Frequent Trading Complaints
Trading is not always about profits and easy lifestyle. There are some pitfalls that can not be avoided. Thus, we decided to tell you about the most frequent trading complaints against some popular brokers.
IG was founded in 1974 and has grown in reputation over the years. It is currently ranked as the top contract for difference (CFD) provider. However, traders are warned from the onset that CFDs are high-risk investments and they should, therefore, be careful. Although IG was initially formed in the UK, it has expanded its operations and recently started being operational in the United States.
Several aspects of the platform are appealing. Nonetheless, nothing is ever fully perfect. This fact also applies to IG. Firstly, IG charges fees for accounts that are dormant. As such, even when someone is not earning any returns from the trades, the company deducts money further contributing to dwindling earnings.
Secondly, the platform is disadvantageous to some users. For instance, its retail clients cannot carry out forex trading on its interbank system. This function is only reserved for high-end clients which is discriminatory.
Thirdly, IG includes the stop-order feature which is aimed at helping traders to mitigate risks. However, there is a disclaimer. It charges a fee. This is in addition to other commissions that the trader is supposed to pay for the facilitation of trades. This makes everything expensive.
IG also lacks a dedicated customer engagement channel via social media. It does not even run a third-party social platform. As such, its traders cannot access positioning data directly from an IG-run account. To circumvent this, IG runs dailyFX.com which provides this information.
However, a new customer may not have an idea of this fact, thereby implying that they may lose out on important data. Moreover, IG has a relatively high requirement for investors intending to use the platform. They should deposit a minimum amount of $250 or its equivalent if they intend to trade in a different currency.
Saxo Markets was initially known as Saxo Capital Markets. It was founded in 2010.
Saxo has three investment account types. The first is classic which has a minimum deposit requirement of £1,500 followed by platinum (£50,000) and lastly, VIP (£1,000,000). The company offers more benefits to the latter two in the form of discounted trades. Although it makes it appealing, it is discriminatory to classic subscribers. This is regardless of the fact that this requirement is generally higher than what competitors charge.
Besides this high amount, the company also charges high fees and commissions. For instance, a trader carrying out between 30 and 50 trades in one year pays as much as £600 in commissions. This high cost of trading emanates from the fact that the platform lacks transparency in how it ends up charging fees. This means that the fees are hidden or its disclosures are contradictory.
Further, the company charges $25 if an account was dormant for one quarter of the year. Instead of the platform being an avenue traders can use to make money, it becomes one that makes them lose cash.
Regardless of the amount a customer is required to pay, the platform has lux security features. The customers’ money and finances are, therefore, risk. For instance, it does not support two-factor authentication. This makes it a target for hackers and identity thieves.
Notably, although the site claims that it supports multiple instruments, it does not facilitate the trade of cryptocurrencies. The platform also lacks some important tools such as an economic calendar.
The online platform was established in 1995.
Interactive Investor has robust and reliable fundamental analysis tools. However, there are two sides to the coin when it comes to technical analysis. It can either be reliable or be a miss altogether. For instance, Interactive Investor, which does have a standalone trading platform but relies on its website, does not provide traders appropriate charts or tools that seasoned traders use. For this reason, the platform is only useful for inexperienced individuals.
Interactive Investor’s charts only contain the bare minimum. They do not have multiple indicators and also cannot be relied on for technical analysis. It is crucial for the company to strive to incorporate more research information into both its website and mobile application.
Its fees are uniform across all tiers of customers. This fact makes it suitable for clients with large deposits of more than £50,000. Its fees are disadvantageous for anyone who trades in small amounts.
Conclusion On Trading Complaints
All in all, these brokers have specific characteristics that are desirable. However, in this article, the main focus was on their negative attributes born from trading complaints lodged by customers and users such as ourselves. We provide this information for free so that you can make informed decisions as you trade.
Mostly, people complain about fees that are charged from dormant accounts. Additionally, many traders complain about high fees for transactions with popular brokers.
It depends. Some companies provide low fees, but you have to wait for a long time to commit a transaction. Otherwise, you may found a broker with fast transactions, but lower security.