Sector Spreads Cut by More than 50% (26/07/10)

We are pleased to announce lower spreads across all our UK daily sector bets, including the Banking and Mining sectors, as well as the FTSE 250.

At IG Index we regularly review our dealing spreads to ensure we remain highly competitive and allow our clients to maximise their profits when spread betting with us.

All our sector bets now attract a ‘roundtrip’ dealing spread of just 0.2% (or 0.1% when you open the position and a further 0.1% when you close it). This is dramatically less than the previous spread of 0.45%, making our sector bets a simple, cost effective way to profit from movements in any sector of the FTSE 350.

The tighter spreads come into effect on 27 July 2010.

New Spreads

This table shows the spread cuts on some of our most popular sectors.

* Mid-point dealing level at the close of trading on 23 July 2010.

Why spread bet on sectors?

Sector bets are a useful way of taking a view on a small group of businesses that will tend to rise or fall in unison. For instance, if you believe that a spate of rapid economic growth in China will help mining firms outperform other constituents on the FTSE 100 and FTSE 250, a sector bet will let you benefit without diluting your profit with the weaker performance of the wider index.

Similarly, if you think banks are due to come under pressure, rather than simply selling an individual banking share – which may itself be affected by company-specific news – you can sell the sector and profit from the broader trend in the industry.

Huge range of markets

As well as offering you access to more than 7000 individual shares and a huge range of global stock indices, an IG Index spread betting account lets you take a position on a wide range of sectors.

Find out more about the Sector bets we offer by visiting the relevant section of our New to Indices page.

The FTSE 250 index is also treated as a sector and will therefore now attract a considerably lower dealing spread.