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EFT fraud? Specialist question.
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debaura12
Posts: 9 Forumite

Please help! I had an EFT valued at 130p, I placed a stop loss at 122. The next day the broker sold the EFT at 92 claiming the SL was triggered.
The EFT didn’t fall under 129 all day! I have lost a lot of money, approx 22% of my investment.
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The broker claimed the eft (3lus) hit a ‘yellow band’ - the platform is Hargreaves Lansdown. There is no warning on the platform that this could happen. Could they have sold the EFT at 92 and bought it themselves so making 22% profit?? I have made a complaint.0
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Where is the fraud that your post subject refers to?the EFT didn’t fall under 129 all day! I have lost a lot of money, approx 22% of my investment.I assume you mean ETF and not EFT. can you give us the name of it?
Are you sure it didn't fall during the day and then when back up again by the end of the day?
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.2 -
dunstonh said:Where is the fraud that your post subject refers to?the EFT didn’t fall under 129 all day! I have lost a lot of money, approx 22% of my investment.I assume you mean ETF and not EFT. can you give us the name of it?
Are you sure it didn't fall during the day and then when back up again by the end of the day?0 -
I am shaken0
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What ETF was it?
What does the broker say when you asked them why they sold at that price when you say the ETF never fell that low?I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Raise the issue with HL.
ETFs do sometimes have price spikes, particularly the less traded ones. When you trade an ETF, you should always study the recent price movements, and check that the price and spread offered make sense. It is safer to use OEICs if you do not know what you are doing. (Having said that, you should be OK with Vanguard's bulk trading service. I do not worry about using that for small trades.)
Stop losses are dangerous, as you have just found out. Spread betting providers had (and perhaps still do) a reputation for sharp downward price spikes that were not present in the underlying stock price.0 -
debaura12 said:kristina001 said:The EFTA allows consumers to challenge errors and have them corrected within a 45-day period with limited financial penalties. When errors occur, EFTA outlines requirements for banking institutions and consumers to follow.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.1
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dunstonh said:debaura12 said:kristina001 said:The EFTA allows consumers to challenge errors and have them corrected within a 45-day period with limited financial penalties. When errors occur, EFTA outlines requirements for banking institutions and consumers to follow.
I find it unreasonable that such an order could be placed and deemed as in any way correct practice to exercise at a cost to the client of 22% of market value.0 -
What was the ETF? Even the largest ETF on the planet can have price spikes:
https://www.barrons.com/articles/sudden-s-p-500-etf-price-spike-highlights-value-of-limit-orders-1419360316
The market itself can also have spikes:
https://en.wikipedia.org/wiki/2010_flash_crash
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OP - Which ETF? Others - Does the Bid-Ask spread widen on ETFs in the way that it would do on an illiquid share?? If so, it is quite possible a stop loss could get triggered without the quoted mid-price hitting that level.
"For every complicated problem, there is always a simple, wrong answer"0
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