RESOLVED - Plus500 Withdrawal Restriction

[cchan]

I have had experience trading Commodities and Futures in Singapore and was drawn to Plus500 due to the leverage. I had no problems whatsoever with my trading strategy at other platforms. Registration was simple and I verified my documents.

Subsequently, I made profits with a total balance in my account amounting SGD$73,187.34. Initial investment was SGD$10,000 with a SGD$330 bonus. My account was limited due to scalping activity and my withdrawals capped at the initial investment made. I have recently read about several such similar cases as I was worried about recovering my money.

Firstly, refunding me the initial cost still results in a loss for me due to exchange rates and charges incurred by third parties such as Skrill for the refund. Secondly, I took on a substantial amount of risk in order to achieve such a profit. As with every investment, the greater the risk, the higher the reward.

As such, I am requesting that the full amount be refunded back to me, including the profits I rightly deserve for taking on such a big risk.

Please advise me on what legal action can be take from here on. Thanks!

 

[Pharaoh]

Considering the amount of money at stake, you might want to not just complain to any and all regulators Plus500 is with, but also to hire a lawyer. GiambroneLaw.com says they have been going after several other forex brokers.

 

[cchan]

Hi Pharaoh,

Thanks for the reply. I have considered that option but am worried about the cost that will be incurred. I will go ahead and check it out though.

An update, I have sent over 20 emails to Plus500 updating them On the complaints I have made and the problems I am facing but with no reply at all. I tried submitting my credit card verification documents numerous times but each time they just cancel it.

It seems like they just want me to continue trading with that amount. But I will not continue any trading activities with dishonest brokers till the issue has been sorted out and resolved. Lastly, I have tried withdrawing any amount possible to reduce my exposure to their handling and realised I can only withdraw SGD$9,700. This is SGD$300 less than my initial sum. In order words, putting in a substantial amount, taking on enormous risk, being right and profitting will set be back SGD $500 ($300 + $200 for 2nd party merchant costs like skrill and exchange rate cost). Any honest trader will feel my pain as it seems that my profits is too much for them and if I had made less I possibly could have withdrawn the amount.

Given the option for legal action by Pharaoh, I will take action not just for the sake of getting back money that I have rightfully earned but also to protect investors from such dishonest companies who have been fiddling with my account without any notice to me whilst ignoring my emails. If need be I would push for Plus500 to not be able to operate with any Singapore clients. I don't think an incorporated company should continue to exist with such practices.

 

[Master Yoda]

Is there any terns against scalping with Plus500? or their claim was on arbitraging?

 

[cchan]

Their claim was on scalping and not on arbitrage.

 

[Master Yoda]

Their claim was on scalping and not on arbitrage.

ِAnd in Plus500 terms and conditions do they say anything about no scalping?

 

[Kerobokan]

ِAnd in Plus500 terms and conditions do they say anything about no scalping?

I'm sure it's Plus500 that use scalping as there go to excuse for cancelling the profits of any trader that makes money,isn't it?There's other threads stating scalping is anything under 2,3 or 5 minutes holding a position,depending on which account executive you speak with.
It makes you wonder how many of these same complaints the regulators will put up with before they take action,aren't they supposedly regulated by the FCA?I would think a complaint to them would be a starting point?

 

[Master Yoda]

I'm sure it's Plus500 that use scalping as there go to excuse for cancelling the profits of any trader that makes money,isn't it?There's other threads stating scalping is anything under 2,3 or 5 minutes holding a position,depending on which account executive you speak with.
It makes you wonder how many of these same complaints the regulators will put up with before they take action,aren't they supposedly regulated by the FCA?I would think a complaint to them would be a starting point?

Sure How to complain - Financial Conduct Authority

 

[cchan]

Yes, I had to go through the User Agreement. However, there comes debates about what scalping is and what scalping means, and then extensions of debates to how Plus500 has not defined scalping in their User Agreement.

On top of all that, I am in no way a trader that abuses the market in illegal dealings of any sort. I earn my money through legitimate ways, scalping or no scalping, every trade takes on substantial amounts of risk which commands it's equivalent rewards. Not only has Plus500 seemingly used such clauses to protect themselves from winning investors, their function is altogether dubious: no last names, no contact number, no direct email address etc. I trusted them based on the fact that they are incorporated in the UK and are regulated by substantial Institutions like CySEC and FCA. I have brought it up to the attention of the Singaporean authorities as well. If Plus500 chooses to be a company "floating in the air" though they are incorporated, it won't be as easy to hide as dummy sites made up for pure scamming purposes.

Nevertheless my update:

I have retrieved my I initial investment which has resulted in a loss due to third party costs such as Skrill and exchange rate differences. I have not received any compensation nor reward whatsoever for the stress, time, energy, effort and enormous risk that I took on. It seems that I have committed a substantial investment sum that involved great risk and effort just to be a losing winner. I have won the trades but I have lost money. The foundations of investment alone has been shaken, I should try losing trades and winning money then if this has what trading has come to (oh wait! That's exactly what Plus500 has found a way to do). Hell hath no fury like a woman's wrath.

Conclusively, I have contacted the FCA and lodged a complaint to CySEC as it seems the branch contacting me is from Cyprus. I have also got in touch with Giambrone lawyers as advised by Pharaoh.

 

[cchan]

Additionally, I would like the highlight Plus500's dubious activities and practices. For example, there seems to be no accountability to customers of what Plus500 does to their customers accounts. I don't believe this is appropriate behaviour for any broker. I have submitted my verification documents numerous times just to have the submission cancelled by Plus500. No explanation nor any attempt to contact me with a reason, just a straight up cancellation followed by a "Not Submitted" quote. I am supposed to verify my account as the customer but Plus500 obstructs the verification process and cancels my document submission without any explanation whatsoever. I frankly find their conduct unacceptable, how can you expect your customers to trust you with their money with such unruly practices.