Good Morning,
In the last two days there have been and increasing number of complaints with regards to the anger behind,
Worldspreads closing the positions on Friday the 16th of March.
If Worldspreads had 16 million in the bank why did they have to close open positions?
The horror stories on Worldspreads cutting clients losses range from £500 to almost £60000.
Not only have certain clients held their positions for over two months but these clients have more than adequate margin to hold the position.
An example is Mr x had been holding a short on Dax for two months without any fear at all as he is a
Position trader and they cut his trades for £20,000.
In Another case Mr Y had been holding a Long on euro for the last four months and had to face a loss of over £57000.00
What gives them the right to cut the position? Why were the clients not advised about liquidation of the position? Why did we have to find out from the special administration team about this?
Surely they should have thought about transferring the open positions over the weekend to another broker at least that could have saved some stress for clients..
Since last night the Statements from Worldspreads’s Automated Statement mailing system have stopped,
Even though on Last Friday’s statement we still see open positions which are still not closed.The special administration team yesterday have confirmed that all positions have been closed on March the 16th.
We have to study the actual contracts we have with Worldspreads and find out about the powers of the firm to actually do this?
Regards
Rav
I am hopeful that WP will work to resolve these issues.
ReplyDeleteOff the top of my head I'd imagine that the contract, for what it's worth, would say that it has the right to close any trade during a force majure event - the company itself becoming insolvent would almost certainly be classed as such an event.
ReplyDeleteSteve S