24Option is a SCAM Broker? Not Your Usual Review!
24Option is a SCAM Broker? Not Your Usual Review!September 29, 2016
24Option is one of the oldest and most respected regulated binary options brokers managed by Rodeler Ltd. which is the Cyprus-based holdings company. Their Address is: Samos Business Center 2nd floor 67 Spyrou Kyprianou Street Potamos Yermasoyia, Limassol and they were established at 2009 .
If you have heard 24Option is a SCAM and are looking for a legit and impartial review, you have found it. This will not be the usual review which is designed to promote a certain broker in order to receive commissions for referred clients. We will examine 24option through a prism, meaning we will look at the various factors which enable a broker to operate and provide service, and based on these factors try to reach the proper conclusions. We have done this because at the end of the day, all brokers offer Forex currency pairs, stocks, indices, and commodities on the asset index, but day traders or potential customers (that’s you) search for a broker like 24Option to find out if they are reliable, honest, regulated, professional, and payout promptly. In today’s saturated binary options niche, educated traders understand the gambling element and the high level of risk, but what they are less informed about is how an operation is managed and how to receive the best possible benefits while maintaining a VIP status.
A Bit of Background
24Option has been around for a long time and has actually sponsored European Football clubs like Juventus, and advertises in Bloomberg and CNN Finance from time to time. They even hired retired Tennis player Boris Becker to be their spokesperson, however these are all irrelevant when it comes to trading, and the only things that should interest you are what kind of benefits you qualify to receive, do they make it hard to cash out, and are there any constraints or guidelines that have to be followed in order to collect winnings.
On a positive note, below you will see the website of Rodeler LTD, which is the 24option holdings company. You can see that they also own Grand Option, 24FX, and QuickOption. It’s refreshing to see they have solid protocols set in place for traders who wish to complain, however you must understand that this in no way guarantees your grievance shall be met with a positive response from their ombudsman.
It’s worth mentioning that 24Option was recently fined by The Cyprus Securities and Exchange Commission (CySEC) to the tune of 350,00 Euros for reasons having to do with false advertising practices and failure to maintain proper records of trader complaints. On that note, you must know that there are many 3rd party advertisers which don’t necessarily care about or even understand the regulatory concerns and simply want to advertise effectively. It’s also the understanding of this writer that the regulators are simply looking for a cash cow to collect extra money from to fill their coffers and have decided that 24Option would be a good place to start since it has a monthly revenue stream of over 20 Million Dollars (give or take a few pennies).
Company Formation Date: 2010
Company Registration Number: 312820
Platform: Tech Financials Software
Maximum Returns: 89% advertised rate, but we have something to say about this.
Minimum Deposit: $/€/£ 250
Minimum Investment: $/€/£ 24
Accepted Currencies: USD, EUR, GBP, Japanese Yen
Mobile Trading: Supported
Excluded Countries: USA and Australia
Can I Withdraw My Money from 24Option?
The answer is yes, but since these guys are so big you will feel like they are bouncing you around when asking for documents. The response times are borderline when it comes to cashing out, and the atmosphere is cold and correct. Don’t be surprised if you are suddenly exposed to certain promotions or if your account manager calls you up and offers you a bonus to cancel your withdrawal. Again, in the end they will pay if you have rightfully won money, but don’t expect them to be super happy about it. The actual banking section is web-based and connected to your account. The variety of depositing and withdrawal options available to you far exceed 90% of what is currently being offered today by other brokers. Again, Paypal is not allowed since binary options regulation is a fairly new area and their corporate lawyers would not be willing to put anything in writing in this context.
How Come I Don’t See Any Negative Reviews In Regards to 24Option?
Well, technically speaking you must understand that these people are very rich and have been around for the longest time. There is a reason for this, the fact that they are regulated helps them maintain a leadership status, and since they were one of the first ones in the business there are various sites which are loyal to them from the beginning and these websites have high exposure on the internet. In reality, every broker has made mistakes in the past, but if the reviews are too squeaky clean then money has changed hands or will do so in the future depending on the agreement between the broker and review site.
What is the Actual Offering and Asset Index? And Is it Different Then the Rest?
The offering included Binary Options, CFDs, and Forex via 24FX. The CFD’s section is relatively new and deserves a totally separate review, but in general we are talking about the scaled down version of Plus500, which has recently been acquired by Playtech and Multi-Billionaire Teddy Sagi.
The 24Option Assets index included the standard safe haven currency pairs such as EUR/USD, USD/JPY (Gopher), GBP/USD (Cable), USD/CAD, USD/CHF (Swissie), and AUD/USD (Aussie), but also less familiar pairs such as EUR/NOK, and USD/ SEK.
