A reader asks: Can I trade AIM stocks with IG?
The short answer is yes you can trade AIM (Alternative Investment Market) stocks through IG.
We’ve already covered the best ways to spread bet on AIM stocks, but with IG you can trade AIM stocks through spread betting and CFD trading.
The main advantage of trading AIM stocks via spread betting with IG is that the profits are tax-free. This is particularly relevant as AIM stocks are less liquid than main market stocks and there more volatile. Also, companies on AIM are less established than the firms listed on the larger stock exchanges, meaning there is more potential for growth.
However, there are downsides to trading AIM stocks through IG, or other spread betting brokers.
The main downside is that you have to deal at the broker’s bid/offer rather than the straight through the market. As AIM stocks are less liquid than large-cap stocks, the bid/offer spread is often wider.
If you are buying or selling AIM stocks through a traditional stockbroker, you can request a quote on their online platforms and a market maker may give you a better price inside the spread. If you have a large order you can also give your broker a call and they can have a little ring around to see if there is any cheap stock going. Often illiquid AIM stocks will have resting sell orders with market makers than are not shown on the screens.
One other thing to consider is that if you are planning on holding an AIM spread bet or CFD position for a while the financing costs can add up.
IG also has stock brokerage accounts, so if you would rather pay in full for the AIM stock, then you can use an IG investment account to buy and hold AIM shares with IG.
Richard is the founder of the Good Money Guide (formerly Good Broker Guide), one of the original investment comparison sites established in 2015. With a career spanning two decades as a broker, he brings extensive expertise and knowledge to the financial landscape.
Having worked as a broker at Investors Intelligence and a multi-asset derivatives broker at MF Global (Man Financial), Richard has acquired substantial experience in the industry. His career began as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson), following internships on the NYMEX oil trading floor in New York and London IPE in 2001 and 2000.
Richard’s contributions and expertise have been recognized by respected publications such as The Sunday Times, BusinessInsider, Yahoo Finance, BusinessNews.org.uk, Master Investor, Wealth Briefing, iNews, and The FT, among many others.
Under Richard’s leadership, the Good Money Guide has evolved into a valuable destination for comprehensive information and expert guidance, specialising in trading, investment, and currency exchange. His commitment to delivering high-quality insights has solidified the Good Money Guide’s standing as a well-respected resource for both customers and industry colleagues.
You can contact Richard at richard@goodmoneyguide.com
