New margin requirements :-O
- This topic has 56 replies, 11 voices, and was last updated 5 years ago by
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About an hour ago I received the new margin requirements from IG in reaction to this new ESMA rules. This is crazy. For many assets they raise the margin by 1000% for some even more! I haven’t checked it but after this raise I think there is no advantage anymore (margin wise) to trade CFD at all and one can switch directly to futures.
One thing I’m wondering. Does anybody know how Brexit will impact this change? If the UK leaves the EU, will IG still be obligated to follow ESMA rules?
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Ask Google. I know nothing about spread betting since it is a UK only thing.
The new rules shall be active 1st july. Binary options are banned completely and leverage extremely reduced (through the higher margins). FTSE for example goes from 0,5% to 5% margin.
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Any mention of changes re Spreadbetting??
As far as I have read spread betting has the same margin increases as CFD’s.
Basically what they have done is left the level of risk the same for the big players who can class themselves as professional – so once again if you have a lot of money it is easier to make a lot of money and it has increased the chance of minor players blowing up their account with a margin call. It won’t stop people wanting to try out spread betting or CFD’s it will just ensure that they have a better chance of losing all their money. What a fantastic policy.
I wonder if with all their recent promotion of classifying yourself as professional whether IG are just hoping people will lie when asked the basic questions about trading history – and then it is our fault not theirs if it all goes tits up. They asked – we lied – not their fault.
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I notice that one of the benefits of being classed as a professional is 3 months free trial of PRT. Does this mean that if you switch to professional that you have to pay for PRT and no longer get free PRT if you place 4 trades a month?
I have no idea. It could be possible but it may depends on the country, I think. In Spain, they do not mention anything about it. In Switzerland PRT is free in its normal version, but PREMIUM version is not, regardless how many trades you have a month, but in any case, 30 Euros a month would worth the trouble of keeping the old margins.
If I contact IG about the professional status, I will post any useful information.
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