Cityindex; beware!

[leftvan]

Just keeping everyone informed, CityIndex closed out my short position on the Dell Sept contract today claiming that I had fallen below the 80% margin level. I checked the chart and sure enough there is a spike in Dell's price. On further investigation this spike does not occur on any other platform. Also, to add insult to injury, CityIndex did not even do me the courtesy of giving me a margin call. This is the first time I have had to deal with such unprofessional behaviour and I just thought I would warn people to keep a close eye on their accounts with this crowd. I have uploaded 3 charts below (one from Yahoo site, Igindex and CityIndex ) to illustrate the discrepancy in pricing.

 

[NVP]

keep snowing them here and directly..... .you may get lucky

 

[peakoil]

leftvan - have you contacted their CS about this? (from your post as it stands, it's not clear that you have yet)

And what do they say?

 

[leftvan]

leftvan - have you contacted their CS about this? (from your post as it stands, it's not clear that you have yet)

And what do they say?

As it only occurred yesterday I'm giving them until Monday afternoon before I contact them. I have sent them an email with attachments explaining my position and am waiting a response. I will be in touch with the Financial Services Authority in due course.

 

[leftvan]

leftvan - have you contacted their CS about this? (from your post as it stands, it's not clear that you have yet)

And what do they say?

Forgot to mention, I did phone them straight after I noticed the position closed and the response I got was that my account had fallen below 80% margin. I did not investigate the price spike until after that phone call.

 

[gle101]

Forgot to mention, I did phone them straight after I noticed the position closed and the response I got was that my account had fallen below 80% margin. I did not investigate the price spike until after that phone call.

But why do you post this complain here before try to settle the problem with them first? I have had my dealings with different SB's through the years and usually it works out OK if one can provide sufficient proof of a real discrepancy in pricing. Are we getting the whole story here? By the way, why didn't you have a stop loss in place?

 

[leftvan]

But why do you post this complain here before try to settle the problem with them first? I have had my dealings with different SB's through the years and usually it works out OK if one can provide sufficient proof of a real discrepancy in pricing. Are we getting the whole story here? By the way, why didn't you have a stop loss in place?

Because it's obvious from the chart their pricing structure is dubious at best. Plus they didn't even give me a margin call. I don't need to know their response to illicit that they are unprofessional.

 

[leftvan]

Because it's obvious from the chart their pricing structure is dubious at best. Plus they didn't even give me a margin call. I don't need to know their response to illicit that they are unprofessional.

And by the way, I did have a stop in place up at 1200. I trade intermediate to long term therefore my stops aren't close. By the way I think you're missing the point.... Their pricing is wrong!

 

[london88]

This is just one of the risks of using Market Makers! They make the market and are out to get you!!

 

[Splitlink]

I haven't had any such problems, myself. I trade with their other company, Fins, and is, probably, the same chart source. I have noticed, though, that the spike occurs on the cash, September, but not on the December. Would that be possible?

 

[gle101]

And by the way, I did have a stop in place up at 1200. I trade intermediate to long term therefore my stops aren't close. By the way I think you're missing the point.... Their pricing is wrong!

Prices can be wrong for many a reasons, technical error being one. I just find it odd that you post it here before even getting in contact with them first.

 

[gle101]

This is just one of the risks of using Market Makers! They make the market and are out to get you!!

If you let them, some of them might take a shot at you.

 

[leftvan]

Prices can be wrong for many a reasons, technical error being one. I just find it odd that you post it here before even getting in contact with them first.

Nothing odd at all. This is my money they are messing about with. If I can't get emotional about that, then I shouldn't be in this business.

 

[leftvan]

Quick update. CityIndex reinstated my short position in the Dell Sept contract after I provided them with evidence of pricing error. Still leaves me with questions as to whether I can continue business with them, afterall, they didn't contact me when they noticed the pricing error. It was up to me to point it out to them. I am investing my money using their platform and paying commissions based on spread, I therefore expect a better service. Banks wouldn't get away with this.

 

[Splitlink]

Banks wouldn't?

You did the right thing and got the problem squared. You have to keep an eye on them---even banks,
but if you stop trading with them because of that, you'll never find a perfect spot anywhere else.

I never expect emails when they make mistakes! That makes life too easy.

 

[NVP]

keep snowing them here and directly..... .you may get lucky

told you so .......

 

[NVP]

Quick update. CityIndex reinstated my short position in the Dell Sept contract after I provided them with evidence of pricing error. Still leaves me with questions as to whether I can continue business with them, afterall, they didn't contact me when they noticed the pricing error. It was up to me to point it out to them. I am investing my money using their platform and paying commissions based on spread, I therefore expect a better service. Banks wouldn't get away with this.

hahahahahahahahahahahahahahahahahahahahaha

Dude you havnt dealt with banks before ......heard of Libor ?...its only the peripheral surface of the money skimmed by these parasites of industry, Goverments and Countries

N

read the Ascent of Money - Niall ferguson.............Banking emerged by Profiteering in warfare and funding just about every other Evil and averice known to man .........

 

[NVP]

Just wish my family had started one in the 1300's ........!

 

[The Leopard]

Still leaves me with questions as to whether I can continue business with them,

You can't, not if you are serious about this.

 

[donaldduke]

I dont use spread bet firms because i know they will sometimes take out my stops with their made up bad pricing.

And you didnt even have any stops in! and they still closed you out.

You were lucky in that it was a large price spike, so easy to prove.

But they can skew their prices by a just a few ticks and take out a nearby stop, whereas a real stop order on the exchange would not have been hit in that instance. Those cases will be harder to prove.

These spread bet firms have a licence to steal!