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 CFDs, or invest in bond ETFs by opening a stock trading account.
Start trading today. Call +971 (0) 4 5592108 or email sales.ae@ig.com. Our sales team is available from 8:00am to 6:00pm (Dubai time), Monday to Friday.
Why trade or invest in bonds with us?
Volatility trading explained
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:
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 stock trading 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 | CFDs |
| Bond ETFs | Bond ETFs tracking government or corporate bonds | Stock trading |
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
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
Open an account now
- Fast execution on a huge range of markets
Enjoy flexible access to 17,000 global markets, with reliable execution
- Deal seamlessly, wherever you are
- Feel secure with a trusted provider
Buy bonds with an award-winning platform1
Web-based platform
Take control of your thematic and basket positions with our clean deal ticket, clear price charts and in-platform news and analysis
Mobile trading app
Trade thematic and basket opportunities wherever you are, and receive trading alerts and signals on the go through email, SMS or push notifications.
Bond trading and investing costs
| Margin* | Minimum margin requirement of 5% |
| Spread | From 1 point |
Open an account
Try these next
After-hours share trading
How forex trading works
Trading platforms
* It’s free to open an account, and there’s no obligation to fund or trade.
1 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.
