IG Index versus CMC markets, immitation the sincerest form of flattery?

Is PC or IGIndex's position that they are cheaper or save money to the client? From what I read IGIndex position was that clients had requested it. If they are putting in a client request that the client loses money on, then who can blame them? They're in the business of making money from clients. If enough clients complain about it, they'll probably have to offer both ways of rolling.

I think there were other problems in the daily roll over that IG used to do. I haven't used it in a while, but from what I remember, if you had a position on the Dow cash say, that was open at 8:45pm, it would then say 'in process of rolling'. You wouldn't be able to adjust anything, stops, limits or close the position for the next 15 minutes or so (sometimes longer :S). During this time, IGIndex could probably exit the position favourably for them, then give you a new position at the closing price, and charge the spread for it again. At least if the position remains open and a charge is made at 10pm, then you have the option to close or adjust at any time you like.
 
Apart from the question of whether rolling cash is more expensive, next gen's oil price is very confusing if you want to hedge with another SB. For that reason I hope everyone else starts to offer the same thing.
 
hi Lancenicolase
guess you could look at it that way. but lets keep this conversation between us because dont want the competition catching on to what we do. You never know they might monitor this site. ha ha ha
happy Easter to all our readers.
pc
:cheesy:
lancenicolase said:
You have a monopoly then and CMC will be referred to the Competition Commission. :) :) :).
I like your optimism and approach... wish everybody had it.
Click to expand...
 
Got this e-mail/newsletter from IG this morning, is their finance is very expensive at Libor plus 2.5 percent? Stocks, shares and indices are rolled over DAILY at the MONTHLY Libor rate plus their spread, why not roll over at overnight rate? Hidden profits here, expensive for clients as usually the one month rate is higher than over night rate?

Are they now including admin cost in the tomorrow roll-over for forex? A hidden cost is weird nobody charges admin cost on forex rollover do they?

Are IG are looking for ways to squeeze extra money out of their clients through finance charges? Hmm..perhaps that big Asia lost has to be re-couped by socialising a few sly charges onto the clients...

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

This is a reminder that on 2 April 2011 our Daily cash bets will be replaced by Daily Funded Bets (DFBs).

DFBs will offer our tightest available spreads without the inconvenience of rollovers, and will replace our Daily cash bets on stock indices, forex, shares, sectors, gold and silver. Daily futures are unaffected.

What do I need to do?

If you're happy for your Daily cash bets to be converted to DFBs, you don't need to do anything at all. We will automatically close any Daily cash bets you have open on 2 April 2011We will open a corresponding DFB for you at the same level, with no charge
Any working orders on Daily cash bets will also be converted into corresponding working orders on DFBs If for any reason you do not want your Daily cash bets converted to DFBs, you will need to close any positions before the market closes on 1 April 2011.

How do DFBs work?

DFBs have a long expiry date of April 2016. Just like our current Daily cash bets, you will still be able to close your position whenever you choose, at any point before the expiry date.

Our current Daily cash bets expire each day, and a funding charge is built into the roll spread. New DFBs, on the other hand, do not expire each day - we instead make a cash adjustment to your account to reflect the funding costs of your position for each day that the bet remains open. The funding for DFBs will be charged in line with the rate for daily rollover charges.

If you have any questions about these changes please contact us on the details below.
Overnight funding and dividend adjustments

The funding adjustment will be made to all positions that you hold at 10pm UK time.
Stock index, sector and share DFBs: The funding adjustment is based on the one-month Libor rate for the currency the bet is denominated in, plus or minus 2.5%.

Forex, gold and silver DFBs: The funding adjustment is based around the Tom-next spread for the currency pair involved which will include a 0.0055% daily admin charge.
Funding adjustments will appear on the ledger as an aggregate amount for each currency that you hold positions in.

Dividend adjustments on stock index DFBs will be made at the close of the underlying cash market. Dividend adjustments on share DFBs will be made at the open of the underlying cash market.

Why the change?

The reason we're offering these new Daily Funded Bets is simple – it's what our clients have told us they want. By avoiding multiple rollovers over a period of time, DFBs will make it easier for you to see your true profit and loss for each position you hold. Statements will be simplified so that they are cleaner and easier to manage. We will continue to offer our Daily Futures bets which remain unaffected.
 
Sorry black swan, that was complete rubbish. I just put through a representative qutoe on their site.

