UK online broker competition heats up, as LCG offers commission free Shares trading

One of the key themes we have covered in the past few months has been our expectation of increased competition in the lucrative UK online trading market in 2016.

Toward the end of 2015 a number of leading UK spreadbetting and Forex/CFD brokers have rebranded, launched brand new websites, introduced new & improved trading platforms – or all of the above. Names such as ETX Capital, the recently-public CMC Markets, and LCG come to mind. Industry leader IG has launched a new Affiliates program.

This all adds up to a heated battle for the minds (and wallets) of UK online traders in 2016 and beyond. As we’ve reported before, we expect to see increased marketing budgets as well as aggressive, client-friendly promotions.

And it has begun. LeapRate has learned that LCG is launching a “Commission Free Trading on UK and US Shares” promotion, beginning next Monday and running through to the end of April. We expect more of the like from LCG as well as some of the other firms mentioned.

LeapRate has received an official statement and promotion terms which apparently has been sent to a select number of LCG clients. We believe that this will also be up soon on LCG’s website.


Commission Free* Trading on UK and US Shares

Recent moves in equity markets are mainstream news at the moment. The volatility and extremity of the downside in major equity markets has taken no prisoners and while there are many macro based narratives, it tends to indicate that investors have lost faith in central banks’ ability to support the fragile global economy.

LCGIn the year to date, the FTSE100 and Dow Jones Industrial Index and S&P500 have shed 11%.

The financial and basic resource sector has borne a lot of the pain with investors fretting about global growth, weak demand for commodities and demand for credit in a contracting economic climate. Even the likes of Apple, the darling of the investment world, has struggled to rise and at the time of writing has declined 15% since the beginning of January.

Pundits are falling over themselves to be the first to predict doom and/or potential glory within equities especially against a backdrop of negative deposit rates from the ECB and the fact that the same policy may be employed by the Federal Reserve should this global turmoil persist.

It’s difficult to predict whether this current bearish market will start to resemble or have similar ramifications as the Great Financial Crisis in 2008. Equity markets enjoyed a massive rally from the lows of March 2009 up until last summer so some correction of this type was inevitable. The stock market is not the economy and vice versa and if there is one thing  that can be said for crises is that they can often present opportunities that might not be as apparent when all stocks are flying higher.

LCG is presenting such an opportunity.

The benefits of trading shares through the medium of spreadbetting and CFDs have never been more apparent.

The ability to take short term positions, whether these be long or short without having to pay stamp duty and in the case of spread betting, not subjected to capital gains tax. Both products allow traders to take advantage of the current volatility.

These derivative products can be utilised to establish new positions on individual shares as well as hedge against any underlying physical share losses.

Equally, because margin is used, it can be a more efficient use of capital. It must be borne in mind that with margin, profits can be magnified but so too can losses.

LCG is going further and now offers Commission Free* trading (Spreadbetting and CFDs) on all equity constituents of the FTSE 100 and Dow Jones between Monday 15th February and Friday 29th April inclusive.

Terms and conditions apply.

  1. This commission free offer applies to clients trading on their LCG Trader account between 15 February 2016 and 30 April 2016.
  2. The offer applies to CFDs and spread bets on FTSE 100 and US major (US 30) equities only.
  3. CFDs will be commission free for the duration of the offer. Spread bets will not incur additional spread for the duration of the offer. All other normal trading costs and charges apply (for example, but not limited to, charges for guaranteed stops, overnight funding and market spread).
  4. LCG will not be liable for any losses that you may incur as a result of trading, including with the trading credit amount.
  5. Employees of LCG and their families are not eligible to enter this promotion. This offer is also not open to employees of any other company engaged in direct competition with LCG.
  6. This offer is subject to a fair use policy and consequently LCG has the right to withhold this offer if it has reasonable belief that there has been co-operation, collusion or organisation of trades from the same source, or if it has reasonable belief that the offer is being abused in any way.
  7. This offer cannot be used in conjunction with any other offer, unless explicitly stated in the terms and conditions of that particular offer.
  8. LCG reserves the right to amend, withdraw or restrict this offer at any time without notice.
  9. LCG is the sole arbiter of these rules and any other issue arising under this promotion.

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