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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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Hi i depoisted with Banc de Binary a binary options company

Resolved Question:

Hi i depoisted with Banc de Binary a binary options company regulated in cyprus.

I deposited $2000
My bonus was $2540

Required turnover is 88300

I reached this turnover target and then i was told because i received refunds of no fault of my own, my actual target is 250,800 and every thing i been told in the past is incorrect from customer services and my account managers.

I find this very unfair, and my current balance is $26640 and they are offering me $9500 and for me to never speak to anyone about the matter, that is the settlement, if i dont accept i cannot withdraw and will need to reach the new target of $250,800.

Since i have reached my turnover target of 88300 and tried to withdraw, they have removed my cancellation button feature for no reason, this is usually removed if it is abused, however it was not abused and they have said it was done automatically but have not reinstated it.

I also started to notice very unusual behavior with the price of the asset i trade, i have this all documented evidence, and at 1 stage my account was 43k but because of the manipulation in price them trades was lost. They would have a 3 pip difference from the actual market price, which was the same price as their competitor 24 options and when the option had 10 minutes to expire, it would then update and become same price as 24 options. So if some one did not win the trade more than 3 pips, they would lose.

I told them about this issue, and they sorted it out and it was available for 1 week to trade but currently the whole asset has been removed.

The issue is not only the bonus, well yes that is the main issue but there are a string of problems after it
Submitted: 3 years ago.
Category: Law
Expert:  Ash replied 3 years ago.

Alex Watts :

Hello my name is XXXXX XXXXX I will help you with this. Please note that I am a working Solicitor and may be on and offline as I have to attend Court and meet with clients, even at weekends. As such you may not get an instant response when you reply as this is not an ‘on demand’ live service, but rest assured I will be giving your question my immediate attention upon return. There is no need to wait here, you will get an email when I reply.

Alex Watts :

I assume you want to get your money out of it please?

Customer:

yes

Customer:

only last week the regulator of that firm annouced

Customer:

The Cyprus Securities and Exchange Commission ('the Commission') wishes to inform the
Cyprus Investment Firms (the 'CIFs') the following:
1. It has been noted that CIFs grant trading benefits (e.g. bonuses) to their clients under certain
conditions. Sometimes these conditions are associated with the funds that clients deposit in
CIFs for trading. This practice is permitted provided that clients’ funds are free to withdraw
at all times and whenever the client wishes.
It has been observed, however, that the above does not always apply. There are cases
where the client, who has been granted a benefit, may withdraw his funds only when he
conducts trades whose total value reaches a specified, by the CIF, trading volume.
2. Any restrictions on the withdrawal of clients’ funds are not in compliance with the
provisions of the Investment Services and Activities and Regulated Markets Law, as in force
(“the Law”) and the Commission’s Directive DI144-2007-01 of 2012 for the authorisation and
operating conditions of CIFs (“the Directive”).
Furthermore, prompting clients to conduct trades with a view to achieving a specified
trading volume and then be entitled to withdraw their deposits are not accepted as fair and
good practice towards clients.
3. Specifically, all the above mentioned in point 2 seem to be not in accordance with the
provisions of:
i. Section 18(2)(j) of the Law which states that a CIF, when holding funds belonging to
clients must take every possible measure to safeguard clients’ rights.
ii. Section 36(1) of the Law which states that CIFs must act honestly, fairly and
professionally when providing investment services to their clients.
iii. Directive regarding the provisions for the safeguarding of clients’ funds.
4. CIFs that grant monetary benefits to their clients, must:
i. Provide accurate, clear and not misleading information, when advertising such a scheme.
ii. Describe in detail to their clients the way the scheme works, as well as its terms and
conditions.
iii. Always be able to separate the funds belonging to clients from the monetary benefit
granted to them.
iv. Monitor on a continuous basis and take all appropriate measures to always be able to
meet the terms of the scheme without affecting their capital adequacy.
Sincerely,
Demetra Kalogerou
Chairwoman of the Cyprus Securities and Exchange Commissio

Alex Watts :

Ok - and your contract is governed in Cyprus?

Customer:

yes , however when i joined the company they was not regulated, the regulation came last year

Alex Watts :

Ok - well its bad news from my point I am afraid.

