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FXTradeOption Review - is it scam or safe?

FXTradeOption review - Is fxtradeoption.com scam or good forex broker?

RATING: 1 / 1 REVIEWS ForexBrokerz FXTradeOption
FXTradeOption is an offshore broker. Your money is not safe.

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FXTradeOption is a forex, CFD and binary options broker, offering a selection of currency pairs and CFDs on a web based platform. If you are thinking about opening an account with them be sure to read this review first.

 

Account type Min. deposit Max. leverage Spreads
Standard Account n/a 1:50 n/a

 

FXTradeOption Advantages:

 

A variety of trading instruments, including binary options

 

We are not entirely sure if we should put this as an advantage, but yes, FXTradeOption is offering binary options – a trading instrument that is getting rather exotic after the the European Securities and Markets Authority (ESMA) banned all binary options bets in EU on July 2nd. The measure was taken as a part of a broader effort to curb risks for retail traders. Apart form that FXTradeOption offers some currency pairs and CFDs on commodities, precious metals and indices. And as we do not see any crypto CFDs, here you may check our list of brokers, offering Bitcoin CFDs:

 

>>Bitcoin Forex Brokers<<

 

Leverage of up to 1:50

 

Leverage of up to 1:50 might not seem much, but generally should be enough to fit any trading strategy. Besides, along with banning all binary options bets, ESMA capped the maximum leverage as well. Since the beginning of August all brokers operating in EU countries may offer leverage no higher than 1:30 for forex trade and 1:20 with most other CFDs.

 

Variety of payment methods, popular e-wallets accepted

 

At FXTradeOption you can pay with major credit or debit cards like VISA and MasterCard, wire transfer, e-wallets like Neteller and Skrill and payment services like JCB, MoneyGram and Western Union. Still there is no option to pay with Bitcoins so here you may check our list of brokers, accepting Bitcoins as payment: 

 

>>Forex Brokers Accepting Bitcoin<<

 

FXTradeOption Disadvantages:

 

FXTradeOption is currently without a license

 

FXTradeOption is owned and operated by  B.O. Tradefinancials Ltd, which is based in Cyprus and until recently, regulated by the Cyprus Securities and Exchange Commission (CySEC) – one of the most reliable regulatory authorities in Europe. 

 

However, on July 3rd  B.O. Tradefinancials Ltd abandoned its license. The move could have been triggered by ESMA decision to ban binary options in EU. Irrespectively, now FXTradeOption and  B.O. Tradefinancials Ltd are without a license to provide financial services and this significantly decreases their credibility.

 

 

Besides, B.O. Tradefinancials Ltd operates a number of similar unregulated websites - http://fairtradeoption.com/, http://binarycent24.com/, http://binaryplusoption.com/ and http://favouriteoptions.com/, all of which have the same layout as FXTradeOption and offer the same products.

 

Here we should note that investing with unregulated brokers is associated with a significant risk of loosing your money to scammers. Unregulated brokers are not accountable of how they handle your money and quite often traders, dealing with such brokers, have problems withdrawing their funds.

 

On the other hand, brokers, licensed by respected financial authorities such as the Financial Conduct Authority in the UK, the Australian Securities and Investments Commission (ASIC) and CySEC in Cyprus are obliged to follow strict financial and ethical rules.

 

Among others, we should note the requirement to maintain a certain minimum capital adequacy ratio, to deposit all traders money in a segregated protected form creditors, trust account and in some cases even to insure traders money.

 

Traders with CySEC regulated brokers for example are entitled to a compensation of up to 20 000 EUR in case their broker happens to be insolvent. A similar FCA compensation scheme guarantees traders up to 50 000 GBP of their investment. Here you may check our list of FCA regulated brokers:

 

>>FCA Regulated Forex Brokers<<

 

Unspecified trading conditions

 

FXTradeOption say they are offering tight spreads, but they do not give any further details. Unfortunately, we were not able to open a demo account, so we can not comment on their spreads. Just keep in mind that with a standard account, acceptable spreads should start below 1,5 pips, without a commission on the trade. Here you may check our list of brokers offering tighter spreads:

 

>> Lowest spread forex brokers<<

 

No information about the minimum deposit requirement

 

FXTradeOption does not tell us what is the minimum deposit requirement to open an account with them. Still, with most brokers you can start trading with 250 USD or so, while with some well established players like FBS and IG you can open a trading account with just 5 USD or even less.

 

MetaTrader4 not supported

 

FXTradeOption offers a web based trading platform, which is also used for binary options bets. As a rule, trading platforms used for binary options tend to be rather simplified and lack many of the standard features, available with classic trading platforms like the MetaTarder4. 

 

With a MetaTrader4 you have more than 50 in-build market indicators, various charting tools and an option to run automated trading sessions, using customizable trading bots – Expert Advisors, which can be easily modified on a proprietary scripting language – the MQL4. Here you may check our list of brokers, supporting MetaTrader4: 

 

>>MT4 Brokers<<

 

Conclusion:

 

Currently FXTradeOption is an unregulated broker and to be honest, this is a major setback. As we have already discussed, any investment with unregulated companies comes with unreasonably high risk of loosing your money to scammers.

Latest news about FXTradeOption
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Traders` reviews for FXTradeOption

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