Spreadbetting - IG complaint

[mr_put]

i suspect that ig were monitoring my positions all along, but perhaps my losses linked into their own hedging strategies and so they felt that they could get free hedging based on my losses, rather than go the more expensive route of closing me out and hedging positions in the open market (if that's what they do).

i cannot believe that they were only aware of my losses the next morning when they issued a margin call. the systems exist for ig to monitor my account within parameters and to flag it when trades step outside account parameters, so no excuses on ig's part there. i don't have those same facilities, so unless i am sitting there staring at the screen the whole day, then something like this can happen. unless i use stops, but then you have to have faith in the transparency of ig's pricing (i don't) and also not think that the account parameters will acts as a stop anyway (i did).

 

[Xeno]

Brokers can't win either way can they? I recall someone in another thread being furious about a losing position being closed. The complaint was that they were not given enough time to deposit the margin requirement. Now we have someone complaining that a losing position wasn't closed sooner.

I would like to see these two people in court...at the same time...it would be hilarious

Indeed. I think a point being missed is that brokers close positions to limit the amount they might have to claim back in court, not to protect clients from losses. The client's legal liability for those losess is unchanged. The fact that losses can exceed deposits could hardly be made clearer.

 

[TomTom]

SB Firms have risk managers, it is no down to the risk manager to manage risk on behalf of the custermer. However if a client is in a deffecet at any time the SB firm has the right to close the postion.

NO CASE TO BE HEARD

It would of been naughty of IG i the market suddenly shot up/down and then made a retracement when they liquidated the postion at the high.

But we all know this happends...

Its been said before, monitor postions and used nececeary precautions to protect the account's against sudden movements.

This guy will have trouble getting IG to back down from this.

 

[Lee Shepherd]

This thread is now over 13 pages.......WTF

Lets summarise this whole thing:

USE STOPS

And

FULLY UNDERSTAND MONEY MANAGEMENT

 

[ns1000]

SB Firms have risk managers, it is no down to the risk manager to manage risk on behalf of the custermer. However if a client is in a deffecet at any time the SB firm has the right to close the postion.

NOt really. Risk managers manage the firm's risk to bad debts, both from clients and countrparties. They have no duty whatsoever to look after a client's personal risk. This would only be the case if they were acting in an adivsory capacity, which no SB does.

Risk management is the trader's responsibility, not their brokers.

 

[tar]

what happened w mr_put

 

[ns1000]

As so often the case, someone sounds off, blames the broker when there's no case to answer, then pulls their head when they realise it's their own fault.

 

[mr_put]

i've referred it to the FOS initially, and am also seeking legal advice.

 

[Claudia123]

Be interesting to hear ig's side of the story I mailed the link to the thread to customer services.

 

[tar]

Be interesting to hear ig's side of the story I mailed the link to the thread to customer services.

good idea

 

[donaldduke]

If this goes to court the OPs only hope is that the IG T&Cs are deemed by the courts to be a load of one-sided BS (which is what they are).

IG by setting their margin requirements so low during times of such obvious volatility, are permitting clients to make losses of almost 2000% over their credit limits in just a few hours. The T&Cs state ‘you can lose more than your deposit/credit limits’. But allowing 2000% losses in just a few hours (especially as there weren’t any earthquakes or terrorist acts) is not what a reasonable person would expect when they read that line in the T&Cs. The OPs losses could easily have been limited by IG to much less than 92K and they even have a clause in the T&Cs to close your positions out in such cases if they feel like it.

 

[Claudia123]

You really think ig got their t&c wrong? come on ffs a guy bets 200 a point and doesnt watch it???:clap: Even Vince would have been happy to take 46k

 

[Bloodhound]

You really think ig got their t&c wrong? come on ffs a guy bets 200 a point and doesnt watch it???:clap:

To be honest if I bet £200 a point with no stop loss I don't think I'd have the guts to watch it either....

On a more serious note, I hope you resolve the issue in a satisfactory manner. I am currently in a legal wrangle with eBay over monies that they have 'lost' and know how frustrating and stressful it can be trying to deal with a large organisation....

 

[Kerrigor154]

It could have just been an error in their system they aren't willing to admit, assuming mr put is telling the truth.

I've used IG before and the one thing I disliked about them was how much of a margin they required to make trades. If I made the smallest trade they'd let me and it moved against me 50 pips (not a lot) the trade would be closed out before even reaching my SL. I was also a fan of betting on their binary options and the most you could possibly lose was your deposit, as the requirements to place bets ensured.

 

[Claudia123]

Well i just applied for a 92k credit line with ig and they turned me down. shame huh

 

[glyder]

i've referred it to the FOS initially, and am also seeking legal advice.

mr put,
I have heard you can negotiate with them if/when it gets to that stage.
I heard a tale about someone losing £2m on gold bets & negoitiated it down
to in the region of £600K.

 

[Hoggums]

£2m. Some people have more money than sense.

 

[Claudia123]

£2m. Some people have more money than sense.

looks like he dont have any money no more - bet he tries to take it as a tax loss pmsl here we go again. And anyway 2m worth of gold is more than the uk has left - Gordon pawned it didn't he?

 

[maxima]

Yeah, and direct debits are never made from the wrong account or for the incorrect amount, because the computer will stop it in all cases

Oh yeah, and airbuses? You can't crash them. There are systems in place.

Back in a bit, I'm just going to buy some beer. Good thing I'm not underage - if I was then I would be unable to buy any!

No you would because all computers will crash and airbuses will fall as a rain and swine flu is already pandemic and people are going to be too busy with all that and you just come into a convenient shop and take whatever you need....

 

[maxima]

To be fair, from my point of view, to confess to losing that amount of money takes a bit of courage.

He didnt hence there is no courage.