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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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Hello ... Recently I was encouraged to start binary trading

Resolved Question:

Hello ... Recently I was encouraged to start binary trading with a company called EZ Trader ... I currently have £11,700 invested with them ... The detail I will get to with another message but the bot***** *****ne is that this company had it's License Suspended by CySEC - it's Regulating Body on the 20/11/14 ... I started with them on the 22/11/14 ...
CySEC then lifted the Suspension on 23/12/14 ... this happens to be the last day I actually did any trades with them ...
My first question is - because of the above - Are they breaking the Law - in my case ...???
Again I will get to ALL the detail but I have asked for Withdrawals of £5000 and later of £8000 of my OWN money - Not of any Profits ...! They have blocked Withdrawals using the excuse of their Bonus Scheme - Which I find bogus and dishonest ... And my Account Manager has repeatedly lied to me about the safe return of MY OWN funds - I have checked them out pretty thoroughly online - they DO NOT have a good reputation in the Binary Trading Market - even tho they were - apparently - One of the first ...
At the very least - I want my money back ...
At most I want my money back WITH the pretty small Profits I and my Account Manager EARNED using MY MONEY ...
At best - Can I expect more from this ???
They have done me and many others a serious dis service ...
Dave Ramsay Smith
Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.
Alex Watts :

Hello my name is ***** ***** I will help you with this.

Alex Watts :

For now please let me know what country their disputes are governed by? It should be in their terms.

Customer:

Cyprus ... Many of this type of Trading Company are based & regulated there ...

Alex Watts :

Thanks. Potentially you need to issue proceedings in Cyprus. Does the agreement say disputes must be litigated there?

Customer:

If there is a complaint - the first port of call should be the Regulator ... I have downloaded the Suspension Documents from CySEC - Shall I attach them ???

Customer:

I wish to tread carefully - But I have read that if threatened with a complaint to CySEC they have refunded a clients money ... Tho whether or not he got his Profits - I don't know ...

Alex Watts :

Oh I see.

Customer:

I can't see where to attach documents ... I will copy them in to you here ...

Alex Watts :

But even they are based in Cyprus - so the situation is still the same

Alex Watts :

Does the agreement state disputes to be litigated in Cyprus?

Customer:
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ΑNNOUNCEMENT

The Cyprus Securities and Exchange Commission announces that the authorisation of the Cyprus Investment Firm ‘WGM Services Ltd’, number 203/13, is suspended, pursuant to section 26(2) of the Investment Services and Activities and Regulated Markets Law (‘the Law’), due to suspicions of alleged violations of:




  1. Section 18(2)(ι), ‘Operational requirements – Clients’ funds’, of the Law and Part VI, ‘Safeguarding of clients’ funds,’ of the Directive DI144-2007-01 of 2012.




  2. Section 67, ‘Own Funds’, of the Law and the Directive DI144-2007-05 of 2012 on the capital adequacy of investment firms.




  3. Section 69, ‘CIFs large exposures’, of the Law and paragraph 8, Part ΙΙΙ of the Directive DI144-2007-06 for CIFs of 2012 on large exposures.




The above decision was reached taking into serious consideration that the above alleged violations may possibly endanger the interests of the clients of WGM Services Ltd and the operation of the capital market.

Within fifteen (15) days WGM Services Ltd has to take actions in order to comply with the above.

While the suspension of the authorisation is in force, WGM Services Ltd:




  1. Cannot provide/perform any investment services/activities, pursuant to section 26(5) of the Law.




  2. Must close all open positions in relation to clients’ contracts, if a client so wishes, and return to them all their funds and profits earned – a practice which is not considered to be a violation of the provisions of section 26(5) of the Law.




Nicosia, November 20, 2014




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Customer:

Which agreement are you talking about ???

Alex Watts :

Your agreement with EZ Trader

Customer:

Yes ... I am checking ... So far this is all I can see ...

Customer:

EZTrader.eu is a fully regulated binary options broker, authorized by CySec to fully operate across all member nations of the European Union.

