets. IG Index’s round-the-clock dealing facility enables you to place financial bets online or by phone right around the clock.

Account Application

You can open an IG Index account in minutes, 24 hours a day. Simply submit your details and they will automatically process your application, with no forms to sign or documents to send.

Click here to go to the IGIndex website >

IG Index offer two types of account...

Plus Account

Benefit from the tightest spreads we offer and the widest range of order types, including Limited Risk orders and Trailing Stops.

IG Index monitor your account, but you can lose more than your initial deposit.

Limited Risk Account

Limit your risk on every position in return for a wider dealing spread. You know your maximum possible loss in advance.

You can never lose more than your initial deposit.

This is the account which WhichWayGold recommends.

UK applications

In order to open your account IG Index are obliged by their regulator, the Financial Services Authority, to verify your identity. The details you submit will therefore be checked on their behalf by Equifax and/or Experian (this is not a credit check).

Overseas applications

If you live outside the UK, you can use this form to submit your details but IG Index will request further documentation to complete the application for your spread betting account.

What next?

Once you have submitted your application, IG Index will attempt to verify your identity electronically using their automated system, which might take a couple of minutes. If they are successful they will confirm your spread betting account details in an automated email, and you will be able to log in and deal.

If they are unable to verify your identity they will notify you by email together with details of how to complete your application. In either event, they may need to contact you by telephone and/or email.

Example Trade: Selling (Shorting) Gold on a Controlled Risk basis

You decide that the price of Gold is set to fall but you feel that you want to limit your risk potential with a Controlled Risk bet. Say our price for December Gold is 654.7/655.4, which includes the IG spread of 0.7, and you choose to ‘sell’ $100/point at 654.7. The additional Controlled Risk premium of 0.3 is also subtracted on the opening, so your opening price would be 654.4. This is the extra premium you have to pay in order to ensure your maximum loss is controlled. Say you want to limit your losses to $2,000, you put your stop 20 points above your opening level (20 points x $100 per point), i.e. at 674.4. IG Index require as a deposit for this kind of bet the maximum amount you can lose—$2,000 in this case.

Following your bet the market falls and you decide to close the bet. The IG Index price for December Gold is now 646.4/647.1, so your closing price will be 647.1.

Opening level 654.4
Closing level 647.1
Difference 7.3

Profit on a $100/point Controlled Risk ‘sell’: 7.3 x $100 = $730

Of course, if the market moved against you and had risen you would have lost money. If it moved up the full 20 points to hit your stop level then you would lose the whole $2,000 but no more – the position would be automatically closed out.

Click here to go to the IGIndex website >

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Profit from Gold, Silver & Platinum with IG Index (UK Citizens)
IG Index offers an alternative to conventional dealing in gold, silver & platinum - profit from the price of bullion tax free

01 October 2009 | Learn More | Add to Favourites

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