I’ve been successfully trading with IG for the past year and I like the broker very much. I think most people here also use IG for trading, but I was wondering if anyone uses it for long-term investing.
I want to create a long-term investment portfolio that I can hold and add to for for the rest of my life. I calculated my margin and max losses if the entire portfolio would go bankrupt or drop 60% in price, which is unlikely, but I always like to prepare for the worst. I calculated that I wouldn’t get into margin call territory until the portfolio would drop with 51.6%, but I could also reduce the sizes so I can take even more drawdown without getting called out.
Big reasons for using IG for me would be that with the margin I can get more shares for a more diversified portfolio. Also if my portfolio grows overtime I’ll still have money in my account to buy more shares with leverage.
However I could also use a broker like Degiro which doesn’t use leverage on stocks, but where I also can’t get margin called out. However my portfolio would be smaller and all my money will be tied up in the stocks.
Are you using a leverage broker like IG for long-term investing, or do you use a broker without leverage? I’d like to hear your experiences.