The popular trading platform, Plus500 is facing a possible class action lawsuit over claims that it’s platform is rigged.
The firm behind the lawsuit is claiming that Plus500 is not placing trades in a timely manner and has built in a delay on purpose.
Plus500 attracts newbie traders
I don’t know if the allegations are true. I have heard of stories that Plus500 disables instruments at odd times and has had problems with reliability. But these claims are always hard to verify. One of the reasons why is many complaints against brokers are from new and inexperienced traders who lose their money. There are people who go into forex or CFD trading without realising they can lose more than they invest in a single trade.
Plus500 does appeal to newbie traders – it promotes a no deposit bonus which isn’t going to attract pro traders. But Plus500 does enforce a knowledge test for new traders to comply with Australian trading regulations.
It will be interesting to see if this lawsuit goes anywhere – it might be completely without merit and disappear or maybe it will uncover some flaws in the plus500 platform. It will certainly be interesting to see what happens.