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Documenting Problems That Were Difficult To Find The Answer To

IG CFD Sneaky Premium Penalty (CRPREM)

What is “controlled risk premium”, or CRPREM? Turns out – the IG website will not tell you. It’s something that will bite you when you least expect it – and it will hurt – because it isn’t fair, and it isn’t even remotely clear.

I was playing around making CFDs (contracts for difference) – up a hundred dollars or so – feeling quite happy with myself. Then I made the mistake of making a CFD on the Italian index:

IG CFD Italy Index Deal Window

IG CFD Italy Index Deal Window

Instantly my stop was triggered. I don’t know how or what happened but when I checked my transaction history I saw the following entry:

MarketName ProfitAndLoss
Italy 40 Cash (€1) converted at 1.8553 A$-185.54

So far, so good, I lost $185 or thereabouts on the market going in the wrong direction.

Then this entry floored me:

MarketName ProfitAndLoss
Italy 40 Cash (€1) CRPREM DIAAAAEHD5….. Converted at 1.8553 A$-89.06

Wait, what??! Another $90 fee? For what? What is CRPREM?

See that circled number in the deal window titled “Stop premium (if triggered)”? That means that’s the number of extra points you’re charged as a “controlled risk premium” should you fail to close your position and it gets closed automatically.

In my case the fee was 2 controls times 24 points (stop premium) = 48 times the exchange rate of 1.8553 = AU$89. Ouch.

I should have looked at the window more carefully before I placed the order. But here’s the thing.. all they display is the margin – no hint or indication or the stop premium if triggered – even though it is mandatory to provide a stop.

Doesn’t seem fair or right, does it. But you probably landed here because you were charged an outrageous fee – and want to know why – and there appears to be no customer service at IG to tell you – or a web page on the subject, either – at least I didn’t find one.

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