Investing and trading platform IG will increase the interest rate on uninvested cash for new clients and remove quarterly inactivity fees from its investment accounts.

Other brokers have offered similar incentives. eToro provides interest on uninvested cash, BidX Markets offers yields on idle funds, XTB introduced cash interest for certain accounts, and Interactive Brokers removed inactivity fees. These moves reflect a trend of brokers attracting retail investors through competitive fees and returns on uninvested cash.

UK Accounts See IG Fee Changes

From the beginning of this year, new UK customers who open an IG Stocks and Shares ISA, General Investment Account, or Self-Invested Personal Pension and place their first trade will be eligible for 7.5% variable AER interest on up to £10,000 of uninvested cash. The offer applies to accounts opened from mid-January and runs up to March this year.

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Michael Healy, UK Managing Director at IG, said the changes aim to provide “more value to investors who want to take their time over their next move and invest at their own pace,” highlighting the firm’s focus on offering a competitive return on uninvested cash and removing inactivity fees.

IG Ends Custody Fees, Adds Perks

To qualify for the interest each month, customers must either hold an active Smart Portfolio, have an open share position at any point, or place at least one buy or sell trade on an eligible IG account. Cash balances above £10,000 will earn interest in line with IG’s standard terms, currently set at the Bank of England base rate.

Separately, IG will remove its £24 quarterly custody fee. The fee had been charged to investment accounts making fewer than three trades per quarter. Its removal means customers will no longer pay for holding investments or trading infrequently.

Under the updated structure, UK investors will also have commission-free trading on all shares and ETFs, no platform or account maintenance charges, and no deposit or withdrawal fees.