IG Index huge GBPUSD slippage > > >

[stevespray]

A friend of mine just got slipped over 120 pips by IG Index on GBPUSD which seems excesive. Has anyone else had stops filled with such large 'designer slipage'? My broker shows a sharp decline but with many levels traded at before it reached the level she was filled at.

Cheers,
Steve.

 

[shadowninja]

Their tic-by-tic shows lots of levels, too. Friend should phone IG...

 

[stevespray]

She phoned them and they basically said "hard luck, that's where the market was by the time we filled you".

Seems to be a breach of T&Cs....

Term 11(5)...

When we execute an Order, we will do so within a reasonable time of the Order being triggered and, subject to Term 11(10), we will seek to execute your Order based on the first attainable price that might have been achieved had a similar order (including as to size) been placed on the Underlying Market. Notwithstanding the foregoing, you acknowledge and agree that (a) the first attainable price may differ from your specified Order level; and (b) that it may not be possible to determine what the first attainable price might have been. Accordingly, we do not guarantee that your Order will be executed at your specified level and you acknowledge that the time and level at which Orders are executed will be determined by us, acting reasonably.



I'll get her to ring again.


Steve.

 

[shadowninja]

120 pips seems quite big; not really relevant but, out of interest, is that 120 pips between prices or below her stop?

Also, how often does she get slipped?

I've been slipped a couple of times on Alpari and just take it on the chin.

 

[Trader333]

What was the order type ? Was it Stop Limit or just Stop ? The problem must have been when the GBP dropped almost instantly at 12 Noon and all a Stop order does is say fill me at market price once the Stop price has been triggered.


Paul

 

[stevespray]

The method which they are using to calculate the slippage is not what it stated in the T&Cs. They are basing the fill on the level of the market at the moment dealing staff go around to dealing with her order. The T&Cs specify that the level of the fill must be calculated retrospectively;

"we will seek to execute your Order based on the first attainable price that might have been achieved had a similar order (including as to size) been placed on the Underlying Market."

Nothing about filling the stop at the level of the market when your order finally reaches the front of the queue.The market dropped quickly but in 20's and 30's not 100's.

Steve.

 

[Trader333]

Steve,

Are you sure about the drop being in the 20s and 30s ?


Paul

 

[shadowninja]

Look at the tic by tic...

 

[Jack Hughes]

Had a similar situation with IG a while ago. They basically said that they fill when they get round to it, which by some incredible coincidence was when the price was as far away from the order as it went. They eventually gave me a 'goodwill gesture' payment, while carefully not admitting that they had done anything wrong.

 

[stevespray]

Jack - hard to see that they can argue this point. It's gone to compliance. Do they ever bother to read their own T&Cs??

Paul - That's a 1 min chart mate. Try a tick chart. I'll try and upload one! - I count at least two ticks for every 20 pip drop.


Steve.

 

[gle101]

Jack - hard to see that they can argue this point. It's gone to compliance. Do they ever bother to read their own T&Cs??

Paul - That's a 1 min chart mate. Try a tick chart. I'll try and upload one! - I count at least two ticks for every 20 pip drop.


Steve.

Yes, it looks like they had plenty of time executing the stop loss order, resulting in just a minor loss for the client. Apparently IG do not follow the EU MiFID "Best execution" directive, the way it is expected, being a major and well established player in the business.

 

[gle101]

What kind of date&time format do you get from IG. Usually SB only supply you with an execution time stamp of date:hours:minutes, they have a habit of missing out on the seconds, is it the same with IG?

 

[Trader333]

Steve,

I take your points, however, IG do not price their quote as quickly as is seen with tick charts in fast moving markets that I know of. Even using DMA I doubt it would have been much better getting filled than the price your friend obtained.

That said I favour Stop Limit orders whenever news is expected.


Paul

 

[gle101]

According to the chart there wasn't much of a gap to talk about. Also the time span of the chart indicates, that they should have been able to close the position much earlier.

 

[Trader333]

Steve,

I had presumed this was a Stop order to open a position (which is why I have been talking about Stop Limit orders) but I presume now that it was an open order with a Stop loss.

Is that correct ?


Paul

 

[stevespray]

Steve,

I had presumed this was a Stop order to open a position (which is why I have been talking about Stop Limit orders) but I presume now that it was an open order with a Stop loss.

Is that correct ?


Paul

Yes - the position was a long and the stop loss was placed below the price. It's hard to know where you would have been filled in the real market but that is not relevant - read the section of T&Cs which I posted earlier on the subject;

"we will seek to execute your Order based on the first attainable price that might have been achieved had a similar order (including as to size) been placed on the Underlying Market"

The customers claim is that the order 'might' have got filled at that first available level below the stop and therefore that is the level which the stop loss should be filled at. Clearly somebodies order in the underlying was filled at that level and hence the prints. IG Index cannot possible prove that the client wouldnt have been filled there had she had the order in the underlying.
More importantly the term requires that the dealers retrospectively examine price action to determine where stops should be filled - this is clear from the wording used. The dealing staff's claim that they can fill orders based on the prevailing quote at the moment the order is filled is clearly wrong.

Steve.

 

[tar]

Jack - hard to see that they can argue this point. It's gone to compliance. Do they ever bother to read their own T&Cs??

Paul - That's a 1 min chart mate. Try a tick chart. I'll try and upload one! - I count at least two ticks for every 20 pip drop.


Steve.

Ofcourse u mean this is a tick chart not 1 min chart , send them the tick chart by email and c what they will response , i never experienced any slippage with them , explain your issue to them by details and attach the tick chart i guess they will pay back your friend .

 

[stevespray]

Ofcourse u mean this is a tick chart not 1 min chart , send them the tick chart by email and c what they will response , i never experienced any slippage with them , explain your issue to them by details and attach the tick chart i guess they will pay back your friend .

She explained that to them already. The conversation just went round in circles. Apparently they have had quite a few complaints on this issue.

I don't run a spread betting firm but I can see this might be a 'financial decision' on the part of IG - If the firm didn’t have sufficient stops in the underlying market itself (or indeed no stops at all if they just run their book against the clients) then the more they can gap clients the more money they stand to make (or not lose). Obviously the greater the amount of money involved the more likely they are to ignore the contractual obligations of the Customer Agreement.

If they have to go back and retrospectively correct the errors (if compliance agrees with the complaint) then it’s obviously going to create a significant amount of work as well as handing back quite a lot of money.

Steve.

 

[BSD]

Guys.

Why not open an account with a real broker trading in a regulated real market off of real prices that are the same for everyone.

That way you won't get this "slippage".

I mean these outfits can pretty much invent prices out of thin air as they go along, which will in most cases be in their benefit, not yours.

 

[BSD]

Or are you guys trading with them because spreadbetting is tax free in the UK.

Well, fair enough, but what you save on the one hand you pay for with the other, seems like.