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Monday, May 16, 2011

Plus500 scam? Real review focused on their cons!

Recently, I tried trading with Plus500
I researched Plus500 & was shocked to find so many bad reviews, to the extent of me myself being convinced that they're a scam
I'm a strong skeptic...
But I know that there are always 2 sides to a story, so I decided to "attack" them myself...


This is a copy of an e-mail I sent them:

Hi, I have some questions...

1. May I have a list of countries not eligible for the no deposit bonus & why? Looks like discrimination...
I can't find it anywhere on your site
There are a lot of bad publicity on the web for your company just because of this

2. Does the no deposit bonus have an expiration date? If so, how long & where was it stated?
Cos I read every single word at http://www.plus500.com/Promotions/Bonus.aspx/?id=22865&pl=2 & searched your site but found nothing
But when I searched the web, someone mentioned u cancelled the bonus, saying the bonus expired after 1 month, so i'm confused...

3. Through reviews, I noticed u find lots of reasons & excuses to close people's accounts only when they want to withdraw
Thus, many people complained about your withdrawal problems
Some even claimed u refused to give them a reason for closing their accounts...
1 of them even have proof of manipulation: http://i51.tinypic.com/m73zet.jpg
Can u explain that plz?

4. Can u show me where it states no scalping?
Cos I couldn't find any scalping rules anywhere in your User Agreement
But again, some customers complained u closed their accounts due to scalping
If scalping is prohibited, how long do i need to keep a position open so it doesn't count as scalping?
I think I did scalp once or twice I'm not sure
Can u plz check & tell me if i did?
If I did, does that mean u'll void my orders, and/or issue a warning?
Or do u just wait until I issue a withdrawal, then only u close my whole account?
Legally robbing me, wasting my time & money...



Their reply:

1. Countries that are not eligible for this bonus are countries from South America and Eastern Europe.
We have nothing against South Americans nor Eastern Europeans, it is just that by experience we found that bonus abuse is common in these countries and decided to not offer the free bonus there. If this ceases to be a problem, of course we will offer bonuses in as many countries as possible as it attract customers. But currently, we found that customers from these countries usually open many accounts in trying to fulfill the bonus conditions by receiving it repeatedly. It has nothing to do with discrimination, it is similar to the fact for example that most online companies will not accept credit cards from Indonesia. Although they would have loved to get customers from such countries and increase their client base but the risk management in these countries is lacking.

2. The expiration time is 90 days. For most traders I think this is quite reasonable. The only affected would be people who got the bonus, didn't trade for over 3 months, then came back. We have to remove these bonuses eventually as it is a financial liability of the company however If a trader fulfills the bonus conditions, it doesn't expire. It only expires if a trader didn't fulfill the bonus conditions.
As for the bonus expiration not stated, we thought 3 months is a long period of time and that no customer would even realize there is an expiration time as usually one can fulfill the bonus terms in a handful of days.

3. The most common reason that we close someone's account is due to opening multiple accounts and receiving the no-deposit bonus repeatedly. In the bonus we state that it cannot be received more than once for the same machine and household, however we found that a lot of people try to receive the bonus multiple times and then when we don't approve their withdrawal, they post in forums. Another reason could be that we don't approve the withdrawal as they didn't accumulate enough Trader Points, to release a bonus, i.e. to be able to withdraw it, you need to collect a set amount of Trader Points (TPs). Each time you open a position, you collect TPs. You can view how many TPs you collected by clicking on “Funds Management” and then “Bonus Account”. When the bonus condition has been fulfilled, you can withdraw the bonus. From our experience, a lot of people receive the bonus and after opening only a couple of positions try to withdraw the bonus. we of course cannot approve this withdrawal.

As for that proof of manipulation you sent, there could be delays between both platforms, also, we sometimes receive up to 10 price updates per second per instrument  - it is impossible to display all these updates and usually we update the price just once per second so you could see a small price difference between 2 platforms. We developed the software in-house, we provide a Windows version, a web version, an iPhone and iPad version, and soon an Android version. We put all this effort into customer support, marketing, etc, we have been authorized and are regulated by the FSA, the strictest regulator in the EU, and would risk all of this to manipulate prices to earn a penny? It simply makes no sense at all. But people can post whatever you like, if you search for PayPal scam you'll also get many results, it doesn't mean it's true.

