ISSUE: The FSA are all of a sudden, concerned that we are being offered too high a gearing ratio as well as too low margins - despite the fact that the gearing ratios & margins we use have been commonplace and accepted across the industry for *over* four decades! Yes, that's a long time in 'trading years' folks.
The main reason for quoting you was to thank you for your great and detailed post on margin and leverage, much better than I could have done.
But after giving some thought to your quoted text above I have come to the conclusion that the FCA are looking after themselves by wanting to reduce their exposure in the event a firm was to go into liquidation and there was a deficiency in the client money bank account, individual clients are covered by the FCA's compensation scheme.
I recently met up with a senior member of IG staff at an IG function and this topic came up in conversation.
He said that the reason for the FCA's sudden interest in spread betting, FX and CFD'S and tightening up the rules was sparked as a direct result of the surprise Swiss Nat Bank unpegging incident.
He went on to say that the FCA were shocked to find out the leverage on offer to retail clients. (what does this say about the FCA?)
IG are taking the FCA announcement pretty seriously, not surprising as IG's shares dropped 39% (as the largest provider), and CMC dropped 35% on the day of the FCA announcement.
They are taking the potential ramifications seriously enough to branch out in other areas as a hedge.
They have started to concentrate more on share dealing (as a direct e-broker) and they have teamed up with Blackrock to offer a range of ETF-based investment portfolios constructed by IG Group using Model Portfolios from BlackRock. With a bias towards investing rather than trading.
Make of this what you will.
P.S. as a side note, I think most of the potential downside is already priced in, so if the FCA do not come in as hard as expected there could be an IG and CMC long trade.
(P.P.S @ Foroom L, This thread was never really about % of winning traders, that was just a hook in the title and opening post, after finding little to no response from previous threads on this, at the time urgent topic.)