Welcome - Let's all make sure IG don't get away with it any longer!
(Information passed to us from an IG customer)
09:30 15th Jan 2015. Swiss National Bank pulled the 1.20 Eurchf floor. As a result, it dropped significantly. In the first 5 minutes in dropped to between 1.191 and as low as 1.1. In the next 5 mins it dropped some more and liquidity dried up.
IG decided to spend 10minutes in aggregating client positions so that IG can sell the EURCHF in one go. As a result all early liquidity was missed and they finally closed out the positions with an average price of 0.925. Any stops and margin calls were filled at that price.
Some lucky punters who had no stops or were in the aggregation process were managing to sell via the platform between 9:30 and 9:36. I for one couldn't sell my position electronically and had to wait until 10.15 to get a fill. Some clients with stops at.. 1.20 got fills at 0.9250 yet some with stops around 1.19xx got filled around there.
The fill was derived from their hedging via USDCHF.
Their reasoning was due to lack of liquidity however we mention three key points
1-they took too long to aggregate and as a result they missed liquidity
2-they act as principal so why should clients care about liquidity. IG should have priced the EURCHF for clients to trade off at all times as the market was notnsuspended
3-why should clients shoulder all the losses when it was IG's process that failed and their liquidity providers let them down
I am hearing they are asking some people to pay asap and for others they have requested bank statements and proof of other investments in order for them to build a payment plan.
They knew at all points in time what the exposure was. ...not the customers. They should have provisioned for black swan events.
In any case, it seems that if IG and some other firms cannot manage client positions in a good way, the FCA needs to start imposing more rules and regulations.
The losses are substantial and clients are in severe stress and depression. Quite a few have had to look into personal bankruptcy.
The setup is so asymmetric. Clients have no control over their positions and we just had to wait for IG to close our positions at near the loss of the day.
They are not forthcoming in terms of any deals/of improvement and hence are giving us no choice but to chase the FCA, lawyers, social media and politicians.
Over several hundred people were affected but around 320 people were left with large negative balances. Our group is large and international. Should we be forced into a corner, the negative publicity we will give to spreadbetting firms and regulators will be enormous.
More to follow...
Please Click on the blog link to see comments submitted via the site or the feedback link to see emails from IG Index and IG Market employees and customers.
IG Index made me £20 000 poorer!
To cut a long story short, they wouldn't reinstate my trades even though I had the margin money in my bank account to cover the shortfall. I wrote to their Compliance Department and they my interpretation of their reply is that they consider that they can do whatever they want - this seems to me to be a licence to print money? They will not return my money nor reinstate the trades (though it is far too late to reinstate the trades now) and said if I was still unhappy my next step was to go to the Financial Ombudsman Service - who take 2 years to answer complaints and they know that.
My message is therefore read every little bit of the T's and C's, even the bit where it states that they can change the T's and C's at any time they wish.
I have written to Watchdog, The One Show and local newspapers - bought 2 domain names IGIndexarecheats.com and IGIndexarecheats.co.uk , igindex-review.co.uk and I will hopefully, with help from all of you guys, stop people from falling into the same trap.
I trust that any readers looking for a spreadbetter will be able to adult enough to decide upon a suitable company by themselves. It is not my intention to recommend any other firms, I merely want to highlight some of the potential pitfalls (I'd also like justice and my money!!!).
I would like to thank the hosting company- Total Choice Hosting in the USA for not kowtowing to IG's legal department.
In the brief period since this site was set up I have been contacted by a number of other unhappy Ig customers.
Ultimately any help you can offer to assist me and the others would be greatly appreciated, thanks