Next time you need to borrow three hundred quid and pay it back over 14 weeks you're gonna be charget the mild apr of 1068.5%

Me and pazienza can do it for 700% though. Get in touch!
 
Black Swan said:
Got this e-mail/newsletter from IG this morning, is their finance is very expensive at Libor plus 2.5 percent? Stocks, shares and indices are rolled over DAILY at the MONTHLY Libor rate plus their spread, why not roll over at overnight rate? Hidden profits here, expensive for clients as usually the one month rate is higher than over night rate?

Are they now including admin cost in the tomorrow roll-over for forex? A hidden cost is weird nobody charges admin cost on forex rollover do they?

Are IG are looking for ways to squeeze extra money out of their clients through finance charges? Hmm..perhaps that big Asia lost has to be re-couped by socialising a few sly charges onto the clients...

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

This is a reminder that on 2 April 2011 our Daily cash bets will be replaced by Daily Funded Bets (DFBs).

DFBs will offer our tightest available spreads without the inconvenience of rollovers, and will replace our Daily cash bets on stock indices, forex, shares, sectors, gold and silver. Daily futures are unaffected.

What do I need to do?

If you're happy for your Daily cash bets to be converted to DFBs, you don't need to do anything at all. We will automatically close any Daily cash bets you have open on 2 April 2011We will open a corresponding DFB for you at the same level, with no charge
Any working orders on Daily cash bets will also be converted into corresponding working orders on DFBs If for any reason you do not want your Daily cash bets converted to DFBs, you will need to close any positions before the market closes on 1 April 2011.

How do DFBs work?

DFBs have a long expiry date of April 2016. Just like our current Daily cash bets, you will still be able to close your position whenever you choose, at any point before the expiry date.

Our current Daily cash bets expire each day, and a funding charge is built into the roll spread. New DFBs, on the other hand, do not expire each day - we instead make a cash adjustment to your account to reflect the funding costs of your position for each day that the bet remains open. The funding for DFBs will be charged in line with the rate for daily rollover charges.

If you have any questions about these changes please contact us on the details below.
Overnight funding and dividend adjustments

The funding adjustment will be made to all positions that you hold at 10pm UK time.
Stock index, sector and share DFBs: The funding adjustment is based on the one-month Libor rate for the currency the bet is denominated in, plus or minus 2.5%.

Forex, gold and silver DFBs: The funding adjustment is based around the Tom-next spread for the currency pair involved which will include a 0.0055% daily admin charge.
Funding adjustments will appear on the ledger as an aggregate amount for each currency that you hold positions in.

Dividend adjustments on stock index DFBs will be made at the close of the underlying cash market. Dividend adjustments on share DFBs will be made at the open of the underlying cash market.

Why the change?

The reason we're offering these new Daily Funded Bets is simple – it's what our clients have told us they want. By avoiding multiple rollovers over a period of time, DFBs will make it easier for you to see your true profit and loss for each position you hold. Statements will be simplified so that they are cleaner and easier to manage. We will continue to offer our Daily Futures bets which remain unaffected.
Click to expand...

my understanding is that the charges remain exactly the same but are being made more transparent as they will now be a cash adjustment as opposed to an entry level adjustment each evening.

so in answer to your ill-informed ramblings (you could get very wealthy charging a pound for every time you said that on this spread betting forum) - no, this is not an effort to generate further revenue as the charges will be exactly the same as before.
 
Black Swan said:
Are they now including admin cost in the tomorrow roll-over for forex? A hidden cost is weird nobody charges admin cost on forex rollover do they?
.
Click to expand...

SBs , nothing changed here ...

http://www.capitalspreads.com/generic/faqs.shtml

Currencies: The RFR is calculated as the funding rate corresponding to the 2nd currency minus the funding rate corresponding to the 1st currency. E.g. the 1st currency of GBP/USD is sterling and the second is the US dollar. Therefore, if USD rates were 2% and GBP rates were 4.75% then the RFR for GPB/USD would be 2% - 4.75% or minus 2.75% (a negative differential)

For example, if the funding rates were as follows:

GBP: 4.75% EUR: 2.0% USD: 2.0%
The rates used for the examples above are indicative and are not necessarily representative of correct rates.The RFR of the following currency pairs would therefore be calculated as:

FX Pair RFR
EUR/GBP 2.75% (4.75% - 2.0%)
GBP/EUR - 2.75% (2.0% - 4.75%)
EUR/USD 0% (2.0% - 2.0%)
Note: Remember to add 2% to the RFR for long positions and minus 2% for short positions
 
shortsell said:
my understanding is that the charges remain exactly the same but are being made more transparent as they will now be a cash adjustment as opposed to an entry level adjustment each evening.

so in answer to your ill-informed ramblings (you could get very wealthy charging a pound for every time you said that on this spread betting forum) - no, this is not an effort to generate further revenue as the charges will be exactly the same as before.
Click to expand...

