IG Group UK will soon be unable to serve their EEA clients once Brexit transition period ends. Here are the following updates.
The divorce between the UK and the EU has also affected forex brokerage firms. One of them is experienced by IG Group. As of December 29, 2020, IG has announced the effect of Brexit to their EEA clients. IG Group company in the UK will soon be unable to serve their EEA clients, particularly after the Brexit transition period officially ended and the UK leaves the EU on December 31.
IG will set their EEA client CFD accounts to 'closings only' mode from December 31, 2020. IG clients are given the opportunity to process the closing of their positions for one month until January 31, 2021. After that, their CFDs account will permanently be closed or closed at the applicable price on that date.
If an EEA client wants to keep trading CFDs, then they must transfer their account to IG Europe. The account transfer should not be too complicated. Clients only need to login into My IG and follow the instructions attached. However, even if the transfer process is completed before the deadline, the clients are expected to be patient not to open a position before getting further notice from IG. According to the broker's statement, the account transfer business is expected to be settled in mid-January.
The transfer clients will not have to worry about regulation because IG Europe is based in Germany and is authorized by BaFin and Bundesbank. The trading features are also quite similar to those of IG Group UK. CFDs, Options, and Turbo can still be enjoyed by EEA transfer traders.
Not only CFDs, but IG UK will also stop offering share dealing accounts to their EEA clients. Similar to the rules for CFDs, as of December 31, the EEA client account will be set to 'closings only' mode. The difference is on the closing date which is until March 31; before the broker has the right to sell a client's holding.