Jump to content

forced to sell Cannabis shares by IG while they push leveraged trading in the exact same companies


Guest hariboid

Recommended Posts

Guest hariboid

Disclaimer: I'm already shifting my portfolios out due to IG's moronic policies over REIT and MLP dividends and truly awful customer service.

The latest genius move by IG. They will no longer allow clients to hold cannabis related stocks (although even more illogically Altria, Constellation brands and other megacaps that effectively own the companies in question are fine). Holdings have to be sold by May 27th. In my case this is Aurora, Canopy, Cronos, Hexo, CannGroup, Auscann.

But what do I see on the opening page of the IG website? "GET EXPOSURE TO THE CANNABIS INDUSTRY" "TRADE CANNABIS WITH AN IG ACCOUNT IN MINUTES" etc etc. in different stocks, on different markets, under different rules sets? No. Same stocks.    

Screenshot 2019-05-22 at 14.56.54.png

Screenshot 2019-05-22 at 14.57.32.png

Link to comment

Hi @hariboid - Whilst this has be posted on other areas of the forum, I thought I'd copy the comments to this thread which should give some insight into the decision we have made to stop offering Cannabis stocks for UK share dealing clients, but allow leverage CFD (and spread betting in the UK) :

IG has become aware of various financial institutions performing reviews of the regulatory and political implications of offering Cannabis stocks in the UK with a recreational link, and because of this and IG's own internal review the stocks listed are no longer appropriate for IG's risk appetite. 

Therefore there has been a business decision to take action as quickly as possible but within the legal allowances detailed in IG's Customer Agreement. 

Regarding why we can continue to offer these stocks on leverage accounts, the reason is that there is additional certainty with regards to derivatives referencing the underlying stocks, and as IG uses swaps to hedge our clients' leveraged trades with us, we will not be engaged in the physical trading of recreational linked cannabis stocks.

It's also worth noting that a number of other stockbrokers have also recently taken similar action. As stated on other threads...

Unfortunately I am unable to advise on other companies [specific] dealing practices, however in the interest of forum transparency other Community members are more than welcome to have their say as some already have (in accordance with our terms of service and within reason of course).

When it comes to 'moving' stock we are unfortunately unable to facilitate a stock transfer and you can only sell to close with us when it comes to Cannabis stocks on a share dealing (and/or ISA account in the UK). Our CFDs and Spread Betting leverage accounts remain unaffected by this decision.   

 

To shift your exposure from IG would therefore require you to sell on IG and buy on an alternative brokers platform. One possible option to reduce market movements / fluctuations in the individual share price over this period and reflect exposure on this new broker is to set simultaneous orders in the same auction with IG and the new broker.

As a service industry customer satisfaction is an absolute priority, and whilst I understand the frustration with the outlined action, we must act appropriately given our recent review of the regulatory and political implications of offering Cannabis stocks in the UK with a recreational link.

Link to comment
Guest hariboid

@JamesIG, thankyou for the response. 

Since i'm leaving IG anyway, I won't engage further to explore why it is mostly doublespeak. And to say: 'customer satisfaction is an absolute priority' well, my experience has been the opposite. All I will say is that many of the cannabis stocks in question trade on the NASDAQ ffs. And you are in error, plenty of other platforms do allow clients to hold cannabis stocks across a range of markets. I have similar holdings with ii and Hargreaves Lansdowne with no issue.  

Link to comment

Archived

This topic is now archived and is closed to further replies.

