I am completely new to spread betting and just signed up for a demo at IG Index! I am unable to place a trade currently on ‘Amazon’ as the markets are closed. However I attempted to play around with the settings as though I was about to buy at a size of 0.5. The attached screenshot shows this. However, I was a little surprised that I have put the minimum trade size allowed yet the guaranteed stop (set at the minimum of 10%) is £16,464.70! Can someone confirm that this is the smallest lot I could put on ‘Amazon’!? I might as well buy the share in the traditional way.
I have an IG Demo account and I see what you see, min. size £0.5 per point, price currently 329294pts, min. GSL -10%.
I personally never use a GSL, so if you use a Normal SL you can set this well within the -10% range and avoid the GSL fee. However, 50p per point makes this a large bet if you go through IG - total position min. value £164,647. LCG offer Amazon at 1p per pt., total position min. value £3292.
But if you want to benefit from long-term rise in a share price, buying the shares might be more economical.
No, IG always has high min. stake sizes in comparison on all instruments I have ever checked, regardless of time day or night: this should not alter with time of day. But the spread of course will change and maybe dramatically - one reason I have given up entering orders before the London Monday open. Maybe the min. 10% distance to the GSL also changes in/out of hours: I doubt it but I’ve never actually checked.
I think I’d trust LCG over something called trustpilot that I’ve never heard of and which doesn’t have the FCA as a regulator.
Bear in mind that 90% of the traders who have ever traded with any broker have lost money - so that fact might just colour their opinions on the firm they worked through. Just saying.
Great appreciate your thoughts. As a novice, perhaps you can help with one more question! I am comparing CFDs to spreadbetting to CFDs on IG. I note that ‘Mastercard’ is available through spreadbetting but I am unable to deal a CFD for ‘Mastercard’. Do you know why some may only be available through spread betting and not CFDs? Thanks in advance!
I’ve never heard of this difference. The only significant difference between the two is taxation, so maybe its something to do with tax, just guessing like.
