Hello, my name is Ben and it is my pleasure to assist you with your question today. Can you please explain your situation in a bit more detail
Let me know if you are here
Hi, yes I am online now
Ok so basically this is a broker
In terms of broker they always charge an execution cost
So according to the table
The broker claims that only 4.7% of orders are negative impacted in terms of execution cost
However, 90+% of my trades are always negatively impacted.
It doesn't say past performance s no indicative of the future or etc at all.
Yes but did they provide any promises based on that table?
No it's just a statistics
But in the terms and conditions they promise to do whatever they can to eliminate negative slippage.
However what I am receiving is out of line from market standards
But this firm is an industry leader.
Who do you wish to complain to?
I think the excess execution cost seems to be very poor
Because a platform quotes the cost
but my cost is often 300% higher than that.
ok but who do you wish to complain to?
The firm initially.
The reason is the cost is very high
it deviates too much from the table as advertised
There is certainly nothing stopping you from complaining to the firm initially, you have the right to do so at any time if you feel that the services you are receiving are inadequate or do not match what you were promised at the outset. However, when you make your complaint think about what you were actually promised to start with – whilst they may have had a good year in 2010-2011, due to the nature of the industry they may have never been able to guarantee repeating that in the future. So by providing examples of past performance that does not automatically mean they were promising the same to occur in the future – their examples would have been for that year alone. Not having a clause that said past performance is not indicative of future performance also does not automatically mean that such performance would be indicative of future performance. Only if they had actually specifically told you that this is what you could expect could you really tell them that you have been misled.
Nevertheless, if they are obviously performing below average and there are identifiable reasons for that you may certainly include them in your complaint and highlight that the level of service is unreasonable.
Alright but would it be reasonable to argue that if in 2010-2011 it is only 4.7 for 37 million worth of orders that were negatively impacted but 100 of mine are 90+% very unreasonable?
Yes but...it would depend on the reasons for that, whether it is anything within their control or if it could be attributed to other outside factors
Well the explanation from the firm is very apart from what they claim themselves to be.
Well I am not familiar with what they claim to be and what they actually are, or do so it would be impossible to advise in that much detail all I can comment on is the grounds for complaint and what you could potentially base them on, as mentioned above
Ok so my position isn't too strong?
Well it's not bulletproof, that's for certain but as mentioned it would depend on what promises were actually made rather than what you believed you were being promised. Being given some information from the last does not automatically mean they were guaranteeing a repeat of this in the future.
They promised to fix it
and i asked whether i should use the retail platform
or the institutional one
they said the retail one is uffice
but it turns out that the retail one is not suffice at all
it is quite difficult for me to give you specific advice on details like this I'm afraid as I have no idea of the industry you are talking about, the company itself, or how it should operate best....
So I have to just take you back to the original query on what you can and can't do in terms of complaining, which I discussed above
The financial industry!
yes I understand but I am not a financial advisor
So as you asked a question in the legal category I can only help with these aspects, such as misadvertising and what you can do in that case but I cannot give you advice on whether their systems are adequate, what platform to use and so on
Is this misadvertising?
Because they told me to use the retail platform when i asked based on my size whether i should be using retail or institutional
they insisted on the retail one and there wouldn't be execution cost issues
This type of arrangement is quite specialist and nothing I have previous experience in I'm afraid so I don't want to mislead you by giving you further advice and will opt put of this question and allow someone else to deal with it if they can.
I could try and explain it if you prefer
I know it is outside of my area of expertise so if you don't mind I will open the quesiton up to all other experts to help if they can