Jump to content

8 pips spread on EURGBP by IG

Guest TEO88

Recommended Posts

Guest TEO88

On 28/5/2019, 1700 GMT,  IG Market EURGBP spread was EIGHT pips.  How ridiculous !!

Mid point was 0.88335, ask 0.88375, bid 0.88295,  they took out my stop at 0.8837!!

This is equivalent to quoting 6 pips spread on EURUSD, and 6 pips spread on GBPUSD.

The next price is 0.88345 on bid.  So they blipped the price to take stops. How unprofessional and dirty works.

They claimed that it was liquidity provider's fault due to holidays in US. 

I HAVE NEVER SEEN SYDNEY MARKET QUOTING 8 PIPS spread, even in a thin market.

Is there any authority watching them?


Link to comment
Guest backwardation

- Labor Day in US
- Bank Holiday in UK
- Sydney session 

I'd give each of those reasons around 1.5pip each.

Link to comment
Guest PandaFace

You an authority on fx liquidity and can see all the OTC quotes the LPs are spitting out or just a regular fella sat at home trading on their laptop? 

Like backwardation said US and UK closed, so aaaaall USD and GBP is locked up, plus Australian session so **** is thin. 

IG is regulated by FCA and ASIC in aus if that’s where you’re based. What do you think is the benefit of ‘stop hunting’ to take you out of your £1 a point or other tiny position? 

Paranoia is real. Why don’t you just trade FX DMA then you cut out IG as an intermediatry as well as your deamons... 

Link to comment

Hey folks. 

I believe you may be referring to 5.00am GMT rather than 17.00pm GMT today (the 28th)? Whilst I understand the frustration of having a position closed out, especially at times of thin liquidity or heightened volatility which causes spreads to widen, I wanted to reassure you that IG prices are reflective of the underlying FX market at the time. Client satisfaction is an absolute priority, and we understand the competitive nature of our niche trading offering. 

I believe an important factor in IG's success over the years is a commitment to work closely with regulators and appropriate governing bodies. As noted we're regulated by the FCA in the UK and ASIC in Australia. Other office locations are regulated by the appropriate authorities. 

Unlike shares or futures trading, FX doesn’t trade on a centralised exchange in the same way, so we need to shop around for over the counter liquidity providers such as international banks and financial institutions. To do this, we collate several feeds from some of the largest providers and use a smart order router to push you the best bid/offer spread to trade. Whilst IG spread around this is variable, it's based on movements in the underlying.  

Most importantly, we never take a speculative view on the direction of the market. While it is a well-known fact that successful trading can be challenging, we do not typically benefit from trading losses that an unsuccessful client may experience. In the same vein, if you make money from a profitable trade, IG does not typically lose out.

Put simply, we want our clients to trade profitably, and we put client interests at the heart of our business. Revenue is generated from spreads and administrative costs, and in some jurisdictions separate commission. It therefore goes without saying that we do not manipulate price feeds, hunt stop losses etc.

The below video may be of interest, with insight into FX pricing starting around the 2 minute mark. If at any point you wanted to question or check our prices, please feel free to give us a call and we can look into your query in real time. 


  • Thanks 1
Link to comment
Guest PandaFace

With that said... it would be cool to have bidoffer spread displayed on the chart MT4 style, even if that’s only on tick/second/minute and when on line chart.

Edited by PandaFace
Link to comment
Guest TEO88

It is not about money, I only lost 300 usd on a 2 std lot trade.  It all boils down to standards adopted by platform. You cannot quote 0.9 pips and suddenly 8 pips spread, 9 times wider.  Even in times of adverse market condition, there must be a band on the spread. Not 9 pips, or even 15 pips as and when they subjectively deemed fit!   At that point in time the  asking price of EUR divided by bid price of GBP is only 3 pips spread at the maximum. EURGBP is not a standalone ccy, it is a cross ccy.

Link to comment
Guest AG 804.

 FWIW, I have been trading FX for over 40 years, both as a pro, and as an individual. Even as late as 2000, banks were still quoting each other anything from 5 to 10 ticks in $5m in $/DM, then the most widely traded currency pair. That one can deal in the same amount (or more) for less than one tick most of the time still amazes me. There are several reasons for this, but the Rise of the Machines is one of them.  but when the machines go mad (january2019 in JPY),  there is downside as well. 

 I know it sucks when you're stopped by a pip or so, but it's part of the game. Deal with it. If you want to blame someone else, you are deluding yourself.  For my part, day trading is too hard these days, and trying to run the trend is the only way to go.

Link to comment
21 hours ago, PandaFace said:

With that said... it would be cool to have bidoffer spread displayed on the chart MT4 style, even if that’s only on tick/second/minute and when on line chart.

I'll make sure to pass that on - would be useful for sure and help resolve the bid/offer spread questions and help people see their stops/limits being triggered 

Link to comment
4 hours ago, dmedin said:

James, is it true that there are two 'books' of clients, the successful ones (A book) and the losers (B book)?  I read that in an FX book by Anna Coulling.  I find the idea quite amusing.

We aggregate client exposure, internalise flow as efficiently as possible, and hedge any exposure which goes outside of these parameters. We don't trade against our client base, we don't have an opinion of market movements or direction, and our focus is to execute trades basis the best prices in the underlying market. 

In some instances, for example high volume trades or trades of significant size, we'll have to go to market immediately as these go outside our risk parameters - i.e. passed to market outside of our OTC retail aggregation. 

However, we also offer the FX DMA option for clients who want all their trades pushed to market directly - so called "A book". https://www.ig.com/uk/forex/forex-direct 

  • Like 1
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

    • DIMO's platform seems to be shaking things up in the car world! Being able to get useful info about your car easily sounds great for drivers. And now that their token is on Bitget exchange, more people can get in on it. Super exciting news!
    • Just for completeness, I mean lists of companies. Many thanks, Peter
    • It’s one of the most popular traded markets on our end, and we take a look at the S&P 500’s technical overview in both weekly and daily time frames, the strategies to deploy for conformist, contrarian and ‘hold’ camps.   Written by: Monte Safieddine | Market analyst, Dubai   Publication date: Tuesday 27 February 2024 06:48 Dive into the conflicting sentiments of IG clients versus COT speculators and stay ahead of the game with upcoming market events. Don't miss out on this essential guide to understanding the current state of the S&P 500 and preparing for what lies ahead!       This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.    
  • Create New...