IG Posts Brexit Update for EEA clients

Spread betting and contracts for difference (CFD) provider IG has sent out a note to EEA clients indicating that all CFD accounts of EEA clients will be set to "close only" starting 31 December 2020 because the company will no longer be able to service EEA clients after the Brexit transition period ends.

The EEA clients will have at least 30 days to close their positions, before they are closed at the prevailing price from 31 January 2021. Their account will then be closed. 

Those EEA-based clients who want to keep trading CFDs with IG are advised to transfer their accounts to IG Europe, which is based in Germany and is authorised and regulated by BaFin and Bundesbank. It offers a range of financial products depending on the clients' location, including CFDs, options and turbos.

To transfer, one has to log in to My IG and follow the prompts.

After December 31, 2020, EEA-based clients will still be placed on closings only until their accounts have been successfully transferred. If the client consents to the transfer, he/she won't be able to open any new positions from 31 December until the transfer has taken place. The transfer is expected to happen in mid-January, and it will notify clients of their transfer date in advance.

After 31 December 2020, if an EEA-based client has a share dealing account with IG, it will be set to 'closings only' from 31 December 2020. The broker reserves the right to sell a client's holdings and close this client's account from 31 March. This means that traders will have at least three months to close their positions or transfer them to another provider.

In addition, the broker will not charge any commission for selling one's shares between 31 December 2020 and 31 March 2021.