Ig

[afterburn]

Hello,

This is my first post although i have been reading the board for a long time.

Due to the recent financial firms going under..MF Global, world spreads just to name a few...

i wanted to see if IG were in a healthy position:

Ig Group Holdings Fundamentals. IGG Fundamental Data, IGG Market Data and IGG Key Personnel


shows in 2010 profit was £134 million.
2011 loss of 1.87 Million.

Thats a HUGE difference?

first loss since 07 where there is no more data available.

Now correct me if i am wrong but the maximum you can claim back if a firm goes under is £50,000.

So say you had £600,000 in your IG account and has various large leveraged postions, in profit (100k plus), at the time of theretical IG collapse>>>

>>would you just get 50k back?


Cheers

 

[Patricia12]

Hi afterburn, Are you trading with IG or interested to trade with them?

 

[afterburn]

Hi Patricia, trading with them at the moment.

 

[afterburn]

anyone?

 

[MORRIS2001]

The superficial approach is to look at what a firm is offering.

Indicators of a healthy firm tend to be one that offers sensible margins and sensible spreads/comms.

Discounted margins can be an indicator of poor risk management or low hedging.

Cheap spreads and comms can indicate a level of desperation, or earning profits from greater book exposures.

These would only be rudamentary guidelines but what you are looking for is a firm that is run sensibly. You want to avoid firms which chase the massive 'trophy' clients that has proven time and time again to be a dangerous game. Firms run from overseas tend to make me look twice.

With listed firms it's worth looking at who the major shareholders are. Are these entities credible investors likely to be monitoring their investment closely?

MFG was a bit of a blind side unlike the others which have gone bust. The previous failures were all firms just waiting to implode, it was only a matter of time with them. The only indicator at MFG was the aggressive attempts to non seg as much business as possible.