I am not usually someone that bad-mouths anyone or any institution for that matter, but I feel obliged to warn other Investors/Traders of what to expect when dealing with IG markets as a broker. I also do not want to devote much more time to this topic, as my time is better spent in other departments of my trading realm. So forgive me if I do not reply on here in the future.
Some of you may know of a CFD trading account I opened on the 1st of April 2020. (posted here http://www.sharechat...gram/?p=291727)and returning 223% by using my trading program. I posted all the trades, but I did not go into much detail regarding the commissions they charged. Only when I did a full analysis last week did I pick up on their charges that went from R50 to R175.
Commissions are supposed to be 0,5% across all trades but have gone up to 3,26% on my last trade.
The charges were R150 on a R4600 exposure transaction!!! On 10:1 gearing that equates to 16,3% of my initial margin!!! Who can trade in this environment?
I also had a trade in Sasol that traded R3-00 from my limit price and it traded out of the trading range at that moment. After a couple of e-mails, and their "mumbo jumbo" talk about slippage and some other BS reason, I took the R275 loss on the chin, because I closed the trade still with a small profit.
I have mailed them several times regarding the higher commissions being charged (without notifying me). I have not heard from them since. They have overcharged me by R1300+ on commissions (see attached).
Another thing that bothered me was the disclaimer they have below their E-mails.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading Spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
Spread bets ........ really??? .....not "trading spread" or "market spread", but "Spread Bets"!!!!. This is gambling terminology, and I guess this is how they treat their customers and probably the reason why 76% of people lose money on their platform. This is a crazy percentage as 68% is more the market average.
Anyway, regardless to say, I still need to close all my positions at these crazy costs. I just wanted to give you guys the reason why I am closing this account and not continuing with this test any further with this broker. They do not like people on their platform making money.
I could report them to the Ombudsman, but for +-R1500 , it is not worth any more of my time or money. If I could save someone else the headaches and heartaches, then at least this post has made a positive impact.
Edited by Pilotpilot, 19 May 2020 - 08:12 AM.