IG Markets account funding methods?

Hi guys,

I've just opened an account with IG Markets. I remeber reading somewhere (not ASF) that you can't fund your account with Citibank credit card, apparently Citbank doesn't allow it.

I've also checked the IG BPay account and they do not accept BPay from a credit card account.

I was wondering does anyone here trade with IG and fund their account with a credit card? If so, which cards/companies allow you to use them with IG as a credit transaction?

Also, whilst I'm on the subject, does anyone know what their ASX200 cash is based on? From what I can see, the Forward pretty much mirrors the SPI200 but not sure what the cash product is based on?

Thanks for reading and any comments appreciated.

Re: IG Markets Funding Methods?

NAsX said:

Also, whilst I'm on the subject, does anyone know what their ASX200 cash is based on? From what I can see, the Forward pretty much mirrors the SPI200 but not sure what the cash product is based on?

Thanks for reading and any comments appreciated.

Click to expand...

They all mirror the SPI

Re: IG Markets Funding Methods?

hello,

think seriously about throwing your hard earned in with betting agency's,

thankyou

robots

Re: IG Markets Funding Methods?

Trembling Hand said:

They all mirror the SPI

Click to expand...

Sorry but I am not quite sure how this works, if the cash also mirrors the SPI, why is the prices different? Is it a certain number of points away...etc?

robots - thanks for your reminder. I think I will give it a go with the DMA system and see how it goes.

Thanks all.

NAsX said:

Hi guys,

I've just opened an account with IG Markets. I remeber reading somewhere (not ASF) that you can't fund your account with Citibank credit card, apparently Citbank doesn't allow it.

I've also checked the IG BPay account and they do not accept BPay from a credit card account.

I was wondering does anyone here trade with IG and fund their account with a credit card? If so, which cards/companies allow you to use them with IG as a credit transaction?

Also, whilst I'm on the subject, does anyone know what their ASX200 cash is based on? From what I can see, the Forward pretty much mirrors the SPI200 but not sure what the cash product is based on?

Thanks for reading and any comments appreciated.

Click to expand...

From memory Commbank Mastercard is ok, but they (IG) charge you a fee for the privilege.

Re: IG Markets Funding Methods?

NAsX said:

Sorry but I am not quite sure how this works, if the cash also mirrors the SPI, why is the prices different? Is it a certain number of points away...etc?

Click to expand...

They just set it at some arbitrary number away from the SPI to make it look like they have more instrument to trade but they are the same thing.

Uncle Festivus said:

From memory Commbank Mastercard is ok, but they (IG) charge you a fee for the privilege.

Click to expand...

Thanks for that. Do you mean the >$2000 US credit card deposit fee? or was there a special fee on top of it?

Re: IG Markets Funding Methods?

robots said:

hello,

think seriously about throwing your hard earned in with betting agency's,

thankyou

robots

Click to expand...

Listen to that advice, it is the best advice you will get regarding your post.

Trade/invest wisely with 'your money'. IG/CMC etc will/may take your money and then will take the money that is not yours and you will still be paying. They can see what you are doing and will trade against you.

Trading with a credit card is simply dangerous, if not irresponsible.

Re: IG Markets Funding Methods?

hangseng said:

They can see what you are doing and will trade against you.

Click to expand...

Really??

How?

Re: IG Markets Funding Methods?

hangseng said:

Listen to that advice, it is the best advice you will get regarding your post.

Trade/invest wisely with 'your money'. IG/CMC etc will/may take your money and then will take the money that is not yours and you will still be paying. They can see what you are doing and will trade against you.

Trading with a credit card is simply dangerous, if not irresponsible.

Click to expand...

Thanks for the advice.

Without going into too much detail and just to clarify, I use credit card everywhere for convenience and pay off before due date, so I'm not to get a card loan to fund a CFD account.

And what do you mean by "trade against you"? If I'm trading in DMA, how can they do that? I can't see they go and close me out at the expense of the other traders who are trading in opposite directions?

Re: IG Markets Funding Methods?

NAsX said:

And what do you mean by "trade against you"? If I'm trading in DMA, how can they do that?

Click to expand...

They don't not even in the Market Maker model. They don't have to. Give a trader 1 -5% leverage and they will trade against themselves.

