Yearly broker costs (wake up call)

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Viewing 15 posts - 16 through 30 (of 33 total)
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  • 10/11/2021 at 2:04 PM #179393
    Nicolas

    Seems to be over-night and over-weekend fees

    https://www.ig.com/en/help-and-support/cfds/fees-and-charges/why-is-overnight-funding-charged-and-how-is-it-calculated-

    10/11/2021 at 3:14 PM #179400
    GraHal

    I’ve tried to drill down using google search with entries such as … IG “Financial instrument cost” … and also the other terms used on the Annual Statements and no clear definitions show on the IG website.

    Very little shows at all (on Google search) on the IG website for the terms used to describe Costs shown in the IG Annual Statement.

    Now we have started we need to bottom out what we are being charged for and what are these Costs and Charges being put against / described as!?

    1 user thanked author for this post.
    avatar JS
    10/11/2021 at 3:25 PM #179401
    JS

    @Nicolas
    The costs consist of:
    1. Overnight costs
    2. Weekend costs
    3. Currency conversion costs
    4. Cost of investment services?
    5. Additional costs?
    6. Incidental costs?
    7. Etc.


    @Eric
    For the forward contracts / futures, the possibilities are limited.
    Take us500 / S&P 500 for example:
    CFD US 500 Cash: CFD €1
    Future US 500: smallest contract is $50

    Moreover, with futures you have to deal with contango / backwardation where you can deflate.
    For example, difference price CFD Dow Jones and Future Dow Jones: currently 118 points
    Also, these futures are always priced in dollars, so you have to deal with conversion costs every day.
    Etc.

    10/11/2021 at 3:59 PM #179406
    PeterSt
    JS wrote:

    Also, these futures are always priced in dollars, so you have to deal with conversion costs every day.

    Not really, because you can (let) convert your account to an USD account. However, IG charges a price for that which is a kind of ridiculous (I sorted this out the other day). So much so, that I am now speculating EUR/USD with my account in EUR while the instruments I trade there are USD based indeed.

    On a side note : IB charges zilch for that over and over again (say that I transfer EUR to my USD account which I sure have for IB – the conversion is for free). With IB – once having that USD account, you keep on paying (IIRC 0.6% !) each time you add money.
    With IB, transferring back from the USD portfolio account to the EUR bank account, is again for free, but once per month only. Otherwise (they say !) it costs … USD 1. I never tried that so I don’t know the real merit of that.

    Did I already say that XXXXXXXXX ?
    No wait, I did.
    🙂

    10/11/2021 at 4:52 PM #179409
    robertogozzi

    @PeterSt

    Calling someone a thief is a statement that cannot be shared in any way by ProRealCode.
    IG may prosecute you and claim compensation from you.

    10/11/2021 at 5:57 PM #179416
    PeterSt

    Roberto, I understand. Although the expression is figurative (I use the service myself), you may delete my sentence about that on the behalf/benefit of ProRealCode.

    10/11/2021 at 7:11 PM #179425
    robertogozzi

    Ok, I did remove that.

     

    1 user thanked author for this post.
    avatar PeterSt
    10/12/2021 at 10:47 AM #179467
    PeterSt
    JS wrote:


    @PeterSt     I have a ProRealTime sponsored account.


    @JS    , Can you prove to yourself that you are actually paying those costs ? You should be able to see that in your bank account statement.
    If so, what is the name representing IG in there ? (so I can check myself, as I currently don’t find anything but also don’t know what to look for).

    Thanks !

    10/12/2021 at 11:05 AM #179468
    GraHal
    PeterSt wrote:

    in your bank account statement. If so, what is the name representing IG in there

    Do you literally mean bank account?

    Costs and Charges etc get taken directly out of our IG Account / Funds used for trading and so there is no entries  in our ‘outside of IG bank accounts’ re Costs and Charges.

    10/12/2021 at 12:02 PM #179476
    PeterSt
    GraHal wrote:

    Do you literally mean bank account?

    Yes, I do. Because

     

    GraHal wrote:

    Costs and Charges etc get taken directly out of our IG Account / Funds used for trading

    That ain’t happening over here. Only (overnight) Interest and Conversion costs. But not these relatively high costs we were talking about in the previous posts. If that would happen then my account would have drawn empty, because I am not (or hardly) trading with it.
    Or I gain more with that few positions I have in there than I ever knew. 😉

    10/12/2021 at 2:13 PM #179488
    GraHal

    Surely the only way any broker could take money directly out of your bank account is if you had set up and infinitely variable direct debit (like when paying mortgage, gas bills etc)?

    If you are hardly trading then you will have next to zero Costs and Charges so maybe your trading Account has stood its ground?

    Where do you do all your trading then?

    10/12/2021 at 3:14 PM #179495
    JS

    The fees are deducted daily from my IG account.

    Well, it is what it is and maybe I should look for something else.

    Maybe it’s better to close this topic, because I don’t want a “revolt” against IG.

    Thanks for the comments and the sympathy.

    10/12/2021 at 3:40 PM #179496
    GraHal

    Here is a question to anyone that has drilled down …

    Are the Costs shown on the IG Annual Statement (simply) a summing up of Costs shown on the IG Daily Statement?

    And so, in my case, does …

    • 10Oct21 Long Interest for 08/10/21 to 10/10/21 -22.53 (off Daily Statement)

     

    get summed up onto my (last 12 months) Annual Statement and appear under …

    • Financial instrument cost 811.92 (off Annual Statement)

     

    Or are we all not checking stuff like this, same as I haven’t previously? 🙂

    10/12/2021 at 6:59 PM #179503
    Eric

    IGs Turbo24 warrants are cheap to HODL, they have some stocks also

    But no proorder

    10/13/2021 at 3:58 AM #179524
    PeterSt
    GraHal wrote:

    Here is a question to anyone that has drilled down …

    23sep21 02:59:30 Long rente van VS/Can aandelen 22/09/21 . geconverteerd tegen 0,8599  $-1,33
    This is on a day that I don’t have any autotrading running. So $-1,33.
    Notice this is for one overnight day (yours shows three days).

    This adds for three overnight days I have a FX position, which is always the same, if there :
    11okt21 18:01:23 Long rente van VS/Can aandelen 08/10/21 naar 10/10/21 . geconverteerd tegen 0,8682  $-4,15
    with the notice that on maybe 10 days in 2021 I had a FX position anyway and that thus for ~1,38 per day. In 2020 I had none but instead I had a (for value) double position in stocks.

    Financiële instrumentkosten 626,50 (off Annual Statement 2020).

    365 x (2 x 1,33) = 970 (which compares with the 626,50). So yea.

    Conclusion on the Long Interest : This is deducted on a daily basis from the portfolio account (very roughly added to 970) and also appears on the Annual Statement (as 626,50).

    Then I have this one :

    Lopende kosten 330,00

    which says “running costs”, and this should definitely comprise of  11 x 30 of 11 months not trading 4 orders per month (which charges 30 per month).

    Grand Conclusion : My annual statement is fine and indeed all is taken from the Portfolio Account. Where / when the monthly 30 is taken ? probably in one of the first days of the new month. I trust that this is fine too.
    The Long interest is bearable and FX conversion costs are fine too.

    Sorry for this quite vague post and apologies for the earlier accusations.  GraHal, thank you for your help.

     

     

    PeterSt wrote:

    Where do you do all your trading then?

    PRT-IB.

    1 user thanked author for this post.
    avatar GraHal
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