Why Binomo Sucks in 50 Words
According to clause 5.13 of their Client Agreement, if the client deposits “money into their account but later decides to completely or partially withdraw funds, and their trade turnover (the sum of all transactions since the last deposit) has not exceeded double the size of the deposit, the withdrawal fee will be 10% of the Account Balance or the Client’s last Deposit, depending on which figure is greater.” These types of rules and limitations are not something we want to see and it would be great if Binomo would simply allow their customers to withdraw without having to pay extra.
Why Binomo Doesn’t Suck in 50 Words
I like their customized platform that offers you to trade with one keystroke (if you enable it). The charts themselves can be equipped with the most popular indicators like MACD, Bollinger Bands, MA, and RSI. In addition, you can select among many technical trading tools like trendlines, triangles, Fibonacci, pitchforks, and many more to choose for analysis.
Is Binomo a Scam?
The first question is, how reliable is a Financial Commission membership? Is that something to compare to a CySEC or FCA Regulation? For a long time, their website claimed that they are “pending CySEC and CPO regulation”, however that information is now gone so we assume they stopped chasing CySEC regulation.
Bottom line: this broker is probably not a scam but they are not regulated by a prominent watchdog (keep in mind that the Financial Commission is not a governmental agency), thus we recommend making a smaller investment at first and then decide if you want to make a larger one, if everything is to your liking, of course. The minimum deposit is only $10, which is a small risk to take but make sure you fully and carefully read their Terms and Conditions because they have a few “stinkers” in there.
Should I Open an Account with Binomo?
Binomo is an online broker, with a relatively long track record, which offers binary options on currencies, cryptocurrencies, stocks, indices, and more. It is owned by Dolphin Corp, a company registered in St. Vincent and the Grenadines, which is part of the Binomo group of companies. The broker started operating in 2014 and is a member of the Financial Commission. What this means exactly is still a bit vague because these are not high-profile financial regulators. Dolphin Corp’s payment agent is Pollack Trade LTD, which is registered in Bulgaria and is also part of the Binomo group of companies.
The platform itself seems great and I like the fact that you get to open a demo account with just an email address! You can, at any time, replenish the money in the demo account or switch to your live account. A nice feature is the ability to use “Hotkeys” for trading. If you enable this feature, you may increase or decrease your investment amount, change your expiry, and execute trades without using your mouse. You just need to memorize which keys do what. So before you switch to Hotkey mode, make sure you know which keys do what to avoid any accidents.
The chart on the platform comes in several time frames, 5s, 15s, 30s, 1 minute, and 5-minute candlesticks and you can zoom in and out using the middle mouse button. As mentioned earlier, you have a vast selection of technical tools and the most popular indicators to apply to your chart. Regarding option types, you can only trade turbo and high and low options.
To open a live account, you only need a deposit of 10$ and the minimum investment size is only 1 dollar which gives you room for 10 trades to try out the broker live – after you feel satisfied with their demo account. They also claim that your withdrawals will be processed within 3 days for a Standard 10$ account, 24 hours for a Gold account ($500 minimum deposit), and 4 hours for VIP (requires deposits above $1,000). On the downside is the 10% fee in case you change your mind and wish to withdraw all your funds before you made trades that exceed twice the size of your deposit. For a 1000 deposit, what would be equal to a 100$ fee which is way too much if you ask me.
So, should you open an account with Binomo? Overall, I feel that this broker is making a decent attempt in order to stand out but unfortunately, the lack of proper regulation and some funky Terms and Conditions may deter some people from signing up.
Dolphin Corp lists the address First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St.Vincent, and the Grenadines. The payment agent is Pollack Trade LTD, with a listed office address at Georgi Sava Rakovski St. 96, Sredets Region, Sofia Municipality, Sofia 1000, Republic of Bulgaria. Binomo can be contacted at email: [email protected].
