IG Problem - Advice?

[liam1om]

Hi guys,

I need some advice here.

On Wednesday I went long on ROS at 48 at £100pp. The following morning the price shot up to 65p to sell. I decided that I had made a health profit and tried to close my position. At this point the share price had shot up in a straight line and had not dropped.

IG suddenly closed their online trading and made it phone only. So at about 8:10am I rang them and specifially said I want to CLOSE my position in ROS. I was asked at what price and I said the best price, it was now 63p to sell which is still a healthy profit. The dealer took my number and said I will call you back to confirm the trade. 15 minutes passed and the price had been dropping constantly and I was watching many sells going through the order book. Panicking at why my position was still open I rang them again at 8:25am and spoke to a different dealer. I said please CLOSE my position in ROS which he did almost immediately at 57p! Just a minute later the original dealer who I spoke to at 8:10am rang me and said he had got me out of my position at 57p, I assumed he had seen the position close with the other dealer. I was very annoyed it had taken so long but I had still made over £800 in just a few hours so was content enough.

Around 35 minutes later I received a call them the 8:10 dealer saying that they had opened ANOTHER position for me!! He said why did I call IG again after I spoke to him. I told him that I was worried that nothing had happened and called again to CLOSE my position. He said that because I had called twice the broker at 8:25 CLOSED my position but because he was unaware I had called again he sold ROS at 57p for £100pp, he had opened a short on ROS! I was now down £400!!

I had a big argument with both dealers and their manager about how I specifically stated I wanted to CLOSE my postion. I never stated I wanted to open another position or to short ROS so why had they done it. Their excuse was that because I had called twice they had no idea another order was in the market. I said dont you have some kind of monitor against each client so you can see the orders going through?? I have complained to the complaints department but they are backing their dealers.

I hope this is clear enough? What do you guys think???

 

[foredog]

I'd query why it took so long to execute your first order, the underlying market in RAMCO has 4 market makers in 10000, which would be £100 pp, so they should have got on in that size quite quickly if you'd placed an at best order.

But

You should've made it clear to the 2nd dealer that you had already placed an order, technically you have placed two orders, although i'd say that overall it's 1 50/50 mistake, i think that IG should at least split the loss with you, althought they are 55 offered in 10000 at the moment so that would be a £200 turn if closed now...........

 

[liam1om]

Thanks foredog.

I just feel they should already know whats been placed. I would understand them if I had rang twice and said sell ROS. But I said close the position.

 

[liam1om]

Anyone else?

 

[bauer]

Anyone else?

I've had problems whereby they have done the opposite bet before now, or traded wrong contract, once they check the phone call conversation it was corrected, however you have placed to seperate orders, and despite saying you wanted to close on both occasions, they probably won't back down.

 

[littlemog]

Hi,

I'm also a client with IG... would like to know if there're any updates on this matter. Hope it works out for you bud.

 

[Crap Buddist]

they should tape the phone conversations?, so ask someone to check the tapes as this will have a clear record of your instructions.

I dont understand why your trade wasn't closed out whilst you were on the phone in the first place at their quote. ? But hopefully they will have full phone records.

 

[klw]

Hi guys,

I need some advice here.

On Wednesday I went long on ROS at 48 at £100pp. The following morning the price shot up to 65p to sell. I decided that I had made a health profit and tried to close my position. At this point the share price had shot up in a straight line and had not dropped.

IG suddenly closed their online trading and made it phone only. So at about 8:10am I rang them and specifially said I want to CLOSE my position in ROS. I was asked at what price and I said the best price, it was now 63p to sell which is still a healthy profit. The dealer took my number and said I will call you back to confirm the trade. 15 minutes passed and the price had been dropping constantly and I was watching many sells going through the order book. Panicking at why my position was still open I rang them again at 8:25am and spoke to a different dealer. I said please CLOSE my position in ROS which he did almost immediately at 57p! Just a minute later the original dealer who I spoke to at 8:10am rang me and said he had got me out of my position at 57p, I assumed he had seen the position close with the other dealer. I was very annoyed it had taken so long but I had still made over £800 in just a few hours so was content enough.

Around 35 minutes later I received a call them the 8:10 dealer saying that they had opened ANOTHER position for me!! He said why did I call IG again after I spoke to him. I told him that I was worried that nothing had happened and called again to CLOSE my position. He said that because I had called twice the broker at 8:25 CLOSED my position but because he was unaware I had called again he sold ROS at 57p for £100pp, he had opened a short on ROS! I was now down £400!!

