Galvan Research and Trading set up in February 2004 and promoted themselves as one of the first specialist CFD advisors.
Galvan changed its name to Trade Facts Ltd in May 2016 . The business was regulated by the FCA under reference number 401179 until 1 December 2021 and now can no longer provide regulated activities and products.
Galvan/Trade Facts provided a CFD advisory service to ordinary investors which is probably the main reason that they found themselves in trouble, as CFD investments should only ever be provided to high net worth, sophisticated investors and/or to those who can afford to lose their investment. Fortunately, for its customers all Galvan/Trade Facts clients had an IFA (Independent Financial Advisor) assigned to them giving financial advice and by virtue of that relationship many customers have a right of redress for any losses suffered because of the poor advice.
Ironically, for 5 years in a row, Galvan/Trade Facts was awarded Best Equity Derivatives Advisor at the Shares Awards although what this meant for its clients is a total mystery.
Galvan/Trade Facts Ltd is still an active company, but we believe that in view of all that has happened over the last couple of years and with it leaving lots of unhappy clients, who have lost money on their investments due to poor advice, it is only a matter of time before they dissolve. Having said that the companies accounts are up to date but make grim reading.
By way of explanation, CFD trading is usually a short-term agreement where an investment is made in a particular asset. CFD trades are available on thousands of investments .
Ordinarily clients, invest in an asset by buying shares. The investor then owns the asset and should the asset then increase in value, the investor will be able to sell it at a higher price making a profit. However, CFD trading works very differently as the investor never actually owns the asset, rather they bet on the value of the asset increasing or falling. When a person trades CFD’s they are entering into an agreement to exchange the difference in the price of an asset from the point at which the contract is opened to when it is closed.
The main problem of course is if the share/asset price falls.
Due to their complex and high-risk nature, CFDs are not a safe investment model which begs the question as to why they were so heavily promoted in the past? Our view on this is that generally the advisors was more focused on their commission, on each investment, rather than on the clients’ return.
Nearly all clients trading CFDs lose money which has led the FCA into conducting investigations into the sale of CFD’s to their retail consumers. On 1 August 2019 the FCA imposed permanent restrictions on the sale of CFDs to retail consumers. The restrictions applied to all firms by banning the sale, marketing and distribution of CFD’s consumers.
Customers wanting to make a claim against Galvan/Trade Facts Limited are now able to do so and we at Mendelsons are happy to assist. We already have a large number of claims filed against them with existing clients. We therefore possess the necessary expertise to help file these claims and will act on a NO WIN NO FEE basis.
If you have suffered a loss involving Galvan/ Trade Facts Ltd, please contact us for a no obligation conversation and we will explain further on how we can help you recover your losses.