IG, one of the UK’s largest CFD trading platforms, has announced it is scrapping its own spread markup on FTSE 100 trading, in a move designed to make it the most cost-effective provider in the market for index constituents.

Until now, financial spread betting clients trading FTSE 100 shares via spread betting or CFDs faced the market spread plus IG’s own margin. With immediate effect, IG will no longer apply this additional layer of cost. Traders will instead pay only the underlying market spread, bringing their costs closer to those available to institutional investors.

The change marks a significant pricing shift in the competitive retail trading sector, where spreads and commissions are among the key deciding factors for active investors. By offering zero spread markup on the UK’s leading blue-chip index, IG aims to attract more clients seeking cheaper access to the country’s most liquid and widely traded companies.

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The FTSE 100, home to major names such as Shell, HSBC, Unilever and AstraZeneca, is often a starting point for traders looking to speculate on UK equities. Spread betting on FTSE 100 shares carries the added advantage of being free from UK stamp duty, while profits are also exempt from capital gains tax.

Alongside the pricing change, IG continues to offer competitive margin rates from 20%, weekend trading on indices, and access to advanced trading tools through its proprietary platform. The company has long positioned itself as a leader in technology and execution quality, but this latest move brings its costs firmly into focus.

Industry analysts note that reducing transaction costs is one of the strongest levers for platforms competing in a saturated UK market. With many brokers vying for retail clients through promotions or new products, IG’s decision to cut its spread markup on FTSE 100 shares may pressure rivals to respond.

For traders, the impact could be meaningful. A narrower spread improves the breakeven point on each trade, allowing strategies to become more efficient, particularly for those operating at higher frequency or with larger position sizes.

By eliminating its spread markup, IG is sending a clear signal that cost leadership remains central to its strategy in 2025. For retail investors focused on the FTSE 100, the offer of institutional-style pricing could make the platform an increasingly attractive option.

How can IG still make money on FTSE 100 shares with zero mark-up?

IG has one of the largest client bases in the UK and internalises orders to match the flow of buy and sell orders. This enables IG to still profit from the difference between the buy and sell price, without charging a commission.

When I interviewed the IG CEO, they told me that in some cases, traders can get better liquidity for larger orders through IG’s platform as opposed to dealing direct on the underlying exchange.