On Commodities it offers the standard, Gold, Silver, Platinum, Coffee, Sugar, and Platinum as well as others.
Stocks: Google, Facebook, Microsoft, Coca Cola, IBM, Exxon, and Tesco as well as other leading stocks.
Indices: Here we have the FTSE, DAX, Dow Jones, Nasdaq, Ibex, and SNP500 as well as others.
It’s worth mentioning that the 24Option trading environment resembles that of Forex and it is quite different from other software platforms in this context. It is also the reason it is very much preferred by Forex traders wanting to make a transition from foreign exchange trading to exotic AKA digital options.
They really invested here and it shows. It seems this section was designed by a professional product manager who has done an impressive job at putting together a webinar and training schedule which is integrated with gotowebinar and flexible enough to bend to your needs instead of the opposite. Its also divided into sections such basics, intermediate, and advanced. They have everything from introductory courses including strategies such as Tunnel, Fractal, and Passive trading, and all these are explained in a relatively easy to understand way.
24Option Trading Guide
The guide talks about the various issues having to do with regulation, their CySec license (number 312820), the trading platform as well as features such as High/Low, Short term contracts, One Touch, boundary, and Above/Below. The 24Options trading package includes access to free signals integrated seamlessly inside the software.
Binary Options Signals
The signals at 24option are already an inclusive part of the trading arena and not an external system. From a legal point of view this can present a problem, since you actually have the broker recommending what positions to take and this exposes them to a legal issue. Technically speaking they can be sued for providing inaccurate signals, and the fact that their license permits them to do it does not mean that when push comes to shove it will matter.
Why Are People Searching for 24Option?
A simple search on Google Trends will show you just how much this broker is being searched for online. There has been massive growth in search queries related it, and it mostly comes from Italy, Spain, France, Russia, and Germany which tells us these are the countries where advertising is spent and where 24Option views itself as a market leader in terms of new customer acquisition.
It should come as no surprise that sponsoring Juventus is the reason why Italy has the highest amount of 24Option searches, however we did expect the UK to have a stronger standing in terms of market share.
How Are Customers Being Acquired?
The customer acquisition is done via advertising, sponsorship, affiliate marketing, search engine marketing and optimization, PPC, various forms of business development, and off line tactics such as advertising on taxicabs, billboards, and postcards in various European bars. It is said the 24Option advertising budget is the biggest in the binary options industry, which is a strong indication of what type of broker we are dealing with.
What Are the Risks?
The risks should be obvious and they are clearly stated on the 24Option website or banners posted on third party affiliate websites. Trading involves risk, and you may lose your capital so there’s a fair warning to you. Don’t fall for various hyped up claims or various get-rich-quick schemes because those are a one way ticket to desperation and misery.
Who Are the People Behind It?
Well, here’s where it starts to get a bit dodgy mainly due to tax related issues. When checking this out we noticed a Mr. Demitrios Leontis registered as the Director but a closer look indicates to us he may be a person acting as a front for someone else who wishes to remain anonymous. So, while this may sound alarming, it is very common especially with rich people who wish to keep their identity a secret and does not necessarily mean these people are crooks.
A Corrupt Industry?
Recently there has been a lot of talk about binary options regulation and how the markets have reached a certain level of saturation or maturity. Customers have become more educated and are beginning to understand how difficult it can be to actually make money in this business. Customers registering for 24Option expect to be swept off their feet and warmly greeted, however this is not the case. Instead you will most likely find yourself speaking to your broker about how to return your initial investment or looking for a way to diversify via other instruments. There has been much talk about how binary options is actually gambling disguised as legit trading. I personally have always looked at it as a form of financial betting which has been hyped up by online marketers seeking to get commissions.
Review Summary and Conclusions
24option is probably the leading binary options broker in the industry, however we do not recommend it for two main reasons and not because it’s a scam broker (quite the opposite is true). The first reason has to do with the fact that we were cheated and not paid for endorsing them as legit brokers. In this context there is no conflict of interest since we were endorsing a fully regulated, top tier broker and it was supposed to be a win-win situation for all parties (customer, advertiser, and broker). However, they reneged on their commitment and for this reason we have placed them in a “not recommended, however not blacklisted” category. We honestly believe that if they did it to us they may to it to our customers and that us not acceptable. Secondly and just as important, they are just too big! So unless you have at least a thousand dollars to invest you will get an automated response and an email telling you what to do next. At best you may receive a call from a broker a week later trying to play catch up, but by then you would have already moved on. It’s for this reason we prefer recommending and partnering with smaller or medium-sized brokers where they are big and reputable enough to payout promptly, but still keep the personal one-on-one approach.