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More issues with Galvan CFDs and IPO
iamjimmi
Posts: 4 Newbie
Feeling more than a bit dumb at the moment but thought I would post this hoping that it might stop someone else being hoodwinked....
I get a lot of junk from Galvan trying to get you to 'invest' in CFD's. There are various articles out there about the pros and cons of CFD's - they are very high risk but I will let you make your own mind up as to whether or not you have an appetite for the risk.
For me, I would have to be very sure to go down the CFD route, but last week one such opportunity came up - the Alibaba IPO.
The chatter suggested demand would be huge and big gains likely on the IPO. The only downside is that small investors don't get a look in - the IPO was only available to big institutions. And then the following email from Galvan caught my eye:
.
Last Chance
Dear investor,
Have you been shut-out of the Alibaba IPO?
You are not alone.
In fact most “little guys” have been left out in the cold.
Seems unfair given what a big opportunity this is…
But here’s the good news: there is a way YOU could get in on this.
Please HURRY though… the shares begin trading later today.
This could be your last chance.
Click here now to find out how.
Well I clicked and Galvan contacted me. I am familiar with Galvan so it was no surprise that the catch was that I needed to trade in CFD's. But I figured in this particular case, I was so convinced the stock would rise on the IPO price (of $68) I decided to take the plunge and go for it.
Galvan were very efficient - keen to get me to sign up before the US market opened and the Alibaba IPO. The trader quoted how much stock I could buy and how much I could lose if I used a stop loss - both figures based on the IPO price of 68$. And we got the deal done with just minutes before the IPO - the dealer had to rush off the phone to get the trade complete in time.
So imagine how pleased I was to see the shares open at 99$!!! They soon dropped to 93$ but that was still a 38% profit!!! That was until I logged into my account. The trade was actually completed 3 hours after the IPO! And the stock was bought at 93$!
It transpires that Galvan had no access to shares at the IPO price. Their access to stock was exactly the same as the 'little guys'. I had been hoodwinked into believing that I was buying at the IPO price by their misleading email, salesperson (Lloyd if that is his real name) and trader.
Whether I made a profit or loss from the trade is incidental. The point is that there is no way that I would have risked a CFD trade on Alibaba at 93$. I was led to believe that I was going in at the IPO price (68$). And Galvan put me in a position where I risked considerably more capital than I would have been prepared to do if they had been open and honest with me.
Those wiser than me will no doubt be laughing at my naivety, but I am prepared to open myself to public ridicule if it helps prevent someone else falling for the same scam from Galvan.
FCA and Advertising Agency informed... we will see if anything comes from that.
:mad:
I get a lot of junk from Galvan trying to get you to 'invest' in CFD's. There are various articles out there about the pros and cons of CFD's - they are very high risk but I will let you make your own mind up as to whether or not you have an appetite for the risk.
For me, I would have to be very sure to go down the CFD route, but last week one such opportunity came up - the Alibaba IPO.
The chatter suggested demand would be huge and big gains likely on the IPO. The only downside is that small investors don't get a look in - the IPO was only available to big institutions. And then the following email from Galvan caught my eye:
.
Last Chance
Dear investor,
Have you been shut-out of the Alibaba IPO?
You are not alone.
In fact most “little guys” have been left out in the cold.
Seems unfair given what a big opportunity this is…
But here’s the good news: there is a way YOU could get in on this.
Please HURRY though… the shares begin trading later today.
This could be your last chance.
Click here now to find out how.
Well I clicked and Galvan contacted me. I am familiar with Galvan so it was no surprise that the catch was that I needed to trade in CFD's. But I figured in this particular case, I was so convinced the stock would rise on the IPO price (of $68) I decided to take the plunge and go for it.
Galvan were very efficient - keen to get me to sign up before the US market opened and the Alibaba IPO. The trader quoted how much stock I could buy and how much I could lose if I used a stop loss - both figures based on the IPO price of 68$. And we got the deal done with just minutes before the IPO - the dealer had to rush off the phone to get the trade complete in time.
