24option is among the most widely known brokers in the market, but it still leaves some questions in the users’ minds. Should you trust 24option? Is the company legit?
Is “one of the world’s leading Forex/CFDs trading platform” a scam out to rip off unsuspecting traders?
Never fall prey to false and paid reviews or ads about a trading company. Here, we will give you an honest 24option review.
We’ll assess valid and factual information about the company before concluding. If you have lost your money to 24option, we can help. Simply schedule a free consultation.
Let’s get started.
24option: An Overview
24option is a forex and CFD broker. It operates under a Belize-based investment firm known as Richfield Capital Limited. It uses the payment services of Wonderbridge Services Limited, located in Cyprus. The 24option brand is also under Rodeler Limited, also located in Cyprus.
It’s currently not allowed to trade within the European Economic Area, Switzerland, Canada, USA, and British Columbia.
It used to deal in binary options. However, it stopped and now only focuses on forex and CFDs, including cryptocurrencies. Users can trade using 24option’s website or MetaTrader 4.
24option has four account types:
- Basic at $250
- Gold at $5,000
- Platinum at $10,000
- VIP at $50,000
We will give credit where it is due. Unlike other trading platforms that only support two major currencies, 24option supports up to seven currencies.
Here are its fees:
Another commendable area for 24option is their quality customer care service. They have a multilingual team that is reachable through email, phone call, or Live Chat.
It also provides numerous learning materials for beginners to train, including eBooks and webinars.
How Long Does It Take to Withdraw Money from 24option?
It takes up to 24 hours for 24option to release the money to your preferred withdrawal method. It can take a further 1 to 5 business days for the funds to appear in your account balance.
You can make withdrawals from 24option using these methods:
- Credit card
- Wire transfer
- Perfect Money
To successfully withdraw or deposit money, you’ll need to verify your payment method. Verification includes providing proof of ID and proof of residence. If you’re depositing using a card, you’ll need to send photos of your card, showing your name, expiry date and the last four digits of the card.
Exorbitant and Unreasonable 24option Fees
There is a withdrawal fee of 3.5% for cards, 30 EUR for wire transfer, and as high as 3.5% for Qiwi and Neteller.
What’s more, if there has been no or insignificant trading in the account before you withdraw, the company charges 80 EUR.
Even worse, there is a monthly trading account inactivity fee, despite the level of account you hold.
If your account has been inactive for two months, expect a monthly inactivity fee of 80 EUR. Accounts that have been inactive for two to six months get a monthly charge of 120 EUR. And there’s a monthly fee of 500 EUR for accounts that have been inactive for 6 to 12 months.
If there has been no activity in your account for a year, the dormancy fees shall be 1000 EUR per month. If you wish to reactivate it, a fee of 2000EUR is charged. Can it get any higher?
Richfield Capital Limited is regulated by the International Financial Services Commission of Belize under license number IFSC/60/440/TS/19. While Cysec licenses Rodeler limited with CIF License (207/13).
Wonderbridge Services Limited, the payment agent, is registered under license number HE351228.
Have there been any complaints about these regulations? We will see below.
24option Scam Warning Signals
Here are some things that stink of a 24option scam.
1) A Skimpy Website
While we have nothing against simplicity, too much of it raises eyebrows. Every online business aims to publish as much information as they can about the company. But this is not the case with 24option.
It makes you wonder, why so much mystery? We all know scam companies have a lot to hide.
2) Noncompliance with Regulations
In December 2019, Consob, an Italian securities regulator, banned 24option from trading in Italy, citing repeated failure to comply with specific regulations.
The trading company had also violated an EU directive that mandates negative account protection. Negative account protection ensures that customers do not lose more than they deposited.
According to Cosnob, the complaint about 24option was forwarded to the regulatory body by Italian investors. They reported serious irregularities by the company.
3) The French Ban
Again, on 1st August 2016, the French financial markets regulator AMF banned Rodeler Limited from operating in the French market. Like we mentioned earlier, 24option operates under both Richfield Capital Limited and Rodeler Limited.
In the statement by AMF, the company had failed to act honestly and fairly to the French market, causing harm. 24option had failed to act in the best interests of their clients by not providing accurate information.
Caroline Leau, a spokeswoman for the French financial regulator, said that trading with 24option is “not in accordance with the balance of risk and opportunity.”
Although the ban was later lifted on 3rd July 2017, we can’t help but wonder what other consumer protection regulations the trading company is ignoring.
4) The Never-Ending 24option Calls
Once you sign up with 24option, be ready for never-ending calls. First, they’ll pressure you to deposit money. After that, an account manager or senior account manager will push you to start opening trades.
However, they rarely tell you when to close a trade. In case you end up in a loss, the account managers tell you to deposit more money.
The callers are very persuasive. As a new investor, you may even feel like you’ve struck gold. This feeling only lasts for a while, until you start losing money or blow your account.
Don’t fall for that trick. You may keep depositing and losing till you wipe out your savings.
Word in the Market Indicating a 24option Scam
According to the 24option review on TrustPilot, 76% of the reviewers rate it as poor and bad.
The company’s star rating is equally bad at Forex Peace Academy
Let’s just say this 24option review from a customer who lost their money gives a pretty good summary of what you can expect from the company
24option Review Conclusion: Should You Trust the Company? Is it a Scam?
Based on this data-backed information, our 24option review verdict is that the company is a scam.
Yes, it is regulated, but it is unethical and does not have the clients’ interest at heart. Signing up is smooth, but losing funds is equally easy. They keep pressuring you to deposit money and illegally tell you which trades to open daily.
Though regulated by Cysec and FSC, it has failed to comply with regulations multiple times. And yet these regulations have been put in place to protect you, the consumer.
Operating a trading account with 24option is highly expensive, with unnecessarily high fees for inactivity. And the complaints by previous customers indicate that you could easily lose your money there. This proves that trading on the platform is likely to result in one scenario – lost money.
Our advice to you is:
- Always take the time to read through the terms and conditions thoroughly
- Understand the fees and commissions
- Know your consumer rights regarding trading
- Don’t blindly trust the trading advice and signals given by 24option account managers. Learn how to trade professionally and place informed trades.
Remember, when trading forex and CFDs, you should always protect your capital. In case you’ve unfairly lost money to 24option, we can help you recover it. Simply schedule a free consultation and let’s chart the way forward.