Spreadbetting - IG complaint

mr_put said:
just checked my statement from that day: i had 1.8k deposited, 4.3k in running profit (i did already have 1 £100pp long on), 12.5k in waived deposit limit = 18.6k; versus the 16k deposit requirement after i put the 2nd £100pp long on, so that's how i was able to put the bets on. not that that explains why it was allowed to run so far outside the account parameters.

and in terms of "P.S It might be best to stop asking if anyone else has seen something like this - I doubt anyone on here has heard of anyone so stupid!" - you need to be aware of recent events in this game or you'll get stung worse than me. have you not heard about IG's recent £15 million bad debt allowance for the first 6 months of this year? so there are others out there, maybe with similar circumstances to me.
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I know about the 15 m pound and because of this IGgroup shares dropped last week although they still profiting so much , anyway they should not let u exceed your credit ..

Running profits = unrealised profits cannot be used for margin , and about the deposit limit : i have a deposit limit with them 10000 pound but i cannot open any position unless i have sufecient funds to cover the margin req.
 
well, running profits were certainly included in the calculations when they allowed me to put the 2 £100pp longs on.

re julian's points about IG not taking the correct margin - i agree. but i referred it to the compliance department at IG as a precursor to a FOS referral, and they said that it is not their responsibility to close trades out, regardless of the balance of your account. so the credit limit is not really a limit, it is a margin call trigger for the next morning, so they can in fact lend you as much as they want overnight and ask you to pay it back the next day.

and i take on board the comments about monitoring my own positions, but not all of us are full time traders and can access IG from work, so having to rely on monitoring things on your mobile in the toilets isn't ideal - ok that's what stoplosses are for, but then i, mistakenly, thought that deposits and credit limits more or less performed the same function.
 
It is rubbish as most people say. You can increase the margin quite dramatically by offsetting the short positions (by about 4X) but then all trades have to be 'phoned in. It's called spanning isn't it? I think it only applies to index options that are hedged by futures. I am told that IG has very generous margin requirements but not to the extent suggested in the original post.

You obviously cannot deal if your margin is insufficient (the margin requirement shows up in the deal ticket). I remember being about £40 short on a margin and the deal wouldn't go through. So the rest of the argument is redundant.

But, yes you can lose more than your deposit/margin and presumably IG will go for you, although spread betting losses (or any betting) are not recoverable in law, are they?
 
I find it hard to believe that someone with thousands of pounds to throw around on spread bets isn't switched on enough limit their risk and take the necessary precautions to avoid a 92k loss! In fact I am certain of it! How can someone be intelligent enough to make enough money to risk that much but not intelligent enough to fully understand what they are doing. This just doesn't happen. People with that sort of money available to risk are more carefull than that! I think this is all bullsh1t. Mr Put either stop wasting everyones time or show us some hard evidence of how you managed this.

Sam

P.S. Can you give me 5k? :)
 
The IG Group's results last week show that they have a number of clients who have run up large debts, which precipitated a sharp fall in their share price. The market clearly feels that only a small proportion of the debts will be recovered.

IG's policy seems to be to fry the little fish (as an ex-client they certainly know who to treat the small fish with contempt), and let the bigger fish fry them. Serves them right if they have large losses which they cannot recover. The punter in this example is clearly at fault. IG clearly let the losing trade run and run deliberately.
 
I can believe the OP''s story.

I would also suggest anyone saying this could never happen is probably going to blow up some day after deciding that some other event could never happen.

I live in perpetual worry of the exchanges being attacked and being unable to close positions... Anyone saying they will never blow up is a fool!
 
i cant believe the grief this guys getting if its true he has my complete sympathy hes clearly not someone who trades frequently or maybe even at all and has backed an uneducated guess thinking hes risking 5k. not sure why everyone seems to think igs infrastructure is infallible (i made a trade once that needed more margin and it was declined is not proof it cant happen). i think you have a strong case against them and hope it works out well for you. it seems there may be a few of you out there hopefully they show up here if they get satisfactory resolutions to give you some pointers
 
tightstops said:
i cant believe the grief this guys getting if its true he has my complete sympathy hes clearly not someone who trades frequently or maybe even at all and has backed an uneducated guess thinking hes risking 5k. not sure why everyone seems to think igs infrastructure is infallible (i made a trade once that needed more margin and it was declined is not proof it cant happen). i think you have a strong case against them and hope it works out well for you. it seems there may be a few of you out there hopefully they show up here if they get satisfactory resolutions to give you some pointers
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If you have little experience or limited funds then IG would only give you a limited risk account (or at least they should do). You cannot have a client with limited knowledge and experience to have access to an unlimited, geared product.It doesn't make any sense that, for example a client with a few thousand pounds would be allowed to open a position with a potential risk of a few tens of thousands: a.Their compliance must be at fault and b. their risk management must be at fault. All someone has to do is to look at this chap's application form, ascertain whether the trade was suitable for his profile and voila!
With City Index all trades have default stops which you can adjust by putting up more margin.You would need to have all the facts to see who was to blame.
 
like you say he should be ok he does seems to have a strong case but i doubt its going to stop him worrying himself sick in the meantime
 
having said that theyll probably point at the small print in 5 different places that no one reads and have the courts ear
 
tightstops said:
having said that theyll probably point at the small print in 5 different places that no one reads and have the courts ear
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What is the legal position as regards a spread bet? I know bets/gambling debts are not recoverable through law, are they? At least casinos and horse racing bets are not.
 
Not sure how accurate this is but it looks like gambling debts are enforceable now as of last year:

ContractsProf Blog: Gambling Debts Now Enforceable in U.K.

If this happened for real.. you are going to have a bit of a battle ahead of you for sure. Are you new to trading? If you are completely new to it and stated so on your application that should hold some weight. Get a good Solicitor! (i used to work for one of the top law firms in the UK if you want details send me a message).
 
I can only say that I have had some really strange experiences with IG... so not surprised with Mr Puts
story (assuming its true!).

IG's interface is good but all that glitters is not gold.

Nowdays I'm with a less flashy SB company, but happy with the way its going and the spreads are more humane as well :)
 
I have to admit that I have such nightmare scenarios at the back of my mind when placing trades. I know that in 99.99% of cases it is just a question of being sensible but I guess anything can happen.

Makes me wonder whether I should be paying the additional spread to use guaranteed stops!
 
I doubt IG will pursue it through the courts unless maybe something like an "enhanced" application form was lodged. They basically will take on any client they can and I imagine a good percentage of their clients probably do not measure up to a strict compliance check, and I am not singling out IG here. The courts would be very much on the side of the "poor little client" rather than the "wicked corporation that encouraged him to speculate above his means".
 
simcom said:
I have to admit that I have such nightmare scenarios at the back of my mind when placing trades. I know that in 99.99% of cases it is just a question of being sensible but I guess anything can happen.

Makes me wonder whether I should be paying the additional spread to use guaranteed stops!
Click to expand...

Guaranteed stops r usefull in news trading and at shares trading 2
 
tar said:
Guaranteed stops r usefull in news trading and at shares trading 2
Click to expand...

Very true. Even though I don't use them regularly I still think they're worthwhile in these situations particularly.
 
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