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Packman11

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About Packman11

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  1. IG International doesn't even have the 2FA option, really disturbing
  2. in March-April I would easily be on hold for up to an hour but of late it's less than half an hour, yesterday it was pretty much instant I did have one call where they picked up and took care of an issue, but when they talked to me I could no longer hear them so they hung up and got back to me by mail
  3. yes I'm talking about buying options with cash. for CFD accounts this is still done on margin, but the margin is limited to your funds however if you max out your funds to buy the options, under the assumption that the margin on options can't change, and then the exchange rate moves against you, then this can trigger a margin call and because options can drop a lot in value fast after buying them, a forced sale of them can cause huge losses
  4. I wanted to advertise this to everyone, it's a vital piece of information. I heard of one person who got wiped out because he wasn't aware of this, I myself could have suffered from it too. When you buy options, in theory your margin doesn't change. However, if your account is priced for example in Euro, and you buy options priced in Dollar, then the exchange rate does affect your margin, and can change it. Because in this example your margin is priced in Dollars, but your funds are in Euro, meaning if the Dollar goes up you need more Euros to maintain the same margin amount priced in Dollars.
  5. I wanted to advertise this to everyone, it's a vital piece of information.I heard of one person who got wiped out because he wasn't aware of this, I myself could have suffered from it too. When you buy options, in theory your margin doesn't change. However, if your account is priced for example in Euro, and you buy options priced in Dollar, then the exchange rate does affect your margin, and can change it. Because in this example your margin is priced in Dollars, but your funds are in Euro, meaning if the Dollar goes up you need more Euros to maintain the same margin amount priced in Dollars.
  6. Hi, thanks for the reply. However I realized there's another situation: if your account is say priced in Euro, and your options are priced in Dollar, then if the Dollar increases in value, your margin (which is in Euro) actually goes up. For example if you have a 100 euro in your account and buy 100 euro worth of options priced in Dollars, then you'll need say $110 margin if the exchange rate is 1.1 at the time, but priced in Euro, that's 100 euro margin. However, if later on the Dollar climbs to 1.05 then you now need 105 euro to maintain your margin. I'm glad I found out before it affected me, I read of someone who lost all his money through this effect. I'd suggest IG to advertise this more clearly.
  7. Is there any way I can see prices for options without logging into IG? I'm curious to see if IG gives me "personalized" prices.
  8. Some of the info I've learned: First you have to look at where your tax residency is. Usually your tax residency comes with a tax number, you'll give this to IG. IG will (I think) then share the details of your account with the tax service of your country of residence, if they ask about it. Your country of residency (which is generally where you pay taxes, unless you're US national in which case you pay taxes there) now knows how much you've made (assuming they check, I can't say if they do) and how much you're supposed to pay taxes on it. Which is debatable. Some countries tax their residents on their capital gains (Italy, Spain), some don't tax capital gains but will tax trading profits if you trade like a professional (usually based on the number of trades, amount of money traded, amount of time spent on it, amount of profit, how long you hold a trade... in most cases it's quite vague) (Singapore, HK, Belgium to a degree). So you need to look up where you're a tax resident, then you'll know if you owe taxes on your profits or not. I don't think IG will withhold the taxes for you. Note that some brokers do, and that some countries will tax your profits even if you're not a resident (Spain, Italy in some cases). Note that if you lie about your residency this can get you into trouble, as will hiding it from your tax service. Before this was very common but in recent years most countries have signed up for information exchange systems that means most countries now know how much you made trading. If you're still using your old residency address you might be able to avoid this, but I wouldn't advise it. In your specific case, it depends on where you owe taxes for the tax year you're talking about. Generally it's the 6 month rule, if you spend the majority of 2020 in your home country then I'm guessing you'll be tax resident there, in which case you wouldn't need to pay in Australia (assuming Australia doesn't tax non-residents).
  9. I don't trade on these, but in theory you can check other brokers and see how much they charge for the same trades. I did that for my trades, and concluded my previous broker offered much worse prices and a lot less market liquidity, plus possibly a lot of taxation.
  10. Is there any scenario where you can get margin called on FX options? I bought as much as I had cash for, so my margin is below my funds. I assumed this margin cannot change, but then heard I of someone who got margin called on FX options, he claims IG increased the margin some time after he bought them, which wiped him out. I question anything I read on the internet, but is there any scenario where the margin on FX options could increase? For example can the value of FX options go negative, or can a change in spread increase the margin value after you've bought them.
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