Hi all i use global trader in South Africa and i hope they dont have the same problem here, will contact them on monday to see if i can get my funds out, the company purple capital a South African company shares wrere down 28% today, global trader is a major subsidiary of purple capital, here is the South African link Moneyweb - Financial - Global Trader Europe in trouble
happiesmiles007
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I WOULD ADVISE all clients of global trader worldwide to liquidate and withdraw all positions with this company - they blame a loss of capital and subsequent collapse of global trader europe on one trade/r - (sounds impossible hey) and they hide behind legalese jargon such as capital regulatory deficit and administration - they refuse to return my funds to my bank account and are just generally uncommital to me as regards the situation. Strange that they can go from a real blue star customer service to this. There number one concern should have been the protection of their clients money - BUT - alas it seems when you want your money they just spit in your face!!!!
HI This is the e-mail i recieved from the South African side of things, they also appeared on cnbc africa and one of the local radio station, will look at the download to see what is being said, herewith e-mail:
Dear Client
I am circulating this update in support of the announcement made this morning by Purple Capital.
I would like to correct the misperception created by the factually incorrect article published in the FT this morning. The truth is that we approached the FSA and voluntarily sought the variation of permission in the best interests of international clients. (This can be confirmed with the FSA)
Furthermore and again in the best interests of our international clients we are considering submitting our application to place GTE under administration.
I would like to inform all South African clients that Global Trader South Africa is unaffected by these actions and continues to trade profitably regardless of the circumstances facing the international business, and has no obligation to either fund or underwrite any obligations in GTE.
Should you have any concerns please do not hesitate to contact me.
Regards,
Charles Savage
Managing Director
Global Trader
Dear Client
I am circulating this update in support of the announcement made this morning by Purple Capital.
I would like to correct the misperception created by the factually incorrect article published in the FT this morning. The truth is that we approached the FSA and voluntarily sought the variation of permission in the best interests of international clients. (This can be confirmed with the FSA)
Furthermore and again in the best interests of our international clients we are considering submitting our application to place GTE under administration.
I would like to inform all South African clients that Global Trader South Africa is unaffected by these actions and continues to trade profitably regardless of the circumstances facing the international business, and has no obligation to either fund or underwrite any obligations in GTE.
Should you have any concerns please do not hesitate to contact me.
Regards,
Charles Savage
Managing Director
Global Trader
happiesmiles007
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Interestingly enough, or should i say disgustingly enough, we have a company called Global trader, who say that the situation in the UK will not affect their business in other parts of the world - BUT - goodness me, they seem to think they can rob uk clients of their money by going into admininstration and refusing to return clients money. And then expect people over the rest of the world to TRUST and support them - THE ONE AND SAME COMPANY! I sold up and left South Africa in Dec 2007, where i also was a client of Global Trader, and ALL my worldly belongings are now with Global Trader, I have no job here in the London and this fiasco could be the end of me - does Global Trader care for its clients - give it some thought, i hope the future does not land you in my situation.
happiesmiles007
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IF i manage to get out of Global trader alive, i will definitely seek a company that offers me insured and/or guaranteed protection of my funds - GLOBAL TRADER you have failed miserably and no amount of excuses will ever suffice!!
pseudo straddle
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shadowninja
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Bugger. Good luck, Happy. Hope it resolves well.
Hi happiesmiles007
I'm afraid you wont get any - legally effective - guarantees. All trading platforms are run by limited liability companies (in the UK Ltd or Limited; in the USA Inc.) so that if the company goes bust, that's it!! Have a good look at the company's balance sheet or only deal with very large companies. E.G. You are not going to get into trouble (company wise, that is) with firms like Interactive Brokers. Unfortunately you need university degrees in English, Maths and Common Sense to be able to use their platform (unless, like me, you pester their customer service every 10 minutes or so!!!!!)
I'm afraid you wont get any - legally effective - guarantees. All trading platforms are run by limited liability companies (in the UK Ltd or Limited; in the USA Inc.) so that if the company goes bust, that's it!! Have a good look at the company's balance sheet or only deal with very large companies. E.G. You are not going to get into trouble (company wise, that is) with firms like Interactive Brokers. Unfortunately you need university degrees in English, Maths and Common Sense to be able to use their platform (unless, like me, you pester their customer service every 10 minutes or so!!!!!)
Further to that, I'd make damn sure my funds were held in a segregated account in the UK. At least you have protection up to about 30k.
This is the latest e-mail i recieved from global trader, their looking for someone to inject some funds into it, so maybe youll still get your money, one can only hope, good luck.
Purple Capital Limited
(Incorporated in the Republic of South Africa)
(Registration number 1998/013637/06)
Share code: PPE ISIN: ZAE000071411
(“Purple Capital” or “the company”)
Cautionary announcement
Global Trader Europe
Global Trader Europe Limited (“GTE”) is held independently as the owner of the international operations of the Global Trader group. A regulatory capital deficit has arisen in GTE as a result of a single client margin call default. Under these circumstances GTE applied, at the close of business on Wednesday, 13 February 2008, to the Financial Services Authority (“FSA”) in the United Kingdom for a Variation of Permission – the official method by which companies change the terms of their authorisation, limiting principal activities to closing existing trades.
Purple Capital, together with the Board and management of GTE, continues to evaluate alternatives for the re-capitalisation of GTE, including the possible introduction of an international equity partner. However, to ensure that the various alternatives can be evaluated within an orderly operational structure and regulated financial exposure, GTE will today apply, with the permission of the FSA, to be managed under Administration.
