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Will minimum bet sizes on indices be lowered when the new margin rules kick in?


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Seems strange but it's almost like many individual shares will be less risky than indices for bets of a certain size, once the margin rules change for spread bets at least?

Can you place smaller bets on CFD indices or do the work out the same as SB's ?

Cheers

 

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Hi @s&p, there has been no word from IG on lowering bet size minimum on the IG spread betting platform in view of the imminent ESMA regulations. 

Currently mini contracts (10th size minimum) are available only on the CFD platform and the IG MT4 spread betting platform. Of course if a UK client switches to CFD they lose the tax exempt status that spread betting provides.

It's highly likely many will move to the MT4 platform which I can recommend, especially with the IG special apps download (free).

Check your markets first, the MT4 platform does not list shares and has limited commodities and metals though does cover most FX and indices.

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This has been on my mind too. If minimum bet size is lowered it would allow IG to adapt to the spirit of the legislation and better look after its customers (though may not stop some from taking excessive risk). If minimum bet sizes stay the same there could be a short term event of people having large chunks taken out of their account (volatility induced). I think this is ESMA's raison d'etre to avoid blown accounts and replace with chunks taken out - to teach the lesson in a stern but not masochistic way. Alternatively customers can decide to go elsewhere where minimum bet sizes are within their risk parameters. Choices choices, I'll ask IG... 

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This is something I'd like to see, and I've raised this before on these very forums. It's particularly bad with stocks that have a large per share price. My preferred position size is around £750 in individual shares. So take a stock like Biogen, which I was considering a spread bet on. The share price is (currently) around $353, this translates into 35,300 points. Minimum bet size of £0.24 will result in a position of £8472! It's crazy, and basically, every time I've lost a decent amount on a spread bet it is because of this, i.e. I took too large a position.

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