Should you invest with 24option?
Is this a reliable broker, or is there a 24option scam?
Binary trading is an opportunity to earn an additional income online. Although companies promise huge profits and an easy path to money-making, this financial derivative does require knowhow and caution. Is 24option forthright about the risks involved or is this binary options broker selling you pipe-dreams? Understand where the 24option scam rumors stem and avoid unnecessary loss.
24option Comparison to Top Brokers
When compared to serious and reputable brokers it is easy to understand what 24option lacks. These corporations offer excellent services and help you improve your investment’s results, thus avoiding any scam rumors. Here is a look at the top brokers in the online trading industry:
OptionWeb is one of only a handful of brokers to have developed their own trading platform as well as being fully regulated. This combinaton provides you with the safest environment for online trading. OptionWeb gives you an array of useful learning materials and professional online financial guidance. Using OptionWeb’s Education Center, customers have reported a substantial growth in profit. Among their many advantages, are their risk-free trades. Open an account now to benefit from their cash bonus promotion and the guarantee of proper regulation and professional experts’ advice:
OptionBit is considered the second largest binary company worldwide and the only broker offering you the use of Algobit, the most advanced binary trading signals service. Not only does Algobit allow you to take advantage of the best market opportunities, it also executes the trades for you, and is incorporated into your trading platform, leaving you only the task of approving the trades and enjoying the yields. You can profit substantially from binary trading, and this is an excellent place to create that income while enjoying constant professional assistance:
If you are an American trader, Goptions, among the largest USA brokers, is the best fit for you. Offering a sophisticated trading signals tool, tutorials and personalized guidance, this company is an excellent destination for new traders. Enjoy their large welcome bonus, which enables you to start trading with more cash in your account:
Redwood Options is another excellent choice, and 24option compares pallidly to this efficient USA broker known principally for an impeccable customer service and for offering the best trading guide in the market. Their high yields, generous cash bonus and one-on-one training tutorials will enable you to increase your success. Upon signing -up, you will immediately begin receiving assistance from a professional investments adviser. This binary firm enjoys an outstanding reputation:
When compared to these brokers, 24option does not have a favorable reputation. It has worsened even further due to a problematic withdrawals’ service, which has caused clients to frequently complain of delays when requesting to have their profits transferred to them. Therefore, 24option scam and fraud rumors can’t be blamed entirely on hearsay.
24option Scam Rumor
24option was among the first binary options brokers accused of scam throughout the web. Since binary trading is highly speculative, the correct approach would have been for brokers to clearly warn traders about the volatility of this investment. Sadly, when binary options were first introduced to the online market, most companies did not choose to do so. Some still insist in marketing options as an easy means to making money.
Even today, 24option stress throughout their marketing campaigns the benefits of the high payouts and simplicity of binary trading. Although some warnings exist on the site, this broker does not do enough to advise its customers accurately about the odds involving digital trading. Always invest your money with a reliable broker that will act with transparency and offer you all the necessary tools to improve your trading skills.
What is 24option?
Launched in October 2011, 24option is one of the largest binary options brokers worldwide, and a well known brand in the industry. It has had an aggressive marketing approach based on media-buying, massive Google adds presence, and a large affiliate network. 24option is not properly regulated to offer services in the USA, and therefore does not accept American traders. With a flashy site and lots of marketing savvy, 24option has done an excellent job of luring new customers, although it doesn’t offer any meaningful advantage over other brokers. This is a white label company, which leases the Techfinancials trading latform, , with average asset list and payouts within normal market range. It does not offer you a demo-account, and traders have access to some basic educational tools. These are not enough to truly give you the skills necessary to avoid risk and succeed with this online investment.
Based in Cyprus and registered under the name Cbay Financial Services Ltd, , its largest traders’ contingency is based in France and Italy, although 24option is also known for its success with the Japanese market. With a site available in 17 languages but a customer service available only in a handful of these languages, this too has been a cause for complaints. 24option has failed to make an impact in Germany, the fastest growing binary options market. Perhaps this is a sign that their current marketing approach is outdated.