  • image.png

  • Posts

    • Elliott Wave Analysis Trading Lounge Day Chart, Euro Stoxx 50 Elliott Wave Technical Analysis FUNCTION: Counter Trend MODE: Corrective STRUCTURE: Orange wave 4 POSITION: Navy blue wave 3 DIRECTION NEXT HIGHER DEGREES: Orange wave 5 DETAILS: Orange wave 4 remains in play as a sideways movement. Wave Cancel invalid level: 4618 The Euro Stoxx 50 Elliott Wave Analysis on the day chart indicates that the market is currently in a counter-trend phase. This phase is characterized by a corrective mode, suggesting a temporary pause or reversal in the prevailing trend. The specific wave structure being analyzed is orange wave 4, positioned within navy blue wave 3. This means the market is in the fourth wave of a larger wave sequence, typically involving consolidation or a corrective movement before the final leg of the trend. The analysis suggests that the next higher degree direction is orange wave 5. This indicates that after the completion of the current corrective phase (orange wave 4), the market is expected to transition into orange wave 5, resuming the primary trend direction and likely leading to further price increases. Detailed observations indicate that orange wave 4 is still developing and is unfolding in a sideways pattern. This implies the market is currently in a consolidation phase with limited directional movement, characteristic of a corrective wave that moves sideways rather than trending strongly in one direction. A crucial aspect of this analysis is the wave cancellation invalid level, set at 4618. This level serves as a critical threshold for validating the current wave structure. If the market price falls below this point, it would invalidate the current wave analysis, indicating that the expected wave pattern is no longer valid and would require reassessment. In summary, the Euro Stoxx 50 day chart analysis shows the market in a corrective counter-trend phase within orange wave 4, positioned in navy blue wave 3. The market is currently consolidating sideways, and after this phase completes, it is expected to transition into orange wave 5, resuming the primary trend direction. The wave cancel invalid level is 4618, serving as a critical validation point for the current wave analysis.   Elliott Wave Analysis Trading Lounge Weekly Chart, Euro Stoxx 50 Elliott Wave Technical Analysis FUNCTION: Counter Trend MODE: Corrective STRUCTURE: Orange wave 4 POSITION: Navy blue wave 3 DIRECTION NEXT HIGHER DEGREES: Orange wave 5 DETAILS: Orange wave 4 is still unfolding as a sideways movement. Wave Cancel invalid level: 4618 The Euro Stoxx 50 Elliott Wave Analysis on the weekly chart shows that the market is currently in a counter-trend phase. This phase is classified as corrective, indicating a temporary pause or reversal within a larger trend. The specific wave structure under analysis is orange wave 4, positioned within navy blue wave 3. This positioning suggests the market is in the fourth wave of a larger wave sequence, typically involving a corrective or consolidative movement. The analysis predicts that the next higher degree direction will be orange wave 5. This suggests that after the completion of the current corrective phase (orange wave 4), the market is expected to transition into orange wave 5, resuming the main trend and potentially leading to further upward movement in prices. A key detail in the analysis is that orange wave 4 is still in progress, manifesting as a sideways movement. This sideways movement indicates that the market is in a consolidation phase, with limited directional momentum, characteristic of a corrective wave that does not strongly trend in either direction but instead moves in a horizontal pattern. An important aspect to note is the wave cancel invalid level, set at 4618. This level is crucial as it serves as a validation point for the current wave structure. If the market price drops below this level, it would invalidate the current wave analysis, signaling that the expected wave pattern is no longer applicable and that the analysis would need revision. In summary, the Euro Stoxx 50 weekly chart analysis indicates the market is in a corrective counter-trend phase within orange wave 4, situated in navy blue wave 3. The market is consolidating sideways, and upon completion of this phase, it is expected to move into orange wave 5, resuming the primary trend direction. The wave cancel invalid level is 4618, serving as a critical threshold for validating the current wave analysis.   Technical Analyst : Malik Awais Source : Tradinglounge.com get trial here!  
    • Asian shares dropped sharply overnight, influenced by a slump in global tech stocks. Chinese stocks, iron ore, and oil prices fell further after China's central bank unexpectedly cut longer-term interest rates. European markets were set for a lower open, following heavy losses on Wall Street. On Wall Street, the Nasdaq experienced its worst one-day fall since 2022, dropping almost 4% due to disappointing earnings from Alphabet and Tesla, while the S&P 500 finally snapped its streak without a 2% drop, having gone for 356 days without such a one-day fall. Investors sought safety in cash and short-term debt, with US two-year yields hitting their lowest in almost six months. The Japanese yen strengthened as a safe-haven currency, reaching its strongest level in 2.5 months. Today's data barrage from the US includes initial jobless claims, durable goods orders and the first GDP reading for Q2. US futures are slightly higher after yesterday's steep losses.
    • As a beginner in the crypto market, it is essential to first learn the basics of this niche. Learning by yourself can be a very daunting and confusing task. Also, investments in the crypto market have financial risks and effects which need to be monitored. This can only be done when you understand the market and knows what exactly is happening the market before making any future Investment decision.  Here are some essential tips that will help you informed and stay ahead of the market: -  1. Crypto News Websites/ Apps   There are some crypto news websites and apps that provide the latest and up-to-date information about the crypto market. Some of the most important sites and apps are Cryptoreach, Cryptopanic, Cointelegraph, coingecko, and Coindesk. They also have their app version which will let any beginner know about the current trending cryptocurrency, its price, and its volatility in the market.   2. Social Media   if you want to know anything important and trending about any niche, social media is where you will get all the updates. You can follow crypto influencers, crypto analysts, and informational platforms like reddit or Quora. You can engage with top crypto social media pages and engage in the discussion to stay updated about what's going on in the market and what's the next trend.  3. Email Subscriptions and Newsletters.   Email subscriptions and newsletters are good ways to know about any market report or events that happen on a Daily /Weekly/ Monthly basis. Subscribing newsletters from reputed sources will provide you with news directly to your inbox.     Note: Always remember cryptocurrency market is a volatile and dynamic market. It is always advisable to read from multiple resources and cross-verify before making any decisions. It is better to use a crypto news app to monitor crypto coins and market analysis.    
×
×
  • Create New...
us