UK Spreadbet firms to be investigated by the FCA

Discussion in 'Wall St. News' started by Visaria, Dec 6, 2016.

  1. JSSPMK

    JSSPMK

    What they ought to do is regulate the way they quote, not leverage IMO. If someone has the ability to blow an account they will find a way to do so.
     
    #61     Dec 14, 2016
    Visaria likes this.
  2. CBC

    CBC

    DIE GAIN CAPITAL DIE!!

    Visaria I just looked at the current IG PDS and it doesn't state that, but they have changed it so many times. I'm 100% sure that it was there as I'd read it b4. I've read on many sites that people make decent $$ from a trade then IG wouldn't pay up and say they can do this because it say it in the PDS.

    DIE GAIN!!
     
    #62     Dec 14, 2016
  3. JSSPMK

    JSSPMK

    Really? Wouldn't there be some blogging activity on the net already? I doubt this allegation is factual.
     
    #63     Dec 14, 2016
  4. luisHK

    luisHK


    Yes, it probably depends much on the strategy and very obviously on the volume. Swing trade accumulating over several days or weeks a significant portion of the daily volume in one stock and it's easy to see how having a stop triggered would be disastrous with the resulting slippage . Large hedge funds could bring the stock price close to zero for a few moments at least and even independent traders who trade a significant size would see a disastrous loss. Also even with a small position some slipages can be nasty if the market has a moment of panic.

    Anyway I can understand some people place hard stops, other mental stops or no stops, but find bewildering someone finds the issue cut and dry, never mind each trader's situation.
     
    Last edited: Dec 14, 2016
    #64     Dec 14, 2016
  5. CBC

    CBC

    #65     Dec 14, 2016
  6. JSSPMK

    JSSPMK

    Each company has customers that aren't happy with product and service, though overall rating of 3.97 out of 5 isn't too disastrous.

    https://ig.reviews.co.uk

    I'm with CMC markets.
     
    #66     Dec 14, 2016
  7. CBC

    CBC

    I live in Australia and one of the football teams here is sponsored by them.... guess what they are called??? THE MELBOURNE DEMONS !!!!

    AHAHAHAAHHAAH.

    Also a side note is the fact that IG won't let any1 comment on their you tube channel, probably more disgruntal customers.

    I also noticed that Germany isn't letting these bucketshops sponsor major football clubs as well.
     
    #67     Dec 14, 2016
  8. fo sure nothing is cut and dry in trading.
     
    #68     Dec 14, 2016
  9. Visaria

    Visaria

    Last week, the FCA announced a proposal that looks to make some significant rule changes to the Spread Betting industry in the UK. The most important of these changes involves raising the margin requirements for Spread Bet trading, which would mean you will need to put more money in your account to trade these products.

    Under the FCA’s proposed rules, you would be subject toincreased margin requirements on your account. The proposed margin requirements are as follows:

    Clients with less than 12 months trading experience All other clients
    Major currencies 25:1 (or 4% margin) 50:1 (or 2% margin)
    Major indices and gold 20:1 (or 5% margin) 40:1 (or 2.5% margin)
    Minor indices and other commodities 10:1 (or 10% margin) 20:1 (or 5% margin)
    Single stock equities, other asset classes 5:1 (or 20% margin) 10:1 (or 10% margin)

    Example

    If the UK 100 was trading at 7000 and you opened a spread betting position at £10/point, the difference in the amount of margin you'd need now vs the future (if the FCA's proposals were implemented) would be as follows

    CURRENT MARGIN
    FCA PROPOSED MARGINS
    Current margin requirement
    Clients with less than 12 months' trading experience Client with more than 12 month's trading experience
    £350 (0.5% x 10 x 7000) £3500 (5% x 10 x 7000) £1750 (2.5% x 10 x 7000)
    As well as increasing margin requirements, the FCA has proposed:

    • The publication of standardised risk warnings and the disclosure of average client profit and loss ratios. We support this measure, as we are committed to ensuring that our customers understand the risks related to the financial products they trade and to promoting transparency relating to trading outcomes.

    • A ban on bonus promotions. The FCA has stated that bonus promotions have been abused and may inappropriately encourage customers to open accounts or trade. We do not support aggressive marketing tactics, especially those aimed at inexperienced traders.
     
    #69     Dec 16, 2016
  10. Visaria

    Visaria

    Margin changes (if implemented) will be a serious PITA.
     
    #70     Dec 16, 2016