IG Group (LON:IGG), one of the world’s largest publicly traded forex brokers, announced it is changing its terms for fees and commissions on guaranteed stops. From July 4 the broker will not require any upfront premium for guaranteed stops added by its clients.
Fees will be paid only when the guaranteed stop is triggered – if it is not activated, IG will not charge the trader for adding it, hence simply adding it will be free of charge.
According to the amended section “Limited Risk” in the customer agreement IG has sent to its clients, limited risk premium shall be due and must be paid when the Limited Risk Transaction is closed. The size of the limited risk premium is set in the contract details or as notified to the client. The limited risk premium is in addition to the usual opening commission or spread that the client pays. As per usual, IG reserves the right to give or withhold its consent on setting the guaranteed stop.
Furthermore, the broker will soon provide the option to add a guaranteed stop to an open position and edit or remove existing guaranteed stops.
London-based IG Group was set up in 1974 as a spread betting provider, the first UK-based one at the time. Since then it has expanded to also offer trading in contracts for difference (CFDs), forex, binaries, and stocks.
It has more than 136,000 clients that are served from offices in 17 countries across the EU, the US, Asia, and Africa. The group operated under the IG brand worldwide, and as the Nadex derivatives exchange in the US, after in 2012 it merged the brands IG Index and IG Markets into a single one – IG. The company is regulated by UK’s Financial Conduct Authority (FCA) and its subsidiaries have the relevant regulation from the countries they operate in.
In conjunction to the upcoming EU referendum in the UK on June 23, IG launched its Brexit barometer, based on the trades in the political binaries on the outcome of the vote. IG also became one of the numerous forex brokers to temporarily hike the margin requirements on some of its instruments, in order to minimize the risk from the extreme market volatility surrounding the referendum and its uncertain outcome.