Thanks for that Matt a lot clearer now, I think..

It's been over a year since I used an SB firm, but may go back to using IG or CMC later on this year so I need to keep up to date. Are you with one of the SB firms?
 
Black Swan said:
Thanks for that Matt a lot clearer now, I think..

It's been over a year since I used an SB firm, but may go back to using IG or CMC later on this year so I need to keep up to date. Are you with one of the SB firms?
Click to expand...

i have been employed by the industry in the past, and i continue to be a client of the industry now.
 
Last edited:
Hi
I can confirm that we do not charge an admin fee on any of our roll overs.
It is normal libor rate plus/minus 2 percent.

Peter

tar said:
SBs , nothing changed here ...

http://www.capitalspreads.com/generic/faqs.shtml

Currencies: The RFR is calculated as the funding rate corresponding to the 2nd currency minus the funding rate corresponding to the 1st currency. E.g. the 1st currency of GBP/USD is sterling and the second is the US dollar. Therefore, if USD rates were 2% and GBP rates were 4.75% then the RFR for GPB/USD would be 2% - 4.75% or minus 2.75% (a negative differential)

For example, if the funding rates were as follows:

GBP: 4.75% EUR: 2.0% USD: 2.0%
The rates used for the examples above are indicative and are not necessarily representative of correct rates.The RFR of the following currency pairs would therefore be calculated as:

FX Pair RFR
EUR/GBP 2.75% (4.75% - 2.0%)
GBP/EUR - 2.75% (2.0% - 4.75%)
EUR/USD 0% (2.0% - 2.0%)
Note: Remember to add 2% to the RFR for long positions and minus 2% for short positions
Click to expand...
 
PC at CMC Markets said:
Hi
I can confirm that we do not charge an admin fee on any of our roll overs.
It is normal libor rate plus/minus 2 percent.

Peter
Click to expand...

Good morning

IG : " For forex, gold and Silver DFBs, the funding adjustment is based on the Tom-next spread for the currency pair involved including an admin fee of 0.0055% per day "

0.0055% daily = 2 % annually
 
Good morning Tar
Thanks for your posting. It is not for me to comment on this site what our competitors do. That is not fair. All I can do is tell you what we do at CMC Markets.
We do not charge any admin fee or hidden fee on any of our roll overs. I am ex-forex trader from a bank and I was never charged an admin fee by any of my counter parties for roll overs. We do not do it at CMC Markets.


Thanks Peter

tar said:
Good morning

IG : " For forex, gold and Silver DFBs, the funding adjustment is based on the Tom-next spread for the currency pair involved including an admin fee of 0.0055% per day "

0.0055% daily = 2 % annually
Click to expand...
 
PC at CMC Markets said:
Good morning Tar
Thanks for your posting. It is not for me to comment on this site what our competitors do. That is not fair. All I can do is tell you what we do at CMC Markets.
We do not charge any admin fee or hidden fee on any of our roll overs. I am ex-forex trader from a bank and I was never charged an admin fee by any of my counter parties for roll overs. We do not do it at CMC Markets.


Thanks Peter
Click to expand...
The 2% u charge is the admin fee , u charge 2% annually and they charge 0.0055% daily = 2% annually whats the difference . For forex there is 2 currencies involved how u determine the libor rate ?
Regards
 
Hi Tar
All getting a bit complicated now. We need some body to do an independent
analysis of financing and charges.
Libor rates are published by the banks daily.

tks pc

tar said:
The 2% u charge is the admin fee , u charge 2% annually and they charge 0.0055% daily = 2% annually whats the difference . For forex there is 2 currencies involved how u determine the libor rate ?
Regards
Click to expand...
 
PC at CMC Markets said:
Hi Tar
All getting a bit complicated now. We need some body to do an independent
analysis of financing and charges.
Libor rates are published by the banks daily.

tks pc
Click to expand...

As usual i have to make my lab experiments on my CMC's demo account :D
 
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