Being authorized by CySec means EZTrader was required to hold 1,000,000 Euros in capital, thus fully securing its traders' funds.


Click here if you wish to learn more about our CySec authorization.


For Regulatory reasons and In order to comply with CySec regulations, our traders are required to answer the following questions, and also to provide some identification measures, as described hereinafter:

Customer:

Wait ... I am looking again ...

Alex Watts :

Disputes or jurisdiction

Customer:

This is EZ Trader's Complaint Policy ...

Customer:





EZTrader Complaint Policy

WGM Services Limited and its trading platform Eztrader.com, is a financial services company incorporated and registered under the laws of the Republic of Cyprus, having been granted a license from the Cyprus Securities and Exchange Commission hereinafter called “CySEC” (license No. 203/13). The Client Complaints Procedure Notice (“The Notice”) is issued under Law 144(I)/2007 (The Cyprus Investment Services and Activities and Regulated Markets Law of 2007), and the European Parliament Markets in Financial Instrument Directive (“MiFID”).

WGM Services Ltd maintains effective and transparent procedures for reasonable and prompt complaint handling for existing and potential retail clients, and we keep records of complaints and measures taken for complaint resolution. The purpose of this procedure is to ensure fair and consistent dealing with client complaints whilst striving to provide the highest level of customer service.

In the event that you have a complaint relating to any of your dealings with WGM Services (EZTrader.com), then the following complaints procedure, as set out below, should be followed:



  1. You should address your complaint via email to *****@******.***. The email should contain your name, your trading account number and the nature of the complaint. Anonymous complaints will not be treated.

  2. Upon official receipt of a legitimate client complaint, written acknowledgment is sent to the client within five (5) business days from the date the complaint was made, confirming that WGM Services Ltd is taking action to resolve the complaint, and advising the approximate time required to do this.

  3. The sales/ retention department informs all relevant persons within WGM Services Ltd about the complaint and then any required actions are taken by the head of the relevant department involved which can lead to resolving the complaint.

  4. WGM Services Ltd will send a final written response to the client within three (3) months from the date it is received via email. In case a client complaint is not settled within a three (3) month period, WGM Services Ltd will still send a written response informing the client about the status of their complaint.







Customer:

The thing is ... At this point today ... I am not looking for a court case ... I just want to 'scare' em into making me a decent offer ... Or at the LEAST ... My money back ...

Customer:

What is your initial advice please ...???!

Alex Watts :

Ok.

Alex Watts :

Right first you should write and ask for your money back or say you will go to the Regulator.

Alex Watts :

Ask for it within 14 days and say it is based on their false trading and suspension

Alex Watts :

Say you want an offer or say you will take it further

Alex Watts :

If they refuse then you have 2 choices

Alex Watts :

1) Take it to Court

Alex Watts :

2) Complain to the Regulator

Alex Watts :

It may help getting a letter from a Solicitor asking for an offer as it may carry more weight.

Alex Watts :

Clearly there will be a cost to this but you may get an enhanced offer

Alex Watts :

There is always a risk of course they do not make ann offer and you either have to go to the Regulator or take the matter to Court

Customer:

Have they BROKEN THE LAW by continuing trading whilst under suspension from CySEC ...???

Customer:

Thanks ... Btw ...!

Alex Watts :

Yes they have

Customer:

Can I quote you as saying they have ... Please ???!

Alex Watts :

Of course.

Alex Watts :

They have breached the CySEC Regulations

Alex Watts :

Otherwise what would be the point of being suspended?! None

Customer:

Many thanks ... I will get back to you on this ...

Customer:

Have a nice lunch !

Alex Watts :

Thanks and you.

Alex Watts :

can I clarify anything else for you?

Customer:

Maybe later ... I am gonna go and print off the CySEC documents ...

Alex Watts :

Sure. If I could ask you to rate my answer before you go today - the button should be at the bottom of the screen

Alex Watts :

The question remains open (despite the site giving a different impression) and you can come back to it at any time

Alex Watts :

If you need more help please click repl

Alex Watts :

* reply *

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