Have you been scammed by IG Index???

[Richard4762]

I'd just like to point out that this must be the first T2W thread ever in which everyone agrees that a spreadbet company acted completely reasonably and can't be blamed for a punter losing money.

Thank you for your comments. Absolutely fantastic and correct, perhaps some of the people commenting would like to respond to your comments. If IG are allowed to change their T's and C's at will then all the traders lose my friends. It is unfair contract terms.

 

[Richard4762]

In November 2007 the Markets in Financial Instruments Directive(MiFID) meant that IG had to have a best execution policy and act in the clients best interest. Whayt does that mean?

Thank you for your comment, agreed - if IG are allowed to change their T's and C's at will then the whole trading community suffer. It is unfair contract terms.

 

[Richard4762]

They have acted in the clients intrerest here.

His losses were growing and he didnt have the margin in place to cover them so they have acted to ensure his losses didnt grow to a level he couldnt cope with.

They have no idea how much money he has in the bank, if he was skint and they just let his losses grow and grow then that would most definitely have been against his best interests. To say 'I covered margin in th past so they should have know I could cover it now' is absurd. Circumstances change.

Sb firms have their faults but this accusation is just ridiculous.

Thank you for your comments. Can Ig and any other spreadbet companies change their T's and C's at will? If allowed then all will suffer in the long run,. Have you read the post from the solicitor agreeing?

 

[Richard4762]

Even if you managed to get them to keep your positions open and they went back onside, it wouldn't be long until your next disaster. They acted in your best interests, and this experience should've alerted you to the fact that your money management needs serious attention to say the least.

Thank you for your comments and in the main I totally agree with you. The main point is that if IG are allowed to change their T's and C's at will who suffers? The whole spreadbetting community do - it is unfair contract terms.

 

[Richard4762]

Can we bin this thread now?

Every one agrees (apart from the thread starter I assume) that I.G. acted fairly. To keep reiterating the same sentiment again and again is pointless.

Thank you for your comments. You obviously haven't read the comment from the solicitor about unfair contact terms then? And you obviously feel that IG and other spreadbet companies can change their T's and C's at will - good luck to you then sir in your future endeavours. The friend who this is all about.

 

[Richard4762]

No, it should be preserved for posterity. Spread bet companies not always scamming, money-grabbing b******s, shock, horror!

Thank you for your comments. Can IG and all other change their T's and C's at will? It is unfair contract terms.

 

[Richard4762]

Without seeming to be offensive here, your strategy of not having enough to cover market volatility strikes me as amateurish. This happened to me when I first started trading CFD - volatile market, large position, small cash deposit and lots of excitement. They closed me out - and quite rightly so. I lost about £3k at the time - beer money. The point is I was playing with money I could afford to lose and that is why I took large risky positions relative to my margin. If you knew what you were doing you would not have left yourself exposed.

I also use IG Markets cfd and on average find them to be pretty professional compared to other cowboys - you only need to look at what Man did to that tech trader (£7k to £7m)

Thank you for your comments. Are IG and other spreadbet companies allowed to change their T's and C's once you have already agreed to a contract - no I'm afraid not. It is unfair contract terms - if all are allowed to do this then god help all traders.

 

[PualoP]

So what's going on now then? Have you taken them to court/the financial ombudsman? What did they say?

 

[Richard4762]

So what's going on now then? Have you taken them to court/the financial ombudsman? What did they say?

They have taken legal action against me and frozen my account because I am causing damage to their business. The FOS take 2-3 years to resolve the case. Ig changed their T's and C's at will and if allowed to do this then we are all in trouble. It is unfair contract terms.

 

[Richard4762]

There seems to be a lot of threads attacking IG at the moment, can you prove you are who you say you are and REALLY had this account with them?

Thank you for your comments. Yes I can and if you visit igindexarecheats.co.uk you can find out more. IG cannot change their T's and C's at will and if allowed to do so we are all in trouble. It is unfair contract terms.

 

[donovan5]

They have taken legal action against me and frozen my account because I am causing damage to their business. The FOS take 2-3 years to resolve the case. Ig changed their T's and C's at will and if allowed to do this then we are all in trouble. It is unfair contract terms.

What damage are you causing?
As far as I can see hardly anyone agrees with you.I can't see any happy outcome for you in this case is it too late to lick your wounds and avoid any court action

 

[Richard4762]

Technically your friend should tell the spread bet firm that they are bound by the trades which they entered.

If you enter a trade with a spread betting company then you are not dealing directly with the exchange. Instead you are dealing with the firm’s own derived contract. This is technically an ‘Over The Counter’ (OTC) product. The firm has the right to price this contract as they see fit. The firm clearly agrees these two points with its clients in its T&C’s.

On that basis the firm has no legal right to cancel trades in such a manner. If the exchange cancels trades against the firm then it is the firm’s hard luck. The firm does not have the same right over the client as the clients dealings with the firm are regarded as being ‘an off exchange transaction’. In other words it is the firm that assumes the risk in such a situation.

Basically as soon as the firm agreed the trade (and provided a contract note) they are bound by it. They must, in law, consider whether they want to enter a trade with a client BEFORE accepting the trade. There is no room in law for retrospective consideration. In your friends case the firm appear to have incorrectly. They have retrospectively considered your friends opening order and decided to cancel it. The law does not allow this since they have already ‘accepted’ your friends order.