Global Trader’s South African operations (“GTSA”) – also independently held, are unaffected legally or economically by the circumstances of GTE.
GTSA is performing very well and has traded profitably throughout the recent period of adverse market movements and volatility. In fact, GTSA’s client base has grown at an annual rate of 34% since the effective date of the acquisition, whilst turnover has grown by 117% year-on-year for the same period.
GTSA generates in excess of 80% of group profitability and cash flows and remains well positioned as the leading CFD and Spread Trading derivatives operation in South Africa. Our expansion plans into a full-service brokerage remain on track for 2008.
Shareholders are advised to exercise caution when dealing in the company’s shares until final details of GTE’s restructuring are certain, at which time a detailed announcement will be made.
Johannesburg
15 February 2008
Sponsor: Bridge Capital Advisors (Pty) Limited
Purple Capital Limited
(Incorporated in the Republic of South Africa)
(Registration number 1998/013637/06)
Share code: PPE ISIN: ZAE000071411
(“Purple Capital” or “the company”)
Cautionary announcement
Global Trader Europe
Global Trader Europe Limited (“GTE”) is held independently as the owner of the international operations of the Global Trader group. A regulatory capital deficit has arisen in GTE as a result of a single client margin call default. Under these circumstances GTE applied, at the close of business on Wednesday, 13 February 2008, to the Financial Services Authority (“FSA”) in the United Kingdom for a Variation of Permission – the official method by which companies change the terms of their authorisation, limiting principal activities to closing existing trades.
Purple Capital, together with the Board and management of GTE, continues to evaluate alternatives for the re-capitalisation of GTE, including the possible introduction of an international equity partner. However, to ensure that the various alternatives can be evaluated within an orderly operational structure and regulated financial exposure, GTE will today apply, with the permission of the FSA, to be managed under Administration.
Global Trader’s South African operations (“GTSA”) – also independently held, are unaffected legally or economically by the circumstances of GTE.
GTSA is performing very well and has traded profitably throughout the recent period of adverse market movements and volatility. In fact, GTSA’s client base has grown at an annual rate of 34% since the effective date of the acquisition, whilst turnover has grown by 117% year-on-year for the same period.
GTSA generates in excess of 80% of group profitability and cash flows and remains well positioned as the leading CFD and Spread Trading derivatives operation in South Africa. Our expansion plans into a full-service brokerage remain on track for 2008.
Shareholders are advised to exercise caution when dealing in the company’s shares until final details of GTE’s restructuring are certain, at which time a detailed announcement will be made.
Johannesburg
15 February 2008
Sponsor: Bridge Capital Advisors (Pty) Limited
chilltrader
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Hey, do these "legally effective - guarantees" apply to companies like Worldspreads/ Finspreads?
i.e If they go down, am I correct in saying that clients will get their money back {limit 30K}, as these companies are regulated by FSA?
i.e If they go down, am I correct in saying that clients will get their money back {limit 30K}, as these companies are regulated by FSA?
whipsaw
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all informations concerning the financial compension scheme you can find
@ fscs.org {http://www.fscs.org.uk}.
Hi guys,
You should be referring to "NOT legally effective" if you are quoting me in the context of the two last posts!!!!!!
Quote from the FSA web site
"FSCS protects:
deposits,
insurance policies,
insurance broking (for business on or after 14 January 2005),
investment business, and
mortgage advice and arranging (for business on or after 31 October 2004).
"
Whether or not traders will be covered by the FSA Scheme is not clear. Spread betting is treated as gambling by the Inland Revenue, not as investments. Also, can the money we place with platform providers be described as a "Deposit" in the banking sense of that term?
As far as I know, Global Traders is the first market trading company of it's type to fail in the UK, so as far as the FSA deposit protection scheme is concerned we are in uncharted ground. If the FSA functions like other government appointed bodies, compensation will only be paid if doing so enhances the political reputation of the government.
I sincerely hope Global Traders losses will be protected. We shall see.
You should be referring to "NOT legally effective" if you are quoting me in the context of the two last posts!!!!!!
Quote from the FSA web site
"FSCS protects:
deposits,
insurance policies,
insurance broking (for business on or after 14 January 2005),
investment business, and
mortgage advice and arranging (for business on or after 31 October 2004).
"
Whether or not traders will be covered by the FSA Scheme is not clear. Spread betting is treated as gambling by the Inland Revenue, not as investments. Also, can the money we place with platform providers be described as a "Deposit" in the banking sense of that term?
As far as I know, Global Traders is the first market trading company of it's type to fail in the UK, so as far as the FSA deposit protection scheme is concerned we are in uncharted ground. If the FSA functions like other government appointed bodies, compensation will only be paid if doing so enhances the political reputation of the government.
I sincerely hope Global Traders losses will be protected. We shall see.
whipsaw
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whipsaw
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by a banner or what? This wouldnt be a recommendation, this is to get a few revenues to pay the rent for the server and other issues.
Trader333
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How do you know it was 2 years ago when you have been a member of T2W for 4 months less than 2 years ?
Paul
Hi Paul,
Sherlock Holmes you are not!!!! I have been receiving T2W emails for a long time before I started posting on this forum. In fact, I believe my first post in June 2006 was to query Global Traders' platform efficiency and directed it to this forum because of the (very distant admittedly) link.
Sherlock Holmes you are not!!!! I have been receiving T2W emails for a long time before I started posting on this forum. In fact, I believe my first post in June 2006 was to query Global Traders' platform efficiency and directed it to this forum because of the (very distant admittedly) link.
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