CFD Account Closure

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#67

Good in theory, but:

  • Some (or may be many) are using CFD to invest rather than trade, and they are unlikely to take short positions. (that is possibly why T212 started to close accounts)
  • Very few would take the risk of shorting stocks like TSLA, AAPL, MSFT,… at present, the market is bubbling.
  • I don’t know if the leverage or spread can be adjusted differently for the short and long position.
#68

It is an interesting thought though. I wanted to short Tesla yesterday but choose not to due to the 1:2 leverage.

#69

My point being that I’ve hedged for the last few months on the SPX in anticipation of a fall at some point. Now I suddenly cannot do that and so I’m at a disadvantage.

#70

The house always wins! Trading212 are a business. It is highly unfortunate for us.

#71

seems appropriate to drop this link again. just take away the parts that T212 doesn’t charge and you will notice what’s left:

this is considered the norm for CFD providers, or else the whole business model would be untenable. nobody has infinite cash to both provide leverage and fill the opposite position for the countless clients they may have and is the biggest case to be made against anyone who claims that “platform X wins when Client Y loses” which is pure fantasy.

#72

Wait, what? Are you serious? Let it die? So I can’t use it to make money anymore? Thanks.

#73

I absolutely agree it should be let die. It is totally not fit for purpose and there have been consistent surprise changes for customers which negatively affect the platform for a couple of months now…

  • Widening spread
  • Higher interest
  • Leverage change
  • Restriction in number of CFDs you can buy
  • Total block of being able to buy some instruments
  • Sudden account closures
  • Positions automatically closing
  • Charting tool missing data occasionally
  • Poor customer service (customers accounts suspended and posts blocked when customers post queries regarding CFDs)

I’m sure there is more but that’s what I can think of off the top of my head.

A business should focus on what they’re good at, and let’s face it, the CFD side of the platform is unusable for customers and a very poor reflection of Trading212. Which is a shame, given how well the Invest side of the platform is run. It seems to me that the team overseeing the CFD side are far less customer focused than the team on the Invest side.

3 Likes
#74

I agree with the points given by @obrienciaran

I don’t use the CFD side, but it feels like it’s weighing down the Invest and ISA platform, and honestly with how much they’ve been struggling the hedge positions recently it seems like it could be detrimental financially.

As I said a long time ago, I wish they would rebrand the invest side to something more suiting, as there are many misconceptions about the platform. And the bad reviews of CFD have new people confused and then they will go and choose Feetrade or something.

But now the issue is the CFD has a lot of bad stigma, and it seems like it need to start from fresh and get away from the name. Or just a complete overhaul as I said, but I think if they continue the CFDs as is it’s going to die itself, and drag Invest and ISA unfairly down with it.

1 Like
#75

So based on that sentiment, the traders who are consistently profitable with CFD trades have to go elsewhere? The only thing I would agree on, is make it harder to start trading CFDs. Unlock the platform after have done a basic mini course with a little test. Any trader is responsible for his/her own risk. If you don’t understand that, you should not trade CFDs or any other derivatives.

1 Like
#76

I am personally happy with Forex, Indices and Commodities.

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#77

You mean like me?

The only thing you have to do in life is pay taxes and die. The rest is up to you.

However moving elsewhere would certainly be the recommendation for the reasons above.

It’s nothing to do with understanding CFDs. The problem is the platform itself is unusable. Again, for the reasons above.

2 Likes
#78

If they are closing accounts based on being profitable (simply holding a stock) - I would say that @obrienciaran is correct. I can understand restrictions being put in place on traders that are scalping or using scripts to pump trades. But if people are being closed out just for being profitable holding a stock position, that’s pretty absurd and quite honestly - bully tactics imo. I’ve skimmed this thread a little but from what I saw above, people were getting closed just for holding long a trade. Which is madness.

3 Likes
#79

Just on my side, brilliant news as they conducted further research into my account and deemed it fit for purpose. My account will not be closed and this is brilliant news !

I must say, before the issues that arose T212 was great to use and going forward into the year I hope things return to normal for the platform.

2 Likes
#80

They are not. Terms and conditions, correct me if I am wrong, state that you have to be active trading. Buy a CFD and let it run for more than 6 months isn’t trading.

#81

I think accounts were getting closed for holding *only *or *mostly long trades ***

#82

Seems worse odds at being profitable than betting on bet365… :rofl: each to their own.