VC Financials / WorldSpreads.

[mattjenkins]

If anybody could give me advice on my position, I would be grateful.

I opened an account a few years ago after receiving a promotional email from Victor Chandler Bookmakers advertising their new financial product.
They offered me some sort of money back guarantee to try spread betting on financials and away I went.

My account was opened with vc, correspondance regarding withdrawals etc came from vc, my account managers email address ends with vc.com, and so on.

My contention is this, I had approx 5 or 6 positions open with VC/ worldspreads on Friday close of play, 4 of which are small and inconsequential,
but 2 of them are not.
1 was a £90 per pip sell of the Ftse, and the 2nd, a £25 sell of the usd-jpy.

I was informed monday night (after close of business at 6.25pm) which I didnt read until Tuesday morning, by email that the positions were closed as of close of play Friday night, and that bascially
VC dont want to walk away from the situation but basically theres nothing they can do as their hands are tied by the regulators e.t.c

Since Friday the ftse has dropped approx 140 pts, and the usd-jpy approx 80 pts,
VC/worldspreads closed me off for a £20k loss against my will when I had sufficent margin to cover the position and now the position is basically almost level.

I find it very hard to accept that Vc can just basically say 'tough', not our fault, when they were so active in worldspreads, and indeed my account manager told me his office was within the worldspreads building itself.

I would be interested in what the legal position would be here, whether it would be worth pursuing . I have requested to VC that they put matters right but am falling on deaf ears.

 

[PipStar]

If I were you I would immediately seek legal advice, speak to a lawyer.

 

[riogordo]

They probably have a clause in their T&C's that allow them to close out your position in certain events?

 

[stevespray]

They probably have a clause in their T&C's that allow them to close out your position in certain events?

Yes, it's called 'force majeure'.

 

[tomorton]

This must be a sickening experience, with only a slim chance of restitution.

It has been previously noted on this site that there are reasons why financial firms seek to trade from jurisdictions with less developed financial sectors than our own, such as Gibraltar, Ireland, British Virgin Islands etc. We may moan that the dear FSA lack teeth, but they seem to be successful in driving / keeping sharper players overseas.

 

[tradeany]

This must be a sickening experience, with only a slim chance of restitution.

It has been previously noted on this site that there are reasons why financial firms seek to trade from jurisdictions with less developed financial sectors than our own, such as Gibraltar, Ireland, British Virgin Islands etc. We may moan that the dear FSA lack teeth, but they seem to be successful in driving / keeping sharper players overseas.

What has this to do with overseas jurisdiction?
I believe OPs contention is that he was solicited by, signed up and always dealt with a major solvent betting firm and now they are effectively walking away from this mess under the umbrella of Worldspreads.
Quite frankly I do not understand these White label arrangements either.

 

[gle101]

If anybody could give me advice on my position, I would be grateful.

I opened an account a few years ago after receiving a promotional email from Victor Chandler Bookmakers advertising their new financial product.
They offered me some sort of money back guarantee to try spread betting on financials and away I went.

My account was opened with vc, correspondance regarding withdrawals etc came from vc, my account managers email address ends with vc.com, and so on.

My contention is this, I had approx 5 or 6 positions open with VC/ worldspreads on Friday close of play, 4 of which are small and inconsequential,
but 2 of them are not.
1 was a £90 per pip sell of the Ftse, and the 2nd, a £25 sell of the usd-jpy.

I was informed monday night (after close of business at 6.25pm) which I didnt read until Tuesday morning, by email that the positions were closed as of close of play Friday night, and that bascially
VC dont want to walk away from the situation but basically theres nothing they can do as their hands are tied by the regulators e.t.c

Since Friday the ftse has dropped approx 140 pts, and the usd-jpy approx 80 pts,
VC/worldspreads closed me off for a £20k loss against my will when I had sufficent margin to cover the position and now the position is basically almost level.

I find it very hard to accept that Vc can just basically say 'tough', not our fault, when they were so active in worldspreads, and indeed my account manager told me his office was within the worldspreads building itself.

I would be interested in what the legal position would be here, whether it would be worth pursuing . I have requested to VC that they put matters right but am falling on deaf ears.

