For some time now, most reviews on brokerage options available online have always been about the latest options, to an extent that those that came earlier in time are almost forgotten about completely. Call it a broker option throwback, 24Option was actually established some 6 years ago and still continues to command the most significant part of binary options market.
How exactly does 24Option manages to do it, what are some of the features that they offer, what is it that attracts and keeps their client base intact? These and many more questions highlight some of the concerns that can help you decide whether to trade with them or not. Perhaps a precise review on 24Option is what you need to get started and making money.
24Option at a glance?
If you didn’t know already, 24Option is binary options brokerage firm that provide a trading platform where traders can make money. It is owned and managed by a Cyprus based financial services company, Rodeler Limited which has its headquarters in Lymassol. Rodeler Limited is a prominent financial firm in most of the countries in Europe and decided to launch its subsidiary in 2010. Ever since, it’s been a long journey for the company, involving tough challenges and improvements to achieve the level of success that 24Option prides itself in today.
Does 24Option legal, or at least regulated?
Any brokerage firm might have all the attractive features of binary options trading – a great website, attractive features, great bonuses and all that traders desire. But lack of a regulated mode of operation such as a license can deem them untrustworthy by most traders. That’s completely different with 24Option. It is a binary options trading firm that is regulated by a couple of regulatory bodies, including CySEC. Actually, it is among the first brokerage trading firms that were among the regulated when CySEC started observing the practices of binary options trading.
Furthermore, it is licensed by the UK based Financial Conduct Authority and is enlisted among the trading firms in UK. In the year 2012, 24Option received its certification for meeting the requirements of offering trading services according to the European Union’s Markets in Financial Instruments Directive (MiFID). They were given the green light to seek traders from all parts of Europe as well as the entire globe, except in China and US.
Now that you know that 24Option is force to reckon with in binary options trading, there’s no need for apprehensiveness. You exactly know whom you are dealing with. All you need to know about them is what they have to offer and whether it’s beneficial to you.
The trading platform
When a particular broker is being profiled, one of the most essential things to look into is their trading platform. It’s actually the most important, but mostly underrated by most traders. The trading platform is nothing but the user interface. It forms the pillar of a binary options broker. If the platform is annoying in one way or another, no user will be coming back to that site again.
24Option uses the platform from the TechFinancials, an Israeli based firm. The platform is pretty simple and possesses great aesthetic appeal that adds a fabulous user experience. It offers a number of pricing options that enable that makes it possible for 24Option to offer almost perfect payouts. Most of the assets of the broker have payouts ranging from 87% to 91%, which according to current payout standards is considered very high.
What’s more, TechFinancials provides a price updates in real time, making it possible for the broker to provide only up to date payouts according to the financial markets. The platform also offers a live price feed courtesy of Reuters in the course of a week, with the only exemption being major holidays and weekends. This is so because markets are usually closed during these times.
TechFinancials also powers quite a number of other forex brokers and this is enough to make anyone believe that the pricing is actually the real deal. Moreover, the platform also supports a variety of assets including stocks from the world’s biggest companies such as Facebook and Apple. It also supports a wide range of currency pairs and analysis tools so traders can get their analysis correctly before starting to trade. These analysis tools range from charts to graphs as well as a couple of technical indicators.
What are the option types offered?
24Option, powered by TechFinancials offer a variety of options to suit the needs of every binary options trader. Essentially, options are some form of ‘contracts’ that come with specific payouts. These ‘contracts’ become effective once a trader decides to pick a particular type of option.
24Option provides over 5 types of trading options with varying prices, underlying assets and expiry period. Some of these options include the following:
- High/Low – this is the basic type of options. In this option, a trader predicts an asset’s final price relative to its current price. This option allows you to trade virtually all assets including the currency pairs and stocks. The payouts are usually lower as compared to other option types, but the risks are counteractively lower which is reassuring for cautious traders.
- One Touch/No Touch – this is rather similar to High/Low option in that the trader predicts an asset’s value, whether it will be higher or lower than a certain figure. The difference comes in that One Touch/No Touch has its predictions based on predetermined values, usually set by the broker. They also don’t follow an expiry time as such, it can end at any time once the condition has been met. The payouts are actually higher than the High/Low option, but comes with more risks to counteract that.
