IG Group has announced that it is suspending the opening of new trading accounts following major market volatility in equities last week and its own platform outage, which occurred on Friday, January 29th. Given the recent platform outage, news portals like FinanceFeeds suggest that the brokerage simply cannot handle the trading volumes because of its execution model.
In a message to clients the broker’s CEO, June Felix indicated that IG is “in the midst of an unfolding situation in global markets which is attracting a significant number of new traders to trading platforms to buy particular stocks in a coordinated way. This has caused a significant increase in trading volumes and demands on our platform. As a result of this, some clients have experienced disruption to service. This has fallen short of the high standards we set ourselves and the service you deserve. For those clients who have experienced disruption, I would like to offer you my sincere apologies, and assure you we are addressing these issues as a matter of urgency.”
Traders wishing to get in on the retail stock trading frenzy should look for other providers, as IG indicated that it has “temporarily paused new account opening so that we can focus on providing our existing clients with the service they deserve.” Furthermore, the broker has “made the difficult decision to temporarily suspend new trading on GameStop and AMC Entertainment.”