City Index disputed trade - Should I pay?

[atters88]

I am appealing to the collective wisdom of the Trade2Win community for how I should solve a dilema I face.

I started spread betting about a year ago and opened accounts with 4 firms, one of which was City Index. I used them a bit but preferred other firms so in February I simply stopped trading with them and withdrew all my funds.

Unfortunately I had an unfilled rolling FTSE order (sell at £5 a point) which I didn't specifically cancel. I simply thought that without any funds in my account, it would be a dead account.

I have now learnt that over 4 months after I withdrew my funds my order to sell FTSE was filled. I only learned of this when I received a letter from City Index demanding that I deposit funds immediately to cover the running losses on this trade together with margin (the order had kicked in right at the week's low).

I have now closed the trade but am stunned that City Index opened this trade when I have not had a penny in my account for 4 months. I didn't apply for and have never been granted a credit account so my first reaction was why on earth did they open this trade. From reading their terms and conditions, they do state that they can waive margin requirements but shouldn't this only be response to a request or at the very least shouldn't I have been phoned (they have my mobile number)?

I am reluctant to pay the loss incurred but would welcome your views on whether I would be legally or morally justified if I refused to pay. Has anyone else faced this problem.

I await responses with interest.

Atters

 

[rog1111]

Don't worry about the moral stance, there's no such thing in the world of trading, how much money is involved ?

rog1111

 

[nobrainer]

Stop moaning and pay up.

 

[fudgestain]

atters88, report then to the FSA and ask them to withdraw City Index's licence. If you closed your account you have no liability.

 

[Splitlink]

atters88, report then to the FSA and ask them to withdraw City Index's licence. If you closed your account you have no liability.

QUOTE=fudgestain]atters88, report then to the FSA and ask them to withdraw City Index's licence. If you closed your account you have no liability.
[/QUOTE]

He doesn't say that he closed his account. I did the same several years ago ( no problems with unfilled orders, though) and when I toyed with the idea of going back with them last month I rang and asked them if my account was still open. It was. If he had a line of credit with them, with the account open and a stop order on it, it will be triggered.

I had trouble with them before internet trading came in and it was telephone. I opened and closed two trades in one day and got a margin call by post because one trade was still open. The onus was on me to prove that I had closed it. Fortunately, because I live in Spain, they were international calls and logged. Telefonica, to whom I shall always be grateful and a loyal customer, when I told them the problem sent the printout very promptly. The exact times of the conversations were found on City Index, there were apologies and I was reimbursed with a few free trades- you know the sort of thing. However, I told them that there were enough problems with trading without having mistakes like that , as well, and I went somewhere else.

The point is- what would have happened if I had lived in the UK and the calls were local and not logged.? The amount was for several thousands and I was worried to hell.

Nowadays, I can check what my account is and whether I have open orders, or not , but I, really, sympathise with Atters or anyone else who gets a similar problem. It represented rwo weeks of worry before it was settled.. Even if he goes to the FSA, he'll have that.

Split

 

[Splitlink]

As an addition to my post why can't these firms send email statements to their customers every few days with complete information about unfilled orders, etc. on them? The fact that they don't, in my book, puts them in the wrong right at the start because it is so easy to do. I get one about once a week from Fins. Not very complete but, at least, I can see if my balance is moving.

Split

 

[Visaria]

He says he doesn't have a credit account and there were no funds in the account either. If that's the case then I can't see how the trade could have been opened since every trade that is opened has a margin/NTR requirement that has to be fulfilled either by funds or a credit line.

My advice is to talk to the compliance officer at City Index and explain the situation.

 

[Splitlink]

He says he doesn't have a credit account and there were no funds in the account either. If that's the case then I can't see how the trade could have been opened since every trade that is opened has a margin/NTR requirement that has to be fulfilled either by funds or a credit line.

My advice is to talk to the compliance officer at City Index and explain the situation.

I agree. No credit account+nothing in the account= no trade. I was advised when my balance went below margin requirements, so I was not in debt to them. They just had my money!

I found them very polite and ready to put things right once shown to be wrong. I'm sure that they do not want any trouble if a genuine mistake has been made but the onus is on the client to present the facts.

Split

 

[atters88]

Don't worry about the moral stance, there's no such thing in the world of trading, how much money is involved ?

rog1111

The amount is £200, so its not a big loss.

And yes, I agree with Splitlink that it would be very easy to send weekly statements by email which list any unfilled orders. Unfortunately City Index don't do this.

 

[AC007]

I have been trading for last few years. I found IG Index and GCI an offshore based firm to be the most corrupt.

IG’s order ticket has buy button and sell button but no cancel button. Every time you place order IG will fill the order if the price moves against you but if the price goes in your favor IG will send massage saying sorry size was not available. You have no chance to cancel any order. When it comes to stop it is even worse. I have seen stop blown with more than 20 -30 cents slippage but there was no trade at the stop level except a spike. If you challenge them to check against TIMES AND SELLS they will give you the trade back and then they will make you leave.

I have written to FSA about IG Index. I have at least one media interested in the story. They have already witnessed IG’s actives on my screen. They were shocked

GCI will always slip you. You will find it very hard to get hold of them on the phone. If they don’t like the topic they will put the phone down saying they are unable to hear you.

If you day trade using spread bet make sure your broker offers you rolling bets not futures only. I stay well away from firms who offer future bets only.


You are welcome to call me on 07737 796932 if you have any experience or idea you want to discuss.

Trader 007

DOES FSA CARE? COPIED ABOVE FROM ANOTHER SITE.

 

[Visaria]

I have been trading for last few years. I found IG Index and GCI an offshore based firm to be the most corrupt.

IG’s order ticket has buy button and sell button but no cancel button. Every time you place order IG will fill the order if the price moves against you but if the price goes in your favor IG will send massage saying sorry size was not available. You have no chance to cancel any order. When it comes to stop it is even worse. I have seen stop blown with more than 20 -30 cents slippage but there was no trade at the stop level except a spike. If you challenge them to check against TIMES AND SELLS they will give you the trade back and then they will make you leave.

I have written to FSA about IG Index. I have at least one media interested in the story. They have already witnessed IG’s actives on my screen. They were shocked

GCI will always slip you. You will find it very hard to get hold of them on the phone. If they don’t like the topic they will put the phone down saying they are unable to hear you.

If you day trade using spread bet make sure your broker offers you rolling bets not futures only. I stay well away from firms who offer future bets only.


You are welcome to call me on 07737 796932 if you have any experience or idea you want to discuss.

Trader 007

DOES FSA CARE? COPIED ABOVE FROM ANOTHER SITE.

You're more than a little off-topic mate...

 

[atters88]

I'm pleased to report a happy ending. I spoke with City Index yesterday. They agreed that my order should not have been executed as I had no money in my account and have refunded the £200 loss that was incurred.

This has restored my faith in spread betting companies. I'll probably even start using them again as at least I will feel I will be treated fairly should other problems arise.

 

[jimbo57]

nice - another one to be slaughtered on the altar of 'education'

 

[fxwinner22]

wonder what they would have done if it was 20k instead of £200