Partially upheld: Other regulated complaint complaint against Pepperstone Limited

Decision detail

Summary

Mrs A complained that Pepperstone Limited manipulated pricing data, wrongfully closed her short USDZAR position on 5 October 2023, improperly charged swap fees, and wrongfully closed her account. She argued the trade should have closed on 4 October 2023 based on candlestick charts showing similar price highs on both days. The ombudsman found that Pepperstone's price data and independent exchange rate information confirmed the closure price of 19.57 was only reached on 5 October 2023, not 4 October 2023. The account restriction imposed in February 2024 was found to be reasonable given Mrs A's expressed emotional distress about losses and inability to focus on trading. The ombudsman upheld the complaint in part only for service shortcomings, awarding £200 compensation.

The Ombudsman's reasoning

The ombudsman found that Pepperstone's price data and independent exchange rate information supported that the price of 19.57 was reached on 5 October 2023 but not on 4 October 2023, contrary to Mrs A's chart interpretation. Even if the trade should have closed a day earlier, the loss would have been the same. The account restriction was reasonable given Mrs A's expressed emotional distress about losses, and she retained the ability to close existing trades. Pepperstone's ultimate agreement to refund remaining losses and close the account was protective of Mrs A's interests. The only valid complaint was for service shortcomings in handling her concerns.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website