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Is Plus500 a scam? What is Plus500 trying to cover up?
The UK licensed broker announced this Wednesday that they are adding a new organization to their list of sponsored teams. With a recent push in Sponsorship programs is Plus500 trying to make up for countless complaints? The online community sentiment is that Plus500 is scamming its clients. Is Plus500 a scam? We’ll answer that and other questions in this article.
The Sponsorship Deal
Beginning September 1st, 2020, Plus500 will be featured as the primary sponsor of Atlanta B.C. (Atalanta Bergamasca Calcio) making this their second sponsorship deal this year and bringing Plus500 to a total of 3 sponsored sports organizations. Atlanta B.C. is a professional football club based in Bergamo, Lombardy, Italy, an area that Plus500 hopes to expand its already large European following. The contract between the two organizations is for an in initial 3 year period and includes fantastic exposure for Plus500.
Plus500 Reputation Repair
Following the lead of other Israel based CFD brokers like EuropeFX and 24Option, Plus500 seeks to embed their name into the public by associating with popular entities. Already a well known online broker, Plus500 has been the target of large amounts of complaints regarding misconduct or “technical glitches” inside of their trading platform. Is this new surge in sponsor initiatives an effort to fight back against negative feedback?
Is Plus500 a scam?
Plus500 is authorized and regulated by the Financial Conduct Authority (FCA), the Cyrpus Securities and Exchange Commission (CySEC), the Australian Securities and Investments Commission (ASIC), the Israel Securities Authority (ISA) and the Monetary Authority of Singapore (MAS). A company that is regulated by these government watchdogs cannot be considered a scam.
However, due to large amounts of ongoing customer complaints, they should not be considered a trusted broker and we recommend that individuals avoid trading with them. To prove a Plus500 scam will require more investigative research and legal initiatives.
Increasing Concern about Plus500
Taking Heat Online
With social media platforms providing a new channel for people to voice their experiences and sentiment, Plus500 is no exception and has not been spared. There already exists a community of individuals particularly on Twitter that seek to strip Plus500 of their regulation. With efforts underway, alleged victims of Plus500 detail their experience losing money unfairly to the online broker.
Plus500 Class Action Lawsuit
A twitter user name “Plus5000.com Class Actions” has taken the initiative to recruit victims of Plus500. The user also states that there is an ongoing initiative to produce a television show called “Exposing Plus500 TV” and that interested parties should be in touch. In a post that both describes and recruits for the class action lawsuit the User also tags IronFX, a Cyprus based online broker plagued with a dark past of misconduct.
No Suspensions or Warnings on Plus500
To date Plus500 hasn’t been the subject of any significant regulatory warnings or suspensions. The question is, as company that’s been trading publicly since 2013, why hasn’t there been any movement? Or is everything kosher? We’ll explain that momentarily.
If Plus500 is up to no good, why hasn’t their been any movement so far?
A simple explanation as to why nothing has been done as of yet despite the plentiful allegations into Plus500’s misconduct is because unlike other Israel-based broker scams, Plus500 offers a platform which is completely automated. This means that for any foul play to be confirmed, the victim would have to be able to prove the misconduct using screen recording software in order for it to be admissible to a court or a regulatory body. While multiple victims have claimed that they have screenshot evidence, until now no accountability has been taken by the FCA or any of the regulators that oversee Plus500.
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Contact Us and let us know if you are looking to get your money back from Plus500.