4.In the User Agreement:
24.1.7       you will not enter into any Transaction for the purposes of arbitrage, scalping or to exploit any temporal and/or minor inaccuracy in any rate or price offered on the Trading Platform;
Scalping is a position that is usually left open for less than 2 minutes. We would not close someone's account for opening a few short term positions, this would be only for users who's large majority of positions fall into this category, and I do mean by a large majority. If most of your positions were for the purpose of scalping, yes, we would void these positions.

I hope this helps,

Sincerely,

Brian
Customer Support Representative
Plus500.com



My bad i couldn't find the scalping rules, read through it at 3am...
But still, they should've included their limitations on scalping as different companies have different time limits


So far, they have provided reasonable explanations as to why there are so many "Plus500 scam" reviews out there

Also, if u neglect to read their User Agreement, plz don't complain Plus500 scam all over the net when they void your profits or close your account if u scalp, use ea, robots, or auto data entry etc
Don't create multiple accounts or try to cheat using proxy etc, they know how to catch these cheaters & already caught those who tried to cheat


Yes I'm their affiliate but that doesn't mean this Plus500 review is fake nor does it mean I'm safe from their scam if they really do as I'm their trader as well
I'm just trying to protect myself & others
I wanna be straightforward & inform u & myself of all their pros & cons beforehand

This Plus500 review is strictly a real e-mail interview for others to decide if they should trust this company or not

Sorry if it's too long but I want to cover as much details as possible
Anymore questions u can ask me & I'll email them directly, I also wanna make sure I'm safe   

Updates: It's over a year now & Plus500 has reached over 1 million traders
If "Plus500 scam" is true, those other 1 million would start complaining & filing lawsuits & they would most probably be shut down by now
I also don't think they would dare try scamming a few people just to lose more than a million clients
Click here for more info

Bottomline: Plus500 is not scam & will probably never even try to scam because they already have more than a million traders
You wouldn't dare risk scamming a few people just to destroy your company with a million clients, would u?
Plus500
New Updates: (Extras)  
I wasn't happy with the 1st deposit bonus having a 3months expiration date, so I emailed Plus500 support
Their solution: Contact them to renew

This is a copy of the email:
3 months for no deposit bonus (60 TP)
3 months for max 1st deposit bonus (10,000 TP) too?
Can u remove the expiration date for depositers?
Or are u purposely just making it hard for huge depositers to unlock the bonus?
At least treat your clients who deposits better?
Especially those who wants to deposit a lot
I was thinking of getting max bonus by depositing a lot, I was even unsure if I could complete so many TP, but now it even has an expiration date...
Very discouraging, I don't think I'll be depositing...
I'm sure many people think that too, that's more reason to hold us back from depositing

Hello,
Thank you for contacting us.
The first deposit bonus does expire after 3 months but unlike the no deposit bonus it can be renewed if the client contacts us.
If you require any further assistance, feel free to contact us.
Regards
Chloe
Customer Support
Plus500UK Ltd

So the 1st deposit bonus will not expire as long as you contact them
& u can also withdraw your deposit + profits anytime, without the bonus even if u haven't completed the Trader Points needed (This was answered in another email:
The bonus is added to your bonus account and you are unable to use it until you have gained enough trader points to release it.
You may withdraw any funds you have deposited and any profits you have made any time you wish to.)


In the 1st email, they mentioned that bonuses not used for a long period of time are a financial liability
So I guess that's why they can't just remove the expiration date and require us to contact them to renew it
It's not stated anywhere for now so if they don't allow you to renew, just show them this page
I can even provide email proof if needed


29 comments:

  1. Anonymous23:09

    Open the following link : http://www.ifsc.gov.bz/notices.html
    Press: Ctrl+f
    Surch for: plus 500m . and you will find out

    ReplyDelete
  2. Yes I'm aware of that but that's outdated news...

    Plus500UK Limited is authorised and regulated by the Financial Services Authority, FSA Register No.509909, to carry on business across the European Union and elsewhere.
    Plus500UK Limited is a company registered in England and Wales (Company No 07024970) specialising in Contracts for Difference (CFDs) in commodities, shares, currencies and indices.

    That's just a warning before they registered
    They registered on 29/06/2010, almost a year ago...

    ReplyDelete
  3. Anonymous17:01

    Have you tried to withdraw any of your money before and was that an easy and successful one?

