What do you think of the new ESMA proposals?

[Kodiak]

What can we do about it?

 

leave EU?

 

oh wait, UK already done that..

[Rich-72]

And leaving the EU won't make a blind bit of difference if the exit negotiations sign us up to the same financial regulations.

 

I suppose a discussion about other options would be helpful, you know. Just a thought.

 

 

[Guest straddle]

I have asked James (above) if it is possible to transfer to one of the IG non-EU accounts, e.g. Switzerland or Australia, but he has not yet replied. That would be preferable to opening a new account with another non-EU broker, and I would have thought also prefererred by IG.

 

 

 

 

 

 

[Kodiak]

I would prefer Austrailia as far away from EU as possible

[Guest Zero]

Can't see how that would work - I thought you would need 100pts of ID here in Australia which would have to include a local address.  Then the funding, ie. bank.  Not sure of the setup here (for IG Markets Australia), but again assume local banks would be required, or local currency.  Otherwise you'd have an FX trade with every trade.  

 

Could be totally wrong, and be glad to be corrected (I was thinking of opening a UK account a year ago if I moved over to the UK - never looked into it, but assumed that what's I'd need to do).  Getting a global bank account the problem, otherwise a local one (bank) needs a local address.  

 

It sounds simple in theory to just relocate accounts, but somehow I don't think it is.  IG Markets has its own Australian business registration etc.... hopefully it is !  

[Guest london]

there is no way that IG will or should assist EU traders trade out of the EU .. 

[Caseynotes]

This sort of stuff is starting to pop up, not sure exactly how it works or how safe but some firms are looking for a get around.

 

[Guest straddle]

London

I know 14,000 members who are considering stopping trading with IG. Does IG want to try to keep them?

[Rich-72]

[mod edit - removed for breach of terms of service. Please see this post for more information.]

 

[smithj]

I trade only two ETFs (VOO & VEU), could someone from IG let me know what the new margin rates will be for these.

 

Also the 50% cut off, I only ever have a maximum of 25% of my whole account margined at one time, is the new stop out rule based on overall account or on the trade ?

 

 

 

 

[JamesIG]

---

wrote:

I trade only two ETFs (VOO & VEU), could someone from IG let me know what the new margin rates will be for these.

 

Also the 50% cut off, I only ever have a maximum of 25% of my whole account margined at one time, is the new stop out rule based on overall account or on the trade ? 

---

Hey  - so both VEU and VOO are currently margined at 10% for Tier 1, and this will double to 20% so you're margin required to open a position will also double. 

 

In regards to the later point, it will be based on the account. 

[spiderman]

Hi

 

Can someone from IG give an example of the new 50% margin stop which will change under the new ESMA rules. I have never had a margin stop before so I am not 100% sure about it. I generally trade FTSE and Currency pairs.

[Trevbeats]

Hi everyone. I have been studying the markets and learning to trade with IG for about 2 years now.

And I am very ready to start to go live!

However, now it's very bad news for retail traders/spread betting????

Can someone tell me how to get around this ridiculous rule made by European silly people!!! "and I am being polite"

 

I hear there is an IG in Australia so can open a fresh account with them and will i still be protected like the FCA?

 

Not happy with these margins. It seems to me all they wanted to do was knock out Binary option scam companies which is a good thing ok. But to blanket all of us is madness, and I guess this could put IG out of business.

 

I look forward to my reply from the community and IG.

 

Trev. 

 

 

[Caseynotes]

Hi ,  Firstly hold up, going live is an exciting time but the first thing you will learn is that live is not like demo. So play on the same pitch but reset every thing back to minimum because the bar has been raised, the execution of trades is not as smooth, there is slippage, there is doubt. You will rush and get in too early, you will hesitate and get in too late, the list goes on, there is still much to learn.

 

You want to start live by risking as little as possible (£/point size) and the increased margins make this more difficult but it must be done. The majority of losing traders go in with a £1000 account and start trading at £10/point which the literature tells you is conservative but the reality is you will make a lot of 'school boy' errors at the beginning and the account will soon disappear.

 

A small account size will (under ESMA rules) force you to £1/point which is not a bad idea to learn on. The problem won't come til later when (if you survive) you will realise it's hard to grow an account from such a small base.

 

If you are on large time frame charts with large stops the problem is worse and on a small account you may need to think about mini contracts on CFD or MT4, IG may well have to introduce them for the spread betting platform or risk losing potential new novice clients altogether. 

 

So the advice is to start with what and where you have practised and start small with a view to building up as you continue to learn. 

[Guest straddle]

trevbeats

I have asked James twice on this thread about the feasibility of transferring an IG account to IG Switzerland/Australia, but he seems unwilling/unable to answer.

[Caseynotes]

Just looking at the IG Australia site online and there seems very little to stop you opening a CFD account there. Obviously there is no tax free spread betting so there will be multiple tax issues and there will be currency conversion issues and the regulators will have differing standards (they're not based in Queensland are they?) and there will be support problems due to the time gap, ..., but IG au claim they can open an account for 'people from most countries'. 

[Guest Zero]

Thinking about it I can't see there to be a problem, despite my earlier post (100pts ID).  I don't really know - I guess there was no reason in the past to open one here if you lived in the EU or UK.  They would tell you straight up anyway.  The particular company is taking the risk - say if a client was to not pay up - harder to get money when they don't live in the country.  Same reason I wouldn't use a company outside Australia.  

