Fearing a OneTwoTrade scam?
Want to know more about this binary broker?
If you are thinking about investing with this company, first read this review about the fraud allegations it sometimes faces online. It will help you make a more conscious decision.
Comparison to top Brokers
To know if OneTwoTrade is the right broker for you, start by comparing it to the leading copanies in the binary options field. TopOption leads the way, being the best and largest broker worldwide. TopOption offers the most complete educational center with tutorials, webinars and personal financial advisers. It’s advantages do not stop there, since this is fully regulated both by CySEC and the FCA, which regulates financial activities in the UK. For a safe and profitable experience, TopOption is top of the line:
OneTwoTrade also cannot compete with OptionBit in terms of high-end trading tools. OptionBit created Algobit, which is the most innovative and accurate trading signals service, and you get it for free. This software is part of the trading platform, and it scans markets to detect the opportunities that increase your profits. An experienced and regulated broker, OptionBit is another top binary broker:
TradeRush is another EU regulated company that is among the best in the industry. It offers more than 80 videos to help you learn strategies and risk management, as well as a freee webinar that allows you to interact with expert online traders and understand how to make money on line:
Although it might not be a scam, the fact that OneTwoTrade is not regulated is a major drawback when considering the possibility of investing through this broker. Since binary trading is speculative anyhow, there is no reason to increase risks by choosing a company that does not protect your investment.
The binary options market emerged mostly in England in late 2008, and it was there that most companies were first established. Nonetheless, seeking tax benefits and unable to properly receive regulatory documents, most binary firms moved elsewhere, mainly to Cyprus, to obtain proper regulation or tax-heaven islands.
Yet OneTwoTrade went the opposite way, investing all efforts in England and becoming arguably the largest British binary broker. With a team of professionals who understand and how to market financial products to the British customer, their success has not been without issues. More so, their decision to stay in England comes down to not being properly licensed.
Dealing with Scam Allegations
OneTwoTrade is not a scam, and indeed it is a reasonable choice for those seeking to succeed in binary trading. Especially for the Brits among you, this is an acceptable selection. This company has certain benefits and can be considered a reliable broker, though its disadvantages can be problematic.
As often happens with UK-based binary options companies, choosing OneTwoTrade does involve some additional risk. Since it has not complied with American regulation, and therefore does not accept US customers, OneTwoTrade is probably not as safe for traders who want to protect their investments more carefully. The limits imposed by the US government are meant to ensure, at least to an extent, the legality and transparency of this financial derivative. The fact that OneTwoTrade has opted out of such a huge market isn’t a good sign, although surely not a reason to suspect a fraud.
So where does the OneTwoTrade scam outcry come from?
As is the case with many brokers who have seen rapid and consistent growth, it is inevitable that some frustrated traders blame their failure on the broker, rather than themselves. This type of fraud accusation is not without cause when the company fails to inform clients of the real challenges and risks.
Yet as was clarified, OneTwoTrade doesn’t fit this label, because it is a broker that acts responsibly in warning clients about risk. Of course, if you wish to invest in binary options and were considering this broker as your destination, probably a better place to make a profit is a company which equally protects clients from excessive risk, and also allows them to learn investment protection strategies while being regulated.
Binary options trading is a financial derivative, which means it derives from an asset, yet is not an asset itself. The assets available for traders are divided into four:
- Currency Pairings
Financial derivatives have a clear advantage, in that they allow investors to make money with smaller sums and in a very short span. On the other hand, they are volatile, since inaccurate trades can erase not only profits, but also invested funds. While the extremely high payouts are attractive, it is important to remember the need for caution and a sound trading strategy.
While OneTwoTrade inform clients about risk and give them certain tools to face this aspect of binary trading, it is not enough. A responsible trader must stick to a method, and use different mechanisms, such as leverage and portfolio management, in order to protect the investment.
The OneTwoTrade site offers a reasonable amount of assets, although there are brokers that give you more to choose from. The site also has average payout values, which are high regardless, since this type of investment will always offer return rates of 70% or more per transaction.
OneTwoTrade Scam Summary
- This is a reliable binary broker and not a scam
- OneTwoTrade help customers learn investment strategy
- It has clear warnings about risks
- It is the largest broker in Britain
- It is not available to American traders
- OneTwoTrade is not regulated, which sharply increases the risk to its clients
- This essentially means it is not as safe to invest with it
- Preferably select a company that can offer similar or superior tutorials and more legal assurances