Compensation possible for system induced losses?

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#1

Over the past few days I have encountered over £300 pounds in losses stemming from not being able to buy the stock before it going up, and then today when I tried to sell my position the system kept telling me that I had no shares available to sell. After I placed multiple orders to sell and they all cancelled at around 118 on GME, and there were no pending orders, my stock sells at 77!?

I have contacted Trading 212 staff multiple times. Will I get a response? All I’m asking for is that I get some sort of compensation for my losses which were not my fault. A “Force Majeure” may have affected your execution before and there may have been delays but this is completely unacceptable where your system is telling me that I have no shares. I have sent screenshots to the customer service.

Trading 212 is about to lose a lot of customers over this to Freetrade who have been extremely open and transparent about their whole situation. Please would you let us know if you will be giving all those affected some sort of compensation. It costs Trading 212 £500 per individual case with the Ombudsman, so I would suggest that you take this seriously.

Regards

#2

Freetrade is not the answer - trust me. Multiple issues in order execution for me with this one.

#3

No material loss has occurred here, I don’t know how you can possibly think one has.

Without knowing specifics (and only staff could help you here), this sounds like you had pending orders already, so you cannot sell more than you have or have already placed a sell order for.

Again without knowing the specifics, it sounds like you placed a market order and not a limit order, so the price is not guaranteed in any way, especially with volatile stocks.

Noting of course you have followed the proper complaints procedure first, otherwise the ombudsman will not entertain any such complaint?

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#4

As suggested by the post here + the platform message sent already: all this is related to our intermediary, and we do not control it. We understand that it is provoking inconvenience, and it is definitely not how we want you to feel. We’re disappointed too that we have to go through this, yet it depends on external factors. We provide execution service only, and the execution depends on the intermediary.

#5

@David I hear you’re a staff member who responds. I hold a contract with Trading 212, not the intermediary, and blaming everything on them when your system is telling me that I don’t even own the shares when I try to place an order after placing previous orders which were cancelled is rubbish. Then at the point where it shows no pending orders my stock sells right at the bottom at $77 before spiking right back up again? How can an order be placed when your system itself is showing no pending orders? This deserves compensation for the sole fact that your system was executing trades which were not requested, and when I tried to request a trade before your system said that I didn’t own the shares.

Also, quick update, the Ombudsman charge is £650 I think which is more than the amount of compensation that I and some others are requesting. This is not to mention the fact that your contract is “unfair” under the Consumer Right Act 2015 where your contract with your intermediary directly affects us. We have a contract with you and not with IBKR and therefore we cannot possibly pursue damages against them. This secondary contract will leave you liable to more fines I think but either way show some respect to your customers please?

#6

This doesn’t explain why your system was telling me that I had 0 shares, then cancelled my order, and then executing my order much much later? If you provide execution only services why did you execute when I had no active orders in place? This problem has been faced by some others on this forum. I can’t pursue your intermediary, I can only pursue you.

This is your execution policy:

“Where you give us a specific instruction as to the execution of an order we will execute the order in accordance with those specific instructions. Where your instructions relate to only part of the order, we will continue to apply our Order Execution Policy to those aspects of the order not covered by your specific instructions”

I did not give you any specific consent or instruction to execute. Yet you did that anyway. I am pretty sure nowhere in the ToS does it say that my orders can be executed and cancelled without my permission and all losses will be beared by me. Executing orders without client permission is simply a breach of contract so please don’t tell me that you’re disappointed and it’s external factors. You are failing to provide basic execution services.

#7

We are required to obtain your prior consent to our Order Execution Policy. You will be deemed to provide such prior consent when you give us an order.

What is this @Tony.V ??? I put in some orders, no execution, though ok let’s cancel them. It shows them cancelled. Then a market order executes a sell? I find it very suspect that without my consent you guys executed an order RIGHT AT THE BOTTOM before a huge rally in the stock? Please let me know you will reconsider giving me the compensation I and others deserve. Your intermediary cannot get a sell order unless I send one to you. And if I have cancelled all my sell orders and you have shown that on your system, it cannot be that a long time later an order gets executed out of the blue.

#8

I have followed the proper complaints procedure and haven’t received any acknowledgement.

I didn’t place a market order. I placed one a long time ago and it cancelled. The system/trade history shows that the order was cancelled yet for some reason they executed a sell at $77. At that moment in time I am talking about, I had 0 pending orders in place and when I tried to enter a sell order they said I had 0 shares.

The issues were 1) When I tried to sell initially they tell me I have no shares. I placed limits, market, everything. Nothing’s working. So I cancel them all. I walk away. I come back and I see that my shares have sold at $77. Trading 212 needs my permission before it executes an order. I did not give my permission and thus am very frustrated and am looking to recuperate said losses from this event.

#9

@aditi Your contract is with Trading 212 whose execution is serviced by IBKR. You placed a market SELL that you later canceled. However, at 15:38:44, you placed one last market SELL, which is a clear instruction to SELL at the best available market price which got filled 7 minutes later at 15:45:15.
If you’re looking for a specific price and wouldn’t like to be filled at anything worse, it’s best to use LIMIT orders.

I’m closing the topic here. This query will be examined and resolved via the official complaints procedure, not the community forum.

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#10