24option started as a binary options trading platform back in 2009 or 2010, but nowadays they offer forex/CFDs trading on a web-based trading platform.
It is a very popular online trading site, especially among people from the United Kingdom.
They are partners with Juventus, an Italian football club.
The domain 24option.com was registered on the GoDaddy registrar on April, 28, 2010.
Is 24option a reliable “brokerage”/trading platform? Or is it a scam? Let’s see…
What is Offered on 24option.com?
“24option’s mission is to bring trading to the masses.” Indeed, that’s a “noble” goal, especially when considering how most people who trade, lose their money, which is we also find it highly suspicious when they say that “our account managers know that your success is our success.”
Minimum deposit is $/€ 250.
You also get 1 basic lesson, daily news, trading central (see below), and 2 daily TC SMS alerts.
There’s a 100% margin call and 1 free withdrawal.
Floating spreads are lower the more you deposit. For example, they start at 2.5 PIPS for EUR/USD in the Basic Account while going as low as 1.1 PIPS in the VIP account.
All account types get leverage up to 1:500.
24option EU offers a leverage of 1:30 for retail clients and 1:400 for professional clients.
EU clients may opt to become professional clients, thereby getting Negative Balance Protection, Access to Premium Trading Contests and Programs, Dedicated Account Manager, Receive Daily Trading Central Signals, Access to VIP Platinum Education, and Segregation of clients’ funds.
To be regarded as a “Professional Trader,” you need submit an application. Only people with significant trading volume, experience, and financial status will be considered.
For a minimum deposit of $5,000, you also get a monthly webinar and an additional basic lesson.
You may also withdraw your funds once per month for free.
A minimum deposit of $10,000 will entitle you for 3 advanced lessons, 2 monthly webinars, and no less than 4 daily TC SMS alerts.
You will also get 3 free withdrawals per month.
Finally, if you deposit a minimum of $50,000, you’ll get 5 advanced lessons, 5 monthly webinars, and 7 daily TC SMS alerts.
24option uses the MetaTrader 4 (MT4) platform for trading of CFDs/FOREX, one of the most popular charting and analysis software. This platform can be downloaded to a computer, accessed via a web browser, or you can use the mobile app available through Google Play Store or the Apple Store.
The MT4 platform is Forex trading is when you buy a currently while simultaneously selling another. With 24option however you will not be actually buying and selling currencies. The trading is virtual. You’re basically just betting on market trends.
CFD trading is very similar to Forex trading, but you are basically buying and selling assets and not currencies, i.e., metals such as gold and stocks such as the Apple Inc. stock. Here too you are not actually buying and selling assets. It is better understood as a financial betting platform.
24option offers trading CFDs on cryptocurrencies, which is why we have decided to write this 24option review in the first place.
They also offer a Crypto CFDs eBook in their Education section.
24option provides a video library with webinars, daily news, analysis, and more.
The 24option education center also contains material about trading cryptocurrencies via CFDs.
There’s an economic calendar.
Advanced Interactive eBook
Topics covered include trading psychology, market analysis, and trading strategies. It includes a glossary of trading terms and quizzes.
Videos on Demand
Forex Intro, including the following topics: Pending Orders, Market Analysis Types, Chance and Risk, Are you an Emotional Trader?, Distributing Risks, Currency Pairs, Buying and Selling, Passive Trading 5/15 Rule, Aggressive Trading 10/30 Rule, Calculating Pips, Trend, Closing an Order, Support and Resistance, Shooting Star, Harami patterns, Engulfing+, Downside Gap Three, Breakaway, 3 White Soldiers, Pips, Short and Long, Take Profit Order, Opening a New Order, The Terminal Window, and Trading is an art form.
Forex Beginners, including: Glossary of Concepts, Types of Orders, Basic Forex Terms, and The Forex Market.
Forex Intermediate videos go over the following topics: Advanced Technical Analysis, Basic Technical Analysis, Market Analysis, Capital Management, Trading Psychology, and The World of Global Trading.
Free Trading Webinars
A series of webinars (through GoToMeeting) is offered to familiarize clients with the 24option trading platform and with popular trading techniques. Questions are encouraged during webinars.
24option has partnered with a company called Trading Central to offer their clients access to Trading Central’s Advanced Market Analysis, which contains analysis, data, and commentary regarding more than 8,000 assets. You can select which assets you focus on to get alerts when there are updates.
