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Pros and cons of Brexit

Even though the UK has formally left the EU, the debate over the terms of
its depa ture continues. Learn about the key points from both sides, and
Spread bets and CFDswhy
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Benefits of being in the EU: the debate

The Brexit process began with the United Kingdom (UK) voting to leave the European Union
(EU) in a 2016 referendum. Since then, there has been heated debate from both the remain
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 negotiating a withdrawal agreement nears its end, there is still unce tainty surrounding the
UK’s exit from the EU, and the debate on the pros and cons of Brexit continues.
Learn about the oppo tunities Brexit offers traders

Remain
Though unsuccessful in garnering enough votes in the referendum, the remain camp
have continued to advocate for a close relationship with the EU in the form of close links
to the EU post-Brexit.
The arguments for remaining in the EU focus on the benefits of being pa t of a wider
union, and the security and favourable trading relationship made possible through EU
membership.

Key arguments for remain

Foreign affairs
As pa t of a community of 500 million people, Britain could have greater influence
over international matters as a member of the EU.

Sovereignty
Britain proved that it could opt out of some EU policies which it considers
counterintuitive, such as adoption of the euro, the Schengen Agreement and
enforced migrant quotas.

Security
A union better equips Britain to tackle threats to security, including terrorism and
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Money Agree
 European businesses invest billions of pounds in the UK every year, both in the
public sector and private sector.

Trade
EU membership provides access to the European single market, which is invaluable
for trade and enables the easy movement of goods, services and people across
member states.

Business
Free trade within the EU reduces barriers and enables companies to grow.

Jobs
Millions of British jobs are linked to Europe and could be put at risk. Some sectors
such as nursing and manufacturing could experience a slump in skilled labour.

Consumer goods
The average person in Britain saves hundreds each year thanks to lower prices of
goods and services facilitated by the EU.

Leave
While the leave campaign succeeded in the referendum, there has been less success in
negotiating with the EU.
But, while some on the leave side advocate a hard Brexit – gaining more sovereignty,
taking control over immigration and reducing red tape – others are more moderate. Key
arguments for why the UK should leave the EU include greater control over foreign
affairs, greater national sovereignty and the potential for glitzy new trade deals with
countries like the US.
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Key arguments
settings here, or for leavethe link at the bottom of any page on our site.
by following
Agree
 Foreign affairs
Continued EU membership would limit Britain’s international influence, ruling out an
independent seat at the World Trade Organisation (WTO).

Sovereignty
Britain will have more control of its laws and regulations, without the risk of having
counterintuitive European policies forcefully imposed.

Security
Some in the Leave camp believe that Britain’s domestic security could benefit from
full border controls, which it would hope to gain outside the EU.

Money
EU membership fees – amounting to billions – could be repurposed and spent on
issues that matter most to the British people, like funding for the NHS.

Trade
Membership of the EU keeps Britain from fully capitalising on trade with other major
economies such as Japan, India and the US.

Business
The EU subjects Britain to slow and inflexible bureaucratic red tape, making it more
prohibitive for smaller companies to do business.

Jobs
Improved global trade agreements and more selective immigration could have a
positive effect on the British job market.

Consumer goods
EU VAT contributions and agricultural subsidies policies cost UK consumers
hundreds of pounds each year.
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use this website, you agree to our use of cookies. You can view our cookie policy and edit your
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Agree
 Learn about the value of the pound since Brexit

Pros and cons of no deal vs deal

There are two ways that Britain can leave the EU: with a trade deal, or without a trade deal.
The transition period is meant to be used for the UK and EU to put together a trade deal
before the 31 December 2020.

No deal
A no-deal Brexit would result in a rigid position on all the issues outlined above. It would
likely mean that trade between the UK and EU defaults to WTO rules, which are widely seen
as less beneficial than the current trading relationship between the two entities.
Argument for: a no-deal Brexit would see the UK leave the free trade zone, do away with
EU regulations, and eradicate the need to accept the free movement of people. This would
provide the oppo tunity to negotiate new trade deals with other countries.
Argument against: the EU is Britain’s biggest trading pa tner, and there’s no guarantee the
UK will get better trade deals once it leaves. Adding to this, the UK could still end up being
forced to comply with EU laws and regulations, as is the case with Norway and Iceland.

Deal
Leaving with a deal would aim to keep the trading relationship between the UK and the EU
largely intact, or as frictionless as possible.
Argument for: strong trade ties between the UK and EU would make trading and economic
activity easierstrong trade ties between the UK and EU would make trading and economic
activity easier. Many commentators have stated that it is within the interests of the City and
the UK as a whole to maintain free trade with the EU. Leaving with a deal in place would
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 the UK would be liable to EU rules and legislation regarding the free movement of goods,
services and people across borders. Plus, it could put the UK in the dangerous position of
still having to accept EU economic and political policy, while at the same time denying the
UK a seat at the negotiating table.

Discover what Brexit is and what’s happened so far

Get Brexit-ready with IG

Discover trading oppo tunities around Brexit – and download our free checklist – to learn
how to profit from upcoming volatility and hedge against downside risk.
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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to
leverage. 76% 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 can lose more than they deposit. All trading
involves risk.
The value of shares, ETFs and ETCs bought through a share dealing 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.
CFD, share dealing and stocks and shares ISA accounts provided by IG Markets Ltd, spread betting provided by
IG Index Ltd. IG is a trading name of IG Markets Ltd (a company registered in England and Wales under number
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