IG account types in France

• 05/17/2017 at 4:15 PM #35863
  Somatolysis

  Hi,

  is it true that new IG customers can only open Limited Risk accounts in France?

  With such accounts one cannot use ProOrder and automated trading.

  If so, is it possible to grade oneself as a professional client and use an account with additional margin requirements nevertheless in order to trade automatically via Prorealtime?

  Best regards,

  Soma

  

  Somatolysis

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  05/17/2017 at 5:31 PM #35874
  Nicolas

  In France, promotion of CFDs is now forbidden IF the risk of loss is greater than the investment and is not known before entering a position.

  As a consequence, all new IG accounts in France are limited risk accounts. With limited risk accounts, the trader needs to place a guaranteed stop when entering a position.
  A minimum distance for guaranteed stop is set by the broker. It corresponds in a way to the margin required since the accounts needs to have sufficient funds to cover the loss that would occur is the guaranteed stop was triggered.
  It for example it is set at 50 points on the Dax CFD, it is to impose a 1250 € margin.
  Once the position is Open, the trader can move his guaranteed stop to bring it closer to the price level he wished. However, it is only possible to move a guaranteed stop closer to the price level and not move it further away.

  Once the account is opened, it is possible to request to IG to migrate to what they call an “Expert” account. To approve a request, IG will ask the client by phone to confirm his trading experience, income and savings .

  Currently, ProOrder AutoTrading is not available with limited risk accounts, but I know ProRealTime is just a few weeks away from making it available.

  In Germany, the BAFIN also implemented a restriction on CFDs that will apply starting 10th of August 2017 (source: https://www.bafin.de/SharedDocs/Veroeffentlichungen/EN/Aufsichtsrecht/Verfuegung/vf_170508_allgvfg_cfd_wa_en.html?nn=7858824)

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  Nicolas

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