IG Strange commision

[liam1om]

Evening guys,

Today I placed my first ever trade in a US stock using IG Markets.

I bought 20,000 shares in a $1 stock. I closed the position level and was shocked at the commision. IG charged me $800 for the trade!

I couldn't believe it, so I checked their rates and they charge 2 cents either side!

So if I bought 200,000 shares in a 10cent company they would charge $8000 commision? Surely this can't be right. Their rates seem to literally 50x higher than everyone else.

Has anyone else experienced this? I always use them trading UK shares, which is 0.10%.

Thanks.

 

[tar]

Their rates seem to literally 50x higher than everyone else.

Thanks.

where ?

 

[liam1om]

Cmc and city index both charge around 0.2%.

 

[anley]

Rule number 1 in trading -

NOW THE COST OF DOING BUSINESS AND FACTOR THAT INTO YOUR TRADING.

I think that IG's commissions are right and you should have realised this before you traded. Having said that, call them up, tell them what's happened and say they're being unreasonable and the commisions structure is obvioulsy designed for more normal priced US stocks, $20+. Ask them for a deal, $200 instead of $800 and then if you want to trade sub $1 stocks, use a different broker that has fixed commisions.

 

[tar]

Cmc and city index both charge around 0.2%.

ok so it depends on the price of the stock , so for cheap stocks dont use IGmarkets , on the other hand IG will be much cheaper for high priced stocks , for exmple if u trade a 70$ stock u would pay 7 cents per side and with IG u will pay 2 cents ...

 

[liam1om]

ok so it depends on the price of the stock , so for cheap stocks dont use IGmarkets , on the other hand IG will be much cheaper for high priced stocks , for exmple if u trade a 70$ stock u would pay 7 cents per side and with IG u will pay 2 cents ...

Thanks for your replies.

So basically you cant trade US shares worth less than $10? Why do they offer them then if you cant trade them.

Does anyone here trade US stocks via IG Markets?

 

[bazzer100]

"Why do they offer them then if you cant trade them."

I don't mean to be rude or confrontational, but if you are really looking for an aswer to this question I suppose it must be this: "Because every once in a while we get a sloppy idiot come along who doesn't check the small print who we can take to the cleaners".

I would add that I have alot of sympathy because I also find trying to calculate trading/transaction costs extremely painful tiresome and dull. If I had wanted to trade the same instrument as you, I might have easily fallen into the same trap.

Good Luck anyway...

 

[liam1om]

Bazzer - I do understand your point and I know I should have checked before hand.

I just didnt expect to be charged that amount, I mean $800 for a medium size trade?? I trade UK and European stocks daily and just took my first step into the US market and just assumed it would be a similar rate.