Private Vs Intermediate status

[asti]

All you experienced spreadbetters...have any of you been asked to re-classify as an Intermediate client as opposed to the usual Private classification that gives you FSA protection?

 

[lurkerlurker]

All you experienced spreadbetters...have any of you been asked to re-classify as an Intermediate client as opposed to the usual Private classification that gives you FSA protection?

Not yet, but I suspect it will happen sooner rather than later. Has this happened to you, and if so can you tell us a little more about the circumstances? I would be quite wary of accepting a reclassification given some of the rumours about bucket shops. They have a best execution waiver anyway, but you do give up other rights...

 

[asti]

Private Vs Intermediate

There is a particular spreadbetting company that pressures you into re-classification as Intermediate when you are on margin call and owe them money. They make out they are doing you a favour as they are then not bound by FSA rules and can let you have more than 5 days to pay margin. Don't be fooled, they are leading you into a dangerous scenario.

 

[lurkerlurker]

There is a particular spreadbetting company that pressures you into re-classification as Intermediate when you are on margin call and owe them money. They make out they are doing you a favour as they are then not bound by FSA rules and can let you have more than 5 days to pay margin. Don't be fooled, they are leading you into a dangerous scenario.

Liquidate the position at the market, pay any remaining deficit immediately if you can do so, and take a break from trading. Thanks for posting here to warn others of the danger. Care to name the SB firm?

 

[asti]

Happened to a couple of friends of mine. It gets a lot worse than that! I believe there are some very worrying practices going on there, they are based in Bedfordshire.

 

[Slorm]

Happened to a couple of friends of mine. It gets a lot worse than that! I believe there are some very worrying practices going on there, they are based in Bedfordshire.

It does sound worrying but who exactly are they? I don't recall any major SB firms being based in Bedfordshire and it's pointless to guess in any case..

 

[asti]

spreadex !!

 

[Slorm]

spreadex !!

Many thanks asti

 

[lurkerlurker]

spreadex !!

I'd contact their compliance officer with your concerns, and perhaps the FSA depending on the response. This sounds a little fishy - not an appropriate way to reclassify customers in my view.

 

[anley]

All spread betting firms are not only desperate for business but perhaps more importantly keep their current clientele. Therefore if they try and reclassify you call their bluff and say if you do I can't remain a client. I mean it's not as if the average spread better doesn't have at least six different companies in which they could open an account with.

 

[stevespray]

Maybe they were trying to reclassify you in order to give themselves the flexibility to allow you to run your over margined positions.

Steve.

 

[asti]

Re classification is probably one of their milder vices! I believe a dossier is currently being prepared to forward to the FSA. Punters should not keep too much cash with them at the moment even if they tempt you with 10% interest.