I'm trying to determine if the Wellington Trading Group is a legitimate entity. Here is the scoop... I was contact by a broker from WTG by phone encouraging me to by option contracts for heating oil...the market information provided was accurate. However, there were some red flags that make me thing twice about this 1) broker cold calling me 2) they are based out of Costa Rica, 3) would have to do a bank wire transfer through two banks, ending up in Netherlands Antilles, 4) Crude looking internet site at http://www.wellingtoncr.com/, 5) Web page does not provide information re: corporate structure or management 6) Talked to several other brokers, non of which have heard of this group, 7) Internet searches bring up lots of links but they are all empty with no content / no information. I can't find anything about this copy either identifying it as a scam or as legit. Help please, anyone. thanks.
Why even consider this? There are so many reputable on-line brokers that will let you trade options on heating oil, or any other tradable vehicle. Even if it was legitmate (I doubt it), I don'y see any reason to take this risk...
optionswizard, you are right. The supposed brokers timing was pretty good and is what made me consider this. However, considering that I haven't done much trading, no experience with options, and overall have very little investing experience this is probably not the best option to pursue at this time. I do want to start to make my money work for me, but am expecting some changes to occur in the next year or two for which I will need to keep my money as liquid as possible. That's why the whole option contract sounded good - time specific with a commodity were demand will increase from the summer / fall low to the fall / winter. Anyway, appreciate the feedback. I'm new to this method of money management and should start with a reputable company. Question to anyone: what would happen if I bought 3 contracts for a total of 126 000 units of heating oil for a total of $3000, and the strike price went up 5 cents before selling. These are the kind of numbers that were mentioned....the 5 cent increased was indicated as the move over the last few days. That's basically all the detail I was provided with. Didn't know what questions to ask. The broker said he would make $30 on each contract. His reported incentive was to help me succeed so I would re-invest and provide referrals. BTW I did indicate to the broker that moving money between 3 banks and dealing with someone in Costa Rica was not my prefered way of managing my money, and I didn't wish to continue our relationship. He seemed to accept that and wish me luck.
Broker calls 100 people - tells them XXX is going up soon. Broker calls another 100 people - tells them XXX is going down soon. If XXX goes up he calls the first 100 back. If XXX goes down he calls the second 100 back. Next, repeat the process, possibly with another security - tell 50 this and the other 50 that. He will call only 50 back. Now the hook is set - reel them in. If he calls again thank him kindly for his time. Ask to be placed on the do not call list. Be prepared for some kind of push. Don't give in. Repeat thanks and request. If you fall for this you'll have no one to blame but yourself. Good luck.
The broker was a stranger and you are asking other strangers here what to do? How many decisions do you make on other strangers opinions. Lets say we have 5 posts that say Wellington group is legit and other 3 saying not legit, what are you gonna do? What if only 2 posts saying they are no legit, then what are u gonna do. What exactly would your criteria be to select a broker, does Wellington group meet it?
Stay away from these clowns. They managed to take an account from $20,000 up to $60,000, and when I told them to sell, they didn't get around to it until the market value had dropped to $40,000. Then I got some "really good advice" from them, and tried again - but my "broker" took off to New York, and didn't return any of my calls to sell..... End result - they took an account worth $60K at peak and turned it into - NOTHING. That's right - they lost THE WHOLE THING. They let the option expire without even calling me back after numerous attempts to get ahold of them. I finally got a call from them apologizing for being so inept. And of course they want me to send them more money. To hell with that. They love out-of-the-money trades and charge you $250 per contract. Hell, you can get the same lack of service on E-Trade for $10... The only way you're going to make money with these guys is if you happen to own some oil when another Katrina hits.
Hi Folks, I recently purchased 4 heating oil contracts from the company. All was well and spoke to the company 3 times from purchasing the contracts until last week l decided to call them becasue it had been approx a month since last hearing from them. I spoke to my broker to be told he had been off for 3 weeks and his portfolio was being managed by a collegue. He said he did not know the position of the account but would find out and call me back. He did call me back to tell me the guy looking after my account would call me back in an hour. No one did until 2 days later, a supervisor called and told me my account was now sitting at zero. Needless to say l was surprised to put it mildly. 1. Each time l spoke to the company my contracts were making money and the forecast was for them to continue making money. 2.Why did no one call me to tell me the contracts were declining and l would be best to sell, maybe making a slight loss.... 3.Is there anything l can do, l basically feel as if l was forgot about and as a result, lost everything. Can l do anything????
its unfortunate what happened to you sir but i cant help but feel you got what you deserved. hopefully you didnt lose too much money...