NAsX said:

Thanks for that. Do you mean the >$2000 US credit card deposit fee? or was there a special fee on top of it?

Click to expand...

I think it's approx 2% on top of the amount in AU dollars you transfer in, give them a call to confirm before you do.

Re: IG Markets Funding Methods?

Trembling Hand said:

Really??

How?

Click to expand...

My comment relates to mini index and forex trading. You go short or long and they know your position and stops. They are making these markets.

With DMA you are trading directly into the individual equities market and you see your position go into the buy/sell depth, so your exposure is limited to the wider market movement. They have no more or less control of the market than any other organisation that may borrow a large amount of stock for short selling purposes. When you don't trade using DMA you are not in the direct market, you are buying/selling stock held by the CFD provider.

My sole concern with trading in CFD's is really with Forex and Index minis. You really are at the mercy of the market maker. I observed very wide swings and volatile movements for seemingly no reason (and the charts will indicate just that historically). Then a reasoning given that a trader somewhere pressed the wrong button in a large position.

Yes I traded these and found very quickly a recommended stop was amasingly taken out and then continued back up/down as the case may be directly after a stop level was taken out. Yes of course this may also be coincidental, I have my own view and it contradicts that of any coincidental situation.

My other concern was with trading a highly leverage derivative such as CFD's with a credit card, let alone borrowed money. As I said this is really very dangerous in financial terms, it is simply highly geared leverage using more leverage. The risk is very high.

This is also simply my view based on my own experiences (except for credit card use). I don't trade CFD's anymore and simply urge caution, as many others a lot wiser and knowledgable than me do. I lost money trading CFD's with Indexes and Forex, not a lot but enough to teach me a lesson that it was no place for me. DMA CFD's I did well, I stopped purely due to the highly leveraged risk in a volatile market. The risk was simply too great for me.

May I also add my use of the terminology trade against you is possibly too harsh. However the market maker does know your position and stops so I personally regard it as an uneven playing field, which is more to what my reasoning is.

Who knows? I may even be wrong, just take care.

In spite of all the claims and me asking for evidence of fudged prices so I can check them against the Futures market not once have I seen a chart that doesn't match the underling market. Indexes, commodities and FX.

Trades go bad because they are taken out by the market shaking out bad trades. Not because MM are taking them out.

Trembling Hand said:

Trades go bad because they are taken out by the market shaking out bad trades. Not because MM are taking them out.

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True. Amazing how many have conspiracy theories on MMs being against them.

However, I hear it is true floor traders and MMs shake out stops at pivots (of course, in pit traded contracts)........

Trembling Hand said:

In spite of all the claims and me asking for evidence of fudged prices so I can check them against the Futures market not once have I seen a chart that doesn't match the underling market. Indexes, commodities and FX.

Trades go bad because they are taken out by the market shaking out bad trades. Not because MM are taking them out.

Click to expand...

Trembling Hand I made no such comment or claim of "fudged prices" and never intended to. I have already stated my words were poorely chosen in that regard.

It seems you have a much greater in depth knowledge of how the derivatives such as CFD's are managed. Clearly a market I didn't belong in and a poor decision doing so on my behalf. I am back trading where I belong in a market I do understand well and I feel I have more control over my position.

On a positive note I will say that IG provided a good online service, accounting and that the help desk in the main was just that, helpful.

hangseng said:

Trembling Hand I made no such comment or claim of "fudged prices" and never intended to. I have already stated my words were poorely chosen in that regard.

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No Probs.

hangseng, were you charting with pivots? If not, may be a clue as to why your stops were being wiped out so quickly.

hello,.

trembling hand could you show comparison between spi and aussie 200 or whatever the cfd's call it say 1hr before open and 1hr after close please,

also, they have no obligation to follow/honour anything, this is a contract between you and them with a PDS some 160pgs long,

thankyou

robots

robots said:

hello,.
also, they have no obligation to follow/honour anything, this is a contract between you and them with a PDS some 160pgs long,
robots

Click to expand...

Yes, it's surely 160 pages long and a bit, but I wouldn't trade with anyone without going through their 100+ PDS...

They just sent me an email with some updated PDS and Agreement - here's to more reading