So imagine how pleased I was to see the shares open at 99$!!! They soon dropped to 93$ but that was still a 38% profit!!! That was until I logged into my account. The trade was actually completed 3 hours after the IPO! And the stock was bought at 93$!
It transpires that Galvan had no access to shares at the IPO price. Their access to stock was exactly the same as the 'little guys'. I had been hoodwinked into believing that I was buying at the IPO price by their misleading email, salesperson (Lloyd if that is his real name) and trader.
Whether I made a profit or loss from the trade is incidental. The point is that there is no way that I would have risked a CFD trade on Alibaba at 93$. I was led to believe that I was going in at the IPO price (68$). And Galvan put me in a position where I risked considerably more capital than I would have been prepared to do if they had been open and honest with me.
Those wiser than me will no doubt be laughing at my naivety, but I am prepared to open myself to public ridicule if it helps prevent someone else falling for the same scam from Galvan.
FCA and Advertising Agency informed... we will see if anything comes from that.
:mad:
0
Comments
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I think we've all been stung somehow like that.
As long as you learn from it I suppose!“I could see that, if not actually disgruntled, he was far from being gruntled.” - P.G. Wodehouse0 -
I doubt anyone with an ounce of humility would be laughing at this situation.
The email text is deliberately misleading but it's also careful not to make any statement or claim that cannot be justified.
A valuable/expensive lesson in being duped, by seeing only what you want to see.'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB0 -
Aside from the issue of being misled by them, an important lesson is that we should never make an important decision regarding investment - especially when it is being pushed by a third party - under time pressure.I am one of the Dogs of the Index.0
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Putting an order in for a CFD should be instant, and you can stay on the phone with the broker and they will confirm once its bought, that's standard practise. Sounds dodgy that they had to 'go away' to make the trade, with CFDs they don't have to buy the underlying share, they can assume the risk themselves, that's the point of them over physical shares.Faith, hope, charity, these three; but the greatest of these is charity.0
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I doubt anyone with an ounce of humility would be laughing at this situation.
The email text is deliberately misleading but it's also careful not to make any statement or claim that cannot be justified.
A valuable/expensive lesson in being duped, by seeing only what you want to see.
I suppose one saving grace is that forums like this exist. So whilst I was misled, if anyone in the future 'googles' Galvan CFD IPO, they should hopefully come across this thread. Looking through my old junk they have tried similar tactics for the AA, Saga, TSB, Hilton, Poundland, Twitter IPO's... the list goes on.0 -
Hi
You're not alone .. I too was hoodwinked by the same sales pitch from galvan and thought I too was getting the ipo price of $68.. I too had the same patter etc but the con man this time was brad hendy. Hasten to add they are not replying to calls or emails.
AVOID GALVAN CFD's0 -
Hi
You're not alone .. I too was hoodwinked by the same sales pitch from galvan and thought I too was getting the ipo price of $68.. I too had the same patter etc but the con man this time was brad hendy. Hasten to add they are not replying to calls or emails.
AVOID GALVAN CFD's
An interesting development today... I filed an official complaint with Galvan - and have been contacted by one of their directors today. We discussed my grievance and reached an amicable and satisfactory resolution. Galvan did not admit that they had attempted to mislead, insisting that it was never their intention.
I am not so sure about that - their previous emails on IPO's are also misleading. But as I pointed out to them - it makes no sense to mislead people. They are trying to sell their advisory services and if you feel misled right from the start, how are you going to trust their advice in the future? So maybe they will change their tact - and if not maybe this thread will help other folk from misunderstanding what the deal really is.
So do outline your grievance in an official complaint and hopefully you will find them accommodating. Good luck!0 -
Thanks for your reply and fair play to you. I'll be sending an email in the morning
Regards0
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