Written on: 12/04/2012
I am a profit making spreadbettor and have 4 accounts with brokers, I dislike all of them. Just remember that your relationship with your broker, is a business one, they are trying to take all your money and you are trying to take their's. Anybody who thinks different is an idiot! Brokers rarely hedge positions in the market, 99% of the time they assume the risk of your trades, ie trade against you! It is in their interest for you to lose on your trade, otherwise it comes out of their pocket. This is why they employ teams of traders and expensive software, to bet against their clients. There's no friendship here, they will plunder your finances by any means necessary and I will share some of the typical IG tricks here:
1) Widening spreads - when price nears a collection of stops, or support/resistance levels, IG routinely widen their spreads massively, often x2, or x3, to take out ill placed trades.
2) Spikes - in conjunction with point 1, as well as widening spreads, you will regularly see price spikes that did not occur in the underlying markets, but are generated by IG software to take out a collection of stops. When you witness these dubious spikes, ask them for proof of movements in the underlying market, they can't and will fob you off.
3)PureDeal manipulation - PureDeal is the main dealing screen of IG and you will regularly witness delays in price information, of anything up to 2 minutes. This of course allows the IG software to manipulate its strategy against its clients and make more money. They tell people it's their own fault and their broadband is playing up, but it's not (proven by the fact that other less traded markets continue to receive continously updated prices).
4)DealThru Charts - the deal thru charts are, in my opinion, totally fraudulent. IG do not even make any attempt to tell you that the prices they quote are real time. The IG response to any questions on the DealThru Charts is "prices are only indicative", which is stated at the bottom of each chart, as some sort of disclaimer that allows them to behave in this manner. The prices quoted are multiple seconds behind Puredeal, which is in itself manipulated, so the charts must be a real cash cow for them. Believe it or not, regardless of what price you are being shown on your chart, your order will be filled at the price available on PureDeal.....does that sound legal to you? Me neither. (If the charts are only indicative IG, then you shouldn't be executing trades on the price information shown on them, simple as that. It's like taking bets on a horse race that has already been run)
As for the customer service? Don't get me started, this company would have been out of business years ago, if poor customer satisfaction meant that nobody would use them. The truth is, that people use them, because all the other players in the market are as bad, or worse.
In fairness to IG, I can't remember the last time I got re-quoted, but all of the above occur regularly, so there is no need to re-quote, they are creaming enough off people anyway.
Remember, I regularly make money with these lot, but I have to assume greater risk to do so, ie I never use the prices on the charts, I never use stops (only mental)and I do not trade with them, when the prices are lagging more than usual in PureDeal (as this is your indicator that they are going to nick some of your dosh).
Understand that your broker is not your friend, but your worst enemy, then understand how they can take your money (some examples above) then adjust your trading so they can't do it to you. Obey these rules and you'll be fine.
As rated by our community of reviewers
" Very helpful daily markets review on stocks, very nice that its pos... " Read More
" Worst customer service experience " Read More
" Keep away of TDW " Read More
" Going Downhill " Read More
Written by evbasto
" Unreliable platform " Read More