fibonelli
Experienced member
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If bank savings become at risk, how safe are clients funds in a trading account?
readyaimfire
Junior member
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I can't see that at all.America has actually been in slowdown for quite a while now,I know because I lived there for the last 2 years and have seen it deteriorate firsthand.Passing the bail-out bill(I think they prefer rescue package)is unfortunately a necessary step to get the American economy back on track.Banks will survive,merge or fail and money will begin to circulate again.The UK though is facing some very tough times ahead,large rate cuts are now inevitable.What is making the Great British Pound so 'great'?
Your trading account money is NOT 100% safe!
This is what I got from I G Index
Dear Sir/Madam,
Thank you for your enquiry.
Your account funds are held with IG Index in accordance with the FSA Client Money Rules (link below).
FSA Handbook - Full Handbook
Should your account funds be held in a segregated bank account (all client funds are segregated unless requested by the client in writing), in the unlikely event of the insolvency of IG Group Holdings Plc, your funds are fully protected. In such an event, you would be entitled to obtain your full account balance.
If you have signed a Title Transfer form to authorise transfer of your funds to a non-segregated bank account, your funds are not protected and could potentially be accessed by Creditors in the event of insolvency.
In the event that the ‘deposit takers’ (Banks with whom we hold clients’ funds) collapse, all client money – segregated and non-segregated would be lost. However, the FSA Compensation Scheme protects and guarantees the first £35,000 of the clients’ money. So, if you hold less that £35,000 with IG, you will be entitled to all of your money if our bank collapsed.
Further information about the treatment of your funds by IG can be found in our Customer Agreement (Client Money, section 17).
Should you have any further queries or requests, please do not hesitate to contact us.
Kind regards,
Lizzie Counihan
IG Index plc Client Services
Friars House | 157-168 Blackfriars Road
London | SE1 8EZ | IG Index - Financial Spread Betting |
Freephone: 0800 409 6789
International: +44 (0)20 7896 0079
This is what I got from I G Index
Dear Sir/Madam,
Thank you for your enquiry.
Your account funds are held with IG Index in accordance with the FSA Client Money Rules (link below).
FSA Handbook - Full Handbook
Should your account funds be held in a segregated bank account (all client funds are segregated unless requested by the client in writing), in the unlikely event of the insolvency of IG Group Holdings Plc, your funds are fully protected. In such an event, you would be entitled to obtain your full account balance.
If you have signed a Title Transfer form to authorise transfer of your funds to a non-segregated bank account, your funds are not protected and could potentially be accessed by Creditors in the event of insolvency.
In the event that the ‘deposit takers’ (Banks with whom we hold clients’ funds) collapse, all client money – segregated and non-segregated would be lost. However, the FSA Compensation Scheme protects and guarantees the first £35,000 of the clients’ money. So, if you hold less that £35,000 with IG, you will be entitled to all of your money if our bank collapsed.
Further information about the treatment of your funds by IG can be found in our Customer Agreement (Client Money, section 17).
Should you have any further queries or requests, please do not hesitate to contact us.
Kind regards,
Lizzie Counihan
IG Index plc Client Services
Friars House | 157-168 Blackfriars Road
London | SE1 8EZ | IG Index - Financial Spread Betting |
Freephone: 0800 409 6789
International: +44 (0)20 7896 0079
IG’s value plummets by 27% after spread bets on bank shares cause £12m of bad debts in one month - Times Online
WTF !?! Where were the risk controls?
No one's saying they're going bust but if they can let this happen the possibility is far higher than I had thought.
WTF !?! Where were the risk controls?
No one's saying they're going bust but if they can let this happen the possibility is far higher than I had thought.
How amusing that £15m of bad debt can cause £200m to be wiped from the share value.
montmorencyt2w
Senior member
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Bad debts - so what is this actually saying ... that IG clients actually lost money trading on bank shares, and defaulted, so IG potentially lost money or that IG clients won so much, that it cost them a packet?
How could anyone lose by betting on banks in recent time .... they'd have to be a "sell" wouldn't they (until short selling was "banned of course)?
Confused...
M.
How could anyone lose by betting on banks in recent time .... they'd have to be a "sell" wouldn't they (until short selling was "banned of course)?
Confused...
M.
Alpha Dawg
Member
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Alpha Dawg
Member
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man ive been readin n searching sum stuff bout toaster n electricution...and it turns out real man, i gota stop doin dat stuff
simcom
Active member
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- 142
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- 8
I find it amusing that IG, CMC and others have recently realised statements to the effect of their more stringent enforcement of margin rates in future. Makes you wonder how relaxed they've been up until now!
