Anyone else concerned about new spread caps on IG?

[lucylou1]

Was wondering if anyone out there could offer up some advice.

I have been trading stocks using IG Index for the last 3 years and have just learnt that they are increasing their spread caps, see here:

https://www.ig.com/uk/increase-in-spread-caps-on-us-and-canada-quarterly-bets?CHID=3

I typically take long positions (sometimes short) in US and UK stocks, buying the furthest away quarter which then gets rolled over automatically.
My trades last on average about 100 days and with an account of about $10,000 I hold around 14 positions, each one about 6% in size (entry price to zero).

I really think I have had enough of IG after this and cant believe they have given me almost no notice. I have never liked them much tbh and this looks like being the last straw. I haven't worked it out exactly, but the extra cap means that my costs could almost double?

It looks like it would be cheaper for me to switch to a standard broker that charges a flat commission per trade but then again I will most likely have to pay commissions again to transfer over all my positions I think?

Just wondering what people think of these charges, what they would do and whether they can advise a good broker to switch to, one that allows short positions too.

Thanks a lot

 

[peakoil]

Although I usually don't bet on US or Canadian equities, I must admit that, if I did, then without any doubt, their whopping 'spread cap' change would make me furious too; And, all the more so, if I had (as you do) quarterly positions open and was only given such little notice of such a drastic change as to just how much more costly it will be to continue rolling your affected positions after the 19th March, or open new north American quarterly positions.

 

[lucylou1]

Yes, I have 7 US positions right now, all in the furthest out quarter and they only told me a couple of weeks ago that this would happen... the benefit cost-wise of trading through IG was minimal at best before this, so it's even worse now.

Would you jump ships to a service like e-trade or td ameritrade? thats what I am looking at right now. Pretty much had enough of IG now.

Thanks for your reply.

 

[peakoil]

Hi lucylou1, let me put it like this. Last time they changed something which I wasn't too happy about - which was when they raised the minimum sizing for gold, I wasn't exactly interested in following suit... To IG it might look like I suddenly lost interest in betting on gold movement, but the truth is otherwise. Besides, as long as other firms are able to offer something which they are not, then why not take advantage of a competitive marketplace? I just continue to hope that the day will come when more people will realise the benefits of quarterly bets, across the whole gamut of instruments, not least because that should accordingly ensure greater competition in the wider marketplace.

It's of course all up to you what you do about it, but I hope you'll return to this thread and let us know how you are getting on, and even more so if you do what I suspect you will do. For the time being, I'm just wondering too, why they decided to enact this particular change?

Lastly, it would indeed be interesting, to read what others who are affected think of this change.

 

[PieterSteidelmayer]

There is always inevitably a crisis when considering moving from one platform or provider to another. But the pain is all in the mind. Once it's done, it's done. One less thing to worry about.

24 hours later you wonder why you didn't switch long ago.

Bite the bullet. Take the one-off hit. Dump IG. You've already scouted a replacement.

 

[jkane]

IG is too commerical now, many companies taking some of the market away from them with better spreads and offers

Stay away from IG

 

[BigDeal]

I have an account with IG, and received the message about these changes. Actually they don't affect me because I don't trade the affected instruments, but does anybody know why they've made such dramatic changes? Surely if the reason they've done this is linked to market risk, it's going to be a similar story elsewhere?