24Option Review: Can You Trust This Former Binary Options Brokers?

24option

24Option is a former binary options broker that now offers forex and CFDs. They have unimpressive spreads on most assets and many irregular fees that they charge their clients. There have been fines brought against them by CySEC twice, and they have faced warnings from other regulators. They have their own trading platform, along with MT4, and a number of educational resources available.

24Option
Founded 2008
Headquarters Cyprus
Registrations CySEC, ISFC
Platforms MT4, Custom Platform
Assets 170+

About 24Option

2008 was the year when the online broker 24Option began its’s operations. In the early years, the broker traded in binary options. Binary options are an overly simplified form of trading that appear less risky than they really are. Essentially, buying binary options is like betting on which way you think a stock will go, up or down. Binary options are now illegal in many jurisdictions, and as such, 24Option has shifted from binary options towards CFDs and forex.

During our 24Option review, we determined that the parent company behind this broker is Rodeler Ltd. This company operates out of Cyprus. The broker has a registration with the financial regulator for Cyprus, CySEC. This registration gives the broker access to EU markets and investors. Numerous rules allow for the oversight of financial regulators in one country to be accepted in another.

24Option also offers its services to those outside the EU. It does so through another company called Richfield Capital. This company is based out of Belize and has a current registration with the IFSC of Belize. This division into two separate companies with different regulatory bodies allows 24Option to offer services that are banned in one jurisdiction to other jurisdictions’ residents without violating the rules about offering that service.

Fees at 24Option

Our 24Option review found there to be four account categories for new traders to choose from. These categories are basic, gold, platinum, and VIP. The higher accounts offer more favorable trading conditions. The VIP account has the spreads around 0.9 pips, the basic account around 2.7 pips, and the other account types in-between. The basic spreads aren’t so great, and you’re going to have to put down a major deposit to unlock the better spreads of the higher accounts.

There are a number of other fees that 24Options use to collect revenue from their users. There is a seemingly unavoidable maintenance fee of $10 per month. It’s not clear what this fee is for, and it is highly uncommon for a broker to have a maintenance fee. The broker also has several levels of inactivity fees. After two months of inactivity, users are charged $80 for each month of inactivity. After three months, it’s $120, and after six months, it is a whopping $120 per month of inactivity.

24option category

Account Perks

24Option offers several other perks for higher accounts, besides improved spreads. The broker puts on webinars where investors can learn from the best. The basic account doesn’t allow any access to these webinars. Gold members enjoy access to one per month, platinum can attend three, and there are five for VIP members. These webinars are an amazing educational resource, but it’s hard to say if they’re worth making a large enough deposit to access the higher tiers.

Assets Available with 24Option

We evaluated the variety of assets available during our 24Option review. They have over 130 assets to trade CFDs on. These include currencies, with 34 choices, 11 different commodities, 25 market indices, and stocks from over 60 companies. The broker also has a good selection of forex currency pairs, over 45 at this time.

Trading Platforms

There are several options to pick from when trading with 24Option. They have an in-house platform designed for optimal trading. They have simplified the design in order to streamline the entire investment process. Information is displayed clearly and prominently. It’s easy to find order forms, previous orders, market updates, and your open positions. It’s not very customizable compared to other platforms where users can arrange individual components in separate windows.

Their platform has some good charting tools available. Each chart has an indicator that shows the general trend among fellow users of the platform. The charts can be customized and altered to other chart types quite easily. The platform has the ability to overlay technical studies onto charts, letting traders perform advanced analyses. Users can also overlay other drawing tools to analyze trends more accurately.

You don’t have to use their platform, though. 24Option also gives its users the option to use MetaTrader4. Many online brokers use this platform. It has a wide array of features that many traders have come to expect. The automatic trading options on this platform are highly advanced. Together with the great charting tools, this is the best platform for experienced traders who need a wide toolset to make the most of their expertise.

The broker has a mobile app for users who would like to trade on the go. The app is on both the iOS and Android app stores. It has many of the same features as the broker’s custom platform. These include making orders, charting, and calendars. The app is available in a dozen languages.

Educational Resources

During our 24Option review, we found the broker to have a wide variety of educational resources for traders. They put out daily updates on their website with tons of information. These include daily market analyses and other technical analyses. They offer these educational resources to their users for free.

The highlight of their educational resources is their webinar series. These are for members only, with members gaining access to more webinars through higher account tiers. Included with these are a variety of video lessons that break down the important elements of online trading. There are videos that explain different parts of trading, like risk management and the different types of analyses, along with asset-specific videos about CFDs and forex.