The bottom line is that the firm take on the risk in such a situation as, from a legal perspective, they have no way to circumvent basic contract law. It’s exactly the same as going into a shop and spotting something that is mispriced. If you take your item to the till and they accept the sale at the incorrect price then they are bound by the transaction – in the eyes of the law the item is now your property and the seller has no redress. An over the counter product from a spread betting firm is no different.

Your friend should write to the firm and inform them that he is exercising his right to enforce the contracts which the firm has tried to cancel.


Hope this helps,
Steve.

Thank you for your comments Steve they are very helpful. I was under the impression that because their T's and C's had a paragraph on Margin Call, that if it wasn't met all positions could be closed, IG covered themselves. I would be very interested to know if that wasn't the case as they are trying to take me to court for apparently damaging their business. I set up a website www.igindexarecheats.co.uk as I believe that IG should not be allowed to change their contract terms at will. They have it written in that they can change them at any time it suits them - surely that is unfair contract terms?

 

[neil]

Thank you for your comments and in the main I totally agree with you. The main point is that if IG are allowed to change their T's and C's at will who suffers? The whole spreadbetting community do - it is unfair contract terms.

You messed up...learn and move on. IG has never given me any problems but then I manage my trades.

Stop repeating yourself and move on.

 

[Pedropete]

My condolences on the tough lesson. Clearly you will not be playing it so close to the margins in future - we are all busy paying for our education in one way or another.

I agree with your basic theme that it is rough that IG changed their terms mid trade. It should be outside the law under the Unfair Contract Terms Act, but whether it is is another matter - and an incredibly expensive one to establish in court. The reality seems to be that most companies write in clauses to their contracts saying they can do whatever they like.

This may seem like small fry, but do you remember when Air Miles were divided in value by a factor of 10? - which to most individuals amounted to relatively little, but to the perpetrators represented a huge windfall profit. The law on that derived from unilateral contracts related to promotional 'gifts' of plastic rubbish, but the reality is that uk courts seem to allow unilateral changes of terms. And the economic circumstances at that time would obviously be used to justify the action taken to reduce risk.

Other comments on this thread have pointed out that it is unusual for spreadbetting companies to be defended in this forum. Again, that does not augur well for any legal action you may find yourself embroiled in.

Though it goes against the grain, I would take your site down, as the cost and time of running a defamation action are beyond the pale. Also the cost and time of promoting your site to a top position may well be better spent in another direction.

Personally I have reduced the time I spend spreadbetting and increased my systematic trading. Feel free to take a look at investmentadvice-online.com

All the best

Pete

 

[Richard4762]

What damage are you causing?
As far as I can see hardly anyone agrees with you.I can't see any happy outcome for you in this case is it too late to lick your wounds and avoid any court action

Thanks for your comments. I'm not really concerned about who agrees with me, most of them don't seem to be getting the point. I'm just attempting to let all you traders know how they treat people and hoping nobody else gets caught out. The site is covered by the first amendment - see paypalsucks.com and I am covered by free legal, so really I'll continue to help unsuspecting traders.

 

[Black Swan]

I had 6/7 short trades on but the market was going up (the futures contracts didn't expire until December so there was still plenty of time for them to get back into the black)!
[email protected]

Of course there was dear boy...there...there...now put the sharp objects away, it's time for your nap....

 

[Richard4762]

My condolences on the tough lesson. Clearly you will not be playing it so close to the margins in future - we are all busy paying for our education in one way or another.

I agree with your basic theme that it is rough that IG changed their terms mid trade. It should be outside the law under the Unfair Contract Terms Act, but whether it is is another matter - and an incredibly expensive one to establish in court. The reality seems to be that most companies write in clauses to their contracts saying they can do whatever they like.

This may seem like small fry, but do you remember when Air Miles were divided in value by a factor of 10? - which to most individuals amounted to relatively little, but to the perpetrators represented a huge windfall profit. The law on that derived from unilateral contracts related to promotional 'gifts' of plastic rubbish, but the reality is that uk courts seem to allow unilateral changes of terms. And the economic circumstances at that time would obviously be used to justify the action taken to reduce risk.

Other comments on this thread have pointed out that it is unusual for spreadbetting companies to be defended in this forum. Again, that does not augur well for any legal action you may find yourself embroiled in.

Though it goes against the grain, I would take your site down, as the cost and time of running a defamation action are beyond the pale. Also the cost and time of promoting your site to a top position may well be better spent in another direction.

Personally I have reduced the time I spend spreadbetting and increased my systematic trading. Feel free to take a look at investmentadvice-online.com

All the best

Pete

Thanks for your comments. I'm in a pretty comfortable position as I'm covered by free legal and the site is covered by the first amendment - so I'm quite happy to carry on. Obviously there are many who would disagree, but persistence is a very good virtue to have as it generally reaches it's objective. I don't spreadbet any longer - lesson learned thank you, so I'll have a look at the site, thanks again.

 

[Richard4762]

Of course there was dear boy...there...there...now put the sharp objects away, it's time for your nap....

Thank you for your comments.

 

[Richard4762]

You messed up...learn and move on. IG has never given me any problems but then I manage my trades.

Stop repeating yourself and move on.

Thank you for your comments, much appreciated.

 

[Richard4762]

Thank you for your comments, much appreciated.

Just wanted to update you all on the current situation. Case to the FOS is in and moving forward, IG employees have contacted me to tell how they manipulate and fall foul of some unruly practices. Full update will appear on website igindexarecheats.