As you can see from the user comments below this review, Binomo doesn’t enjoy a stellar reputation and that’s putting it mildly. Even more, on ForexPeaceArmy they have a 1.3 star rating, which is saying a lot about the level of client satisfaction. But as always, take things with a pinch of salt.
Binomo Regulatory Warnings And Announcements
25/11/2019: CySEC warned that Binomo.com “does not belong to an entity which has been granted an authorization for the provision of investment services and/or the performance of investment activities, as provided for in Article 5 of Law 87 (I)/2017” Read the full warning here. The Brazilian CVM (Securities and Exchange Commission) and The Spanish CNMV have issued similar warnings.
The bonus goes up to 100% for the Standard account, up to 150% for Gold and up to 200% for VIP. You need a turnover of at least 35 times, up to 40 times the bonus amount, depending on the size of your bonus. If the bonus is below 50%, the turnover is 35x and all bonuses above 50% will have a turnover of 40x. More details are provided on the page of the bonus you receive. Be very careful: according to cause 8.4 of their Terms and Conditions, you will NOT be able to withdraw until you reach the bonus turnover: “8.4. After a Bonus has been activated, the funds in the Client’s Account become available for Withdrawal only after the Client completes the Mandatory Trading Turnover”
The minimum withdrawal is only $10 or even lower in some countries. The terms and conditions clearly state that should you wish to withdraw your funds before trading amounts up to at least twice the size of your deposit you will be charged a 10% fee. How much time the withdrawal takes depends on your account. Expect anywhere between 4 hours up to at least 3 days (this is the time needed to process the request). Just make sure you have verified your account first by sending the required identification documents.
Unfortunately Binomo manages to impose another weird rule for withdrawals: according to clause 5.18. “The Company has the right to impose a limit on the Withdrawal of Funds equal to the sum of the Client’s Deposits for the last 30 (Thirty) days”. In other words, maybe you deposit $100, turn it into $300 in a month, but you will be able to withdraw only $100. What happens to the other $200? Do I have to make another deposit of $200 to be able to withdraw the $200 profit I made? So in other words, I can only withdraw my deposits, never the profits??
User Friendly 16/20
The website comes in 14 languages, there are free guides and strategies that are pretty good for beginners. The platform is easy enough to use and you can use Demo accounts to get familiar with it. Mobile platforms are available. U.S. traders are not accepted.
Number of Assets and Expiry Times 16/20
The number of assets depends on the account type. VIP account holders get to trade the entire asset list (61) while standard account holders only get to trade 41 assets. Even the VIP offering is low in our opinion so maybe they should work on it. Also, the number of cryptocurrencies is low so if you want to focus on this asset class, you will have to find another broker. The expiry times start at 30 seconds and go up to hours.
Commissions, Support, and Effective Return 17/20
There are no fees to open an account but if you have not exceeded trading volumes above twice of your deposit size, you are due to pay a 10% fee for the withdrawal. Also, if your account is inactive for 30 days, you will pay a “subscription fee” of 10 USD or EUR.
We couldn’t locate a live chat button so a thumbs down for the live support. Regarding payouts, the maximum percentage seems to be 90% which is very good but it’s only available to Gold and VIP members. Gold clients can get up to 5% weekly cashback and the percentage increases to 10% for VIP clients.
Deposit, Payment, and Bonus 16/20
The minimum deposit is just $10. The available deposit methods are VISA, MasterCard, wire transfers and a few e-wallets (Advcash, WebMoney, PerfectMoney), as well as Bitcoin and Litecoin). Withdrawals may take anywhere from 4 hours up to 3 business days to process, depending on the account type. There are various bonus offers and the required turnover is between 35 up to 40 times the bonus amount or depends on the bonus offer itself.
Website Extras 15/20
The biggest extra here is the “Hotkeys” feature which enables keyboard trading. You can choose the direction, increase or decrease your expiry and investment size with the already programmed keys. There are also tournaments and offers to the left of the platform. Traders can simply click them to read more about them.
Binomo Overall Ratings (78) + Regulation (Financial Commission +1) = 79/100