Is 24option a scam or legit?
Since binary options have been banned in Europe, there is a question about all binary options companies’ legitimacy. One of them is definitely 24Option, as one of the biggest binary option companies. Is 24Option a scam? Read our review and get all the details as well as the instruction on what to do if you have been scammed by the broker.
24option opinion traders
The company announced that it will voluntarily renounce its license and stop operating. The decision was in effect from the 20th of August 2020. What impact did this have on traders? Huge. Many people had money invested with 24Option. As mentioned, it was the second biggest binary options company until Rodeler Limited didn’t decide to stop its operations. Before the closing, the company announced they won’t be accepting new clients, and everyone that had opened positions should close them before the aforementioned date.
The company has been fined twice by CySEC while they still had a regulation, and there were many security warnings against this broker. Despite allegations of closing, the website of 24Option still exists, but the broker moved its headquarters to Belize. According to this new website, the payments are processed through a Cyprus-based company, Wonderbridge Service Ltd, whose director is the same person that was in charge of Rodeler Limited.
According to traders’ opinions, there are many issues with withdrawing funds from this brokerage.
Since binary options were banned and blacklisted around the globe, the same thing happened to the 24Option broker. According to New Zealand FMA, the broker was running a scheme in this country without permission. The same warning came from Australian ASIC and Canadian BCSC.
Besides these warnings, the regulatory body of Cyprus fined 24Option’s former owner, Rodeler Limited, 156,000 EUR for not complying with AML policies.
It looks like the 24Option scam had a global effect and all the traders stayed without funds once the company allegedly stopped their operations.
What can you trade with a 24option broker?
The 24Option was the second biggest binary options broker. Besides that, they offered clients trading with CFDs on currency pairs, commodities, shares, and indices. According to the new 24Option website we found, the broker is now offering only CFDs trading with the same assets including cryptocurrencies. Unlike binary options days when the minimum deposit was $24, now the broker is asking for the minimum of $250. The trades are executed on the MT4 platform. The spread starts from 2.8 pips for EUR/USD pair, which is double higher than the industry standard. Again, compared to the old days when the leverage was limited by CySEC and was 1:30, now the broker is offering leverage of up to 1:500.
After everything the traders have been through with 24Option before, think twice if you want it again.
Conclusion about 24option
The 24Option broker was once regulated by CySEC. However, in 2020 the company decided to stand back from its license and allegedly close its operations. If you check the website, right now the broker is based in Belize and owned by an offshore company, but still making payments through a Cyprus-based company. To us, it looks like the broker was running away from many regulatory warnings and tried to present itself as non-operative.
If you have been scammed by 24Option, do not hesitate to report it!