Why I Have To Stop Trading With IG Markets

I have been trading IG Markets for a long time now. Primarily I have been impressed with how the keep up with mobile technology, given that most of my trading is via my phone. 

Yet even with several online brokerage accounts (5 at the last count, don't ask why), I have lost far more money with IG compared to every other account combined! Why is this so?

There are two main reasons to this and I have to clarify that it is not because their platform is bad, nor do they give very bad slippage. In fact I quite like to use their platform all the time. Here are the two key reasons why.

1) Their Reduced Margin

Based on my experience, I can safely say that the Monetary Authority of Singapore has stipulated that FX leverage cannot be more than 50X. This means for every $1,000 in your trading account, you cannot place a trade of more than $50,000.

Yet IG has somehow circumvented this with an ingenious margin calculation algorithm that basically reduces the required margin as long as a Stop Order is placed! Fair play to them, with a stop order that is likely to be filled, the downside risks are somewhat limited. For a gambler like me that is awesome, knowing that I can actually trade larger sizes (maybe 2-3X more) than other MAS-licensed brokers could!

But unfortunately for me, greater leverage has translated to far greater losses because this whole scheme encourages me to place very tight stop losses in order to attain maximum leverage :( and I just can't control it sometimes!

2) Binary Options  

IG I think are the only MAS-licensed broker who offer Binary Options. Now, Binary Options are not for the faint-hearted. To the layman, they are simply a gambling tool where you bet on one side or the other, hence the name.

It is akin to betting during a football match as to whether which team would win, simple as that. How is this allowed in Singapore, I don't know, but once again, I love it!

In fact previously IG even offered 20min FX binaries, meaning that you guessed the whether FX prices were going higher or lower within 20mins! How exciting is that!? Now they only offer hourlies and 2 hourlies maybe to stem the whole gambling facade.

And this is why I need to stop trading with them. Because I'm a compulsive gambler at heart!