IG Index dispute - advice welcome!

Mar 21, 2011
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#1
Hi everyone,

Firstly thank you for taking the time to read my query,

I have a dispute with IG Index . In a nutshell I placed a number of bets on the Nikkei 225 last week and within minutes I was in good profit, when attempting to close my positions it stated IG had suspended trading on the underlining market and I would need to call to deal - needless to say I could not get through to the dealing line when this occurred (proof of this on my phone records).

As I only trade in short bursts I was actively monitoring my positions placing the bets and did not see the need to place stop limits when the bets where placed, once they 'suspended' the market I was also unable to place stop limits or limit my exposure so had to watch my account click into the red being powerless to prevent it.

IG basically had blank cheque from me and only gave me control 30 minutes later once my positions where heavily in the red. I feel robbed

I have checked their terms and conditions http://www.igindex.co.uk/content/files/CustomerAgreement_igi_en_GB.pdf and they have quoted section 22, 'Force Majeure Event'as the reason they locked my account, this I understand but do they have the right to block me from limiting my exposure!? I've essentially been forced into debt and I'm not happy about it to say the least!

I think it important to state the underlying market was not actually suspended - IG suspended trading on their own account (I could see the price updating while I was unable to end my bet OR limit my exposure)

I have disputed this in an email but their playing silly buggers with me. Section 22 in the terms and conditions actually state they should have closed my bets when they suspended trading, which I would have been happy with.

Can anyone offer advice on my rights here and if I have a case. I've read their terms and conditions and I think they've acted unlawfully but I would greatly welcome a second opinion. I'm prepared to go to court on this issue as I think my beef is just, do you agree?
 

arabianights

Well-known member
Jan 9, 2007
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#4
Ok, being serious for a bit... actually you raise a very difficult point. If you couldn't get through to IG then if they were a normal broker I couldn't see this being any protection at all in your favour.

However, given that they're making their prices, I would suggest that if they're not doing so in a way that you can access them then you may or may not have a case... difficult one.

Important question: Did you have stops?
 
Mar 21, 2011
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#5
Hi,

tar: no the line kept going dead (suppose lots of people trying to get control of their money during this time) But I have proof for IG on my phone records that I tried to call many times.

arabiannights: No I did not place stops at the time the bets where placed because I was actively monitoring them. They locked me from adding stop limits roughly 5 mintues after I placed my positions.

Do they have the right to stop me from placing a limit? I have scanned their T/C's and cannot find a warning they can do this.
 

arabianights

Well-known member
Jan 9, 2007
6,725
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#6
I will be perfectly honest with you: I don't know. My gut instinct says: Make a complaint to IG , suggesting your next step will be the financial ombudsman; then if they don't sort things to your satisfaction go to the ombudsman as they are more likely to find in your favour than other remedies, in my view.

But that is absolutely not to say, don't take legal advice or whatever. I really just don't know the technicalities. But I have a fair idea how the ombudsman works (being a sad bugger, I read "Ombudsman News" case studies when they come out... as well as having read every back issue!) and your being able to prove inability to get through by phone will be a *huge* factor in your favour as they are seriously hot on fairness - and this seems unfair to me.

P.S. I strongly endorse your screename - I am considering in the medium term moving to IOM and I may end up buying one of them myself, always had a sweet spot for em since buggering around with a series II as a teenager... although alas it seems they'll be 2nd hand by them....
 
Mar 21, 2011
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#7
@arabiannights

I've already sent IG a stern email following what you advised, heres it is if anyones intrested:

"Hello,

Thank you for your response, however it does not settle my dispute.

I understand and accept your right to suspend market trading at anytime you
wish, what I do not accept is at any time I will loose my control to limit
my exposure to the market. You mentioned section 22, ' Force Majeure Event',
as justification for this action however this section suggests my bets
should have been closed, not left running while all controls including my
ability to adjust my exposure were removed. This is quite simply wrong not
to mention unlawful. In fact no where in your terms of service does it state
I can loose control of my exposure.

I have already sought legal advice on the issue and been advised to alert
the Financial Ombudsman Service and peruse a court hearing, something I
would regret having to resort to but will if necessary. As a result of this
I urge you to follow your own guide lines in section 22 and inform the FSA
of your action in preparation.

My hope is you will void all bets placed and return my funds/remove the debt
on my account, on which I will close all accounts with IG Group and put the
issue to bed, if not I will have no choice but to take the position as to
take this dispute to the highest possible level. I have full records of your
terms of service at the time the bets being placed, screen shots of puredeal
providing proof of my loss of exposure control and phone records as proof
of being unable to connect to your dealing line during market suspension and
the unlawful action being taken on my account.

I hope to hear a response within 24 hours so I know how to proceed."


P.S. Good luck in finding a defender, I think they stopped making them back in 1981?
 
Mar 21, 2011
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#10
BTW to to clarify, IG are arguing that even if I had called through and my call have been answered they could still not accept a stop order - "during this time we we were unable to accept trades and stops edited at this time of suspension."
 

arabianights

Well-known member
Jan 9, 2007
6,725
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#11
Hi,

To the best of my knowledge the underlying was still trading during all the, er, fun, so there is no reason at all they couldn't have got you out (your fill may have been horrible mind)

Only way I may be wrong here is if nikkei futures went limit down. Actually, typing that, they may well have done, it's stirring a memory in my mind. If that was the case then you would have had to take best bid after that...
 
Mar 21, 2011
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#12
I was betting short term on the following blip, they locked me out between 21:37 - 22:10


This image shows how my edit position option (ie add a stop limit) was removed so I was at IG 's mercy:
 

tar

Well-known member
Nov 18, 2006
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#15
BTW even u monitor your positions , u should use stops , anything could happen ...