Concessions

[cate]

Hi all,

I've just received a letter from IG saying "Following on from the European Securities and Markets Authority (ESMA) consultation on leveraged trading, providers can no longer offer any form of concession to retail clients based on trading volume. You may have benefited from spread, overnight funding or currency conversion concessions in the past. Unfortunately, we are no longer able to offer these preferential terms to you."

Does anyone know what these "concessions" are? And what the implications are for our trades after the end of the month? 

Looks like another nasty little landmine planted by ESMA to make life harder... 

Cate

 

 

 

[Ludwik Chodzko-Zajko IG]

Morning all,

@cate The email you refer to was sent to clients that had, at some point, benefited from a rebate of some kind. No idea about the specific logic, so apologies if you received it without having done so!

Re. PRT charts fees, I've been informed by our head of platforms that this will not be affected, so you will be refunded should you meet the relevant criteria ( 4 trades/ reasonable volume).  

Obviously this is based on our current understanding and interpretation of the ESMA rules, so possibly subject to change etc...

 

[Caseynotes]

Hi @cate,  the concessions likely refer, just as stated, to preferential spreads, funding and conversions that brokers offer in order to attract and retain high end, large contract size clients and presume this is now to cease under the new ESMA terms regarding the banning of inducements.  

I remember early in the year CMC Markets launched what they called 'Project Tuna' the aim of which was to lure high end clients away from other brokers and wondered but never found out just what kind of inducements they where offering.

https://www.ft.com/content/6f83bc7c-331b-11e8-ac48-10c6fdc22f03

 

[cate]

Thanks for the reply @Caseynotes!

Sadly, I'm absolutely not a high end client and I think from what I can see the email was sent to me by mistake! I thought it meant spreads and trading costs were going to get much worse post ESMA, but if it's just the withdrawal of special treatment that I never had anyway, that's one less thing to worry about!

Nice to have this forum to discuss on, and thanks for your reply.

Best wishes,

Cate

[Guest PandaFace]

Does this also account for the pro real time chart rebate thing when you do X number of trades? Maybe that’s why you got it?

[cate]

Ah, thanks @PandaFace! Good thought. If that is what it meant, it would be good to know. I've got into the habit of thinking of the charts as "free". 

[cate]

Thanks very much, Ludwik!