A client of iTrader lost 800 thousand shekels after the company’s representative made him perform investment deals
This is just one example of telephone conversations between a sales representative who was defined as a “trading coach” at Gal Media Trade and one of its customers. The company operated an online platform for trading in forex and CFDs under the name iTrader. The client is a pensioner who deposited NIS 800,000 in his trading account – which went down the drain in just six months.
In a ruling handed down last week, Judge Ruth Ronen of the Tel Aviv Economic Court ruled that the client would receive NIS 600,000 back. “The fact that time and time again the plaintiff seeks to learn at a slow pace, to act conservatively, to refrain from making investments, Once the company’s representatives convince him to act differently, it clearly shows that the number of transactions he performed, their scope and nature were carried out as a result of the advice given to him, and that without that advice the plaintiff would not have invested in these transactions and the specific damage caused to him would have been avoided,
The trading platform of iTrader enables customers to trade in foreign currency exchange rates, CFDs, stocks, indices and commodities CFDs are financial derivatives through which the trader trades in price fluctuations of assets without having to buy or sell the underlying asset. A transaction is made in a real asset – the transaction is made in relation to the price of the asset only Trading in differential contracts is carried out with a high leverage on the part of the customer at a rate of 20-100 times the investment value