Are you one of the thousands of customers that are angry over being mistreated by the staff at Plus500? Do you plan to stay with this CFD broker or would you rather look elsewhere for a new business partner? One bit of wisdom to remember is that when you encounter incompetence from a partner for the first time, then it is his fault; but, if you encounter incompetence for a second time, then it is your fault for not learning a lesson the first time around. The recent Plus500 fiasco may be a lesson in the making.
The bungling management team at Plus500 infuriated the Financial Conduct Authority (FCA), allowed thousands of accounts to be frozen due to their negligence, and then terrified their shareholders when $650 million of share value went up in smoke. One would expect such grievances to result in consequences too horrible to describe, but this errant squad of misfits was saved from punishment when Playtech submitted its takeover bid of $702 million. The only punishment that will apparently be meted out is a loss of independence, a reordering of priorities, and new scrutiny from an outside party. Shares and options may be cashed out for management, a reward for tanking the firm.
And what about you, the loyal Plus500 customer that was asked to be “patient”? Do you receive a thing from this merger deal? If your account is still frozen, then we guess that you have been given renewed hope. Unless the new folks at Playtech are totally brainless like their acquirees, then some type of incentive package might be offered to retain your allegiance. Corporate acquirers, however, tend to be very stingy, so we would suggest that you not hold your breath.
What about the commitment to remove the paperwork backlog and unfreeze accounts? According to Mor Weizer, chief executive officer of Playtech, “The recent regulatory scrutiny placed on Plus500 has highlighted it does not have the necessary infrastructure and expertise to support the complexity of the business at its size and rate of growth. We believe this can be remedied sooner rather than later.”
The clock is still ticking for the month that Plus500 management said they needed to “fix the problem”. As for Playtech, the merger still needs a number of approvals and will not be completed until September. Add on a several more months for reorganization analysis and a transition to a new operating structure, and you can assume that the merger will have little or no immediate impact on freeing up any frozen accounts.
Are you prepared to stay with the “new and improved” Plus500 business unit? If chaos exists now, then it will only get worse momentarily as staff jump ship and leave the current paperwork morass to the FCA and Playtech to sort out. And you ask yourself at this point, “Why in the world am I staying with this group of incompetents? What makes me think that they will suddenly become the best customer support crew around when they dropped the ball so badly on what could be termed routine documentation issues?”
The simple truth is that the choice is yours. You do not have to suffer while Plus500 is in disarray and its staff is more concerned about their future rather than yours. It is time to look for a new business partner in the Binary/CFD space. There are many binary brokers that have excelled as the industry grew from its beginnings in 2008. We have already reviewed many of these and determined which ones deserve your trust and patronage.
You can choose from the top of our list, where TopOption and CherryTrade reside. The former does not accept U.S. customers, but the latter does, and we suspect that Canadians are welcome, as well. The other binary brokers listed are also worthy of your consideration.
Your time is valuable, and you may have to wait months until Playtech and Plus500 get up to speed with their new organization. As these corporate big wigs sort out their issues and clean up their messes, we recommend that you have a look at these other brokers. What have you got to lose?