Worldspreads goes Bust after messing with Clients trades

Scammersbeware

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After promoting very heavily on Bloomberg, Worldspreads.com have finally been discovered for having a very dodgy business model.

As of today Worldspreads has been suspended from shares trading and clients are unable to close their trades, this is after offering clients zero spreads... A somewhat questionable thing in the first place.

What has been happening you ask? Well the FSA (Financial Services Authority), are investigating Worldspreads in regards to 'accounting irregularities' with their clients money at potential risk.

The full bloomberg article can be found here:

In my opinion, be careful if you have an account with them... The best thing to do is get your money out right now while you still can before we see a mini MF Global happen in the city of London.
 

Scammersbeware

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Worldspreads yesterday went into liquidation after an attempted fraud resulted in a £30 million loss for the company.

This was against a cash balance of £16 million so clients have been left £14 million out of pocket.

The liquidation is being overseen by KPMG and Ernst and Young are being questioned about why they did not see this losses in a recent audit.

In regards to your funds safety the FSA secure all funds up to £50K so a lot of clients will be safe.

Prospective buyers for the Company were both IG Index and LCG (London Capital Group) but now it has emerged that Worldspreads clients are being pushed towards ETX Capital.

Special Administrators appointed to Worldspreads Limited

If you need anymore info about this just post here and I'll keep you guys aware...

As for the size of the fraud in capital comparison it is small however percentage wise MF Global was about 21% whereas Worldspreads is at a much higher 46%.
 

Pharaoh

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Ouch! The Worldspreads website shows this in a number of languages:

Special Administrators appointed to Worldspreads Limited

Upon the application of the directors of Worldspreads Limited, on 18 March 2012, the High Court appointed Jane Moriarty and Samantha Bewick of KPMG LLP as joint special administrators of Worldspreads Limited, under the Special Administration Regime (SAR). Worldspreads Limited is a wholly owned subsidiary of Worldspreads plc, a company incorporated in Dublin, Ireland.

The administration of Worldspreads Limited follows the discovery of accounting irregularities which the company became aware of during the course of Friday 16 March 2012. Following this it quickly became apparent that there was a shortfall in client monies and the directors and their advisors concluded that the best course of action, in order to mitigate losses for clients, would be to place the company into special administration.

Further details can be found at = KPMG UK =

For all queries, please contact:

+44 20 3284 8829

Worldspreads-enquiries@kpmg.co.uk

The administrators will endeavour to respond to your query as soon as possible.
 

sanj

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sir i need big help sir. first of all i was the first person to be victim of fraud from them. i lost very big amount of money from them. on 1st june 2010 i lost lot of money when i had an open position on forex. the price went against me so i was losing instantly £40000 i immedietely decide to close all my position before i lose everything. i tried to close and they froze my account and my loses kept on increasing. i had called them over the phone and theydid not answer they did that purposely. finaly when i lost £90000 thats where they decided to restore my account. i complained to them and i have evidence that they froze my account. so they said that everything was fine with them and my internet was the problem i have evedince that i had no issue with the internet. i complained to financial service ombudsman and they said that they believe the firm that my internet was the problem . so they cannot do anything. i have full supportive document evedence . but in this case nobody could help me not even fso. i was very depressed as i lost lot ofmoney which was not my fault. giving this matter to lawyers wil cost me fortune si decided not to proceed further now i am suffering financially. i am in a state of depression and i am suferring from cronic urticaria due to all this stress. after 2 years i find that worldspread have done the same thing to other clients and they have gone into recervership because of the fraud they have done . now i am sure fso would under stand my problem and i informed them about this situation and they wrote to me that its now 2 years old and they have closed the file so they cannot reopen again. i feel very depresed . i need help what sould i do should i report FSA about this. please help me advice i have full evedence to support my claim
 

Pharaoh

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If your account was with WorldSpreads, you need to use the contact info I gave in the post above yours. Don't wait, do it now.

If your account was with some other broker, you need to open a new discussion thread and name the broker.
 

fsbtrader

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Sanj did you manage to finally get your money from WorldSpreads or from the compensation body? We would love to hear your story - from Andy at financial-spread-betting.com
 
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