I had a big argument with both dealers and their manager about how I specifically stated I wanted to CLOSE my postion. I never stated I wanted to open another position or to short ROS so why had they done it. Their excuse was that because I had called twice they had no idea another order was in the market. I said dont you have some kind of monitor against each client so you can see the orders going through?? I have complained to the complaints department but they are backing their dealers.

I hope this is clear enough? What do you guys think???

If your version of events is exactly what happened I can't see how they have a leg to stand on. If your complaint to the complaints department wasen't in writing then I suggest you do that immediately and address it to the highest manager you can find starting with the words " I would like to make an official complaint " and then explain what happened. Send it recorded delivery.What you said will be recorded on the tape ask them for a copy and a reason why they are taking a stance against you.Ask them for a final decision IN WRITING. You then go to the regulatory authority.They will not want you to do this if they are in the wrong.

Don't phone them again unless it's to speak to the person handling the complaint,get everything in writing and never be unpleasant or argue,it will get you nowhere.

They must have a reason for their position on this perhaps you can keep us updated.

Hope it is of some help.

 

[portomar]

sounds to me ig are completely in d Wrong, y they cudnt close it first time is beyond me unless theyr tryna rip u off

 

[gooseman]

i think this is a bit of a tricky one-you have actually submitted two orders even if you did say to close the position. i wouldn't expect IG or anybody else for that matter to know what my position is at any given moment I would say sell x lots at market. if the dealer said gimme a sec and i'll call you back i would expect a fairly sharp response. i can on the otehr hand see your gripe given that he took >15 mins to come back on a simple order and you wanted closure. i would think that IG would check the tapes for sure but with spreadbetters you have to be really precise.

 

[liam1om]

Thanks for the replies guys.

IG did record the conversion and I have put in a complaint in writting. They are standing buy their decision.I am going to make a complaint to the financial ombudsman as I do feel they have let me down and should not have opened a second position.

I will let you know the final outcome.

 

[gooseman]

when you called back a second time what was the conversation? was it:

"i ahve an open position, can you sell whatever at best to close"

did you refer to previous conversation with dealer?

 

[liam1om]

Gooseman, no thats their arguement. I just said please close my position in ROS.

They said I should have mentioned I already have an order going through, I assumed that they would be aware of this.

 

[gooseman]

i'm afraid to say i can see both sides of this one. if i was at IG my thoughts would be to write off a few hundred quid and take it as a lesson to have things like flags on customer accounts when they have resting orders etc.

if i was you i'd be a bit clearer on the phone.

the first delaer at IG should have been more on the ball to be fair. if i give someone an at market order i expect a flippin quick fill. i certainly wouldn't expect to be waiting 15 minutes for a fill.

not having a go buddy-just being impartial.

 

[Vaco]

Maybe you should change the nature of your complaint, rather then complaining about the short you should be complaining about the fact it took them over 15 mins to fill an at market order.

 

[Smalldog2]

Typical treatment from a firm which make their money, by you not making money! As it is a closing order, ie you attached it to a specific order and quoted that it was to close a position. I would imagine they are wrong and have acted incorrectly. Question is when a broker places you on a phone execution, then they have to be able to correctly handle the requests, any doubt and they should have come back to you, to clarrify the position. Funny, how this sort of thing seems never to go in your favour, but always against you!

Put the complaint in writing, and use whatever regulatory bodies are about to kick up a fuss. Its your money they stole...go get em tiger

 

[DT]

You did make an assumption (which turned out to be incorrect) when you gave them the same order twice - from their POV you have basically given the same sell order to two different dealers - if they were phone trading only then you can presume they were fairly busy at that point in time - it would be naive to assume they are going to be checking the positions of everyone who calls or that they would somehow be aware of the fact that you had already placed the same order previously. The main complaint must surely therefore just be that it took them 15 minutes to fill your first order.

 

[gooseman]

Out of interest (and as this approach would, I think, have avoided this problem). When you realised it was phone trading only why didn't you just call up and ask for a two way price? Then you could have hit the bid there and then rather than wait for them to call you back (which seems a pathetic way to do business on their part imho although I'm no equities expert).

Just a thought

GJ

panic. falling market. get me out, get me out. etc.

 

[BSD]

The main complaint must surely therefore just be that it took them 15 minutes to fill your first order.

And that's just totally inacceptable.

What was he doing, having a quick fling with a secretary in the storage room first to clear his mind out of nervosity at the challenging task awaiting him of having to unwind a client's position ?

Nothing against mind clearing motivated flings, but I'd still close my account straight away and move on to a real broker.

 

[liam1om]

Your right, I think I will base my main argument on why it took 15 minutes to do anything. Pathetic really and they guy did sound really dopey.

I will definetly be complaining about this to the financial body. I'm going to try my upmost to get at least some of my money back.