    ReplyDelete
  4. Unfortunately no, I just discovered this company
    I'm still a newbie in Forex

    I'm gonna be honest here...

    I doubled the free bonus in a few days but lost it all cos I was too stubborn to admit loss even when the trend keeps going against me

    So my advice is, always put a stop-loss, limit your losses

    But at least I didn't have to pay for my loss
    U have nothing to lose & every pip to gain

    ReplyDelete
  5. Anonymous23:27

    Lets suppose I make several trades in the first 3 months after receiving the bonus, but they are not enough to complete 60 bonus points.
    Will I lose the bonus under these circumstances?

    I find it kind of difficult to earn bonus points, since I cannot open more than one trade (not enough funds), and I usually keep a trade open for a few days.

    ReplyDelete
    Replies
    1. The $25 bonus is not really a decent amount to start trading with
      It's just complimentary & it's totally free, so u can't really complain
      You can add your own money to earn money & trader points faster
      Not to mention they also have 1st deposit bonus up to $10,000 for you to get more money

      Delete
  6. Anonymous20:17

    Hi r u saying that users can only trade from 1place ie home or work only?
    What happen if I trade with my IPhone using wifi from other places all the time?

    ReplyDelete
    Replies
    1. This is their answer: The bonus is limited to only one account per household (one account or one household will be determined on the basis of one, all, or any combination of the following: name, phone number, mailing address, e-mail address, IP address, name on credit/charge card, credit/charge card number, and any other form of identification which may be required).
      You can trade in your account from different locations, but can't open more then one account and receive the bonus.

      Guess they loosened the rules, so u can trade from anywhere now

      Delete
  7. Anonymous20:55

    Hello! I have problem with Plus500. They blocked my account and stolen all my deposit. What can I should to do? Is any organization which solve this problem? HELP PLEASE!!

    ReplyDelete
    Replies
    1. Make sure u didn't break any rules, read their user agreement, ask them for a valid reason
      If u're not guilty of anything, u can follow the steps here:
      http://www.fsa.gov.uk/pages/consumerinformation/if_things_go_wrong/who_to_complain_to_1-2-3/index.shtml

      Delete
  8. Anonymous04:22

    does anyone know who is standing behind this company? isn't it a smart guy from Poland (who screwed his own company and partners in IE and UK back in 2010 and moved to USA to create a 'FOREX-like fortune....' another bubble)? Be aware! this might be the same guy, using fancy online platforms, of course registered business etc. but he is cold chanser and money addicted gambeler! He may lose all your money in one day and vanish! check it out before go to far!

    ReplyDelete
    Replies
    1. Do u have any name for that guy?
      Are u sure it's the same person?
      Does he even exist?
      Sorry, it's hard for me to believe without any proof
      Even so, this should give us a peace of mind
      http://www.plus500.co.uk/Help/ClientMoneyProtection.aspx/?id=22865&pl=2
      They can't use client's money for their own purposes

      Delete
    2. Update: Also, Plus500 is founded in 2008, way before 2010
      http://www.plus500.com/Help/AboutUs.aspx/?id=22865&pl=2
      So it's most probably not the same guy

      Delete
  9. Anonymous05:02

    i manage to put 0 next to te bonu (i have 260 eur now) i withdraw 160eur but my request is still pending so will see what will happen.

    ReplyDelete
    Replies
    1. good to hear, post here if u have any problems

      Delete
  10. Anonymous00:32

    they are ignoring e-mails if you need to get your money back

    this is their phone number
    Plus500 phone 02077549177
    from outside uk +442077549177 (main switchboard)

    ReplyDelete
    Replies
    1. All my emails were answered in less than a few days
      Google shows "02077549177" is for The Syllabus Agency, not Plus500
      "442077549177" is not listed anywhere except in 2 comments I'm assuming are yours
      Make sure u have their right email address too (support@Plus500.com)

      Delete
    2. This is from their website: Plus500’s policy is to communicate with customers by email only.
      Should you receive an unsolicited telephone call purporting to come from Plus500, it will not have been made by Plus500 or its staff.

