IG index application cancelled due to income

mmartisr

Newbie
4 0
Hello,

I have been using IG's demo platform for maybe a year, which I really like. So, I tried opening an account with them and I got rejected due to small savings and income.

I'm a uni student, but I have a fairly good savings account (£10k), anyone else can recommend what I should do? (Lie about my savings? But what if they ask for proof?)

I mainly trade CFD options, but haven't seen any other platforms offering the same instruments.
 

rossored

Senior member
2,103 56
The savings won't be the issue, it'll be the income. They don't want the FCA knocking on their door after you blow your account and end up in absolute poverty due to losses. So, you can either a) lie about your income (tricky now that you've already told them what it is) ... b) try another broker or c) get someone else to open an account in their name for you, such as a dad/mum/etc.
 
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MasterOfCoin

Experienced member
1,228 477
Just for perspective;

Yes, it's the income.

What with money laundering and exploitation regulations galore to be wary of, I G are being cautious.

It's the Nanny State in full coddling mode.

Online gaming firm Mr Green was been hit with a £3m penalty for failing to protect gambling addicts.
The company had accepted a 10-year-old document showing a £176,000 claims payout as satisfactory evidence of source of funds for a customer who deposited more than £1m and failed to freeze the account of a customer who won £50,000 and then gambled it all away before depositing thousands more.

But at least you'll be now be prepared, for your next application attempt.

;)
 
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mmartisr

Newbie
4 0
The savings won't be the issue, it'll be the income. They don't want the FCA knocking on their door after you blow your account and end up in absolute poverty due to losses. So, you can either a) lie about your income (tricky now that you've already told them what it is) ... b) try another broker or c) get someone else to open an account in their name for you, such as a dad/mum/etc.
My parents income isn't so great, perhaps £30k per annum and even if I choose their range of incomes, it states that £30k wouldn't be enough. But even if I lie that they make £50k+ , wouldn't they ask for proof of lets say a P60?
 

rossored

Senior member
2,103 56
I think it's extremely unlikely that they're going to ask for a P60. I've opened accounts with multiple brokers and never had to provide any kind of information like that, including with IG. All they've ever asked for is Identity/Bills. As long as the income is feasible, ie. your parents aren't working behind the counter at McDonalds, earning £120k a year, then it should pass compliance without too much difficulty.
 

mmartisr

Newbie
4 0
I think it's extremely unlikely that they're going to ask for a P60. I've opened accounts with multiple brokers and never had to provide any kind of information like that, including with IG. All they've ever asked for is Identity/Bills. As long as the income is feasible, ie. your parents aren't working behind the counter at McDonalds, earning £120k a year, then it should pass compliance without too much difficulty.
Lets say they make £30k, and they tell them they make £50k+, do you think they would approve their application?
 

manic99

Newbie
9 2
I applied for an IG account and it was also turned down due to my small income and/or savings. They wouldn't say which or how much I would need. But even worse than that, I've been spread betting with ADSS for years and just got an email saying this:

Thank you for trading with ADSS, given you’ve been a client of ADSS for a long time, we wanted to ensure that we have the most, up-to-date ‘Know Your Customer’ information at hand. This is a regulatory requirement that ADSS must adhere to in order to stay compliant with the current regulatory environment.

One of the questions asked how much I had in liquid savings (shares, bonds, money in the bank etc) i ticked the "under £5k" box and they phoned to say, "We're very sorry but we'll have to close your account unless you have over £5k. "
I'm wondering what to do now. Maybe I can open a spread betting account in another country.
 
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manic99

Newbie
9 2
I heard this might happen some time ago. It was said this is just the first step. Step 2 is raising the level again so you'll need £25k in the bank to get a trading account. Maybe somebody will set up a peer to peer system so poor people like me can still trade outside the regulations. Maybe crypto fans will come up with something. Don't know how that would be looked at by the tax man, if at all.
 

tomorton

Legendary member
8,326 1,314
Never lie to a broker with whom you deposit money. This would invalidate your contract and you might find if you are unable to prove your stated income you would be unable to withdraw profits.

In the UK, obtaining services by this kind of deception is also classed as a criminal offence and carries severe penalties.
 

mmartisr

Newbie
4 0
I applied for an IG account and it was also turned down due to my small income and/or savings. They wouldn't say which or how much I would need. But even worse than that, I've been spread betting with ADSS for years and just got an email saying this:

Thank you for trading with ADSS, given you’ve been a client of ADSS for a long time, we wanted to ensure that we have the most, up-to-date ‘Know Your Customer’ information at hand. This is a regulatory requirement that ADSS must adhere to in order to stay compliant with the current regulatory environment.

One of the questions asked how much I had in liquid savings (shares, bonds, money in the bank etc) i ticked the "under £5k" box and they phoned to say, "We're very sorry but we'll have to close your account unless you have over £5k. "
I'm wondering what to do now. Maybe I can open a spread betting account in another country.
I don't even know why they care so much, if they know how much you earn, they can set a limit of how much you need to cover losses in order to open an account, regardless of the size.
 

manic99

Newbie
9 2
I don't even know why they care so much, if they know how much you earn, they can set a limit of how much you need to cover losses in order to open an account, regardless of the size.
Agreed - you can't open a trade in the first place if you haven't got the margin in your trading account. What you have in the bank or earn is irrelevant. Also, trades are closed when you haven't got enough margin in your trading account anyway so and again, what you have in the bank or earn is irrelevant.
 
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AC007

Active member
125 1
IG has been playing game for the last few days. They turn the platform off and don't answer the phone. We should write to FCA regarding this. I am taking them to court if they don't compensate me. Lawers have told me I have a good case.
 

tomorton

Legendary member
8,326 1,314
IG has been playing game for the last few days. They turn the platform off and don't answer the phone. We should write to FCA regarding this. I am taking them to court if they don't compensate me. Lawers have told me I have a good case.
Turning their platform off sounds drastic. How do you know they have turned the platform off? Is it not possible they have simply blocked your access to the platform or frozen your account?

What could be the reasons behind this? Even if IG are in the wrong, it would be useful to understand what happened.
 

AC007

Active member
125 1
Turning their platform off sounds drastic. How do you know they have turned the platform off? Is it not possible they have simply blocked your access to the platform or frozen your account?

What could be the reasons behind this? Even if IG are in the wrong, it would be useful to understand what happened.
They probably don't hedge their spread bet and CFD poisons. If I was not able to benefit or cut my loss on time due to their fault I do have a case. They did not answer their call.
 
 
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