Who is Behind 24option?
24option is ran by two separate companies. Richfield Capital Limited is licensed in Belize and provides service for International clients, while Rodeler Limited is licensed in Cyprus and provides service with the EU.
Why the separation? Well, EU regulations are tight, and the company would lose money if they used the same regulations with all of their clients. For example, EU regulations require stating how many of a companies clients lose money. Indeed, on the EU 24option website it is stated that “81.27% of retail investor accounts lose money when trading CFDs with this provider.”
Contacting 24option can be done using the contact form and live chat widget on their site. They also have the following social media accounts:
24option.com/international is operated by Richfield Capital Limited, a Belize investment firm, authorized and regulated by the International Financial Services Commission of Belize with license number IFSC/60/440/TS/19.
Address: Unit 303, No. 16 Cor. Huston and Eyre Street, Blake Building, Belize City, Belize.
Another address: No. 5 Cork Street, P. O. Box 1708, Belize City, Belize C.A.
Richfield Capital Limited does not provide service within the EU as well as in the USA, British Columbia, Canada, and other countries.
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They are a technological company and not a financial adviser, therefore they are are not licensed to give trading, investment, or financial advice.
Accepted currencies are US Dollar (USD), Euro (EUR), British Pound (GBP), ZAR (South African Rand), RUB (Russian Ruble), and JPY (Japanese Yen).
EU clients can choose between British Pound, Japanese Yen, and Euro.
Minimum deposit is 250 EUR/USD/GBP, 1,200 ZAR, or 10,000 RUB.
For wire transfers, the minimum for EUR/USD/GBP jumps to 1000.
Maximum deposit per day is 10,000 USD/EUR/GBP and 100,000 JPY.
Maximum deposit per month is 40,000 USD/EUR/GBP and 4,000,000 JPY.
To withdraw funds from your 24option account, you will need to complete a questionnaire and verify your identify by providing the following documents:
Proof of ID – Photo identification, i.e. Passport, Driver’s license, or National Identity Card.
Proof of residence – Bank or credit card statement, utility bill (water, electricity, or house telephone bill), life or house insurance or government issued documents issued within the last 6 months.
Verify your payment method – If you are using a credit card, a picture of both sides of your credit card, displaying the last four digits of your credit card, expiry date and name only. For other online payment methods they require proof of the deposit made by the holder of the trading account.
Withdrawals can be made to your credit card, through a wire transfer, or selected online payment systems. But keep in mind that if you withdraw via wire, there’s a minimum withdrawal requirement of ₣100, $120, €100, £80, or ₽7000.
Some account types allow for free withdrawals. If you need to withdraw and have already used all your free withdrawals, you would have to pay a fee of 3.5% for credit card/Neteller, 2% for Perfect Money/Moneybookers (Skrill), or $30, €24, ₤20, ₣20, ₽1800 for wire transfers.
For EU clients, withdrawals via Qiwi (3.5% fee) and Webmoney (0.9% fee) may be available. Wire fees for EU clients are $30, €30, ₤30, ₣30, and ₽1,800.
Offered only in the International version of 24option, the bonus scheme is a highly dubious marketing technique, which has been banned by CySEC in Europe. The company is basically giving you free money to use for trading on top of your deposited funds (up to 50%, so if you deposit $1,000, you may be offered up to $500). Kinda like leverage.
What’s the catch? To withdraw any earnings, you need to trade in a volume of 20,000 times the bonus amount.
If you’re not an experienced trader, we suggest that you opt out of the bonus scheme.
We do not currently believe 24option to be a scam. Having said that, 24option started as a binary options broker. Binary options OTC trading is currently illegal in much of the world, including the US and Europe. CFDs trading is not less risky than binary options. Perhaps even more due to leverage. Indeed, CFDs are already banned in the United States and Belgium, which is why 24option cannot provide service there.
Don’t sign up and deposit money with 24option and other CFDs trading brokers if you cannot afford to lose your money. Also, remember that you are not actually trading and that 24option is not licensed to provide any investment advice. Their profit is your loss and your profit means less money for them, so don’t heed to any “trading tips” they offer you.
However, if you are among that 18.73% (at most) of people who actually do make money with online trading, then you can probably trust 24option to honor any withdrawals and not to steal your money. They are a regulated broker with a long history, so we believe they are legit.
What are your thoughts regarding 24 Option? Scam or Legit? Share any first-hand experience by commenting below!