24option complaints have also been voiced against the withdrawal policy of this company. Clients have reported difficulties in receiving their earnings, a major flaw that needs to be corrected. Other forms of criticism concern the lack of information regarding risk, although this broker has been improving in this area, and providing some information about risk control.
Safe binary options investments
Although it is often advertised as an easy investment with which to profit quickly, binary options trading actually requires some level of understanding about financial strategies. Therefore you should prefer to deposit your money with a reliable broker, that will give you all the necessary tools to improve your skills.
Risk is also a major ingredient of binary investments, since any financial tool offering such high yield must be considered speculative in nature. 24option should put more effort into warning clients, and providing them with risk-management advice, as is common is such companies as OptionWeb or OptionBit Although the volatile nature of binary options is mentioned on the site, the client receives no suggestions as to the methods available for diminishing the risks involved.
24option Marketing Strategies
As a large company distributed evenly throughout most of the major binary markets, 24option have had an impact on this industry in more way than one. Among their contributions, 24option’s aggressive marketing campaigns and heavy investment in media and publicity have set the tone. This broker has adopted the strategy used by major brand names, investing in maximal exposure, rather than simply targeting customers with an interest in online trading.
Although this approach has helped the company expand rapidly and become well known throughout, this rapid expansion had come with a price. Unable to give the proper assistance to its many incoming customers, 24option has not appropriately prepared traders for financial success, and the result has been that the vast majority of clients claim to have lost their investments when opting to trade through 24option.
24option trading software
As so many other binary options companies, 24option established itself in the island of Cyprus, with the hope of attaining regulatory documents offered by that country to binary brokers. The Cypriot financial crisis has forced all companies to review their strategy. It is also important to note that the laws overseeing the regulation process indicate that White Label companies cannot be fully regulated, and need the trading platform providers to be regulated as well. Therefore, choosing a broker that has developed and uses its own platform, such as EZrader, is safer.
Another aspect that raises eyebrows as to whether 24option are legit is the ownership issue. The legal ownership of the 24option brand has changed at least three times within the last 15 month. Each time, the terms and conditions within the site appoint another firm as being the one with which the trader is getting into an agreement with. Although it is unclear why this has happened, it does not help create a reasonable level of trust towards this broker, and fuels the scam rumors.
24option use the Techfinancials trading platform. This software is similar to that used by most online trading companies, such as OptionFair, and allows sites to operate as white-labels of the platform software provider. 24option is the largest white-label binary firm currently using the Techfinancials software and trading environment.
24option Scam Summary
- This is a large company within the binary options field
- 24option is not an outright scam. Binary trading offers extremely high payouts, yet big profits involve big risks
- Nonetheless, this broker could do a much better job in alerting its customers to the risks involved
- More importantly, it could assist the customer in becoming a better trader
- 24option offer a reasonable Education center and online assistance
- Although a 24option scam does not exist, certain brokers such as OptionWeb are much more efficient and are highly recommended
- Remember to always be careful with your investment monies, and choose the company that give you the best chance of success
24option Scam Updates
- Although regulated since the beggining of 2014, 24option’s license is partial, because they are a white label company. To safeguard your investment, make sure your broker owns the trading platform it operates.
- As of July 2015, 24option have completed the regulatory process. Make sure to inform yourself about the whereabouts of your money if you plan to open an account with this broker.
- Even if regulated, companies that fail to deposit clients’ funds in Cypriot banks are not allowing these monies to be protected under the regulatoy laws they claim to follow.
- 24option are hoping to increase their presence in Russia and Middle East. Beginning August 2015, the company is hoping to expand its team of Arab and Russian salespeople, targeting two vastly different markets. Russia is an emerging binary options country, while Arab traders have had an interest in this inline investment for a few years.
- As of July 2015, 24option have changed the legal name of their company yet again. This marks the 4th time at least that this binary options broker has modified the company under which it is registered, currently stated as being Cbay Financial Services Limited, a Cypriot firm. This should serve as an alert to new potential clients.