"Fractional Crypto?"

[Rtmc]

Just wondering if IG has considered the possibility of

"Fractional" crypto betting.

By this I mean betting in smaller increments(1/10th or 1/100th(?) the current increments eg in 1gbp or 2usd increments, with corresponding margins for a potential "smaller exposure" market.

Just a thought... It might be a large untapped market for IG....

[anders]

It's a good idea, but I wouldn't expect to get much response on this. I asked a similar question in July about smaller bet sizes and no response from IG.

 

I'd suggest taking a look at eToro. They allow trading of cryptocurrencies with a minimum position size of just USD 250. Much more manageable position sizes in, and if you trade with 1x leverage (i.e. no leverage) there is no recurring fees. One thing to be aware of though, is that eToro recently changed cryptocurrency purchases from being contracts for difference (CFDs) to actual purchases of the cryptocurrency. Now this was lauded as a good thing, but the downside as I see it that cryptocurrencies are not covered by Financial Services Compensation Scheme (FSCS), and the tax position is less clear (to me).

[JamesIG]

Thanks for your feedback regarding fractional trading on crypto. We have set these minimum deal sizes to fall in line with our broader offering, however there is a smaller leverage on these assets which is why the margin required to maintain the position is higher.

 

Unfortunately I do not see these minimum sizes changing anytime soon, however I shall make sure to pass sentiment back to our dealing desk. We periodically review all feedback and if there are any changes I'll be sure to let you know. 

[anders]

I don't suppose you'd expand on how BitCoin being £1 per point falls in line with "IG's broader offering"? A minimum exposure of ~£5500 of a volatile asset seems high.

 

Bitcoin cash for example is available at £10 per point on GBP @ £244, effectively half the exposure. Would love to understand the reasons for these big differences. (The same disparities exist with equities.)

[JamesIG]

I was referring more to the minimum bet size not falling below a single unit, and the average price of the asset over the last few months. I do understanding what you are referring to and agree that given current margin requirements, minimum bet sizes, and asset value there is a disparity. This has really come off the back of Bitcoins meteoric rise over the last 30 days from $3000 / BTC to the $5600 we are currently seeing. Within such large positive movements my original statement probably holds more weight. 

 

I have put your thoughts forward to our flow desk who will review the situation and I'll let you know as soon as I hear anything.

 

EDIT: Sorted. We've halved minimum bet size on Bitcoin ... hopefully this is the desired outcome you were after Please be mindful of volatility over the weekend, especially going into next weeks scheduled fork, and adjust any trade plans and risk management accordingly. 

[anders]

 Wow, yes that would be the desired outcome. Ideally, I'd like smaller than this, but I'll take half and stop complaining ;-)

 

I assume this will take a little time to implement/trickle down? The Android app is still showing showing me a min £1 per point on Bitcoin (USD, GBP and EUR).

[anders]

 Did I miss something here or did the minimum size not end up changing on BTC?