Jump to content

Increase in funding costs


Recommended Posts

I can't see a thread related to this issue. Maybe I was dreaming it, but I think I have seen sight of some funding changes put through by IG. It may not have attracted much attention.

Basically, in a nutshell, my understanding is that if you were trading US500 say in Sterling, any overnight positions would incur a cost of the Sterling Base rate plus IG's premium of 2.5%. I think that makes 3.25% per annum.

Now, I believe it says that you will be charged on that security at the "relevant interbank rate". Not the currency you are trading in but the domicile of the security. So US500 would bear the cost of the Fed rate 2.75% I think plus the IG premium of 2.5% making 5.25%. Or something like that.

Happy to be corrected on this understanding but that is pretty material if you are a position or swing trader and could, if one does not change one's method of trading lead to an increase in the % of traders who will lose money going forward.

I'm not sure of the justification re this. It is certainly an innovative move by IG versus the other spreadbet providers.

I would be interested to hear from others on this. Happy to be proven wrong on this or whether it be confirmed by IG posters?

Link to comment
  • 1 month later...
Guest Alexio

Yep I've just noticed this. (shows how much attention I pay to what I'm being charged) 

Since early Feb, overnight charges on long s&p500 have essentially doubled for me. I've looked at the email they sent round early Feb about changes in margin and there's absolutely no mention of them now calculating it on the dollar base rate rather than the pound. 

Despite them claiming "transparent fees" I think they were hoping no one would notice. Essentially it is highway robbery. 

I will be opening an account with another provider this morning and they can kiss goodbye to all the fees I was paying. 

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • This is the E1 contract from an IG France account. All the best, KoketsoIG
    • Dear @cate, We're sorry to hear you didn't like the new platform. The old platform is being decommissioned, so we recommend using the new one. You can find the same markets by using the search function. For example, when I typed 'crude oil' on both platforms. To select the desired contract on the new platform, simply click on the market you want and then choose from the dropdown menu. The E1 contract is only available for Europe accounts, not UK accounts on both platforms. Thanks, KoketsoIG
    • Hi, I've been holding onto the old platform as long as I could, because I really don't like the new one,  but now it's being decommissioned I'm trying to use the new one finally. ☹️  On the old platform I had a choice of WTI either as a 1 euro or a £1 contract, and the same for Gold. But when I search on the new platform all I get is the  £1 contract as well as an absolute ton of ETFs. It doesn't even say it's the £1 version, it just calls itself "spot gold" which is a bit confusing because it looks as though you might be buying a full lot, not just a mini contract. Can anyone tell me how to find the 1 euro contracts, or are they just not available on the new platform? Many thanks, Cate 
×
×
  • Create New...
us