 

Caseynotes is right - the tax considerations and currency factor are inconveniences.  If I ever needed the help desk (back in the days) outside regular hours I would get the UK's helpdesk so the same would apply I'd imagine for the reverse.  The regulations here are pretty much as good as what you (think you) get in the UK with the FCA.  Our legal system is historically based a lot on UK law/precedents, and so are many regulations.  The main authority is ASIC, and like the UK there is a local Financial Ombudsman too.  I am probably not the best person to represent this discussion on regulators however ....

 

Australia should take this seriously - or IG Australia to be more precise.  We could really capitalise seeing as there are close connections to the UK.  Half the staff here are from the UK anyway it seems.  The only thing is - will Australia copy the UK and ban/restrict the trading.  Seems like IG needs some clients to speak positively about binaries and CFDs in their defence....

[Trevbeats]

Hi Casynotes,

 

Ref" to opening an account with the IG Australian site,

 

There are some mixed signals here, as I was told by the London office today via email I will not be able to open an account with them as I have an account with Ig London?? 

 

Help us?? 

 

Trev. 

[Trevbeats]

Hi Straddle,

 

Funny that as I sent James a private message yesterday night; asking the same question and to shed some more light on our next move for us retail traders? still no reply?

I can only think Ig London are scared of losing their clients from the London baes, even though they are the same company, its all about targets for them.

I want to sort this out now as July will be on us very soon and one can move on and get back to trading! 

 

What I can't understand is this was an underwhelming majority of about 98% and that's just from IG clients saying No to these increased margins!

"Yes very happy that binary option/scam companies are finished and out of the game, but why blanket the ones that trade properly? 

 

A massive hit to banks like IG will be thinking ****...Please tell us what can we do to avoid changing our broker IG?

 

Trev.    

[Guest PandaFace]

Tbf it’s been 5 working days since a new EU regulation which changes a significant amount of things has come into play, and there are a **** of a lot of things to consider... I don’t think it’s even been clarified by esma if this applies to ALL positions or just new?

 

It would be good to know, don’t get me wrong, but they can’t just chuck out a process or answer in a few days.

 

When a solution which will work legally and first time comes about you’ll be far happier than a rushed answer.

 

Calm down.

[Trevbeats]

Great wise words Casynotes thank you. My risk and rewards are very set in place.

 

I take it you did the same type of strategy start small and build up? 

He Is the thing Esma is now forcing that upon us?  And you are so right the account will take a long time to build with trades due to high margins.

 

I think Ig know they have lost the battle with Esma, as this would hit the company hard will they survive now?

 

Trev.

 

 

[Trevbeats]

Hi me again,

 

When you say the execution of trades is not as smooth, there is slippage when going live. I do not get that from the demo platform,,,,is there a difference to the live platform then?

Trev

[Trevbeats]

Hi Rich,

 

I was looking at there site today. So you can say all good and safe? I did ask them to ring me today so I can set up a demo account before going live as it will take time to get used to there platform.

Are you trading with IC Markets Rich?

 

It's a **** shame that these margins have going to the stars I don't want to leave IG but can't do these silly margins which will be enforced upon us!

 

Trev. 

[Caseynotes]

Hi , yes there is a difference between live and demo, demo executes quickly and cleanly with no slippage but the real world is not like that, just as it took time to get to grips with demo you will need to start again to learn the live which is why I said in the PM go back to min size to start live.

 

As I said, ESMA is 3 month trial and the FCA expect to be consulted before anything permanent, I would suggest to use that time learning live on minimum (which is within the esma margin) and see what developes. Then start to think about shifting to size up (if  you are still confident to do so). 

[Kodiak]

"Next steps ESMA intends to adopt these measures in the official languages of the EU in the coming weeks, following which ESMA will publish an official notice on its website. The measures will then be published in the Official Journal of the EU (OJ) and will start to apply one month, for binary options, and two months, for CFDs, after their publication in the OJ."

 

maybe wait and see whats happen before we move down under?

 

i wonder if it was fca that made IG change the margin calculation when using guaranteed stops?

 

its strange that you need a 600 margin on a 60 point guaranteed stop (dax 12 000)

 

 

 

 

 

 

[Trevbeats]

If we did move down under like you say, would you recommend ICMarkets, seems to be the next best thing to IG as it looks a safe bet to trade with?

 

I can't see why we can not use the overseas IG's?

 

Trev

[Trevbeats]

Ok thank you,

 

Wow, I bet this can cause frustration when executing trades. Slippage I have not actually seen as yet? I might have seen a couple of times candles jump and leave a gap, is that slippage Casy?

 

As for executing this means for sell and buy? So when you are about to sell or buy, it does not do in that second?

Sorry for the questions on this but it's new to me like you say.     

[Trevbeats]

It's ridiculous PF 

 

I have been Informed it's a 3-month trial? and Why?

[Caseynotes]

, yes gaps are slippage but a gap might also be a single large candle. If you have a stop loss order price may jump over it with the order not being executed until the next offered price, on excitable pairs such as GBPJPY or any pair on a news event that can easily be 20 points away, yes there are guaranteed stops but are they worth it in the long run if you know what you are doing? You will only find out by doing the math.

 

The point being that going live is not the end of the learning curve not least because demo can't be exactly like live. 

 

 

[Rich-72]

, I've not used [mod edit - removed for breach of terms of service. Please see this post for more information.] yet. Was just carrying out my initial investigations and checking that someone in the UK could set up an account with them without the need to be resident in Australia or require an Australian domestic bank account. This is all fine. I looked at [mod edit - removed for breach of terms of service. Please see this post for more information.] because I know someone in Australia who recommended them so they are my initial choice for when I decide to move. Going to set up a small account with them over the next couple of weeks (ie, before July) just to check out how things work with them and then if I'm happy will move across wholesale in July, assuming ESMA go ahead with their leverage/margin changes.