Sorry to hear about your misfortune, but I think they had the legal right to close your positions based on the situation with the main company (WS). They have no way of knowing that the market would turn around in your favor after the weekend. But it is a lot of money so I would get in contact with a lawyer to find out if you have any possibility to pursue a case against the company.

____________
"Take control with Risk & Money Management"
http://www.trade2win.com/boards/pla...140296-visualrmm-interactive-new-concept.html

 

[Jon41]

Not a prayer mate. You contracted with Worldspreads irrespective of the fact it was under the Vic Chandler brand. So its not VC walking away from you, its the fact that worldspreads tanked is the problem. You can lawyer up and chase Worldspreads but I think there are enough people doing that already and it's not like they have loads of cash to pay you. Thinking about it your best bet is if Vic Chandler decide to see their clients right as a goodwill exercise...but they are under no obligation to do this. And especially not on the basis of "well if I have left my position it would be flat now" as that's a very-one sided approach. You pay your money you take your chance...

 

[brasil2000]

If anybody could give me advice on my position, I would be grateful.

I opened an account a few years ago after receiving a promotional email from Victor Chandler Bookmakers advertising their new financial product.
They offered me some sort of money back guarantee to try spread betting on financials and away I went.

My account was opened with vc, correspondance regarding withdrawals etc came from vc, my account managers email address ends with vc.com, and so on.

My contention is this, I had approx 5 or 6 positions open with VC/ worldspreads on Friday close of play, 4 of which are small and inconsequential,
but 2 of them are not.
1 was a £90 per pip sell of the Ftse, and the 2nd, a £25 sell of the usd-jpy.

I was informed monday night (after close of business at 6.25pm) which I didnt read until Tuesday morning, by email that the positions were closed as of close of play Friday night, and that bascially
VC dont want to walk away from the situation but basically theres nothing they can do as their hands are tied by the regulators e.t.c

Since Friday the ftse has dropped approx 140 pts, and the usd-jpy approx 80 pts,
VC/worldspreads closed me off for a £20k loss against my will when I had sufficent margin to cover the position and now the position is basically almost level.

I find it very hard to accept that Vc can just basically say 'tough', not our fault, when they were so active in worldspreads, and indeed my account manager told me his office was within the worldspreads building itself.

I would be interested in what the legal position would be here, whether it would be worth pursuing . I have requested to VC that they put matters right but am falling on deaf ears.

I would give Paul Chesterton an call:idea:

Dear Customer

We just wanted to update you on our separate discussions with the administrator (KPMG) and the FSCS.

As previously advised, we have formally contacted both the administrator and the FSCS, asking if we can work with them to speed up
the process of repaying client monies. Whilst we are awaiting a further update, which we hope will be with us very soon, the initial
replies that we have received suggest that they will try and accommodate our proposal to allow the more timely return of client money.
As soon as they are in a position to single out the Victor Chandler Financials clients and the exact amount of money that they are due
we hope to be able to securely remit these monies but at this time the administrator and the FSCS are still collating this information.

In cases where you have in excess of the FSCS limit of £50,000 due to you we will continue to have further discussions with you
around the management of these instances.

Please therefore look out for further correspondence in the near future.

If you have any specific questions please get in touch with me on this email address.

Best Regards

Paul Chesterton

Head of Victor Chandler Financials

 

[jungerns]

Sorry to hear of your potential losses but am I the only one who said "Wow" to £90 a point ??

Kudos to yourself however for trading at that level of exposure. Takes big balls in my opinion.

 

[gle101]

Sorry to hear of your potential losses but am I the only one who said "Wow" to £90 a point ??

Kudos to yourself however for trading at that level of exposure. Takes big balls in my opinion.

I don't agree. If one is trading with this kind of stake without the protection of proper risk & money management one is simply not sensible. In my point of view he/she must have had a huge SB account in order to be on the safe side for statistical variations and other unexpected events. Also, one should not trade SB with this kind of stake in the first place, it is just too much money to put in trust with a market maker.

