Warning – Broker (OptiMarkets) Shut Down
Editor’s Note – Why does OptiMarkets suck in 50 words (or more)
Optimarkets has one of the best asset indexes of any binary options broker today. Available assets include the usual stocks, indexes, currencies and commodities you may expect and even more. I found the asset list to be quite substantial, especially the commodities and stocks. Most brokers have options on gold, oil and silver. Optimarkets has options on copper, palladium, platinum, wheat, coffee and sugar too. The Forex list has 12 pairs, not the most or the least number of pairs but a good number and combined with the commodities makes Optimarkets look pretty good. The asset list has 10 indexes and includes most of the world’s biggies. Some I noticed not present were the Nikkei 225 and the Hang Seng. The missing Asian indexes are a minus but not a deal breaker, particularly if you are looking to trade commodities. Rounding out the asset is a list of over 100 individual stocks.
Check out our recommended binary options brokers
Why doesn’t OptiMarkets suck in 50 words (or more)
There are some limitations that will likely keep me from using this broker, at least for now. The major drawback is expiration. Expiration times are extremely limited and not suited to my style of trading. For the most part there are only a few expiries listed and all are less than one day. I only sometimes like to trade intra-day. I primarily use positions with at least 3-5 days until expiration so for me this is a huge negative. I know that this is not always the case. Many great traders stick to only day trading so they would not have the same issue with this as me. Most of the top brokers today are offering a variety of expiries ranging from 60 second to several months in some cases.
Optimarkets Full Review – (Only) Great for Day Trading Commodities
Optimarkets has some attractive features. The asset list, especially the commodities, is pretty good and provides the best platform for day trading commodities I have seen. However, there are some limitations to the broker that may keep some traders away, primarily available expiries. Expiration times are also a little limited so if you like trading weekly or monthly positions this is not the broker for you.
Available options include high/low, turbo, touch and range. The high/low are simply called digital options while the Turbo options include short term 60 second, 2 and 5 minute options. The platform allows you to purchase positions directly from a small chart, from a special order box or from the Chart + feature. The charts are pretty useless for analysis but I always use my own charts anyway. The platform is almost cool and can be viewed in three settings; classic, chart+ and multi. The classic view only displays one asset at a time while the multi view displays four. The four way display is similar to other platforms I have been seeing lately and one I like. The chart+ is a larger chart of the chosen asset but the only thing I found to be plus about it though is its size, nothing else.
A little thing about the platform caught my eye as I was about to move on to the resource sections. On the platform it says “our rate”. This is the rate at which you buy your options and is calculated by the broker. When compared to the going rate as displayed on their own charts and on the TV the rates were not the same. This practice is not unusual but I do like to talk with someone first. When I tried to log in for some live chat I got nothing. They made me give an email address and a phone number but no response from a live person, very fishy in my opinion.
There is always more to a good broker than just the platform and assets. The resources and educational materials are another important aspect. The best brokers do everything they can to provide a good foundation for new traders. Optimarkets makes an effort to educate new traders but falls flat on its face with the execution. The articles on binary options and trading are woefully inadequate and do little to prepare newbies for trading. There is another link to a page called “Traders Mindset” that I thought was promising. On this page they try to address some issues faced by new traders but do so in a confusing and round-about way. Not only is there very little value in the content it is also full of grammatical, typographical and mathematical errors…. not confidence inspiring.
Check out our recommended binary options brokers
Is OptiMarkets A Scam?
It is too soon to say whether this broker is or is not a scam but at first review appears to be legit. It always takes some time to fully expose the scams because the first thing you always here about any new broker is what they are doing wrong. Too many new traders are not aware of the lengthy process that some withdrawal methods entail or how expiry rates are calculated. It is too easy for a few newbies to muddy the water with misplaced complaints because they did not check out all the details.
Of course there are some complaints out there but they are not the bad kind. What do I mean? Complaints range from not having MoneyBookers for deposits and withdrawals to not enough assets on the list. To me this is a sign of a legitimate broker and wishful clients. Of course it is possible the reviews I read were biased because I do not agree with the recurring comment of “great educational materials”.
