Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with Plus500. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Choosing between Plus500↗︎ and IG↗︎ depends on what you want from a trading platform. Both are established brokers with access to global financial markets, but they serve different purposes.
Plus500 is primarily focused on CFD trading, allowing traders to speculate on price movements across a range of markets, while IG offers a much broader investment platform that goes beyond CFDs, including spread betting, share dealing, cryptocurrency investing and traditional investment accounts such as ISAs and SIPPs.
Plus500 vs IG: An Overview
Plus500 is mainly a CFD broker, offering access to thousands of markets including shares, indices, forex, commodities, options, futures, bonds and ETFs. CFD trading allows users to take positions on whether an asset price will rise or fall without owning the underlying asset, making it popular among traders looking for leveraged exposure to financial markets.
For UK retail clients, Plus500 does not offer cryptocurrency CFDs due to regulatory restrictions, meaning traders cannot use the platform to speculate on crypto price movements through CFDs in the UK.
IG provides CFD trading alongside a wider selection of financial products. UK customers can use IG for CFD trading, spread betting, buying and owning shares directly, investing through Stocks and Shares ISAs, building retirement portfolios through SIPPs and accessing cryptocurrency investment products where available. This makes IG more than just a trading platform, as it also caters to investors looking to build longer-term portfolios.
Risk Warning: Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with IG. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Markets and Trading Options
The biggest difference between Plus500 and IG is the range of services available.
Plus500 offers more than 2,800 CFD instruments covering shares, indices, forex, commodities and other markets. The platform is designed around active trading rather than long-term investing, with users generally speculating on market movements instead of purchasing assets directly.
IG provides access to a much wider selection of markets and products. Alongside CFDs, UK clients can use spread betting to trade financial markets without paying capital gains tax on profits, subject to individual circumstances. IG also offers share dealing, allowing investors to buy company shares, as well as Stocks and Shares ISAs and SIPPs for longer-term investment planning.
This distinction is important because Plus500 and IG are not direct alternatives in every area. Someone looking only for CFD trading may compare them closely, but an investor looking for a single platform covering both trading and investing will find IG offers considerably more options.
Tax Efficiency for UK Traders (CFDs vs. Spread Betting)
- Plus500 strictly offers CFD trading in the UK. Capital gains from CFD trades are subject to Capital Gains Tax (CGT), though losses can be offset against future gains.
- IG offers both CFDs and Financial Spread Betting. Under current UK tax law, spread betting profits are entirely exempt from Capital Gains Tax and Stamp Duty, making IG significantly more tax-efficient for UK-based short-term retail traders.
Trading Platforms and User Experience
Plus500 focuses on keeping its platform simple and accessible. Its proprietary web and mobile platforms provide trading tools, charts, price alerts and risk management features without adding unnecessary complexity. This can appeal to newer traders who want a clean interface focused mainly on opening and managing CFD positions.
IG offers a wider range of platforms and tools designed for different levels of experience. Its own trading platform includes advanced charting, research and market analysis, while traders can also access additional platforms such as MetaTrader 4, ProRealTime and TradingView integration.
The difference is that Plus500 prioritises a simplified CFD trading experience, whereas IG provides a broader set of tools for both active traders and investors.
Third-Party Integrations & Automated Trading
- Plus500 operates a closed ecosystem. You cannot connect external charting software, run algorithmic trading bots, or use Expert Advisors (EAs).
- IG supports full integration with MetaTrader 4 (MT4), TradingView, and ProRealTime. This allows technical traders to backtest strategies, automate trades via scripts, and apply custom indicators.
Order Execution & Pricing Mechanics:
- Plus500 acts strictly as a Market Maker for 100% of retail trades. All orders are executed internally against Plus500’s own pricing engine using standard spread markups.
- IG gives advanced traders the choice between standard Market Maker execution and Direct Market Access (DMA) via its L2 Dealer platform. DMA allows active traders to interact directly with the order books of primary exchanges (such as LSE or NASDAQ) and trade at raw market bid/ask spreads rather than broker markups.
Fees and Trading Costs
The fee structures between Plus500 and IG differ because they offer different products.
Plus500 generally earns revenue through spreads on CFD trades rather than charging traditional commissions on most markets. Traders may also pay overnight funding charges when holding leveraged CFD positions open beyond the daily financing period, along with currency conversion charges where applicable. Plus500 also applies an inactivity fee after a period without account activity.
IG’s charges vary depending on the product being used. For CFD trading and spread betting, costs mainly come from spreads, overnight funding charges and other market-specific fees, with the exact cost depending on the asset and market conditions.
IG’s investing products, including Share Dealing, Stocks and Shares ISAs, Junior ISAs and SIPPs, have a different fee structure. IG currently offers commission-free trading, no platform fee and no custody or inactivity fee for these products. The main charge investors may encounter is a 0.70% foreign exchange fee when converting currencies, such as when buying US shares, which is added to the current exchange rate.
Investors can also earn interest on eligible uninvested cash balances, with interest paid monthly on cash holdings up to £100,000, provided the required account activity conditions are met. Because Plus500 focuses primarily on CFD trading while IG offers both trading and investment products, comparing costs depends on whether you are looking at leveraged trading, spread betting or long-term investing.
Hidden & Inactivity Costs to Watch:
- Inactivity Fees: Plus500 charges a $10/month inactivity fee if you do not log in for 3 consecutive months. IG charges an inactivity fee of £12/month, but only after 2 years of non-use on funded accounts.
- Guaranteed Stop-Loss Orders (GSLO): Plus500 offers guaranteed stop loss protection to eliminate slippage during high market volatility, but charges for it by expanding the spread on that trade. IG offers GSLOs as well, but only charges a fee if the guaranteed stop is actually triggered.
7 Publicly Listed Brokers You Can Invest In – An analysis of publicly listed brokers, including companies such as Plus500 and IG, exploring how they generate revenue through trading activity, client assets and market participation.
Regulation and Security
Both Plus500 and IG are regulated brokers with operations across multiple regions.
Plus500UK Ltd is authorised and regulated by the Financial Conduct Authority (FRN 509909), while IG is also FCA regulated and has operated in financial markets for decades. Both providers hold client funds separately from company funds in line with regulatory requirements.
IG has a longer history, having been founded in 1974, while Plus500 launched in 2008 and has grown into a major CFD provider.
Which Broker Is Better?
The better choice depends on whether you are primarily a trader or an investor.
Plus500 may suit traders who want a CFD-focused platform with a simple interface and access to a wide selection of leveraged markets. It is designed for users who mainly want to speculate on price movements rather than build investment portfolios.
IG is likely to appeal to a wider range of users because it combines CFD trading with spread betting, share dealing, cryptocurrency investing and long-term investment accounts including ISAs and SIPPs. This allows users to trade actively while also managing traditional investments through the same provider.
For someone who only wants to trade CFDs, Plus500 provides a focused experience. However, for those looking for a platform that covers both short-term trading and long-term investing, IG offers a much broader range of services.