They have a section on their website that has content specifically for beginners. This beginner’s content explains the very basics of forex trading, including a glossary of terms that many new traders might not be familiar with. These tools are a great place to start for traders that aren’t familiar with the more technical aspects of trading.

Support

24Option has several ways for users to contact them. They are available by phone, email, or through their websites live chat. Unfortunately, they’re only available through the week and don’t have support staff through the weekends.

Registration Requirements

Our 24Option review found that the broker offers a demo account for users to try before setting up a funded account. This lets users try out the platform, explore spreads, and give the broker a thorough try before making their decision. Users get $100,000 of demo money to make pretend investment with and to try out all the technical tools that 24Option has to offer.


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Deposit and Withdrawal Options and Fees

24Option has some relatively large withdrawal fees. Withdrawals through debit and credit cards face a fee of 3.5%. Wire transfers have different charges depending on the currency, but they’re around $30. Neteller transfers have the same fee as the cards, 3.5%. The best option is through Skrill, with a 2% fee. Even this is a substantial amount to pay on every single withdrawal.

Banned in Italy

24Option has had a number of problems with financial regulators in the past. The Italian regulator Consob ordered the broker to stop all activities within that country in December 2019. They stated that the broker is no longer allows to take on new clients or solicit any business. Furthermore, the regulator ordered that they must stop doing business with their current clients within Italy, after allowing those clients to close out their positions and withdraw any funds.

Consob has said that their prohibition of 24Option was justified by a number of complaints they had recently received. These complaints by Italian investors described several irregularities in the way 24Option operates, irregularities that the regulator found deeply concerning. Most of these complaints were about activities related to CFDs. Italy’s financial regulator is one of the strictest in Europe and holds every broker to the highest standards of compliance.

Fines from Cyprus

24Option has also faced the scrutiny of their own financial regulator, CySEC. On two separate occasions, the financial regulator issued fines against the broker. The first was in 2016 when 24Option had to pay a fine of €156,000. This fine was actually many smaller fines. €10,000 was for a failure to comply with laws mandating proper and organized record-keeping on clients and advertising material. CySEC also found that the broker did not keep adequate client complaints and how they handled them.

€20,000 of the fine was for not taking reasonable measures to avoid operational risk when outsourcing activities to third parties. Then a further €60,000 was for their misleading advertising practices. €15,000 was for not disclosing risks to their clients, and €40,000 was for failure to assess the eligibility of new clients to engage in their investment activities. The final €10,000 was for not having proper systems in place to identify clients adequately.

The 2016 fine is outdone by the 2020 fine, a total of €280,000. This fine was for misleading marketing practices. These practices have become commonplace among online brokers, with many brokers advertising through the use of fake celebrity endorsements. These endorsements build up trust between the brokers and their clients, with the clients completely unaware that they have been duped.

Further Warnings

There have been numerous warnings by other regulatory bodies against doing business with 24Option. The Australian ASIC warned against doing business with this broker back in 2016 when they were still offering binary options. The New Zealand FMA issued a similar warning. In 2016 the French AMF banned 24Option from providing financial services in France, stating that the broker does not comply with certain professional obligations.

Our Summary of 24Option

24Option started out as a binary options broker back in 2008. We now know that binary options were a disaster, with countless inexperienced traders losing significant amounts of money due to a lack of proper risk disclosure by the many online binary options brokers. Since that time, the broker has received numerous fines from CySEC and has been warned against by several other regulatory bodies. It would be unwise to ignore the advice of some of the most well known and respected financial regulators in the world. We can’t recommend doing business with 24Option, based on this history of fines and warnings from regulators.

Protecting Yourself

There are many different ways that a broker can act against the best interests of their clients. Aside from outright fraud, there are misleading marketing practices that can build false trust and hide risks. There are methods to restrict withdrawals and prevent traders from retrieving their funds. We’ve seen all of these and more, and we can put our experience to work for you. Call us today for a free consultation, and we will determine if our expert team will be able to help your case.

Is 24Option a Binary Options Broker?

Not anymore, the broker moved away from binary options when the most significant financial regulators in the world all began passing legislation banning any trade in binary options.

Can I Get a Deposit Bonus from 24Option?

Yes, you can. They offer a bonus to eligible clients of up to 50% of their first deposit amount. They make this offer through their Belize holding company rather than their Cyprus headquarters. This kind of deposit bonus is illegal in the EU.

What is the Minimum Deposit?

The basic account requires a minimum deposit of $100 to get started, but to get better spreads, you’ll have to put down much more for a higher account.

Have Financial Regulators Fined 24Option?

Yes, the broker has faced fines from CySEC twice for a variety of non-compliance and other infractions against the strict rules set by the regulator, to a total of €436,000.