- Boundary – just like the name suggest, this option revolves around certain price boundaries. There is the Floor and the Ceiling, that is, lower value and upper value respectively. The traders place their trades based on whether the price of an asset will be within the given boundary.
- 60 Seconds – it’s also referred to as Turbo option. This is a recent addition on 24Option. There’s not much to say about it. Just like its name suggests, you place your trade and within 60 seconds you shall have gained or lost a payout.
How favourable are the expiry times?
After a look at the option types offered by 24options, the next thing you might want to look at is the expiry times. The time frame selected has a significant bearing on your trades’ outcome. In binary options trading, time is great essence and even a fraction of a second can determine whether a trader wins or loses their trade.
That being said, 24Options provides a variety of expiry times, including long and short term. You get to choose the most favourable expiry time depending on your trading strategies and analysis methods.
- Short term expiry times – these generally start from as short as 1 second and can last up to an hour. 24Option offers short term expiry times as follows: 1 second, 15 seconds, 30 seconds, 2 minutes, 5 minutes, 30 minutes and 1 hour. These are the best if you chose to trade the major stocks or currency pair. Normally, short term expiries come with average profits and high risks.
- Long term expiry times – these range include 5 hour expiry time and till end of the trading day expiry. The 24Option trading platform does not support longer expiries that can last to a week. This is however not much of an issue since most traders like the short term expiry times. Generally, the 5 hour and the end of trading day expiry times are quite good and will get the job done for those who like longer expiry times.
24Option offers a greater asset index than most of the brokers in the industry. The broker has more than 120 assets across over 6 stock, commodity exchanges ad currencies. It provides over 30 currency pairs including the most frequently used and strongest currencies, including:
In addition, 24Option has the most valued commodities in its asset index, including:
- Crude oil
As for indices, there are not so many offered, essentially because there isn’t much to be offered. Some of the indices offered include S&P 500 and Dow Jones, MICEX, FTSE 100 and Hang Sheng from US, Russia, UK and China respectively. If you are an enthusiast of index trading, then you’ll certainly love the indices offered by 24Option. Otherwise, here are plenty of other trading assets you can choose from.
What are the account types offered?
24Option offers five account options to choose from. The account option is basically determined by your credit card or bank balance. These account options include Basic, Silver, Gold, Platinum and Diamond.
The deposit requirements are as low as $250 for Basic to as much as $15,000 for the Diamond Account. Just like with the accounts of other brokers, each of the accounts of 24Option has its own pros, cons and features.
In addition, there’s also a demo account which is simply straight forward. This account lets you try out the different trading strategies as well as learn how the trading tools can be used. It’s rather a rehearsal platform where you can make any mistakes and get charged absolutely nothing! It has all the features offered on a real trading account but you require to make a deposit to use it. You will receive $40,000 of virtual money with no restrictions, no losses and no worries. If you are just getting started, the demo account is the best option for you, unless you are an advanced binary options trader.
24Options is actually the first broker to introduce an Islamic account to make it possible for thousands of Muslims who’d like to earn money in accordance with the Sharia Law. Everything on this account is Halaal as the Quran prescribes. The language used for this account is Arabic which is understood well by Muslims.
Pros of 24Option?
24Option offers more pros for traders to earn money online:
- Its trading platform is simple and intuitive.
- It offers more than 5 trading platforms.
- 24Option is legit and regulated by CySEC, thus reassuring for traders.
- The expiry times are favourable.
- Great payouts for every win.
Cons of 24Option
However, a few cons also do exist with platform, though not much a big deal:
- Long term expiry times that last for up to a week are not included.
- Risk level increase with the profit levels.
To sum it up, there’s no single broker who offers much like 24Option. Their website is particularly awesome and likeable. The site presents everything you’d like to know about the broker as well as binary options in a simple and clear way. Additionally, the payouts are amazing. Its arguably one of the best brokers in binary options trading that ever existed!