____________
"Take control with Risk & Money Management"
http://www.trade2win.com/boards/pla...140296-visualrmm-interactive-new-concept.html

 

[jungerns]

I don't agree. If one is trading with this kind of stake without the protection of proper risk & money management one is simply not sensible. In my point of view he/she must have had a huge SB account in order to be on the safe side for statistical variations and other unexpected events. Also, one should not trade SB with this kind of stake in the first place, it is just too much money to put in trust with a market maker.

____________
"Take control with Risk & Money Management"
http://www.trade2win.com/boards/pla...140296-visualrmm-interactive-new-concept.html

Don't quite think I gave the impression that I thought it was sensible.......

I actually wanted to point out that I thought it was utter madness but such is 3 or 4 posters on the forum who will jump down anyone's throats who they don't agree with, I dared not !!

Nevertheless big balls indeed.....

 

[gle101]

Don't quite think I gave the impression that I thought it was sensible.......

I actually wanted to point out that I thought it was utter madness but such is 3 or 4 posters on the forum who will jump down anyone's throats who they don't agree with, I dared not !!

Nevertheless big balls indeed.....

Sorry, that I misunderstood you, but I also got the impression you saluted his courage to be in with such high stake size, nothing to be brave about when it comes to trading, as it will eventually lead to ruin.

____________
"Take control with Risk & Money Management"
http://www.trade2win.com/boards/pla...140296-visualrmm-interactive-new-concept.html

 

[jungerns]

Sorry, that I misunderstood you, but I also got the impression you saluted his courage to be in with such high stake size, nothing to be brave about when it comes to trading, as it will eventually lead to ruin.

____________
"Take control with Risk & Money Management"
http://www.trade2win.com/boards/pla...140296-visualrmm-interactive-new-concept.html

Indeed. The most I have ever traded is £10 per point/pip and for my circumstances (and needs) is more than enough.

 

[DJS1]

Also, one should not trade SB with this kind of stake in the first place, it is just too much money to put in trust with a market maker.

____________
"Take control with Risk & Money Management"
http://www.trade2win.com/boards/pla...140296-visualrmm-interactive-new-concept.html

Gle you are finally coming round to the idea that market makers just aren't trust worthy......good to hear

 

[gle101]

Gle you are finally coming round to the idea that market makers just aren't trust worthy......good to hear

Not at all, I have previously many time stated that one should go DMA if a lot of money is at stake. This is part of risk & money management, there is a place for both, they are not contradicted to each other.

____________
"Take control with Risk & Money Management"
http://www.trade2win.com/boards/pla...140296-visualrmm-interactive-new-concept.html

 

[NVP]

hey all

just try to add another Risk dimension to your Trading and spread your money across a few brokers.....

when we have even countries at risk of defaulting then Brokerages (like any other business) are easily gonna go down from time to time

and they wont tell you before .....

N

 

[mattjenkins]

Thanks for all the replies, point taken about £90 being too big a position for 1 broker,

However must take exception to the person saying £90 per pip is too big, surely its all down to overall bank size and risk per trade, which in this case was 3%,
luckily i didnt hold all my funds in vc/worldspreads but just deposited as need be to avoid margin call .

 

[gle101]

Thanks for all the replies, point taken about £90 being too big a position for 1 broker,

However must take exception to the person saying £90 per pip is too big, surely its all down to overall bank size and risk per trade, which in this case was 3%,
luckily i didnt hold all my funds in vc/worldspreads but just deposited as need be to avoid margin call .

Yes, if this stake size (stop loss included) is within your risk limit of let say 3% of the total capital with that broker, I agree it is just another trade. But you have to admit this kind of high stake is likely to be debated considering you are trading SB?

____________
"Take control with Risk & Money Management"
http://www.trade2win.com/boards/pla...140296-visualrmm-interactive-new-concept.html

 

[Ross Spur]

Thanks for all the replies, point taken about £90 being too big a position for 1 broker,

However must take exception to the person saying £90 per pip is too big, surely its all down to overall bank size and risk per trade, which in this case was 3%,
luckily i didnt hold all my funds in vc/worldspreads but just deposited as need be to avoid margin call .

I tend to think that anything more than about £10 pp on FX, oil or indices is potentially dangerous with one SB account. Better to spread larger positions between providers, even if it means losing a few pips or points.