      Delete
  11. Anonymous00:08

    year 2008 I was addicted to forex with plus500. had a few good trades and than the major meltdown. I was playing bold by not using stop-loss, so lost it all.
    Any how wanted to add $100.00 and some how managed to charge $10,000.00 from my Credit Card. Realizing my mistake I E-mailed them and got a reply. Took about 5 days to get my money back which was not bad. But I did get all my money back.
    How ever i never withdrew any funds which i made by trading with them so i can't attest to that, But i can trust them any day.
    If you have any questions about this statement = aliz15@yahoo.com

    ReplyDelete
    Replies
    1. glad to know u didn't have any problems with them

      Delete
  12. Anonymous03:43

    Bottom Line ... is Plus500 Scam ??

    ReplyDelete
    Replies
    1. No they're not,they have reasonable answers as to why certain people were unable to withdraw
      & according to my research, those are the majority who complains & accuse them of scam, which are not true

      Delete
  13. Plus500 is registered by the FSA in UK. DO not blame them. Do your research and be patient. If you are new to trading you will make some mistake-you learn along the way. I read their answers and they are reasonable so don't be picky just because they did not answer your question about scalping.

    ReplyDelete
    Replies
    1. I don't blame them, just highly skeptical of them, or anyone for that matter
      as we know, there are many scams on the internet, it's important to be extra cautious

      Delete
  14. Anonymous06:09

    All the answers given by this guy, Brian, from Plus500 support are a crap.

    The manipulation with prices does exist, and they recognize this. When I asked them, why their prices for indexes and oil are SO different from the real prices( I have a source of up-tick streaming prices, and I let them know it), they answered that they hedge their quotations against risks, and - take it or leave it.

    Then all of a sudden my bonus was cancelled. Without any expanations, of course. I did not mind; after all, it´s their money. But in my opinion, they could´ve at least informed the clients that their bonus will be cancelled.And i did not open any multiple accounts to get the bonus.

    The story about the Trader Points is a lie. During trading on Plus500, I´ve made over 600 transactions, but not a single TP was stated on my "bonus account".

    But the biggest problem was to make the withdrawl. First, they demanded the copy of my passport. Then there appeared the demand to send them the copy of my credit card and bank statement, because "our regulator requests this". So, a regulator did not request this when I made the deposit - via credit card, by the way; but when I want to withdraw my own money, not the bonus - the regulator wakes up and becomes very strict and demanding. And until now, I have not gotten a cent.

    Sorry guys, but I am done with Plus500. Maybe they are not a total fake, but very close to it.

    ReplyDelete
  15. Prices are always different with different brokers, I tried Etoro & it has a 3 pips difference! Very hard to make a profit...
    Plus500, 2 pips.
    A broker with less pips are more profitable to traders
    Surely u can't expect 2pips & 3pips to have the same exact price
    Of course, that's for EUR/USD only, different currencies are not the same

    Gold & oil etc have much higher volatility, their prices tend to fluctuate a lot, that's why there's a bigger difference
    If u're still questioning their methods, take it up with FSA, ask them if it is allowed

    U should ask them for the reason it was cancelled
    Even if it's not your money, it's your right to know, as a customer

    Even after losing the free bonus, I still had some Trader Points
    I think it has something to do with why they cancelled your bonus
    Maybe u broke a rule, scalped or used robots/auto data entry etc,
    that's why Trader Points weren't counted & your bonus got cancelled

    It is common practice for Forex brokers to ask for verification documents
    For the purpose of complying with Anti-Money laundering laws
    They're just following the rules

    ReplyDelete
  16. Anonymous13:11

    Ahaa, its good discussion about this paragraph
    at this place at this blog, I have read all that, so now me also commenting here.
    Also visit my blog : Get Money From Internet

    ReplyDelete
  17. Anonymous05:40

    What documents do u need to use to withdraw money?

    ReplyDelete
    Replies
    1. Blog owner here, using my Google account
      Most common documents needed are copy of Identity Card & copy of recent bill (to cross-check name & address in it)
      They may also request any other form of identification
      Copy of credit card & bank statement to prove that you're the owner of the credit card/bank account
      You can put "Sample for Plus500 only" on your documents but make sure words/face are clear & visible, don't edit the documents
      Many financial sites & even PayPal requires verification documents
      It's quite common when money is involved on the internet
      Not only to prevent identity fraud but also to protect your money
      Nobody else except you will be able to withdraw your money since they can't provide the documents
      Think of it as a lock, it's troublesome but you still lock your doors anyway, to protect yourself
      It's purposely created to be troublesome or almost impossible for intruders/hackers & actually protects you/your money
      If you have the keys/documents, it shouldn't be a problem

      Delete