Financial service is a vital link between traders and the market. A single fault in this link can risk your hard-earned money. 24Option is a firm with several issues. Read the unbiased review about the broker.
24Option is the firm working since 2009 in the arena of financial market trading. It allows traders to speculate on limited tradable assets and markets. Though being relatively old, it has not improved or upgraded its certain areas including leverage, minimum deposit, platforms and trading tools. There is nothing wrong if we say that a broker’s high trading fee does not do justice with the poor services it offers.
Other than this, there are various issues with the official website of the brokerage firm. It is too complicated to navigate and also lacks some vital information. It looks like the broker is trying to hide these details from users. Which directly raises questions on its authenticity.
Is 24Option Scam or safe?
The broker was registered with the Cyprus Securities and Exchange Commission in 2016. But, due to some serious issues, this authority cancelled the license of a broker. This authority is legitimate and has strict rules. It revokes the license of the broker if they find them involved in any illegal activities. So, the firm seems to be risky for investment. It falls under the list of scam.
Another major issue with the brokerage firm is no guaranteed stop-loss for those opening trading accounts outside France. Stop-loss is a vital tool that helps in mitigating losses by closing trade below a certain price level. Thus, protecting traders against unexpected price shifts.
No additional tools and features
The financial service provider does not offer any additional tools and features such as social trading. Also, automated or bot trading and the back-testing feature is available only on the desktop trading platform.
Limited tradable products and markets
24Option offers to trade on limited financial markets. Also, the assets associated with each market are limited and fail to enhance traders’ trading portfolio. The number of forex pairs is also less than other advanced firms that offer an extensive range including popular Bitcoin/USD, Bitcoin/EUR, Bitcoin/GBP and several others.
Lacks research tools and trading indicators
The broker’s research services are the worst in the arena of streaming news and sending live notifications of news, financial market events, and price shifts. The price of financial assets is primarily affected by market events. In short, brokers’ fundamental analytical tools are inadequate and fail to serve the purpose.
Many advanced firms in the market offer these services through one single platform and at affordable rates. Hence, there is no fact supporting the idea of choosing the broker over other good firms concerning research instruments.
Leverage about the permissible limit
Leverage by the broker is beyond the limit permitted by many authentic financial bodies. It is as high as 1:500. European Union has set the maximum margin limit to 1:30. Firms which cross this limit, fall under the list of untrustworthy and unsafe ventures for investment.
Also, trading on high margin is hazardous as it magnifies your loss. Leverage is a double-ended sword, and about 70% of traders lose money due to this. Brokers have mentioned this in risk warning. Still, it is pushing traders in this deep and dark pit.
High minimum deposit
The minimum deposit required to open a basic account is average, i.e. $250. For other accounts, it is beyond the reach to normal traders. Deposit for gold, platinum and VIP accounts are $25,000, $100,000, $250,000 respectively. It seems like the broker does not want traders to enhance its trading level from basic.
Additional fees and commission
The fee and commission structure of 24Option is relatively high. It does not allow a significant discount on the precious metal account and larger volume trades. The charges are high for a dormant account, and they increase to $200 per month directly after six months.
Apart from that, the users are forced to pay monthly maintenance fees which are around $10. The fee for withdrawing your fund is as high as 3.5%. And, yes, how can we forget the minimum deposit. It is beyond the ordinary trader’s reach. All these high charges affect the profit size of the broker to a more considerable extent.
Spreads are high (around 3Pip) and variable. They keep on changing while you are executing the trade depending on the market prices shifts.
Outdated trading platforms
The entire world has shifted to the successor of MT4, i.e. MetaTrader 5. The broker is still offering service though its outdated MetaTrader4. It also looks like the broker has opted for the cheapest package of MT4 as the number of functions available is less. The firm is just focusing on their profit maximisation, keeping their clients’ interest and trading objectives at the side.
Time-consuming withdrawal and deposit process
The process of withdrawal and deposit is time-consuming and irritates traders. You require to fill a withdrawal form, and it takes more than three days for this request to proceed. The options available are not globally used, and there is no information about deposit/withdrawal through cash.
Also, the withdrawal fees are extremely high and fall between 2% and 3.5%. This number is comparatively high and hampers investors’ peace when he/she has to apply for consecutive withdrawal.
Poor customer support service
The customer support team of the firm is the worst ever. It is inefficient and takes a high response time. The customer reviews about its services are:
- The response time for answering emails is greater than three days.
- The response time for receiving calls is greater than one minute.
- Sometimes the team does not answer calls.
- Live chat option is offline most of the time.
- The answers to Live chat queries seem to be irrelevant as answered by a robot.
Disadvantages of 24Option
1) High amount charged for withdrawal
2) Lacks MetaTrader 5
3) The desktop and mobile platforms do not offer live streaming news
5) High trading charges
6) Leverage level beyond the permissible limit
7) Complex user interface
8) High and variable spreads
The Bottom Line
24Option is one of the oldest brokerage firms in the financial market still it has not incorporated MT 5 in its trading portfolio. Apart from this, there are many major issues which require improvement. Moreover, trading fees charged does not do justice with the service offered. You can go with other advanced firms such as HFTrading, T1markets, 101investing, Brokereo, PrimeFin over 24Options.