Peter (not our Client’s real name) contacted us after losing over £45,000 due to the advice and recommendations given to him by Fortrade. These were all his savings, alongside money borrowed from friends and family.
He also explained that he believed that trading in Contracts for Difference (CFDs) was not appropriate for him, as he was young, had no trading experience and was not willing to suffer any loss. He was feeling very down due to all the monies he had lost.
We obtained a copy of Peter’s file from Fortrade and reviewed all boarding documents and relevant phone recordings. We identified several breaches on Fortrade’s side.
We then prepared a letter of complaint against Fortrade, detailing the chain of events and identifying all the breaches. Fortrade should have seen that Peter’s account was spiralling out of control and he was vulnerable. It should not have allowed Peter to either open the account or continue trading after substantive losses.
Fortrade rejected the complaint without providing any substantive response.
Compensation secured via the Financial Ombudsman Service
We escalated Peter’s claim to the Financial Ombudsman Service (FOS).
FOS, after an extensive investigation, concluded that Fortrade was on fault because of the following reasons:
- Fortrade should have not encouraged Peter to open a CFD’s account;
- Fortrade should have not contacted Peter on a daily basis with “recommendations” and “advice” on how to recover his previous losses – this amounted to financial advice and undue pressure;
- Fortrade should have closed down the account when Peter informed he was taking out personal loans to maintain the margins open;
- Fortrade should have identified that Peter was vulnerable due to his age and lack of experience.
As a result, the FOS ordered Fortrade to refund all deposits, less withdrawals, plus interest (over £50,000), as well as compensating Peter with £750 for all the distress the situation caused to him.
Where possible, we will seek to resolve your abuse compensation claim through negotiation with Calderdale Metropolitan Borough Council, helping you pursue accountability and financial compensation without making the process any more stressful than it needs to be.
