24Option Review – Another Scam Broker? Let’s Find Out!

As of May 2023, the broker (24option.com) has ceased operations. But you can read the article to avoid falling for similar scammers.

24Option Review: Trouble with Many Regulators

In the past, 24Option has faced many problems with financial regulators. Consob, the Italian regulator, ordered that the broker cease all activities in Italy by December 2019. The broker was no longer allowed to solicit new clients.

The regulator also ordered them to stop doing business in Italy with current clients. After allowing these clients to close their positions and withdraw funds, they were allowed to do so.

Consob stated that they were justified in banning 24Option due to a series of complaints received recently. The regulator was deeply concerned by the complaints made by Italian investors about several irregularities in 24Option’s operation.

These complaints mostly concern CFDs. Italy’s financial regulator holds brokers to the highest standards and is the most stringent in Europe.

24Option Fines from Cyprus

CySEC, the financial regulator that oversees 24Option, also scrutinized them. The broker was fined twice by the financial regulator.

In 2016, 24Option was fined EUR156,000. The actual fine was much smaller. EUR10,000 was for failing to follow laws mandating the proper and organized recording of clients and advertising materials.

CySEC found that the broker failed to keep client complaints properly and did not provide adequate customer service.

EUR20,000 was assessed for failing to take reasonable precautions to avoid operational risk in the outsourcing of third-party activities.

Another EUR60,000 was awarded for misleading advertising practices. EUR15,000 was due to not disclosing risk to clients and EUR40,000 for failing to assess eligibility for new clients to participate in their investment activities. Final EUR10,000 was due to not having adequate systems in place for identifying clients.

The 2016 fine was outdone with the 2020 fine of EUR280,000. This was due to misleading marketing practices. These tactics are common among online brokers. Many brokers advertise using fake celebrity endorsements.

These endorsements create trust between brokers and clients. Clients are unaware they’ve been tricked.

Additional Warnings

Other regulatory bodies have issued numerous warnings against doing business at 24Option. In 2016, the Australian ASIC warned against doing business in Australia with this broker, as they still offered binary options. Similar warning was issued by the New Zealand FMA.

The French AMF prohibited 24Option from offering financial services in France in 2016. It stated that the broker did not meet certain professional obligations.

24Option

The year 2008 marked the beginning of 24Option’s online brokerage. The broker traded binary options in the beginning. Binary options, which are simplified trading methods that seem less risky than the real thing, are a great way to trade.

Binary options are basically like betting on the direction a stock will move, up or down. Binary options are illegal in many jurisdictions. 24Option has moved away from binary options to CFDs, forex, and other options.

We discovered that Rodeler Ltd. is the parent company behind this broker during our 24Option review. This company is based in Cyprus. The broker is registered with CySEC, Cyprus’ financial regulator.

This registration grants the broker access to EU investors and markets. Multiple rules permit the acceptance of financial regulators from one country in another.

24Option offers its services also to people outside of the EU. Richfield Capital is the company that it uses to do so. The company is based in Belize and is currently registered with the IFSC of Belize.

This allows 24Option, which is a division of two separate companies with different regulatory agencies, to offer services that are prohibited in one jurisdiction to residents in other jurisdictions without violating any rules regarding offering the service.

24Option Fees

According to 24Option’s review, there are four types of accounts for new traders. These are the basic, gold and platinum accounts, as well as VIP. Higher accounts offer better trading conditions.

Spreads for the VIP account are 0.9 pip, while the basic account is 2.7 pip. The spreads for the other account types are in between. You will need to make a large deposit to unlock the greater spreads on the higher accounts.

24Options charges a variety of fees to get revenue from its users. A $10 maintenance fee per month is almost unavoidable.

It is not known what the maintenance fee is and it is very rare for brokers to have one. There are several levels of inactivity fees that the broker charges. After two months of inactivity users will be charged $80 per month.

It’s $120 after three months. After six months it’s $120.

Account Perks

Apart from the improved spreads, 24Option also offers a number of perks for higher accounts. Investors can benefit from webinars by the broker.

These webinars are not available to the basic account. Platinum members can attend one webinar per month while gold members have access to three. VIP members have five.

These webinars can be a great educational resource. However, it is difficult to determine if it is worth the large deposit required to gain access to higher tiers.

Assets available with 24Option

During our 24Option review, we evaluated the range of assets. There are over 130 assets that you can trade CFDs. They include currencies with 34 options, 11 commodities, 25 market indexes, and stocks of over 60 companies.

A good selection of forex currency pairs is also available from the broker, more than 45.

24Option Trading Platforms

You have many options when trading with 24Option. The platform is designed to optimize trading. The design has been simplified to simplify the investment process. The information is clearly displayed and prominently.

It is easy to locate order forms, past orders, market updates, as well as open positions. It is not as customizable as other platforms, where you can arrange components in separate windows.

The platform offers a variety of charting tools. Every chart includes an indicator that displays the overall trend among other users. You can easily modify the charts to fit other chart types.

The platform allows traders to overlay technical studies onto charts. To analyze trends better, users can overlay other drawing tools.

However, you don’t need to use their platform. 24Option offers MetaTrader4 to its users. This platform is used by many online brokers. Many traders expect it to have many of the same features. This platform offers advanced automatic trading options.

This platform is ideal for traders with experience who want to use a variety of tools in order to maximize their knowledge.

For those who want to trade while on the move, the broker offers a mobile app. It is available in both the Android and iOS app stores. It offers many of the same features and functions as the custom broker platform.

These include charting, making orders, and creating calendars. It is available in more than a dozen languages.

Educational Resources

We found that 24Option had a variety of educational resources available to traders during our review. Their website is updated daily with lots of information. They provide daily market analysis and technical analyses. These educational resources are provided free to users.

Their webinar series is the highlight of their educational materials. These webinars are only available to members, and members have access to more webinars by upgrading their account tiers.

These videos include a range of lessons that explain the key elements of online trading. Videos are available that cover different aspects of trading such as risk management and different types of analyses. There are also videos about specific assets like forex and CFDs.

You will find content for beginners on their website. This section explains forex trading basics and includes a glossary that may be unfamiliar to new traders.

These tools can be a great place for traders who aren’t well-versed in the technical aspects of trading.

What is a chargeback?

Chargebacks are a way for your bank to reclaim funds from the merchant. We recommend that you contact us immediately to initiate the process. In a free consultation, we will discuss how to get your money back immediately!

24Option: Video

Below you will find a short video about 24Option. Watch it so you don’t miss anything important. In a few minutes you’ll learn the whole truth about 24Option!