Is ZoomTrader offering you an amazing investment opportunity?
Are you fearful that binary options are too good to be true?
You need to find out the truth about the rumors of a ZoomTrader scam…
Comparison to other brokers
In a field where risk can be devastating but success can be extremely profitable, choosing the right broker is imperative. While a ZoomTrader scam is too harsh of a statement, certain companies do offer much more to smart customers.
Banc de Binary is an excellent example of a broker creating multiple benefits for you. Experienced and highly professional, this binary company offers all the tools necessary to enjoy high payouts. An educational center is available to clients, where online courses and videos help customers learn trading strategies. Tutorials explain how to diminish risk and specialized investment advisors offer you financial guidance. The favorite destination for Dutch clients, Banc de Binary also gives you the highest yields in the binary market, at 95% per trade, as well as a welcome bonus for your first deposit. Most importantly, it is the only binary broker regulated both in the Europe Union and the UK. Open your account today:
OptionBit is the only binary broker to offers you Algobit, an amazing free signals trading tool that will increase the accuracy of your trades and your profitability. Furthermore, their online assistance will allow you to learn the secrets of binary trading. Their tools include tutorials, one-on-one training and professionals risk management guidance. This way you will understand the odds and avoid pitfalls, leading you to smart decisions and profitability. Open your account and receive Algobit, and a generous cash bonus to start trading with double the amount of your original deposit:
ZoomTrader has also a long ways to go before reaching the level of customer service available at STockPair, a European based binary options firm that makes sure each client gets very personal and constant investment supervision. Their one-on-one training program has received huge praise from traders throughout the binary market. This binary broker also offers you the highest payouts available. Take full advantage now from the benefits of trading with this reliable and professional company:
ZoomTrader is a new company, and hopefully it will learn from the more experienced companies, and begin to place more tools at the disposal of its clients. Meanwhile, selecting more established brokers is a safer choice for your money.
What is ZoomTrader?
Binary options brokers are online-trading sites that offer customers the opportunity to purchase digital options. Basically, the trader selects an asset and then predicts if that asset’s value, be it a currency, stock, index or commodity, will either rise or fall at the expiry of the option. Most binary trades have very short expiry terms of less than half an hour.
ZoomTrader is a relatively new broker based in Seychelles, a group of islands east of mainland Africa. Since it’s a tax haven, most probably the company itself operates from a different country, and is only officially registered in that country for obvious benefits.
Although it is new, the company has put a strong effort into gaining market-share around the globe, with the site being available in 11 different counties. The aggressive expansion attempt has had decent results, especially in the USA and Germany, two sought-after binary markets. Nonetheless, ZoomTrader does not have the infrastructure to cater to minor yet emerging binary markets, such as the Netherlands and the Czech Republic.
Is ZoomTrader legit?
Within a year from its launching, in mid 2012, this binary options broker is already being involved in scam conversations throughout online trading chats and other social media. Why? Is there truly a Zoomtrader scam?
Certain aspects about the binary market are problematic. Most importantly, two fishy factors stand out:
- Investment in financial derivatives such as binary options is speculative very risky
- Binary brokers, such as ZoomeTrader, earn their income when the customers themselves, lose their investment funds
A serious broker, like those mentioned above, makes sure to correct this conflict of interests by informing the clients of the risks in a clear and direct fashion, and most importantly, give traders the tools to learn investment strategies. This way, customers have the possibility of learning risk-control techniques and profit-making methods, while the binary company still has plenty of income from traders who treat the platform as a game rather than a chance for an additional financial gain.
ZoomTrader fails badly on both instances. Although the site does mention the risk, which it must for legal reasons, there is no effort to truly convey to clients the measure of volatility, and most significantly, the way it can be avoided. In that sense, though it cannot be accused of a proper scam, and is technically legit, ZoomTrader is far from offering customers the best possible deal.
Trading with ZoomTrader
As most binary companies, this is a white label firm operating by using the Tradologic platform, a well-liked and practical trading environment that offers multiple types of options and a small but informative asset list. The ZoomTrader site is well structured, catches the eye, and is comfortable to navigate. Yet the relatively limited choice of assets can be problematic.
Binary options trading is a fast paced, real-time experience, and taking advantage of every market opportunity is a key to a successful strategy. The lack of assets can translate into missing opportunities, which would compromise the entire process of generating consistent profits. A larger and more diverse portfolio results in higher profitability levels.
Another major concern is the lack of information ZoomTrader gives regarding the company. It is unclear where it is established and under what legal name. Such lack of transparency is a big reason why fraud allegations surround this broker.
ZoomTrader Scam Summary
- ZoomTrader is a new and fairly inexperienced binary options broker
- This site is available in languages as varied as Russian, Korean and Arabic, as the company focuses on global expansion
- While the trading platform is efficient, the asset list is limited
- Furthermore, ZoomTrader does not offer any educational tools
- The lack of knowledge is a serious obstacle in achieving profits from binary trading
- Rumors of a ZoomTrader scam would die down if this broker would make an effort of assisting customers to attain professional trading strategy skills
- If you are serious about your online investments, make sure to select the broker which offers the most tools and advantages
- This is a young company, and hopefully in a near future, it will be a more viable option for traders worldwide
ZoomTrader Scam Updates
As of April 2014, ZoomTrader is yet to receive regulation license from CySEC, a major drawback for traders wishing to join this broker.
September 2013 has been another good month for this broker, which continues to expand its leadership in the Dutch market. Nonetheless, complaints about the transparency of the company’s actions have increased in volume and vehemence.
Be aware that the bonuses awarded by Zoomtrader imply, through the contract clients must agree to when opening an account, that the funds deposited in the account cannot be withdrawn until the customer has performed trades in a value 20 times that of the bonus, or higher.
In other words, a client depositing $200 and receiving a $100 bonus, would not be allowed to receive the original 200 dollars he or she deposited, before trading for at least 2,000 dollars worth !! Definitely sounds like a clause fit for a scam.
As a result, the recommendation of working with regulated and trustworthy brokers while avoiding this binary company, remain as is for now.