Minimum bet size

[spiderman]

Hi

 

With the introduction of the new ESMA rules in July, will you be offering smaller bet sizes?

I know that some older clients can trade as small as 25p a point, will this be introduced for everyone?

[Caseynotes]

The CFD and MT4 platforms offer mini contracts but not IG's spread betting platform. With the esma margins on some smaller accounts their max bet size could become less than the platform's minimum bet size. Seems unfair and discouraging to anyone just starting out.

[spiderman]

Hi

 

Yes, that's what I think. I have seen a few traders who use youtube etc and they can bet smaller. How can IG grow their customers when the new rules come into force. Smaller bet size will allow them to learn on a smaller account. 

[phillo]

yes, smaller position sizes would be extremely useful

[Guest PandaFace]

This could be an option, but also are you really going to want to put in any effort for 10p a point? The FTSE would have to move a staggering 10%, or 700 points-ish to make £70...

[phillo]

well, you wouldn't just have to put on one lot. It would give the flexibility on putting on multiple lots and being able to scale in and out

[Guest PandaFace]

Yeh it does and it’s a worthwhile suggestion, but this seems more like a quick one to maintain the actual process of spreadbetting but doesn’t help with the underlying issue.

 

You could scale in and out and split your bids, but I don’t think a good result of a 10x increase in margin requirements is to simply /10 the min bet size.

 

I feel there would be a better result, if that means going to Swiss IG or even a different company which seems like an absolute ache and a bit of a risk of the unknown.

 

Does anyone know - can the FCA block this whole esma mess? Or the uk gov or anything on our side?

[Guest apadhani]

Panda 

 

There is no effort,if you have 100 EAS trading small sizes, better for customer/trader.

[Guest PandaFace]

You’re missing the point. At 10p a point the market (FTSE) would need to move 10% to make £70. From the highs in jan this took 20 bars. I dunno about you but it would be nice to make more than 70 quid in a month. And that’s over one of the most volatile time periods and sell offs in recent years...

 

The fact that you have 100 systems working at the same time is irrelevant. Why not just have a minimum bet size of 1p and have a 1000 EAs working at the same time...

[spiderman]

I was thinking more about 25p - 50p and then build a position. 

[phillo]

indeed, as was I. 

[Guest EA-trader]

One needs to spread risk amongst many trading/investing  strategies, instead of betting the whole house on one race.50 eas making £5 daily is £250 per day is better than one warrior fighting an army, better army fight one warrior.  SunZtsu

 

Many strategies make fear in buckets , of big warrior and big army.

 

 

 

[phillo]

sorry, lost me on that one

[Guest PandaFace]

Fair points chaps.

[spiderman]

IG are going to need to be creative if they want to attract new retail customers. I would not of started trading with IG under the new rules.

[Caseynotes]

IG used to have a spread bet minimum of 50p up until about 2014.

 

Under the new EU regs punters will now be blowing up their accounts more slowly. The key to surviving is not really about account size but consistency, if you can stay on the field til you find that compounding will take care of account size (admittedly also more slowly).

[spiderman]

I think I may spreadbet shares rather than indices. 

[Kodiak]

 

10% margin on "minor" indices !

 

When trading Hong Kong CFD min size margin would be 3000 (and 1000 more for potential losses)

 

and with a guaranteed stop of 100 the risk is only 100

 

(yes i know its all about reducing leverage, but anyway :smileyfrustrated:)

[LeoTrader]

I've just noticed that the minimum position size on GBP/USD (not sure about other instruments) has been reduced to 50p per point on the web platform. When did this happen? I've not seen any announcement about reduced position sizes ?. I'm pleased it's happened though.

[Hedgehog86]

I have been an IG customer for quite sometime (7+ years) and trade a diversified long-term trend following strategy using spread-bet products. The new ESMA ruling has basically removed my ability to trade some of the bond and interest rate spread-bet products as the margin requirement on these , if you are trading a volatility targeted strategy as I am has become ridiculous!

I wonder if it is possible for IG to offer exactly the same products (spreadbets at the pre ESMA margin levels) via their Australian or Swiss brokerages e,g $1AUD per point. Although the no CGT is a bonus it is not the reason I trade spreadbet contracts against CFDs, it is because of the smaller position sizes I can hold.

Just a thought...

 

[Caseynotes]

HI @Hedgehog86,  take a look at the link below for the basic country comparisons and then click 'learn more' to take you to a specific country's  IG web site welcome page, from there you can search to find the min bet sizes for each asset class.

https://www.ig.com/uk/compare-our-leveraged-trading

 

[Hedgehog86]

Thanks @Caseynotes that was extremely helpful. Looks like my trading can continue on!

[JamesIG]

@Hedgehog86 - we also have a new product (as below) which you may be interested in. Currently these are only available for FX, indices and some commodities, however we will hopefully be expanding this offering going forwards. 

I appreciate your requirements fall out of the remit of the below, but it may be of interest. 

 

[Hedgehog86]

Thanks @JamesIG looks like a very interesting solution. Agree it doesn't meet my requirements fully at this stage, but I will monitor closely as the offering expands. Great work on the new offering.

[LeoTrader]

On 8/7/2018 at 4:49 PM, LeoTrader said:

I've just noticed that the minimum position size on GBP/USD (not sure about other instruments) has been reduced to 50p per point on the web platform. When did this happen? I've not seen any announcement about reduced position sizes ?. I'm pleased it's happened though.

Now all of the major pairs have had their minimum position size reduced from £1/pt to 50p, as well as some of the minors. Indices too; the FTSE 100 from £1/pt to 50p and the US 500 has been slashed from £5/pt to £1. I don't trade much else so not sure about other instruments but I'd assume this is across the board. It's a welcome change that will be beneficial to those with smaller accounts. I wonder why it hasn't been announced though. 

[JamesIG]

20 minutes ago, LeoTrader said:

Now all of the major pairs have had their minimum position size reduced from £1/pt to 50p, as well as some of the minors. Indices too; the FTSE 100 from £1/pt to 50p and the US 500 has been slashed from £5/pt to £1. I don't trade much else so not sure about other instruments but I'd assume this is across the board. It's a welcome change that will be beneficial to those with smaller accounts. I wonder why it hasn't been announced though. 

you're quicker at noticing then I am at getting out a Community post and running by the relevant teams for sign off.  More to follow on Community, and email communications are in the works. Quick spot  there pal - I'll follow up shortly @LeoTrader

[JamesIG]

For those interested (such as those on this thread including @spiderman @elle @PandaFace @apadhani @leotrader @kodiak and @hedgehog) you may find the below useful.

 

 

[phillo]

this is excellent news   - thank you

[Guest 1kp1]

If you could lower all the minor FX and the Australasian FX bet sizes to 50p im sure that would help out a ton of people with smaller account sizes. 

[JamesIG]

15 hours ago, 1kp1 said:

If you could lower all the minor FX and the Australasian FX bet sizes to 50p im sure that would help out a ton of people with smaller account sizes. 

thanks for the feedback request @1kp1 - I've forwarded to the flow desk. They confirmed whilst there isn't a plan to reduce this at the moment, we are continuing to review this subject very closely. Thanks again. Any changes and I'll be sure to update.