Trading accounts with IG Markets

[Bristolguy]

Hey Guys/Gals,

I just wanted to ask a quick question. I am with IG Markets and have currently been using a Guaranteed STOP or my account set too ''Limited RISK account'' so i have had to fork out and additional premium on each and every trade which as you are fully aware can be a fair ammount each time you trade.

My question is, is it common to suffer big losses due to slippage ? If there is a stop placed and the market moves suddenly could there be a serious consequence ?.

I was just asking for peoples experiance on the issue and if it is the correct decision to upgrade so i can remove this feature which would allow me to trade without it.

Cheers
Dane

 

[Hoggums]

Depends what you are trading and whether IG runs the product out of hours or not.

If you are trading leveraged stocks and shares then I'd say guaranteed stops are a necessity because they are very likely to gap out of hours.

For indices and Forex I would argue it's not so necessary.

 

[Bristolguy]

Yeah i will only be trading Indices & Forex which is why i thought the guaranteed stop was a waste.

 

[JRP2891]

Guaranteed stops in Forex is more for peace of mind than anything else. The liquidity of the FX markets should limit any potential major slippage against you.

 

[brettus]

Guaranteed stops in Forex is more for peace of mind than anything else. The liquidity of the FX markets should limit any potential major slippage against you.

You need to be very very very good to make money with a guaranteed stop account. Slippage is rare on small trade sizes. Guaranteed in stocks is a good thing though.

 

[JRP2891]

You need to be very very very good to make money with a guaranteed stop account. Slippage is rare on small trade sizes. Guaranteed in stocks is a good thing though.

I wouldn't advise them for forex as your default, but saying that, i've used them in the past during times of central bank intervention, as i like to sleep at night.

 

[Black Swan]

iirc you trade FX, on limited risk your cost per trade on a Euro pair will be minimum 5 pip,( spread + GS which you have to have on limited risk). Only way that can work is if you're swing trading, on small/er TFs you'll get killed as the fills aint so good either. Bottom line, you're paying at least 100% more than you need to.

As for stops, well if you're only trading FX you should learn the job with a micro account, you'll get a spread of 2.0 on EUR/USD but won't have to pay for the GS and there'll be no intervention. And at your stage of development you should use a stop, why not if they're free?

 

[Bristolguy]

Agreed guys, thanks for this. I mean for example as you propbably know 1 standard contract on the FTSE 100 would normally put me - 45 pound before i even make any profit which like you say is - 5 points before i even start to make profit so over a day even if just 2 trades are done its still a considerable ammount of money, i just wanted to clarify if i would get stung with slippage as they do make it sound real bad but it would appear on indicies and forex gapping is not as common as share dealing would be perhaps.

Cheers
Dane

 

[JahDave]

Agreed guys, thanks for this. I mean for example as you propbably know 1 standard contract on the FTSE 100 would normally put me - 45 pound before i even make any profit which like you say is - 5 points before i even start to make profit so over a day even if just 2 trades are done its still a considerable ammount of money, i just wanted to clarify if i would get stung with slippage as they do make it sound real bad but it would appear on indicies and forex gapping is not as common as share dealing would be perhaps.

Cheers
Dane

If you would like to trade retail forex then you can find many brokers that you are trading direct on their platforms and have no "slippage"..........I don't want to promote any companies here, but send me a private message and I will give you several names with no benefit for me.....

 

[brettus]

If you would like to trade retail forex then you can find many brokers that you are trading direct on their platforms and have no "slippage"..........I don't want to promote any companies here, but send me a private message and I will give you several names with no benefit for me.....

Check out Gecko markets. I think they offer guaranteed on all trades up to £25 a point. To be honest most good traders don't make more than a few ticks a trade. I can pretty must guarantee you will lose money on your guaranteed account.

 

[JRP2891]

To be honest most good traders don't make more than a few ticks a trade. I can pretty must guarantee you will lose money on your guaranteed account.

It really depends on your style, but i'd imagine scalping for a few ticks with a guaranteed stop loss account would seriously hinder your margins. However if you're swinging for a few hundred or even a thousand pips +, trading 2/3 times a day with guaranteed stops won't make or break your bottom line.

 

[anley]

Bristol

You have not got a chance at making money (overtime) if you use G. stops. They are a marketing gimmick for IG to get hold of their clients money. Don't fault them for that though it's the MO of most financial firms.

Slippage is part of the game. The professionals don't use G. Stops (they are none outside of spread betting) and they accept slippage as part of the game. Slippage also doesn't happen that much unless you a) trade illiquid markets and b) put your stops where everyone else puts them

You can't do this experiment but if you were to trade for a year with G. stops in 1 account and not in another the difference would leave you shell shocked.

Controlling and minimising costs in this game are AS important as buying/selling the right prices, never forget that as G.Stops are a hideous expense.

 

[Black Swan]

Agreed guys, thanks for this. I mean for example as you propbably know 1 standard contract on the FTSE 100 would normally put me - 45 pound before i even make any profit which like you say is - 5 points before i even start to make profit so over a day even if just 2 trades are done its still a considerable ammount of money, i just wanted to clarify if i would get stung with slippage as they do make it sound real bad but it would appear on indicies and forex gapping is not as common as share dealing would be perhaps.

Cheers
Dane

Slippage and poor fills are very rare for me, and generally only happen in a very quick FX market which could indicate a major economic event which conversely may send price parabolic in the other direction. This is also why you should/could use a stop for outlier events. IF the stop is free why not have it, (for example), 100 pips from your entry if you're 'playing off' a ten min TF? Might be worth having a limit at a similar extreme.

Don't get too caught up in the guaranteed description of stops with the SB fims, not always the case.

As I stated up thread if on small TFs you'll get killed trading FX on a limited IG account having to use GS, you'll be at least 100% more expensive than even on a micro account from the likes of Alpari etc..and that 100% extra cost is before you account for the the main isssue with SB trading FX, slow fills, permanent slippage by any other description.

 

[Bristolguy]

Cool great stuff, i did pass the upgrade questions so the account is now of a trader status as they call it so i have the option for G Stop if i like. What i have noticed thou if that as a margin you need to put in a whole lot more into a position as they include a slippage allowance for each position.

 

[anley]

More margin is always a good thing, don't think of it as a disadvantage.

 

[brettus]

It really depends on your style, but i'd imagine scalping for a few ticks with a guaranteed stop loss account would seriously hinder your margins. However if you're swinging for a few hundred or even a thousand pips +, trading 2/3 times a day with guaranteed stops won't make or break your bottom line.

Yea, but if you look at your trading activity over the course of a year, with a good 500-750 trades, you wont be making more than 5 pips a trade.

 

[jon1971]

anyone know if ig's guaranteed stops work to take you out at your desired level assuming a weekend gap against your position (Forex)? Just thinking it might represent a good strategy to take advantage of any gapping. enter a position in direction of trend just before the Friday night close with a 5 pip stop, if it gaps in your favour cha ching, if not you only lose 5 pips,