Problem Plus 500 scam- Be aware!

[HS1]

Hi,

I've vast experience in trading CFD and FX and I'm using Plus500 for short term trades (due to the abnormal expensive daily swaps)

On March 12 I had balance of EUR 9014 in my account and I've asked a withdraw of EUR 7,600- the amount deducted from my account.

I left with a balance of EUR 1,414 and on March 13 I've opened 3 short position on DAX (100 each). The maintenance margin for each position is EUR 100 (total EUR 300).

Later on the DAX started to go up and I got margin call via SMS and mail.

The DAX continued to climbed and when I logged in to my account I was found out that my equity is EUR -31. I really thought it's bug in the system and I started to write mail to Plus500 support team (no phones!).

Few minus after I got stop out mail and all my 3 positions were closed by system. the account went into EUR -102 and guess what- Plus500 canceled my withdraw without my permission in order to cover the minus balance.

Based on the trading platform explanation- once you click on the question mark next to M.Margin I'm getting the following tooltip "Maintenance Margin: To keep a position open, available account equity must exceed Maintenance margin level. The Maintenance margin level requirements is specific for each financial instrument. If this margin is not maintained the position will be automatically closed"

This is total scam and all traders should be alerted. Based on the T&C (which I think it's not legal) pending withdraw is acted as balance in case you have open position.
plus500 has the right to close the position below Maintenance margin.

It's important to know that no spike were deducted in this time and plus500 could easily close my position on maintenance level.

The total damage is only EUR 200 but it could be worst! please be careful trading with plus500

I have all the mails and communication with plus500 support team and all the relevant screenshots.

I would like to thanks Pharaoh- valued member of this forum who guide me how to act.

I'm also preparing detailed complaint to FCA about this case.

 

[Pharaoh]

Another reason to close all positions before trying to make a withdrawal.

Filing a complaint with both the UK FCA and FOS may be enough to get this straightened out.

 

[HS1]

Plus 500 replies- After I told them I will report this case to FCA and forums they decide to close my account.

Be aware!


Hello,

Thank you for contacting us.

- Please note that all withdrawal requests are processed by Plus500 accounting officials within three business days before being sent out. During the time that the withdrawal is pending (meaning that it was not yet approved) - the withdrawal request can still be cancelled either by yourself or by us- due to various reasons.

Unfortunately, we can see that your withdrawal request #335295254 was cancelled automatically by the system in order for the funds to cover your loss on position #922053778 since you didn't have enough funds at that time on your available balance to maintain the position.
Please note that this is your responsibility as a trader to be aware of the the margin requirement for your open positions and make sure that you have sufficient funds on your account in order to maintain the position.

In case the position required margin is not maintained, position will close by margin call and you need to bear in mind that funds of withdrawals that were not approved yet, may be used to cover for the losses on your account.

- In addition, note that we have escalated your query to our Senior team for further inspection.

We will contact you once we have their answer regarding this issue, however, please note that this may take a few days.

We thank you for your patience and understanding.

If you require any further assistance, feel free to contact us.

Regards,
Jennifer
--------------------
Customer Support
Plus500UK Ltd


The complaints policy of plus500 gives them the option to answer up to 6 month! - when I told that I will go directly to FCA- this is the mail I got.


Jill, Mar 26, 12:47:
Hello,

We are sorry you feel that way.

We respect your right to approach the relevant channels.

Since an investment in CFDs carries a high degree of risk to the investor, you must be aware to the fact that your trading is not always profitable, and consider that once you invest a certain amount of money you may lose it as well as gain on it.

Please note that since you do not wish to comply with our policy, your account has been inactivated and you will not be able to trade with us no longer.

Best regards,
Jill
Customer Support
Plus500UK Ltd

My only recommendation- Read T&C carefully and be aware from dirty tricks

 

[Joa]

In my opinion, Plus500 is the best ever scam system, professionally set up and planned with years of lead times.

I am acutally looking for customers of Plus500 who suffered losses due to the strange and often outright fraudulent behavior of Plus500

Anyone with detailed proven information should contact me with a message here.
There are several interested party to possibly put a class action suit together and any information is helpful.

Joa

 

[Pharaoh]

Don't wait or threaten to file complaints with the FOS and FCA - just go ahead and do it.

 

[HS1]

Don't wait or threaten to file complaints with the FOS and FCA - just go ahead and do it.

Be sure I will

 

[Master Yoda]

Also invite Plus500 to join this thread

 

[VinhN]

Last week I tried to withdraw the money from plus500 it says the minimum is 1600,/ SEK.

Today I have 1750,- SEK and I tried to withdraw now it says the minimum is 1800,- SEK




IS THIS A JOKE PLUS500 ???

 

[Pharaoh]

VinhN, go ahead and open your own thread here in Scam Alerts and give some more details.

 

[Joa]

Plus500 is a scam and most likely an outright fraud

Contact me if you want some help since I have an open case number with the FCA already in other matters

Joa