[Commodities - USOIL - Interest and Admin Charges on positions]

11 hours ago, OfentseIG said:

Hi @jabaty

That is determined by the daily movement  along the futures curve. We have a detailed explanation on our website explaining these charges and how to see if interest will be credited or debited. 

https://www.ig.com/uk/help-and-support/spread-betting-and-cfds/fees-and-charges/why-is-overnight-funding-charged-and-how-is-it-calculated-

OfentseIG

Smoke and mirrors to increase charges and profits.

I remember the days when a spread bet accounts had no charges, interest or anything, until brokers got greedy.

[Commodities - USOIL - Interest and Admin Charges on positions]

3 hours ago, OfentseIG said:

Hi @jabaty @Daily

We appreciate your feedback and can assure you that it will be forwarded to the relevant department to be reviewed. We recently sent an email regarding overnight funding on FX admin charges. I believe this was sent out on the 30th of December.

This change went live from 16 January 2023 and impact the way our charges are presented on statements, alongside the calculation of the fee. This change will apply to all existing and new positions. 
Our website and legal documents will also be updated to reflect this. 

What does this mean for you? 
Currently the fee for holding FX positions appears as one cost on your ledger and statements. They’ll now appear as two separate lines, representing our admin fee and the ‘Tom-Next’ charge, calculated by the market.

Separating these charges will add increased transparency to your overnight funding.

When will the fee be applied?
Currently, we apply overnight funding on a T+2 basis, so the fee for holding positions over the weekend is charged on a Wednesday. This is an industry standard on FX positions.

As the ‘Tom-Next’ is an industry calculation, this element of your overnight funding will continue to be charged on a Wednesday.

To align with our other asset classes, our admin charge for positions held over the weekend will be applied on a Friday instead.

For clarity, holding a position through a Wednesday will incur three days ‘Tom-Next’ charge and one day of admin fees. However, a position held on a Friday will incur a one day ‘Tom-Next’ charge and three days of admin fees.

How will the fee be calculated?
Until now, we’ve advertised an admin fee of 0.8% annually for holding FX positions overnight. However, as we’ve applied only one admin fee over weekends and holidays, up to this point we’ve effectively charged less than this.

Our advertised fee isn’t changing, but merely being charged in a different way. The evolution now brings the fee to the advertised 0.8%.

All the best, OfentseIG
 

 

 

This really sounds like an excuse to increase charges behind a cloak of split amounts!

Your answer does not explain how, over months and months of trading:

If I've had a long position over night, I would get a payment of interest. And if I've had a short position over night, I would have interest deducted. 

But now it appears inconsistent, I never now know if you'll deduct or credit interest on whatever position I have. 

 

[Commodities - USOIL - Interest and Admin Charges on positions]

Dealing mainly with USOIL on my spread bet account, interest payment/deductions were very simple, deduction for sell positions and payment for buy positions lasting into the next day. Why am I now seeing changes in interest payment/deductions and now I’m seeing a daily ‘Admin’ charge on positions?

You are making it very difficult to trade, ‘taking’ away profits when you already make on spread.

Having been with IG for a good number of years, I’m now searching for another broker.