Not upheld: Investment mis-selling complaint against Saxo Capital Markets UK Ltd

Decision detail

Summary

Mr M complained that Saxo Capital Markets UK Ltd unfairly liquidated his CFD trading positions on 11 October 2025, resulting in approximately £70,000 in losses. He argued that Saxo's actions were inconsistent because they had allowed him to manually close positions in August 2024 when margin requirements were breached, but denied him the same flexibility in October 2024. He also complained about inadequate communication regarding margin status changes and risk reclassification, particularly given his VIP client status. The ombudsman did not uphold the complaint, finding that Saxo had a regulatory obligation to act when margin requirements were breached and that the terms and conditions permitted them to liquidate positions. The ombudsman found that Saxo's communications were reasonable and that Mr M had been repeatedly warned from April 2025 that Saxo could close positions for margin breaches.

The Ombudsman's reasoning

The ombudsman found that Saxo had a regulatory obligation to ensure sufficient funds were available to cover open positions and that margin requirements exist to protect against this risk. When margin requirements are breached, Saxo is required to act. The ombudsman determined that the percentage by which the margin was exceeded was not relevant to whether action was required. The ombudsman found that Saxo's communication methods were reasonable and that the terms and conditions did not require email notifications in advance of margin calls. The ombudsman noted that being a VIP client did not entitle Mr M to different treatment or direct calls about margin changes. Regarding the inconsistency argument, the ombudsman found that Saxo was not required to allow manual position closure and that Mr M had been repeatedly warned through margin call alerts and communications from April 2025 that Saxo had the right to close positions for margin breaches.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website