Trading forex with IG Markets

[Noobstation]

Hi all,

Pretty new to forex trading so just wanted to get some feedback in terms of the best brokers to use for a beginner. I have an account with IG for Share CFDs at the moment and the they do offer FXs. Just hoping to see if anyone has had any bad experiences trading FXs with IG.

 

[DeepState]

I have found that stops are hit more frequently than I would have hoped. IG has 11 market makers backing their CFD pricing. These tend to get skittish at the same time that there is a major market move. The spreads widen, your stops get triggered even if the 'true' market is still quite a few points away.

This makes the 'cost'* of the stops much higher than might be imagined. It detracts materially from outcomes. I have had to revisit my strategies as a result of experiencing these events several times during the Trump ascendence. I have been disappointed at how fast liquidity deteriorates in the IG pool just when you need it most.

Overall, the cost of FX trading with IG compares well with all major alternatives outside of IB when the all-in cost is considered. Many others seem cheap with offers of particularly narrow spreads or low commissions. You need to look in to the fine print and you'll find chicanery all over the place.

Also, IG's practice of client asset segregation is probably the best protection offered to client assets in the CFD market.

Overall, I believe it's the best available outside of directly entering the FX market as a whale or via the futures market. I have been testing implementation of my approach within the IG platform but intend to move off the platform in to futures in the next few months.

IB is widely utilised by other traders. I am not comfortable with them for reasons I prefer not to document here.

All the best with it.

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* this is a derivative pricing concept. I am not referring to matters like commission. These actions result in the erosion of edge by more than would be a 'fair' price for placing these stops on. It's like paying $5k for your car insurance when the true market value is $500. Car insurance is like a stop loss.

 

[minwa]

I have found that stops are hit more frequently than I would have hoped. IG has 11 market makers backing their CFD pricing. These tend to get skittish at the same time that there is a major market move. The spreads widen, your stops get triggered even if the 'true' market is still quite a few points away.

This makes the 'cost'* of the stops much higher than might be imagined. It detracts materially from outcomes. I have had to revisit my strategies as a result of experiencing these events several times during the Trump ascendence. I have been disappointed at how fast liquidity deteriorates in the IG pool just when you need it most.

Overall, the cost of FX trading with IG compares well with all major alternatives outside of IB when the all-in cost is considered. Many others seem cheap with offers of particularly narrow spreads or low commissions. You need to look in to the fine print and you'll find chicanery all over the place.

Also, IG's practice of client asset segregation is probably the best protection offered to client assets in the CFD market.

Overall, I believe it's the best available outside of directly entering the FX market as a whale or via the futures market. I have been testing implementation of my approach within the IG platform but intend to move off the platform in to futures in the next few months.

IB is widely utilised by other traders. I am not comfortable with them for reasons I prefer not to document here.

All the best with it.

---

* this is a derivative pricing concept. I am not referring to matters like commission. These actions result in the erosion of edge by more than would be a 'fair' price for placing these stops on. It's like paying $5k for your car insurance when the true market value is $500. Car insurance is like a stop loss.

"Trading with ______ carries an unavoidable risk of actual conflicts of interests because _____ is acting as principal in its CFD and Forex Transactions with you and _____ sets the price of the CFDs and Forex Contracts. Also because it may be transacting with other persons, at different prices or rates, or _______ will be trading with market participants.
The policy used by ______ is that as principal it issues the CFD and Forex Contracts to you based on the price it gives you, not by acting as broker to you.

Some variation of that is in 99% of Aussie CFD FX brokers. Widened spreads to hit stop, re quotes, rejected orders are all part of the CFD FX business. Recently someone has worked in one of this firms told me large profitable accounts are put on two "watch lists". One is a watch list for monitoring of insider trading and the other is for a "little tweak to their price feeds".

I believe IB has exited the retail forex business for clients under 10mil.

Alternative is futures as mentioned, downside is spreads not as tight considering you have to also pay commission and also liquidity could be a problem in larger accounts I have found over time.

Another alternative that I've been advised on is trading banks that offer retail accounts. They do not mess your price feeds. Drawback is your money will have to go overseas.

 

[Noobstation]

Thanks DeepState/minwa. Appreciate it. Ill give IG a go then until I have a large enough account

 

[KS2512]

Thanks DeepState/minwa. Appreciate it. Ill give IG a go then until I have a large enough account

Hello just reading forums, how did you go with IG?