Mdsspreads took £9000 from me!!! Please help!

[Zebedee23]

Hi everyone, Iv been spreadbetting for around 6 months. Made few big wins but managed to lose it all as usual. Finally I was ahead £1500 on 2 Jan when trading opened. I managed to turn this into £12000 by the morning of 2nd Jan. This money was made on movements between 2-4am and 5-7am on GBP/EUR. The market was jumping up and down between 50 or so points every few minutes sometimes seconds. I did probably over 100 trades. In the morning suddenly £8900 dissapeared from my account with no explanation, I phoned Mdsspreads up thinking it was obviosly a mistake and was told by them then and in a subseuent email

' All GBP/EUR trades from 00:05 through to 06:46 inclusive have been reversed, taking into account any losses incurred during this period. Following this further review of all the trades placed overnight, the net effect of reversing any erroneous trades would be to debit your account with a total of £9300. As we have already adjusted your account with a debit of £8960 we will not make any further adjustments in relation to this matter.'

The charts which mdsspreads were using and which showed the same prices that they were quoting were from /cs2.it-finance.com.
Has anybody else had a similar problem over the early hours of 2Jan, i know many companies use these charts. I could not find that muchnegative info on the net regarding Mds, i just hope they are not scamming me!!

X GBP/EUR Rolling Daily

Thanks and Happy New Year, hopefully its all on its way up from now!!

 

[tomorton]

'erroneous trades' - So, are they saying trades between 0005 and 0646 were carried out on the basis of erroneous information, which they supplied?

 

[Zebedee23]

Thats exactly what they are saying.

 

[Zebedee23]

also a small amount of the money was taken off from trading GBP/USD in the same way. They stated in their email

'All GBP/USD trades stand except for the trades completed at 04:33 and 04:48

 

[tomorton]

I suspect you will find it is unlawful to profit from error made by the other party. The firm will want to negate your winnings but will also have to make good other clients' losses over the same period.

It would be just as if you checked your bank account and found the bank had mistakenly credited you with a million quid - the mistake is theirs but you won't be entitled to keep the money. Same in sales - if you stumble on a Stradivarius marked in a shop at £5, they are not obliged to sell it to you at that price.

 

[Zebedee23]

Thats correct. If the info supplied by cs2.it-finance was 'erroneous' then many people must be in the same boat. id like to hear from some of them if this is the case. Would make me feel a bit better about the lose!!!

 

[RidderTrade]

Thats correct. If the info supplied by cs2.it-finance was 'erroneous' then many people must be in the same boat. id like to hear from some of them if this is the case. Would make me feel a bit better about the lose!!!

never heard of this.. mdsspreads.. stick by the welknown spread companies..
the bigger ones make so much profit.. that they wont even look at 9000 pounds..

a friend of mine, a while ago taken advantage.. of a error quote..
crude oil was suddenly -500 and the market was open.. he bought.. but very soon after that the market was closed for trading..
and 50 minutes ago crude oil opened up.. and he took the large profit immediately.

 

[RidderTrade]

correction : i mean 50 minutes later..and not 50 minutes ago
it was 2 hours after usa markets were closed..

 

[Arbu]

I suspect you will find it is unlawful to profit from error made by the other party. The firm will want to negate your winnings but will also have to make good other clients' losses over the same period.

It would be just as if you checked your bank account and found the bank had mistakenly credited you with a million quid - the mistake is theirs but you won't be entitled to keep the money. Same in sales - if you stumble on a Stradivarius marked in a shop at £5, they are not obliged to sell it to you at that price.

tomorton you're right in what you say in the second paragraph, but not the first. If you enter into a contract with someone on the basis of a mistake by that party then that party's entitled to rescind the contract if a reasonable person looking at the offer that he was making would have concluded that it was a mistake. I don't think see any reason why the OP should have concluded that here, so mds don't have the right to reverse the positions. But it would be worth looking at their terms and conditions also to see if they have anything to say about this. If I was the OP I'd be threatening to sue MDS.

