24option – A review
Online brokers can sometimes seem too accurate, there are many honest and reputable brokers on the market, but there are just as many scam brokers. It can be challenging to differentiate between a scam and a legitimate broker when so many scam sites are almost indistinguishable from the real deal.
24option may seem legitimate on the surface level; however, their clients’ mixed views may suggest otherwise. Some claim that 24option is a scam; others consider it a service.
|Regulation||CySEC (recently revoked), IFSC|
|Product Types||Forex, stocks, CFDs, Indices, Commodities|
|Products Offered||More than 200 products to Trade|
An overview of 24option:
Established in 2009, 24option is an online broker that began mainly as a binary options broker. They are currently based in Cyprus and Belize and are operated by Rodeler Limited and Richfield Capital. Their products include access to Forex Currency pairs, stocks, CFDs, indexes, and other trading commodities.
They offer four different account types to suit various trading needs. They also provide an array of extra educational resources for investors, including webinars, technical analysis resources, fundamental analysis, the economic calendar, and other additional info featured on their ‘trading central’ page.
Two different regulatory agencies regulate 24option: for operations in Europe, they are regulated by the Cyprus Securities Exchange Commission (CySEC). For operations outside of Europe, they are regulated by the International Financial Services Commission of Belize.
It is essential to point out that Belize regulates its international trading services. The regulatory body in Belize doesn’t have the resources, power, or time to keep a close eye on global trade, so this license isn’t worth the paper it is written on. The commission in Belize is unable to keep 24option on a short leash, so plenty of fraudulent behavior can pass under the radar.
Their other license is from CySEC, which luckily has a bit more regulatory power than the commission in Belize. However, there are much better licenses for a business to be hand and it would be completely believable if 24Option were running a scam when CySEC isn’t looking. If the scammers are smart enough, then regulated brokers can slide fraudulent behavior under the radar, especially if the licenses are from regulatory bodies that can’t correctly regulate every broker under their jurisdiction. Always check if a broker is regulated and where their licenses are from but continue to exercise caution when investing with any broker.
An initial look at the 24option site would suggest this is a legitimate broker. They are licensed and look; their webpage even warns you are at risk of financial damage when trading with them. They warn that 83.29% of investors lose money while trading CFDs with 24option. When spotting a potential scam, the usual advice is to watch out for huge earning claims and big promises to conceal their fraudulent scheme and lure victims in. However, 24option does the opposite; they warn of losses to make their site seem genuine and legitimate since experienced investors will already know the classic hallmarks of a scam.
They may be a regulated platform, yes, but there is still a high-risk of 24option is a scam and could even be a fraudulent platform, primarily due to reports from scam spotters and past clients warning against trading with them.
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Is 24option a scam?
24option is a regulated broker with little to hide, all of their financial risks and terms and conditions are well outlined on their website, and they don’t make unrealistic promises of large financial gains. However, this doesn’t mean they are incapable of fraudulent behavior.
Customer and online reviews are mixed when it comes to this broker. All of the top results on google only show positive reviews that declare 24option to be a well-regulated and a reputable and well-established broker with decades in the industry. Dig deeper, though, and you can begin to find plenty of negative reviews too.
Perhaps the mixed opinions on this broker are due to the platform’s high-risk nature and high account prices. Maybe, this platform isn’t suitable for beginner investors leading to an influx of low reviews. Or 24option is genuinely a fraudulent platform, which is very cleverly disguising itself as a legitimate platform by appearing professional and legal but only on the surface level.
Be warned that there have been reports of fraudulent behavior and substantial financial losses while using this platform. Please remain fully aware that a legally regulated platform can still con users despite a broker being seemingly legitimate and regulated. 24option remains completely capable of fraudulent activity and can scam you out of your hard-earned savings.
Spotting a scam broker:
Here are some potential red flags which could suggest a fraudulent scheme is afoot:
- No terms and conditions or unclear conditions
- Unlicensed businesses
- Unclear or lack of company info
- Fake contact details
- Claims of suspiciously large earnings
- Customer support is inadequate or completely unavailable
- Misspellings and other mistakes on an ‘official’ website
- Freezing or blocking your account
- money is taken from your account without consent
- isn’t answering your calls
- shut down their website
- the broker offering large bonuses on the condition that you make large deposits
How can Trader Defender help you?
If you have lost your finances at the hands of 24option and require support, Trader Defender happily extends their services to you. Trader Defender specializes in due diligence services and online scams, so if this is of interest to you, then be sure to visit our website today to book a free consultation. We are dedicated to the prevention and reporting of scams and online crimes and would love your assistance.