Withdrawals are pretty standard but also suffer from limitations. This broker is only accepting credit cards and wire transfers at this time. This not only limits the types of use but also the amount that can be withdrawn at one time. Another thing to consider is the cost of wire transfers when compared to more efficient means of money transfer being offered today. The first withdrawal is free but can only be made after a minimum of 15 days. After that the terms state that traders can withdraw all or part of their assets at any time from that point on provided they are not subject to bonus limitations or trading requirements. Each deposit must be at least 200 of account denomination which is USD, EUR or GBP. Further each account will be subject to ID check in efforts to limit international money laundering. Once they receive you request it will take up to 14 days to receive your money. This means that from time of deposit it will be at least one month before you can receive any potential earnings.
Optimarkets offers a bonus of up to 100% of all new accounts. The bonus is limited to deposits of up to 10,000 and is subject to other rules as well. Bonuses cannot be withdrawn unless they have been traded at least 30 times original value. Bonuses are automatically applied to qualifying accounts so it is important for you to contact them immediately if you do not want a bonus in your account.
Optimarkets is based in the Virgin Islands and accepts U.S. clients. I know because I opened an account with them to make sure. Upon opening my account I was offered three different account levels ranging from $500 to $10,000 with different bonus structures for each. Of course the lower account values did not get 100% bonus but I was offered 75% for a deposit over $7500. I also checked to make sure that I was still able to access the commodities which can sometimes be a restriction for U.S. traders.
User Friendly 15/20
This broker fairly limited in other ways as well. Adding to the limits on expiries are limits on users. The broker only supports English, French and German. Important languages I know but not the only three used by binary traders. The platform is easy to use and understand so with a basic understanding of one of the three languages traders can make do. Information on the website is easy to access but lacking in substance. There is not much of consequence for new traders; I think they will leave with more questions than they start with. No downloads are needed, it is web based so that is a bonus. It is also important to note that this is a proprietary platform. It is still new and being worked on.
Number of assets and expiry times 15/20
Assets are listed in the usual categories of commodities, indices, stocks and currency pairs. They have a decent selection of currencies and the same with indices. The indices are limited to the U.S. and EU markets, there are no Asian indices present. The stock list is also limited to European and U.S. issues but is quite substantial with over 100 to choose from. The commodities are where this broker is really outstanding. Optimarkets offers options on 11 different internationally traded commodities. Expiration times are limited. Most assets only have expiries for the current day ranging from 60 seconds to end of day. A few have one extra expiry, end of the month.
Commissions, Support and Effective return 15/20
Commissions are non-existent as with most binary platforms. Support is supposed to be there but I did not feel it was present. I mean really, live chat is supposed to mean live chat. I did not like having to give them my phone number and email address in order to talk to someone. As far as I can tell there was no live response to my query. If they want me to use them I need to talk to a real person first. Returns on investment are average at best, running in the 75-80% range for most call/put options. Touch, Range and other options types pay up to 600% return on investment. Most Touch options were in the 400-600% range. They say the first withdrawal is free of charges implying that subsequent withdrawals were subject to charge. There was no mention in the terms of what those charges would be and when I returned to the live chat to try and ask questions it (the live chat) was inactive…not good.
Deposits, Bonus And Payouts 8/20
Deposits and payouts are easy but also suffer from limits. Without additional forms of payment and withdrawal and I cannot see myself using this broker. If you use a credit card you will be limited to the initial amount deposited for each subsequent withdrawal, if you use wire transfers you will be subject to fees at both ends of the transaction even if Optimarkets does not charge a fee itself. This could easily make using Optimarkets a losing proposition even if you are a long term winning trader. However, there is no maximum limit on withdrawals with bank transfer so you can take out as much as you want. Withdrawals cannot be made until 15 days after deposit and it will take up to 14 days to receive your funds. Each account is awarded an automatic bonus once funds are deposited. Bonus range up to 100% depending on account size. To the 100% you will have to deposit $10,000, 75% with $7,500. Bonuses must be traded 30 times their initial value before any withdrawal (of the bonus) can be made.
Website Extras 10/20
The four way view screen is a nice feature but not groundbreaking in my opinion. It does add a nice touch and allows traders to trade up to four assets at once. The true extra’s here are the number of commodities you are able to trade and that Optimarkets still accepts U.S. clients.
OptiMarkets Overall Score = 65/100
Check out our recommended binary options brokers