Do SB companies share customer information?

[MrBrilliant]

I had an account at IG Index and Capital Spreads... both were dormant for about 4 months. Just last week I thought I'd have a go at IG Index again so I topped up my account by a couple hundred and placed a bet.

The SAME DAY, I get a call from Capital Spreads (whom I hadn't heard from since I'd opened my accounts months before) from an "account manager" trying to persuade me to deposit "just £300 to £1000" in order to receive "personal trading advice".

I imagine like any slightly shady business they are likely to share "sucker lists" and "red flag" lists amongst themselves...

Anybody have any experience with that?

 

[DAX30DayTrader]

I had an account at IG Index and Capital Spreads... both were dormant for about 4 months. Just last week I thought I'd have a go at IG Index again so I topped up my account by a couple hundred and placed a bet.

The SAME DAY, I get a call from Capital Spreads (whom I hadn't heard from since I'd opened my accounts months before) from an "account manager" trying to persuade me to deposit "just £300 to £1000" in order to receive "personal trading advice".

I imagine like any slightly shady business they are likely to share "sucker lists" and "red flag" lists amongst themselves...

Anybody have any experience with that?

Wouldn't make sense in my opinion. Why would the biggest spread betting company on the planet (IG) give a smaller competitive company their client list or any list for that matter.

I don't think Capital Spreads or another spread betting company could offer an exchange list in return as most people who spread bet already have an IG account anyway since they are the largest and I think the longest established spread betting firm around.

Financial spread betting is a competitive industry, not to mention IG is a listed company,so I think it was just coincidence in this occasion.

 

[MrBrilliant]

I don't know, there might still be some mutual benefit to be had from sharing. For example, they might have a deal where they give each other a head's up in case someone is making too much money.

 

[neil]

I don't know, there might still be some mutual benefit to be had from sharing. For example, they might have a deal where they give each other a head's up in case someone is making too much money.

Think about it -why bother with the expense of netting a tiddler account such as yours when they have big hitters losing thousands to them.And would you hand a rival the details of your customers !

 

[DAX30DayTrader]

I don't know, there might still be some mutual benefit to be had from sharing. For example, they might have a deal where they give each other a head's up in case someone is making too much money.

MrBrilliant -

IG are a listed company with shareholders, imagine that you are a big shareholder or to be honest any sized shareholder in IG and you and the other shareholders found out that the company where giving away their clients to the competition. What do you think would happen to the share price?

I very much doubt that IG are giving away or sharing their clients with other SB firms for MULTIPLE reasons, the shareholders are just one, another reason, why would IG who have been established since 1974 go and outdo all the work they have done in building the company up over the last 39 years just to then hand over their clients to a rival.

 

[barjon]

mmm, with the changes they've made recently ig look as though they might be trying to clear out the small fry, so maybe.......

 

[plugger]

As a CEO of an Australian CFD/FX firm, and personally knowing the Australian responsible manager for Capital Spreads when they operated in Aus, I would be astonished if information was shared between these competing companies. The benefit would be insignificant and create unwanted privacy issues for listed companies of this size.

 

[MrBrilliant]

Fair enough.. thanks for the input

 

[bhindaas]

how about for compliance reasons. CS employees are not allowed to SB and same for IG employees. If the 2 companies do not share info then how will they find out?

 

[MrBrilliant]

Hmmm.... In addition to compliance, wouldn't they need to share some information sometimes in order to catch arbitrageurs?

 

[plugger]

This industry is very competitive in nature. I suspect there would be very little information sharing outside of jurisdictional regulatory changes that affect all industry participants.

 

[timsk]

Anyone wanting to pursue the tangent taken by Mycroft Algoman can do so on this sister thread: The Mycroft Algoman Thread Please keep any posts to this thread based on fact or, failing that, personal opinion based on sound and logical reasoning that members can understand, accept if they agree with it and challenge if they don't.
Tim.

 

[timsk]

Anyone wanting to pursue the tangent taken by Mycroft Algoman can do so on this sister thread: The Mycroft Algoman Thread Please keep any posts to this thread based on fact or, failing that, personal opinion based on sound and logical reasoning that members can understand, accept if they agree with it and challenge if they don't.
Tim.

Mycroft Algoman,
If I'm satisfied you can stick to the rule above, I'll consider moving your thread back to this forum and/or merging it back with this thread. In the meantime, do not make any further posts to this thread. If I have to move any more of your posts, you'll leave me no option but to report you to the Moderators.
Tim.

 

[Purple Brain]

I had an account at IG Index and Capital Spreads... both were dormant for about 4 months. Just last week I thought I'd have a go at IG Index again so I topped up my account by a couple hundred and placed a bet.

The SAME DAY, I get a call from Capital Spreads (whom I hadn't heard from since I'd opened my accounts months before) from an "account manager" trying to persuade me to deposit "just £300 to £1000" in order to receive "personal trading advice".

I imagine like any slightly shady business they are likely to share "sucker lists" and "red flag" lists amongst themselves...

Anybody have any experience with that?

SBs do not share client information with anyone else and especially not other SBs.