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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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I deposited £5k with a broker called Magnum Options, and

Customer Question

Hi, I deposited £5k with a broker called Magnum Options, and they placed some 'risk free' trades for me. However, they made me sign an agreement that I would have to trade 40 times the amount they give me (as a bonus) before I could get any money out. I lost 3 trades and they covered the loss via this bonus to the amount of £4k.
This means I need to trade £160k before being able to withdraw my £5k. I did not realise this at the time. I got a random call last week and a persistent account manager from the company persuaded me to add another £10k. The sent me another agreement to sign in terms of them giving me a bonus. It was then that I realised this clause and realised I had signed this clause previously too. I declined to sign. I need to know where I stand in terms of getting my money back please.
Submitted: 11 months ago.
Category: Law
Expert:  Ash replied 11 months ago.

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

When you said made you sign, was this online?
Alex

Customer: replied 11 months ago.
Hi Alex,They emailed a document for me to sign using the docusign tool. I needed to sign this before they would allow me to receive their advice on what to trade on.I signed this without noticing the x40 clause, meaning that any loss trades would be refunded to me by way of a bonus and the total bonus x 40 would be the total amount I'd need to trade before being able to withdraw any funds from the account.My lost trades ended up totalling £4K, which MO then refunded me. So for me to access my money I need to make trades to the value of £160k first.When they called me last week and persuaded me to add another £10k to the account, it was only then that I noticed the x40 condition since they were asking me to sign another similar agreement. If I had signed such an agreement then they would have given me a £9k bonus which would have resulted in me needing to trade to the value of £360k before being able to get access to the cash.I didn't sign this agreement so in essence I've declined their bonus offer, but at the same time I am now unable to access the original £5k I deposited nor the more recent £10k.
Expert:  Ash replied 11 months ago.

What jurisdiction are the terms and conditions according to the document?

Customer: replied 11 months ago.
Hi Alex,I assume this is UK?I attach the agreement that I signed.
Expert:  Ash replied 11 months ago.

It does not say but I will assume it is.

You need to write and set out your losses and request a refund within 14 days or say you will go to Court within 14 days. You should make sure you send this signed delivery and keep a copy.
If they do not refund you then you can issue proceedings in the County Court. You can either do this online at: www.moneyclaim.gov.uk or by completing form N1 http://s3-eu-west-1.amazonaws.com/hmctsformfinder/n1-eng.pdf and take it to your local County Court.
The Court will then issue a claim which a copy will be sent to the Defendant who will have a limited time to defend it, if not you can enter Judgment and enforce.
If the claim is for £10,000 or less it will be a small claim so you will not need legal representation. Over this value you would need representation for trial.
Can I clarify anything for you about this today please?

Customer: replied 11 months ago.
Hi Alex,As the claim is for £15k I'll need representation. How do I find the right type of lawyer to represent me?
Expert:  Ash replied 11 months ago.

You can go to:

http://solicitors.lawsociety.org.uk/

Does that clarify?