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ESMA RULING AND WHAT I AM DOING


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Hi Caseynotes,

I checked IG Australia but did not like that there was a no withdrawal of funds to  debit cards as it states 'not available'.  I also do not have a restriction on how little I put in with ICMarkets whereas with IG it is £250.00p every time I fund.  I tried to get help from IG Australia but was not able to.  My impression of IC is excellent at the moment as they actually have a chat line which is always open so I was able to gen up on them, liked what I heard and saw, so opened an account.  Unfortunately I could not upload identity papers as my printer has broken down.   Anyway, yesterday in came an e mail from IC asking if I needed help as they had not received any upload on identity.  I immediately got onto IC CHAT whose people seem to be on the ball and was told that I could photograph documents and upload.  I really do think IC is safe and they certainly seem to treat clients well.

For me it is not always the case as the old saying goes, 'Better the **** you know than the **** you don't.'  I like to make informed choices and not get stuck in preconceived ideas and a fearful mindset.  If I want absolute safety then that will only happen when I am dead as I shall certainly be safe then.

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On 7/28/2018 at 11:41 AM, JohnRoxton said:

Actually I think if you lose or win money it goes to or comes from the other traders who have an opposing view to your trade. That was my understanding anyway. 

If you win on a long trade your profits come from those who went short and lost.

IG makes its money from the spread or from fixed charges if not a spread bet.

Just my thoughts.

Hi John

Its IG who face off the other side of your trade.

In your example if 90% of clients are long and the trade is winning, then those winnings would come from the 10% who are short. Mathematically impossible.

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14 hours ago, 202925 said:

Hi John

Its IG who face off the other side of your trade.

In your example if 90% of clients are long and the trade is winning, then those winnings would come from the 10% who are short. Mathematically impossible.

Yes I see your point. But they also hedge like a bookmaker when trades are significantly in one direction. I am thinking mainly about forex and the major indices. 

From IG: 

"Mostly, our clients offset each other’s positions. For example if client A buys one lot of the DAX and client B sells one lot of the DAX, both sides of the trade are covered. This means IG is not exposed to the profit or loss of either client. Instead, we make our money via the spread (i.e. the transaction fee) that each client pays to trade.

Sometimes, a large majority of clients will trade in one direction. When this happens, we will protect our exposure to risk by hedging in the underlying market. For example, if client A and client B buy the DAX, we may buy actual DAX futures. This then covers the amount we will pay out if both clients are successful."

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On ‎7‎/‎30‎/‎2018 at 8:14 AM, JohnRoxton said:

If anybody is interested I just put my charts up and on DAX a £1 spread bet requires a margin of £641.62 so my stakes will have to be reduced but to be honest I am pleased overall compared to the shock at the beginning of the year when IG first wrote of this ESMA change. I thought I wouldn't be able to trade at all. 

It's not as bad as it first seemed. Granted that's still a lot of money, but still. Also there are these new products coming from IG which I am excited about. Does anyone know what they are? Has there been any news?

Also I read somewhere else that MT4 will offer 1/10th of the size if you wanted? So you can DAX trade with £64 for 10p a point. Not sure how exciting that would be to trade ... but anyway. At least you can do multiples of that so say margins of 60 / 120 / 240 GBP for 10, 20p and 40p a point for example.

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48 minutes ago, Caseynotes said:

Do they mean us? ???

Surely tounge in cheek tho on that one because that’s their entire audience. And also the word pledian is just so funny to use these days ... I think they’re taking a jibe at ESMA for their illogical policy and poor implementation (irrespective of an ‘ok’ concept to protect those who need it).

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10 minutes ago, JohnRoxton said:

Just curious as to why their are margin differences between DAX and FTSE.

Both are in the major indices group re leveraging but DAX is almost double the required margin  of what the FTSE is.

 

Both margin requirements are 5%, however because the DAX value is nearly double the current FTSE index value, the margin required in GBP terms is going to be larger. I.e. the same percentage on a larger number is going to equate to a larger deposit requirement. 

171454903_2018-08-0209_39_58-IGTradingPlatform_SpreadBetting.png.71a4a35bf3d8c3fc037c0bcd814241f9.png

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3 minutes ago, JamesIG said:

Both margin requirements are 5%, however because the DAX value is nearly double the current FTSE index value, the margin required in GBP terms is going to be larger. I.e. the same percentage on a larger number is going to equate to a larger deposit requirement. 

171454903_2018-08-0209_39_58-IGTradingPlatform_SpreadBetting.png.71a4a35bf3d8c3fc037c0bcd814241f9.png

Thanks for the explanation James

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22 hours ago, Caseynotes said:

Don't look at the Dow, you'll have a heart attack.

Yep its a real Classic-may as well just stick with an ETF

 

20 hours ago, elle said:

yes saw that   , I am waiting with eager anticipation. 10 p lots would mean I would trade a great more -

Wont happen Elle I'm afraid! I asked already months ago, and got the usual moronic "We will look into it response". Customer service at its best....

 

Luckily I kept it real and started checking with other service providers and have now been accepted as a Professional Client by two separate providers. The beauty is, I used my trading file from IG, and it was perfectly acceptable, with no issues. Service was excellent from start to finish, compared to the saga I had applying here at IG,where they would bend the rules when it suited.

 

 

 

 

Edited by 202925
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2 hours ago, 202925 said:

Luckily I kept it real and started checking with other service providers and have now been accepted as a Professional Client by two separate providers. The beauty is, I used my trading file from IG, and it was perfectly acceptable, with no issues. Service was excellent from start to finish, compared to the saga I had applying here at IG,where they would bend the rules when it suited.

I’m interested in your logic. You realise IG WANT you to be a professional client, and that you’re far more profitable if you WERE. 

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1 minute ago, PandaFace said:

I’m interested in your logic. You realise IG WANT you to be a professional client, and that you’re far more profitable if you WERE. 

Eh they don't want you to be a professional client! They want people with 500k in their account

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1 minute ago, PandaFace said:

Nooooo.... that’s the law. As in, an actual legal requirement (one of three) from the regulators. 

I know that's the requirement!!!!!!!

I meant IG what people with this requirement of having 500k for obvious reasons...

 

 

 

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2 minutes ago, 202925 said:

I know that's the requirement!!!!!!!

I meant IG what people with this requirement of having 500k for obvious reasons...

Whilst I can imagine there’s a correlation between account value and value to IG... they don’t really give a monkey do they - otherwise they would have implemented this if their own valuation years ago. 

This is purely required by the regulator, andsome companies like IG are just implementing in their own subjective manner. IG just want you to trade loads. Someone with a £5k account who trades 100 times a day on a £1 contract is better than a half mil account who trades £100 a point once a week...

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1 hour ago, PandaFace said:

Whilst I can imagine there’s a correlation between account value and value to IG... they don’t really give a monkey do they - otherwise they would have implemented this if their own valuation years ago. 

This is purely required by the regulator, andsome companies like IG are just implementing in their own subjective manner. IG just want you to trade loads. Someone with a £5k account who trades 100 times a day on a £1 contract is better than a half mil account who trades £100 a point once a week...

It would appear not!  I qualified easily on the other 2 requirements- no go apparently????

However when I applied to other spread betting companies with my trading record with IG- not a problem!!!

I'm now enjoying my professional status, and can now venture into commodities as the margins are lower

Good luck to IG and the tools in their credit dept. They are going to need it.......

 

 

 

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