Are these IG and CMC ads contradictory, or am I getting mixed up?

kgnokl973

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Hi guys,
I'm new to trading so I'm a bit confused about how exactly leverage and margin benefit the consumer and make it cheaper to trade. I was looking at the homepages of IG and CMC and they seem to be contradicting one another (see attached - actually IG have just changed their website but they've still got a pretty similar promotion on there).
As I understand it the lower your margin percentage, the greater your leverage since you have to put up less of the value of your trade upfront. The leverage is determined by the deposit factor so in other words the higher the deposit factor the greater your leverage.
If that's right then CMC seem to be saying "trading with us is cheaper since we offer you more leverage" whilst IG seem to be saying "move to the plus account and trading will be cheaper since we'll offer you LESS leverage".
I'm really confused since surely one of them must be telling porkies? When I ring them up they just give me load of flannel and try to talk me into opening an account. Can anyone set me straight?
Cheers,

Luke
 

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  • IG less leverage benefit.JPG
    IG less leverage benefit.JPG
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  • CMC more leverage benefit 2.JPG
    CMC more leverage benefit 2.JPG
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They're different things in the table. Both are promoting more leverage.

IG is saying now you need to deposit less money to trade things, CMC is saying you need to deposit less then other competitors.
 
They're different things in the table. Both are promoting more leverage.
QUOTE]

Ok cool, thanks for clearing that up. I must've got it all wrong. I thought the deposit factor was 100/margin req so if you had margin requirement of 1% your deposit factor would be 100 and if your margin requirement was 0.33333...% your deposit factor would be 300 etc. Is that not right?
 
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