Bond trading and investing
Trade on bond prices or earn income from dividend-paying bond ETFs. Take a position on our global offering using derivatives like spread bets or CFDs, or invest in bond ETFs by opening a share dealing account.
Call 0800 195 3100 or email newaccounts.uk@ig.com to talk about opening an account.
Why trade or invest in bonds with us?
Take a position with leveraged
derivatives or buy bond
ETF shares
Deal in fractions of contracts,
off-exchange, with spread betting
or CFDs
Invest in bond market ETFs
easily and from just £0
commission1
Choose from a comprehensive
selection of global
bond markets
Speculate on bond price
movements over the short,
medium and long term
Receive coupon payments
in the form of dividends with
a bond ETF
What are bonds?
Bonds are financial instruments that enable governments and corporates to raise capital. Investors will loan money to the bond-issuer and, in return, receive a series of interest payments at specified dates. At maturity, the bond-issuer will repay the original sum lent – known as the bond’s ‘principal’.
Bonds can be bought and sold on the secondary market like other financial securities – meaning that their prices fluctuate. High interest rates, for example, tend to make bonds less attractive by providing other opportunities to earn returns with low risk. For this reason, interest rates and bond prices tend to have an inverse relationship.
How to trade bonds
With us, there are two main ways to take a position on bonds:
- Trading on bond price movements using leveraged derivatives like spread betting or CFDs
- Investing in bond ETFs with our share dealing account
When trading, you’ll never take ownership of an asset, and will instead take a position on the bond futures market either rising in value or falling. But, when investing in a bond ETF via a share dealing account, you will buy and own actual ETF shares – earning dividends if the fund pays any.
But, please remember that all trading and investing incurs risk. This is only amplified when trading on leverage. Learn more about how to manage your risk.
Ways to trade or invest in bonds with us
| Assets | Markets | How to trade or invest |
| Bond futures | Government bond futures markets | Spread betting or CFDs |
| Bond ETFs | Bond ETFs tracking government or corporate bonds | Share dealing |
Trading vs investing in bonds
Why would I trade bonds?
- Trade on the inverse relationship between interest rates and bond prices
- Speculate on both rising or falling bond prices
- Take a position in the short to medium term
- Hedge existing investments
- Avoid stamp duties and trade tax-free with spread betting2
Why would I invest in bonds?
- Diversify your portfolio and mitigate risk
- Earn income through dividend payments
- Gain wide exposure to bond markets
- Enter and exit liquid markets quickly
- Take a position in the long term
- Invest via an IG ISA and enjoy tax benefits2
Start trading bonds now
*Demo accounts are only available for spread betting and CFD trading.
Start trading bonds now
Fast execution on a huge range of markets
Enjoy flexible access to 15,000+ global markets, with reliable execution
Deal seamlessly, wherever you are
Trade on the move with our natively designed, award-winning trading app
Feel secure with a trusted provider
With 50 years of experience, we’re proud to offer a truly market-leading service
*Demo accounts are only available for spread betting and CFD trading.
Start trading bonds now
Start trading bonds now
Fast execution on a huge range of markets
Enjoy flexible access to 15,000+ global markets, with reliable execution
Deal seamlessly, wherever you are
Trade on the move with our natively designed, award-winning trading app
Feel secure with a trusted provider
With 50 years of experience, we’re proud to offer a truly market-leading service
Buy bonds with the UK’s number 1 platform3
Seize your opportunity on the UK’s best web-based platform and mobile trading app.
- Web-based platform
- Mobile trading app
Take control of your trading with our clean deal ticket, clear price charts, and in-platform news and analysis.
Trade wherever you are, and receive trading alerts and signals on the go through email, SMS or push notifications.
Bond trading and investing costs
- Spread betting costs
- CFD trading costs
- Share dealing costs
| Margin* | Minimum margin requirement of 20% |
| Spread | From 1 point |
* Leverage can magnify both your profits and losses as they’ll be based on the full exposure of the trade, not just the margin required to open it. This means losses as well as profits could far outweigh your margin, so always ensure you’re trading within your means.
| Margin* | Minimum margin requirement of 20% |
| Spread | From 1 point |
* Leverage can magnify both your profits and losses as they’ll be based on the full exposure of the trade, not just the margin required to open it. This means losses as well as profits could far outweigh your margin, so always ensure you’re trading within your means.
Our bond ETFs are bought and sold as shares on an exchange, paying dividends.
Open an IG share dealing account and you can buy and sell ETFs directly for as little as £0 commission.1 Invest via an IG ISA and pay no capital gains or income tax on your investments.2
Bond markets to watch
- Popular bonds
- US bonds
Open an account in minutes
It’s free to open an account, takes less than five minutes, and there’s no obligation to fund or trade.
*Demo accounts are only available for spread betting and CFD trading.
Open an account in minutes
It’s free to open an account, takes less than five minutes, and there’s no obligation to fund or trade.
*Demo accounts are only available for spread betting and CFD trading.
Open a share trading account in minutes
It's free to open an account, takes less than five minutes, and there's no obligation to fund or trade.
Open a share trading account in minutes
It's free to open an account, takes less than five minutes, and there's no obligation to fund or trade.
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1 Please note published rates are valid up to £25,000 notional value. See our full list of share dealing charges and fees.
2 Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.
3 Best trading platform as awarded at the ADVFN International Financial Awards and Professional Trader Awards 2019. Best trading app as awarded at the ADVFN International Financial Awards 2020.
Connect with us
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. 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.
Professional clients trading spread bets and CFDs can lose more than they deposit.
Options and futures are complex instruments which come with a high risk of losing money rapidly due to leverage. They’re not suitable for most investors. Before you invest, you should consider whether you understand how options and futures work, the risks of trading these instruments and whether you can afford to lose more than your original investment.
Trading stocks and shares ‘on margin’ within a US options and futures account – meaning that you only finance part of the cost of acquiring a position in a security – carries additional risks over buying securities on a fully funded basis and may result in losses exceeding your original investment. Trading on margin will also result in additional costs to you as the investor and any securities purchased using margin may be held as collateral by the lender, restricting both your rights as shareholder, and your ability to use the securities until the margin trade is closed. You should familiarise yourself with these risks before trading on margin.
The value of shares, ETFs and other ETPs bought through a share dealing account, a US options and futures account, a stocks and shares ISA or a SIPP can fall as well as rise, which could mean getting back less than you originally put in. Past performance is no guarantee of future results. Some ETPs carry additional risks depending on how they’re structured, investors should ensure they familiarise themselves with the differences before investing.
Share dealing and IG Smart Portfolio accounts provided by IG Trading and Investments Ltd, CFD accounts and US options and futures accounts are provided by IG Markets Ltd, spread betting provided by IG Index Ltd.
IG is a trading name of IG Trading and Investments Ltd (a company registered in England and Wales under number 11628764), IG Markets Ltd (a company registered in England and Wales under number 04008957) and IG Index Ltd (a company registered in England and Wales under number 01190902). Registered address at Cannon Bridge House, 25 Dowgate Hill, London EC4R 2YA. IG Markets Ltd (Register number 195355), IG Trading and Investments Ltd (Register Number 944492) and IG Index Ltd (Register number 114059) are authorised and regulated by the Financial Conduct Authority.
The information on this site isn’t directed at residents of the United States, Belgium or any particular country outside the UK and isn’t intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.