Alex Watts :

Because the contract is governed in Cyprus, you can not sue in the UK

Alex Watts :

This is because you have agreed I assume to Cypriot law.

Alex Watts :

This means you can only sue in Cyprus and not the UK.

Alex Watts :

If you were to sue in the UK then any Judgment would not be recognised there

Customer:

The US sued them 300 million recently

Alex Watts :

In any event the small claims limit in the UK is £10,000 - anything more than this would be a 'fast track' trial.

Alex Watts :

Ok - well you would need to instruct a lawyer in Cyprus to sue for you.

Customer:

becuase they were offering binary services to US customers

Alex Watts :

If the system works as it does in the UK then you need to issue proceedings.

Alex Watts :

Yes but the UK government has not sued

Alex Watts :

In any event you are a personal customer and would need to sue under contract

Alex Watts :

This means you need to hire a lawyer in Cyprus and issue proceedings in Cyprus

Customer:

thats fine, but from what i have told you

Customer:

do i have a case

Alex Watts :

You would of course have to pay legal fees for this, but if you win a Judge could award you costs.

Alex Watts :

But from what you have said, if they have changed their requirement and made it higher, then yes you sound like you do have a claim

Alex Watts :

Can I clarify anything for you about this today please?

Customer:

i have signed a contract agreeing to what they have said

Alex Watts :

Yes of course and that certainly helps

Customer:

however they added the turnover later on

Customer:

because they had my signature saying the can

Customer:

but i did not authroise refunds on that basis

Alex Watts :

Yes of course and they can NOT add this later.

Alex Watts :

All contract terms must be agreed in advance.

Customer:

tecnically i have signed to say if i get a trade refund my bonus turnover will increase

Alex Watts :

Yes.

Alex Watts :

Can I clarify anything for you about this today please?

Customer:

the only problem is, the customer service reps and account managers said it wont

Customer:

and gave me a less figure

Alex Watts :

I see, but I think you have a claim based on what they have said.

Alex Watts :

They changed the rules - not you

Customer:

ok

Alex Watts :

Can I clarify anything for you?

Customer:

i was hoping for some legal advice where i can have a written letter

Customer:

to sue them, and may be they can give my money back to me

Alex Watts :

This is a question and answer site. We can not do work for you or be instructed.

Alex Watts :

We can only answer questions for you.

Alex Watts :

If you want to draft a letter I can look at it and tell you what I think

Customer:

ofcourse but im still unsure

Customer:

thanks anyway

Alex Watts :

Can I clarify anything else for you?

Alex Watts :

You have rated poor service?

Alex Watts :

But I can only give you the legal answers in accordance with the question and answer site.

Alex Watts :

I can not do work for you - this information is typed clearly on the site and disclaimer to the left of this text chat

Alex Watts :

Can I help you with anything else?

Customer:

im still confused and im not sure if you fully understood my problem.

Alex Watts :

Yes I did.

Alex Watts :

You deposited $2000 and you had a bonus of $2540

Alex Watts :

You needed to turn over $88,300

Alex Watts :

They changed that to $250,800

Alex Watts :

Your current balance is $26,640 and you want to withdraw it.

Alex Watts :

Have I understood?

Customer:

yeah but they are saying its never changed its always 250,800

Customer:

because i signed a contract saying if i take a trade refund then they can increase it

Customer:

only problem is, they never told me this until i reached 88300 and then they said well you got some more left yet

Customer:

they have a office in london not sure what they do there

Customer:

not a registered addrss

Customer:

i only thing i got a claim becuase of what customer service and my account managers told me

Customer:

but can a email be a binding contract

Customer:

or what i have signed is still more powerful

Alex Watts :

Yes they are CHANGING the rules

Alex Watts :

They can not do this part way through

Alex Watts :

They have to set out the position at the very start

Alex Watts :

They can not just simply change it part of the way through - that just is not right.

Customer:

but they said to me, they have a contract i signed and its never been changed, that was always the agreement

Customer:

and the customer service and account managers gave me wrong information

Alex Watts :

Yes but they can't tell you $88k one day and change it to $250k the next day

Customer:

well when i said that to them

Alex Watts :

Indeed.

Alex Watts :

If they do then THEY are in breach of contract and/or negligent

Customer:

he said, because i tried to withdraw and when he did the checks, that when he could tell me

Alex Watts :

And that is the basis of any claim

Alex Watts :

Did you actually complete the withdraw?

