Why 72Option Sucks In 50 Words
Unregulated, with a bad reputation online, smelly web traffic, and nothing to make them stand out in a good way. Same old, same old, a SpotOption platform some slogans about how easy binary options are. Just take a look at their About Us page: instead of offering information about the brokerage (like what’s the launch year, duh!), it just tells me that trading binary options don’t “require any traditional educational requirements” so… no requirements are required and I will probably make a ton of money. Easy…
Why 72Option Doesn’t Suck in 50 Words
SuperTraderTV. That’s one of the only reasons why 72Option doesn’t suck. It’s basically a video market review, focusing on the key points of the day ahead, including the most notable economic indicators that are about to be released. I checked their website early in the morning and the video for that day was already uploaded, so it’s something that traders can actually use. Doesn’t suck!
Is 72Option A Scam?
Calling them a Scam is a bit farfetched but I have to say that I don’t fully trust an unregulated brokerage. Of course, this shouldn’t come as news to any of you because over the years we’ve made our position pretty clear: regulated brokerages are better than unregulated brokerages… usually. Being unregulated doesn’t mean they are a scam right off the bat, but the level of security is higher with a brokerage that is supervised by a financial watchdog.
The internet “vibe” surrounding 72Option is mostly negative and people complain about not being able to withdraw or if they can, it takes a very long time and it’s a tedious back and forth with the broker. The web traffic numbers for 72Option are very interesting: since October 2016 they had about 10K visits monthly (this is very low). Then in February 2017 they increased to 20K and in March 2017 they had a spike up to 108K visits (35% came from the United Kingdom and 14% from Sweden). I don’t like spikes on my charts and I don’t like them on a website’s statistics. What could have happened in March? Why are people suddenly so eager to visit this brokerage? Are they rushing there to close their accounts or to open new ones?
Should I Open An Account With 72Options?
This brokerage is owned and operated by Epic Ventures LTD, a company located at Landmark Building, 14 Tsar Osvoboditel Blvd., 5th Floor, 1000 Sofia Bulgaria. They are not regulated by any financial regulatory authority and this is a first warning sign when dealing with any broker, not only with 72Option. Customer service can be reached at email: [email protected] and through several international telephone numbers.
According to online sources, this brokerage was launched in 2014, so they have some experience under their belt but on the other hand, that is more than enough time to get some regulation, which they didn’t. I wonder why. The platform used is SpotOption, which is a great platform but so many brokerages use it that it has become somewhat a standard in the industry. That’s not a bad thing at all – hey, most brokers in the Forex industry use Meta Trader 4 – but I ask you this: if in the left hand you have an unregulated brokerage and in the right hand you have a regulated brokerage, both using the SpotOption platform, which hand would you choose? My answer is right, am I right?
Education on 72Options seems more like a long commercial focused on praising binary options rather than informative, didactic material, but if I think about it, they already told us that we don’t need any traditional educational requirements, so, why bother with it.
Accounts start at 250 bucks and according to a Live Chat representative, you will have to register, give them your personal contact details and then wait for an account manager to call you if you want to know more about account types. Speaking of Live Chat, literally, all I could get out of the guy was: open an account and an account manager will give you more information. I couldn’t even get basic information like the year when the brokerage was launched. Sorry, but that’s not good enough.
Considering that you have tons of choices of regulated brokerages, with either the SpotOption platform or well built proprietary ones, I don’t see why you would go for an unregulated one, which also “enjoys” a rather stinky reputation?
As I said before, there’s no shortage of online complaints about this brokerage. The biggest problem seems to be the withdrawal, which either takes too long and is completed after a “war” with the broker or fails completely. People also mention bad investment advice and pushy tactics, with high pressure and requests to deposit more money. I think people should stand their ground. If you want to deposit the lowest, do so. Don’t change your mind because the account manager told you to deposit a thousand bucks more than you initially wanted.
72Option Regulatory Warnings And Announcements
08.12.2016: British Columbia Securities Commission (BCSC) added 72Option (owned and operated by Epic Ventures LTD) to their warning list, mentioning the brokerage is not registered to trade in, or advise on securities or exchange contracts in British Columbia. The BCSC also warned British Columbia residents to “exercise caution when dealing with firms that are not registered to trade or advise” in British Columbia. Source: BCSC Warning
The all-powerful account manager will decide the fate of your Bonus and how much you are entitled to. However, their Terms and Conditions state that you will have to reach a turnover of (deposit + bonus)*25, which is pretty high if you ask me. Before this turnover is reached, you won’t be able to withdraw any money from the account.
Profits must be withdrawn via wire transfer and the initial sum can be sent to the credit card used to make the deposit. E-wallets cannot be used for either deposit or withdrawal, which is another disadvantage of using 72Option, because… well because it’s 2017 and e-wallets are a popular, fast and easy way to transfer money. After sending the required IDs, your withdrawals will take between 7 and 10 business days.
SUperTraderTV is a nice extra but let’s not get overly excited about it. It’s helpful if you don’t know where else to look for that info but it’s not a game-changer and – as I said many times before – it should be considered something normal.
User Friendliness 13/20
The website is only available in English. Either that or I couldn’t find the button to switch languages, but I doubt it. The layout is straightforward and the SpotOption platform is known for its well-rounded functionality. They also offer a mobile app, Demo accounts are not available and US traders are not accepted.
Number of Assets and Expiry Times 15/20
They offer 18 stocks, 12 currency pairs, 7 commodities, and 20 indices. This is a bit on the low side but hey, I know people who only trade one or two assets, so it all depends on what type of trader you are. Expiries are typical for the SpotOption platform, ranging from 60 seconds (also 90, 120, 180, and 300 seconds) to 15 minutes, one hour, end of day, and even Long Term. FX/CFDs are also available.
Commissions, Support, and Effective Return 13/20
The company doesn’t charge brokerage fees or commissions for executing trades but the client will have to pay any possible bank fees related to deposits and withdrawals. Support was completely unhelpful and all I got from the Live Chat rep was the advice to open an account and talk to an account manager. The effective return is somewhere in the 75% area, depending on asset and market conditions; they offer a 10% refund in case of Out Of Money trades.
Deposit, Payment, and Bonus 12/20
The minimum deposit is 250 EUR/USD/GBP and can be made through credit cards and wire transfers only (no e-wallets). Minimum withdrawal via credit card is 100 USD; minimum withdrawal via wire transfer is 500 USD and profits can be withdrawn via wire transfer only. The bonus percentage will be decided by the account manager; the turnover required before you can withdraw any money from your account (if you received a bonus) is (deposit + bonus)*25.
Website Extras 12/20
SuperTraderTV is a nice way to keep their traders informed on the upcoming economic releases and other events that may influence the markets.
72Option Overall Ratings: 65