Asked by
Guest DanC,
By Smilezcryt · Posted
IG | Sitemap | Terms and agreements | Privacy | How to fund | Cookies | About IG
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Professional clients can lose more than they deposit. All trading involves risk.
The value of shares, ETFs and ETCs bought through a share dealing account, a stocks and shares ISA or a SIPP can fall as well as rise, which could mean getting back less than you originally put in. Past performance is no guarantee of future results.
CFD accounts provided by IG Markets Ltd, spread betting provided by IG Index Ltd and share dealing and stocks and shares ISA accounts provided by IG Trading and Investments Ltd. IG is a trading name of IG Markets Ltd (a company registered in England and Wales under number 04008957), IG Index Ltd (a company registered in England and Wales under number 01190902) and IG Trading and Investments Ltd (a company registered in England and Wales under number 11628764). Registered address at Cannon Bridge House, 25 Dowgate Hill, London EC4R 2YA. IG Markets Ltd (Register number 195355), IG Index Ltd (Register number 114059) and IG Trading and Investments Ltd (Register number 944492) are authorised and regulated by the Financial Conduct Authority.
The information on this site is not directed at residents of the United States, Belgium or any particular country outside the UK and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Question
Guest DanC
As you may be aware, there has been a recent proposal from the Financial Conduct Authority (FCA), which would, among other things, reduce the leverage permitted for CFDs and spread betting. If the proposal goes through, you’ll need to put more money on your account to trade with us, in some cases up to ten times more margin.
Click here to share your views on the FCA's proposal now.
The FCA is seeking to raise conduct standards across the industry, to ensure fair outcomes for all UK clients – something which IG fully supports. However, we think there may be tools that could better help the FCA do so, such as limited-risk trading to prevent clients from losing more than their initial deposit. German and French regulators have suggested this measure too, and we believe it might be more effective than raising margins for all.
As well as increasing margins (ie reducing leverage), the FCA has proposed:
You can read the FCA’s full proposal and suggested leverage limits here.
This gives you an idea of what IG think, but what’s really important is what you think. It’s essential that the FCA receives opinions from everyone involved in the industry – especially traders.
The FCA has put together a simple form to enable you to share your views easily. Click here to share your views now.
If you prefer, you can also contact the FCA by email at cp16-40@fca.org.uk, or by letter to:
CP16-40 - Wholesale Conduct Policy Team
Strategy and Competition Division
Financial Conduct Authority
25 The North Colonnade
Canary Wharf
London E14 5HS
We’d also appreciate any comments or thoughts you may have below.
Thanks,
Dan
Link to comment
17 answers to this question
Recommended Posts
Archived
This topic is now archived and is closed to further replies.