I wish Capital Spreads would take the same position as MDS though. I got stopped out at 05:50 when the price hit my stop loss level exactly and then bounced back up.

 

[Zebedee23]

In Mdsspreads terms and conditions is

'Should any trade subsequently be shown to have been made at an erroneous or unreasonable price to either the client or to London Capital Group that trade will be either rejected or amended to reflect the correct price prevalent at that time. '

Basically i guess unless i can conclude that the prices that they and Cs2.it-finance quoted for GBP/EUR on the 2 Jan were not incorrect it seems they have the higher ground??

 

[N Rothschild]

i was under the impression if something was priced in a shop they have to honor that price regardless? not sure where i got that from tho!

 

[Zebedee23]

Just found out that Mdsspreads and Capitalspreads are almost the same thing. Both have identical T & C's with same bank sort and swift code, same address and both run by London Capitol Group.

 

[tomorton]

Hi Arbu -

Can't accept that. Zebedee23 or any reasonable person should have known that prices were dubious on this particular night - he himself says they were bounding about by 50pts or so every few minutes or seconds. If that was usual, why mention it to us? He was then able to place about 100 trades and make £10,000 profit. I can't believe Forex moves like that durng the small hours, I bet Zebedee23 hinmself has never seen it and does not normally place so many trades per night with such an outcome. Such movements during a holiday period within daylight hours would be fantastical. Huge alarm bells should have been ringing in his head all through the night that the whole thing was based on obviously spurious data.

We must admire Zebedees23's vigilance to find this anomaly and his work on it all that night. But I can't see any case to re-claim the proceeds.

 

[tomorton]

Hi Genics -

No, the price marked on items offered for sale is, in law, an 'invitation to treat', and the vendor is under no obligation to sell them at that price, nor indeed to sell them at all.

 

[KillPhil08]

Have we not forgotten that Capital Spreads are scammers .

 

[Tenapenny]

Hi Genics -

No, the price marked on items offered for sale is, in law, an 'invitation to treat', and the vendor is under no obligation to sell them at that price, nor indeed to sell them at all.

You are right Tom. I have managed to buy several items at an incorrectly lower marked price, though only because the stores wanted to keep my future custom.

 

[Zebedee23]

From MDS T & C's.

4.15 In the case of bets placed via the Online Trading Platform you may only offer to place a bet on the prices currently quoted on the Online Trading Platform. Such prices are never absolutely valid and on receipt London Capital Group Ltd may, in its absolute discretion, reject or accept your proposed bet. Due to the nature of online trading systems and the potential unreliability of market price feeds London Capital Group Ltd may in its absolute discretion remove or delete bets and any associated bets (i.e. any bets closing subsequently deleted bets) which have been made over the Online Trading Platform which in the opinion of London Capital Group Ltd do not reflect the actual market prices at the time of the placement of the relevant bet. London Capital Group Ltd will be in no way responsible for losses or potential losses sustained by you in trading on a rejected or cancelled bet. London Capital Group Ltd is in no way responsible or liable for losses made with other companies on bets taken in reference to a rejected or cancelled bet (see clause 12.).

8.10 London Capital Group Ltd may at its sole discretion close and/or cancel any or all spread bet contracts and any associated bets upon the occurrence of:
d) a Pricing Error

 

[tomorton]

Bad luck my friend.
You might encourage them to make a payment of a percentage of your winnings as a gesture of 'goodwill', I am sure they would wish to retain a client in these tough times and to be able to point to their friendly response to such issues being raised.

 

[Zebedee23]

True something is beter than nothing but i bet it will be like getting blood from a stone! Should have known with my luck it was too good to be true!!! It was like the market was being intentionally manipulated, then when it stopped on GBP/EUr it moved over to GBP/USD for a short while.!!

 

[TomTom]

LOL you guyd will insist on using SB FIRMS
Direct access ,= instant fills with low comission and margins, never get any problems about errors with platforms as they are quoted from the market not a SB Firm.

SB Firms need independant regulation as FSA dose not regulate these cowboys correctly.