Refund from Spread bet brokers

[TheRegulator]

Has anyone been successful in asking for a refund after blowing their trading account?

And if so what circumstances they give money back to you.

 

[0007]

Has anyone been successful in asking for a refund after blowing their trading account?

And if so what circumstances they give money back to you.

Now that would be the Holy Grail!

 

[tomorton]

I only expect a SB firm to reimburse losses if it caused them in the first place.

Otherwise, I don't want the firm I trade through to reimburse clients' losses - my market access and the security of my account depends on the firm maintaining its own financial solvency, it won't help me if they donate money without legal obligation.

 

[TheRegulator]

I only expect a SB firm to reimburse losses if it caused them in the first place.

Otherwise, I don't want the firm I trade through to reimburse clients' losses - my market access and the security of my account depends on the firm maintaining its own financial solvency, it won't help me if they donate money without legal obligation.

Do you work for financial services or spread betting company or something. You always seem to be defending them.

 

[TheRegulator]

Now that would be the Holy Grail!

So you haven't tried right?

 

[tomorton]

Do you work for financial services or spread betting company or something. You always seem to be defending them.

Yes, I find I'm (almost) a lone voice. But I find I have to defend when these firms get bad posts from traders who don't use them and never have.

Plus, many traders who have actually used SB have been trying and failing to beat them on their own turf - very short-term trading/scalping. This is just asking to be wiped out. On a medium- or long-term they are absolutely fine to deal through. Unless they're based off-shore but that applies to bona fide brokerages also.

 

[kevinsb]

scalping. This is just asking to be wiped out.

Hi, could I ask you to expand on that please?

Are you saying it's a risky trading strategy , or, that the broker will take steps to ensure you loose?

 

[tomorton]

Hi, could I ask you to expand on that please?

Are you saying it's a risky trading strategy , or, that the broker will take steps to ensure you loose?

Both - its a low probability high risk strategy anyway, very short time-frame TA being actually mostly noise. But most SB firms will ban clients or obstruct their deals if traders habitually close positions within 2 or 3 minutes. This is because it is difficult, expensive and risky for them to hedge the risk of their clients' aggregated positions in the market on such a time-scale.

But the main issues are the bias away from the main market prices and the expensive spreads, in comparison with straight to market brokers (not all of whom are actually straight to market but that's another story).

 

[TheRegulator]

Yes, I find I'm (almost) a lone voice. But I find I have to defend when these firms get bad posts from traders who don't use them and never have.

Plus, many traders who have actually used SB have been trying and failing to beat them on their own turf - very short-term trading/scalping. This is just asking to be wiped out. On a medium- or long-term they are absolutely fine to deal through. Unless they're based off-shore but that applies to bona fide brokerages also.

Since your working in the industry can you recommend a spread bet broker to go with that really good. I am considering moving away from my current broker. Thanks in advance.

 

[tomorton]

I'm not in the industry, just a small-time (but long time) client. I use LCG and have found them completely reliable.

Whoever you choose, make sure they are FCA-regulated, that they use segregated accounts to keep your money separate from their operating capital, and that they are members of the account re-fund scheme (reimburses you in case they go belly-up).

 

[kevinsb]

But most SB firms will ban clients or obstruct their deals if traders habitually close positions within 2 or 3 minutes. This is because it is difficult, expensive and risky for them to hedge the risk of their clients' aggregated positions in the market on such a time-scale.

Thanks again for you replies! I was actually logged in to reply to you, and the broker rang, so I asked about this, the guy seemed to to think there will be no problem with this, in fact it's good for them, many trades, and he is sure it will be covered from the market.

Obviously, I have much to learn before I start to trade, but it will be interesting to see how it goes

 

[TheRegulator]

I'm not in the industry, just a small-time (but long time) client. I use LCG and have found them completely reliable.

Whoever you choose, make sure they are FCA-regulated, that they use segregated accounts to keep your money separate from their operating capital, and that they are members of the account re-fund scheme (reimburses you in case they go belly-up).

Thanks for that.