Have you lost money investing throughout Fortrade Platform?

Fortrade Ltd is an online trading platform that allows investors to invest in Contract For Differences (CFDs).

Fortrade only offers ‘execution only’ accounts, which means they should not provide clients with any advice. CFDs are considered complex investments and unsuitable for the vast majority of retail investors.

What has Fortrade done wrong?

The Financial Ombudsman Service (FOS) have ruled in favour of several consumers who have sustained losses while trading with Fortrade.

When a client applies to open an account, Fortrade is required to obtain information about the client’s knowledge and experience. They must assess whether CFDs are appropriate for the client based on their experience and understanding. If Fortrade decides that a particular service or product is not appropriate for a client as per current guidance, Fortrade must warn the client.

FOS have concluded that Fortrade failed to carry out appropriate checks and provide appropriate warnings in several decisions. Warnings must be tailored to the client’s circumstances, and general warnings are not considered valid.

FOS has also found evidence that Fortrade has gone beyond its authority by providing financial advice in ‘execution only’ accounts. The Financial Conduct Authority (FCA) states in its Perimeter Guidance handbook (PERG) that advice requires an opinion from the adviser and is considered a recommendation for a course of action. This advice may include information involving statements of fact or figures.

FOS has determined that Fortrade has provided clients with financial advice, recommending how much to invest and when to close positions.

How can I know if I have a claim against Fortrade?

If Fortrade contacted you unsolicited and repeatedly to discuss your account and you have lost money, you may have a claim.

Many investors have complained about receiving calls and emails claiming that Fortrade cannot advise what to buy and when to buy or sell, but providing ‘investment strategies‘, ‘analysis and expectations’ or ‘inside information.’ Under regulatory guidelines, this is considered financial advice as it involves judgment and opinion.

Likewise, some clients have also felt pressured to invest more money with the hope of recovering previous losses, based on Fortrade’s predictions. This has resulted in further losses for many clients.

Fortrade operates under the same model in different jurisdictions. Fortrade Canada was recently fined by Canadian authorities because they made recommendations to clients despite being an execution-only firm.

Further reading

CFD Trading – Oakwood Solicitors

Financial Ombudsman Service – Homepage

WHAT TO DO NEXT

Get in touch today for a no-obligation consultation. Choose one of the methods on the right-hand side of this page, or call us on 0113 200 9720 to find out how we can help you. We have already assisted other investors in recovering their losses.

You must be aware that when dealing with a firm regulated by the Financial Conduct Authority, you have a right to complain to the company if something goes wrong. If your complaint is not upheld, you can ask FOS to consider the complaint and issue a decision.

The Financial Ombudsman Service is a free service that looks at disputes between consumers and regulated firms. You do not need a legal representative to make a complaint.