Customer:

but, i did try withdrawing 2 times before and they just cancelled it

Customer:

nope the withdrawal was cancelled

Customer:

i put in a request

Customer:

and they apprently do checks, and that is when they added the 250,800

Customer:

but i then told him, that i tried twice before

Customer:

and no one told me about the 250,800 then

Alex Watts :

Then they can't just impose an increased limit on you

Alex Watts :

You didnt withdraw

Alex Watts :

Therefore they can't just say - well actually we are going to put it to $x

Alex Watts :

This is why though you would need to issue proceedings in Cyprus

Alex Watts :

Because the contract you have

Customer:

when a company is sued, would it be sued for a lot more than what they own me

Alex Watts :

You can not issue proceedings in theUK

Alex Watts :

I do not know how much lawyers in Cyprus cost.

Alex Watts :

But if it was the UK and the matter went to trial it would be about £10,000

Customer:

wont it be easier to just complain to their reguator

Alex Watts :

But in the UK if you win, you also get costs back too

Alex Watts :

You can also try that - but that process will be very slow.

Customer:

ok if i accept the 9500

Alex Watts :

Yes.

Alex Watts :

I am a lawyer I can only say what the legal options are

Alex Watts :

If someone owes you money you can accept a lesser sum or sue for the full amount

Customer:

with the terms of not taking any legal action or complaining to the regulator in cyrpus

Alex Watts :

Yes you could do that.

Alex Watts :

But of course I would push for 50% of what you are owed

Customer:

can i still legally sue them

Alex Watts :

No

Alex Watts :

Any payment would be in full and final settlement

Alex Watts :

You can not take payment and then try and sue after - any claim would fail.

Customer:

but im in financialy difficulty and taking some money right now would be helpful then waiting for my money for years or months

Alex Watts :

Yes of course.

Alex Watts :

Its a personal decision

Alex Watts :

Accept a lower sum now, o

Alex Watts :

or

Alex Watts :

Try for a higher sum with a risk of litigation

Customer:

ive tried to negotiate to 18k

Alex Watts :

Ok - I think 50% is more realistic.

Customer:

but i think a letter from a lawyer could persuade them

Customer:

do i need a finance lawywer

Alex Watts :

Yes. But you would need a Cypriot lawyer to do that.

Customer:

well not really i have evidence on them about manipulating the price of the asset

Customer:

to make me lose

Alex Watts :

ok

Customer:

my account was 43k

Alex Watts :

I see

Customer:

i lost money because of them

Alex Watts :

Yes

Customer:

and they do not want me to show that to anyone

Alex Watts :

I can see that

Customer:

i should have more bargaining power

Customer:

but they not taking me serious

Customer:

as there is no lawyer

Alex Watts :

The problem is they know you are in the UK

Alex Watts :

They know you would have to instruct one in Cyprus

Alex Watts :

And you may still have to, to get a letter written

Alex Watts :

I would recommend you spend the money and get a Cyprus lawyer to write to them

Alex Watts :

See if you can not get the offer increased

Alex Watts :

Can I clarify anything else for you today?

Customer:

ive told the mail on sunday

Customer:

his a financial writer

Customer:

who exposes finance companies

Customer:

his willinging to talk to them for me

Alex Watts :

Well get your own settlement done first and paid.

Alex Watts :

Then worry about what to do with them after.

Alex Watts :

Can I help with anything else?

Customer:

but once i get paid, i cant do anything with them

Customer:

as that was the agreement

Customer:

im trying to get help from media, to get them to give me my money

Alex Watts :

You wont - but be happy you came out with more money than you put in

Alex Watts :

Look after yourself for the moment

Alex Watts :

Can I help with anything else?

Customer:

hmm ok thanks

Alex Watts :

If this answers your question could I invite you leave feedback on my service which I hope has been excellent today, if you need more information or help then please click reply.


Please remember that I am always happy to help if you have future questions, even if I am in Court I can normally respond within a few hours. For future information, please start them with ‘For Alex W’.


 


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Alex Watts :

Please be kind enough to re-consider your feedback before you go today

Alex Watts :

Hopefully I have helped you by explaining the legal situation and what you can or can not do

Ash and 2 other Law Specialists are ready to help you