New bitcoin funding effective 29th Dec 2017

[JamesIG]

Hi all - we have recently emailed clients who trade crypto. Given the number of community members who trade crypto, I thought I would post it here as well. Any questions, just ask.

 

 

 

We have reviewed the overnight funding charges that we apply to client positions on our cryptocurrency markets – Bitcoin, Bitcoin Cash, Bitcoin Gold and Ether.

 

We will therefore be updating our overnight funding rate to 0.068% for all cryptocurrency markets (25% per annum). Clients with short positions will now receive the overnight funding rate, rather than pay it. In addition, a 7.5% per-annum IG admin fee will also apply.

What does this mean for my cryptocurrency positions?
• If you are long, you will pay an overnight funding charge of 0.089% a day (32.5% per annum).
• If you are short, you will receive an overnight funding charge of 0.048% a day (17.5% per annum).

This change will be effective from 29 December.

 

We will review our overnight funding charges regularly, and keep our website and contract details updated with the latest rates.

 

As a reminder, due to the various risks and complexity involved in trading underlying cryptocurrencies, there's a limit to the total amount of physical cryptocurrency we can hold as a business. We therefore need to reflect this by limiting the exposure that each client is allowed to maintain through CFDs and spread bets. This limit is currently £250,000 notional (or equivalent) per client, across all cryptocurrency holdings. Any client with a notional size above this limit is at risk of having their cryptocurrency positions reduced.

 

The launch of the Bitcoin futures market may mean that we can increase these limits. We should be in a position to offer more liquidity on cryptocurrencies to our clients in January, but we still expect to have restrictions in place for much of the time.

[oilfxpro]

Will options be available?

 

In the mean time the trend is up.

 

[JamesIG]

Hi - the admin fee will be applied in an overnight charge in a similar way to the current method at 10pm (GMT). This increase is in part due to the cost of trading through the futures on the CBOE and CME who have high charges themselves. We are still significantly cheaper than the competition and will be updating the table here to reflect that before the new year. 

 

As an insight teaser to the Community, IG's observed spread is 120. Markets (240) and Plus (165) are significantly more whilst Trading 212 (50) does come in a little less, but have astronomical fees to hold overnight. IG's over night on longs is 25% + 7.5% admin fee per year, whilst Markets is 365%, Trading 212 is similar with 364.8%, and Plus is 182.50%. 

 

Furthermore IG clients will now receive if they have a short position. 

 

[Chris1001]

Hi, on your email you mention new fees but no mention of what they were which makes me suspicious. Please show comparison between new and old.

[Servian]

Does anyone know if you can currently buy cryptos on here as don’t want to exit my current position to buy more with release capital and then be frozen out? Cheers

[JamesIG]

Hi  - the new fees are quoted above and on the email. I have copied and pasted for convenience, with the fee's highlighted. Previously overnight charges below.

 

Email

We will therefore be updating our overnight funding rate to 0.068% for all cryptocurrency markets (25% per annum). Clients with short positions will now receive the overnight funding rate, rather than pay it. In addition, a 7.5% per-annum IG admin fee will also apply.

What does this mean for my cryptocurrency positions?
• If you are long, you will pay an overnight funding charge of 0.089% a day (32.5% per annum).
• If you are short, you will receive an overnight funding charge of 0.048% a day (17.5% per annum).

This change will be effective from 29 December.

 

Previous charges - as shown here. 

Bitcoin funding will be charged at 0.0416% daily for any position that is open at 10pm (London time).

Bitcoin cash funding will be charged at 0.0556% daily for any position that is open at 10pm (London time).

[JamesIG]

Hi  - if you check the 'get info' section on the deal ticket you should see any trade restrictions under 'Other'. It should say 'unlongable' or 'unborrowable' if you can't open long / short positions respectively. Please note that if you've had the same deal ticket open for a while it maybe worth refreshing the screen as this isn't 'pushed' in real time and would require a quick refresh (most PC's work by pressing F5). Alternatively you can give us a call to double check, OR set a working order.

 

 

[fastoy]

Be careful. IG has been very careful not to give any reason for the new high interest rates. Perhaps its because they can just do it and clients can take it or leave it, or perhaps its just plain greed and opportunism. They do not mention any commensurate increase in services for clients. The worst aspect is that it makes me feel that IG is an adversary rather than a part of my team.