IG professional Status

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Viewing 10 posts - 1 through 10 (of 10 total)
  • 06/27/2018 at 10:24 PM #74566
    Juan Salas

    Hi everyone,

    With the ESMA deadline approaching (becoming effective August 1st, 2018 in IG Spain) to implement new margin regulations, many of us have been wondering what to do, to continue handling many of our strategies that require more than one single contract/lot to be operated.

    One of the most common options that we have been commenting in these forums is upgrading our client status from Standard to Professional, in order to be able maintaining the current margins. Letting to one side the cons of being considered a professional trader by IG, my question is if anyone has applied to it.

    It requires fulfilling two of the three options that we have broadly talked about here already. I am thinking approaching IG about this, but I just wanted to know if anyone has any useful information or recent experience about it.

    Thanks,

    Juan

    06/27/2018 at 10:39 PM #74568
    Vonasi

    Previous discussions regarding this have highlighted that you need to provide evidence of the size of portfolio you are managing and without this evidence you cannot be classed as professional.

    06/28/2018 at 8:30 AM #74584
    jebus89

    yea ive tried myself but needed evidence so yea..

    06/28/2018 at 5:02 PM #74634
    Juan Salas

    IG Spain only requires TWO out of these THREE below:

    1. Operating more than 10 times in the last year with a significant amount (non-specified)
    2. Investment portfolio of more than 500.000 €
    3. You are working (or have worked) in the financial sector (related to FOREX or CFD) for at least one year.

    So, if you fulfil option 1. and option 3., you should be entitled to become a professional (regardless the size of your portfolio).

    My inquiries were directed to option 3. I had some experience in the banking sector. I just wanted to know how tight were IG conditions about our professional background in the banking field.

    In any case, if I decide to take any steps on this direction, I will post any useful information, in case anyone is trying to approach IG to switch status.

    Thanks again.

    06/28/2018 at 6:28 PM #74642
    Vonasi

    From IG UK here:

    https://www.ig.com/uk/help-and-support/accounts-and-statements/my-accounts/what-is-a-professional-client-and-how-do-i-become-one

    I imagine Spain will be the same quantities.

    You’ll need to meet two out of the following three criteria in order to qualify as a professional client:

    1. Professional experience: You must have worked in the financial sector in a professional position (which requires knowledge of CFDs or spread betting) for at least one year.

    2. Investment portfolio: You are required to have a ‘financial instrument portfolio’ (defined as cash deposits and financial instruments) of €500,000 or more. Acceptable instruments include cash, stock portfolios, stocks and shares ISAs, trading accounts, mutual funds, and SIPPs. Managed company pensions, non-tradeable assets, property, luxury cars, or physical gold are not acceptable.

    3. Trading experience: You must have placed 40 trades of significant size in the last year. Significant size is £10,000 notional for equity trades and £50,000 for everything else. Buying £10 of FTSE and then closing it counts as one single trade. You do not need to have made the trades with IG.

    06/28/2018 at 6:34 PM #74643
    Vonasi

    From the same page:

    What kind of proof may I need to provide?

    We’re likely to ask for proof of an investment portfolio consisting of €500,000 in financial instruments or cash. This would normally be in the form of a bank statement or a ledger from a stock portfolio.

    For trades that have not been carried out with IG, we may ask for an account ledger showing enough trades of the required notional value.

    We will need an in-depth description of professional experience which explains your previous role/s and how these gave you exposure to derivatives.

    1 user thanked author for this post.
    avatar Juan Salas
    06/28/2018 at 7:30 PM #74645
    JohnScher

    Has anyone tried to open an account at ig.com/ch?
    Ig.com/ch is not Europe and therefore not regulated by ESMA.
    Whether the “old” rules apply there?

    06/28/2018 at 8:01 PM #74647
    Vonasi

    I’ve not tried but this is from the IG .CH website here:

    https://www.ig.com/en-ch/open-an-account

    • We can open a Swiss CFD trading account for people from most countries, but it may be more convenient for you to trade with an office closer to home .

    I’m guessing it is only CFD and not spread betting which is a negative for UK traders for tax reasons.

    1 user thanked author for this post.
    avatar JohnScher
    06/28/2018 at 9:58 PM #74655
    Juan Salas

    Hi Vonasi,

    You are right. In Spain it is applied the same criteria. Somehow, I didn’t see the specifications for every option. I think I will approach IG and will explain to them my situation, and will see what their response is.

    Thanks,

    Juan.

    06/29/2018 at 4:47 PM #74835
    JohnScher

    Thank you.
    I’m gonna take a look at this. I will probably also write an email to ig.com/ch.
    I’ll let you know.

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