First time Posting, but after reading the forums it seems most are suffering from the horrendous spread. But this spread is a shocker
Today I was analysing some stocks on IG and thought I will take gamble on the following stock Opthea. On IG the spread was ~$0.03, so without paying attention decided to use my last funds on trading212. Boom instant account blown the moment I pressed buy.
What I find odd is, my account went to £0.00. I only spent ~8% of my account value. But I ended up losing more than 3x my account value. Thank God for Negative balance Protection because I was definitely not going to pay the additional loss.
But shouldn’t I atleast have kept the margin for the buy, instead of loosing it all? And is this a glitch or is trading212 manipulating the market? And what are the regulations on Margin call, cause I didn’t get any (but then I guess it happened too quick for that to happen)?
Im guessing your trading in CFD mode? Hence the 3x loses but, if a position opens at less than what it closed at then, your account can go to zero as it bypasses that margin call limit.
Gotta watch out for those Gap Ups/Downs depending on what way your trading.
I’d report this though to @Tony.V as there could well be something here that is totally off and shouldn’t have occurred
PS… Welcome to the community on your first post!!!
Well, I personally think that trading212 spread is overkilling.
Many other brokers offers almost zero spread.
But its what we got. Swing is the best option in my opinion.
Yeah. Its what I mean. My bad
But yes, spreads on CFD are too high. Mainly o forex. Other brokers only uses spread in specified ones. All other pairs are spread free.
Too big a risk for T212 at moment with everyone holding long positions. Also worth looking at the fees for keeping positions open as these sneak by a lot of people new to the system and they see their account dropping daily whilst price still the same or in some cases moved upwards
Thanks for the response and yes it was CFD with a leverage of 1:5, hence why I lost money that quickly. The funny thing is, I was buying in the hope of making some money when the gap closes.
Do you mind or are you allowed to share those brokers with spread free instruments? Hope they have GPB/USD.
Also 212 indices spreads are quite wide, next to impossible to trade the small timeframe(30 mins and below) on instruments like us30. But I wish I could find a broker with an app that allows me to hedge and aggregate, whilst being able to partially close trade. This is what’s keeping me here.
There was indeed an abnormal spread that led to the forced closure of your position right after it has been opened. I will personally fix the spread configurations for the instrument in question & compensate in full all of the affected clients. The compensation should be allocated within an hour.
Oh wow you guys are not as bad as some of the comments on this forum portrays. I had already written the loss off as it was a small loss, but thanks, this has given me hope in 212.
Most people complaining are personally at fault, but they go and complain and leave bad reviews because they think they’ve been scammed. This case was a clear glitch which wasn’t your fault, so you should be compensated. Thing to remember is people really only leave reviews when they want to complain.
Right, but not in all cases would a new investor understand that something is off or make a fuss about it, hence they resort to reviews to find solace.
painful but, you won’t ever trade again without looking at the spreads now