Online contracts for difference (CFD) brokerage giant IG Markets has today announced a further reduction in its spreads on CFD prices, which sees the FTSE 100 down to just 1 PIP as it vies to compete with the ever-increasing competition for new accounts.

While the FTSE and some European markets will trade from just one point, US markets have also been reduced, making it more cost effective to trade with the market’s most instantly recognizable brand.

The move comes at a time of heightened competition in the CFD brokerage market off the back of a rising public profile and increasing coverage of CFDs in the mainstream financial media. As CFDs become a more realistic trading option for so-styled ‘consumer traders’, the market for CFD brokers has exploded, with competitors from all different backgrounds leaping in to grab a slice of the action.

With growing public awareness of CFDs as a trading medium, the cut in trading prices can be seen as an attempt to leverage IG Markets’ already strong market position in attracting clients new and old to their trading platform.