We are pleased to be able to offer you the option to use physical stock as collateral for your trading with us. You can now use the value of your investments to support your short-term trading without having to liquidate any long-term positions.
The service works by offsetting the value of the physical stock that we hold on your behalf against the deposit requirement of your account. You can use most UK SETS shares of which you are the sole owner as collateral (excluding shares in IG Group or any company of which you are a director).
In order to allow for the possibility of price movements, the value of the stock is discounted or 'haircut' when calculated for collateral purposes. Typically, the amount of this discount varies between 5% and 50% depending on the volatility and liquidity of the individual stock. The total haircut value of all stock held as collateral will appear on your statements from us.
IG Markets is approved and authorised to do agency stockbroking by the FSA.
How do I register for the service?
To register for the collateral service, please contact us on +44 20 7663 0353 or firstname.lastname@example.org and we will send you the relevant paperwork. The document below outlines the terms which will govern your use of the service.
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How do I move stock to be held as collateral?
To use stock as collateral, you must transfer it to IG Nominees Ltd. There are two methods of doing this, depending on how the stock is currently held:
1. For stock held in Crest with a Stockbroker: please arrange an electronic Crest transfer by informing your stockbroker you wish to make a ‘Free of Payment transfer to HJKAV’ and supplying the name (and ISIN if available) and quantity of the stock(s) you intend to transfer (with T+1 settlement). If possible, please also let us know the details of the stock you are transferring. We reserve the right to charge an adminsitrative fee for this service.
2. For stock in certificate form: please complete and sign a stock transfer form and send it to us alongside the actual share certificate. Please complete one form per certificate. The stock will be converted to electronic form to be held in IG Nominees. We reserve the right to charge an adminsitrative fee for this service.
Can I trade stock held as collateral?
The service is not intended to provide a frequent trading facility for physical stock, although clients may trade stock held as collateral at our discretion provided that it is kept to a modest level of, say, once a month. This service is subject to commission.
Can I use anything else as collateral?
Yes, we will also accept gilts as collateral. Please call us on 020 7663 0353 for details.
You will be liable for all charges that may arise from the purchase or sale of any of investments we hold as collateral. These may include but are not limited to PTM levy, stamp duty and commission. The commission for UK securities is 0.1% of the total consideration, subject to a minimum charge of £50. Commission for US securities is also 0.1% of the total consideration plus an additional contract charge of £75 to cover settlement costs.
For the transfer of securities from other Crest accounts, the dematerialization or withdrawal from Crest accounts, we incur charges on your behalf. Therefore we reserve the right to charge £20 per security for these services.
CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.