IG Broker Review
The binary options industry can be a very disappointing one indeed, it is full of fraudulent and dishonest brokers all looking to make a quick buck from greedy or uneducated traders using unscrupulous tactics such as arbitrary clauses used to justify prevention of withdrawals, manipulation of prices on their trading platform, and ‘personal account managers’ who are really just salespeople looking to get traders to deposit even more money. To top it all off, the majority of binary options brokers are completely unregulated, meaning that duped traders have very little legal recourse back to the broker. It is not uncommon for brokers to shut down and then reappear with another name but under the same owners.
Online since: 1974 (2003 for binary options)
Jurisdiction: United Kingdom
Minimum Deposit: GBP250
Minimum Investment: GBP20
Maximum Investment: None
Countries: All Countries
– Includes a Demo Account
– Offers many trading options
– Broker is registered in the US
– Website could be more intuitive
Binary Minery Rating:
Even when brokers are regulated, far and away the most common regulator is the Cyprus Securities and Exchange Commission (“CySEC”), which is hardly the most trusted name in worldwide financial regulation; although at the moment it is the best option the binary options broking industry has. To be fair, they have stepped up their regulatory oversight in recent years which is why we only recommend CySEC-regulated brokers.
Now let’s talk about IG. Are they a regulated, trusted, and reputable broker? The answer is an unequivocal ‘Yes’ and in fact they may be the best option in the entire binary options broking industry when it comes to this aspect.
Let’s delve deeper into IG and see why this is the case.
1. Regulated by UK authorities – Both operating companies under the IG Group, IG Markets Ltd and IG Index Ltd are regulated by the Financial Conduct Authority (“FCA”) in the UK. You can find their licenses here and here. And while the FCA does not regulate binary options as it considers them a form of gambling, have no worries because IG has also obtained the necessary license from the Gambling Commission. Because of these regulations, IG holds all its clients’ funds in segregated accounts.
2. Regulated by US authorities – You may have noticed that many binary options brokers state clearly in their terms and conditions that they do not accept traders from the United States. The reason is because the Securities and Exchange Commission (“SEC”) and the Commodities Futures Trading Commission (“CFTC”) considers binary options to be a form of security, meaning that only firms regulated by the SEC or CFTC can offer such options. However, it is unlikely that they would ever give any binary options broker such a license as indicated by their investor warning regarding binary options brokers. Currently the only legal option for US traders is the NADEX which is an exchange that is regulated by the CFTC. What does this have to with IG? Well, NADEX is actually owned by the IG Group!
3. They’re not betting against you – Most binary options brokers, despite being called ‘brokers’ are not really intermediaries but rather function more like the house in the casino. Your gain is their loss and vice versa. That’s why your return traditionally ranges from 70 – 85% if you win, but if you lose they give you back 10% (meaning they take 90%). In IG’s case, however, they are a true broker (more of an exchange like NADEX actually) and make their money off of spreads and commissions. Therefore, unlike other binary options brokers they have no real incentive to scam you.
4. Extensive history and track record – As binary options are relatively new, even many of the older and more established binary options brokers have only been around for less than a decade. The IG Group was founded in 1974 as a spread betting firm for clients to trade on the price of gold and has since expanded to over 17 countries in addition to being listed on the London Stock Exchange. This is of course in stark contrast to the numerous fly-by-night operations of many of the binary options brokers out there; and while IG’s binary options brokerage services are relatively new, it actually started offering them back in 2003, still way ahead of all the other binary options brokers.
To conclude, if you are interested in binary options trading but are worried about the unsavory reputation of the industry, then trading with IG is the way to go. You will be able to trade with the confidence that your broker will not be trying to actively scam you and withhold your money, and thus, we highly recommend IG as a binary options broker; they certainly bring much needed legitimacy to such a shady industry.
IG Account Features
As IG’s legitimacy cannot be questioned, they don’t feel the need to offer the numerous benefits and ‘special bonuses’ that most binary options brokers have. They only have one real trading account that requires a minimum deposit of GBP250. A free demo account is also available and demo accounts each receive GBP10,000 in virtual funds, and you don’t have to open a real account first in order to get access to this demo account.
IG Trading Software
IG uses its own proprietary platform, which is web-based but also supports mobile and tablet functionality. The platform does taking some getting used to as it is definitely not the most user-friendly option out there; we suggest that all traders take advantage of the demo account not just for experience in binary options trading, but to gain experience in using IG’s trading platform as well.
IG offers six types of binary options: hi/lo, up/down, ladder, one touch, target, and tunnel. Their asset index is also highly extensive, and you can even preview their platform directly from their website, no registration or demo account required.
IG Support Information
IG offers three different support options, phone support, live chat, and email. While basic, we have no doubt that it would be much more reliable compared to other binary options brokers.
IG Banking and Company Information
IG’s supported methods of deposits and withdrawals would vary based on country, however in the case of the UK, credit cards (Visa and MasterCard), debit cards (Maestro, Visa-Delta, Solo, Electron), prepaid cards, checks, and bank transfers are accepted. One thing we did not like is that IG’s website is not the most user-friendly and many of these terms are not stated. A detailed FAQ page would certainly be of great help to new and potential traders.
Customer Service: Live Chat, Phone Support, Email
Trading Options: High/Low, Range, One Touch, Up/Down, Ladder, Tunnel
Early close: Yes
Expiry Times: 1m, 2m, 5m, 20m, 60m
Deposits and Withdrawals: Credit cards, debit cards, checks, wire transfer
Withdrawal Time: Not stated
Demo account: Yes
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