Not upheld: Investment mis-selling complaint against Pepperstone Limited

Decision detail

Summary

Mr O complained that Pepperstone Limited charged him over £11,000 in overnight financing charges for keeping Natural Gas CFD trades open between August 2022 and June 2023, claiming the charges were unfair and higher than previous periods. Pepperstone defended the charges as being in accordance with its terms and conditions, which Mr O agreed to when opening his account, and explained that the charges were calculated based on liquidity provider rates and market conditions. The ombudsman found that the charges were fairly and transparently disclosed in the terms and conditions, that Mr O had access to swap rate information on Pepperstone's website, and that he had the choice to close his trades if unhappy with the rates. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Mr O agreed to Pepperstone's terms and conditions when opening his account, which clearly explained when swap charges would be applied. The terms were transparent and disclosed the basis for calculating overnight charges. Pepperstone provided a mechanism for Mr O to check applicable swap rates at any time on its website, and Mr O had accessed the website during the relevant period. The charges were calculated consistently with the terms based on market conditions and liquidity provider rates, which is common industry practice. Mr O had the choice to close his trades or not open them if he was unhappy with the rates.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website