Important Announcement: PowerOption will be closing for business this month (December).
Editor’s Note – Why PowerOption doesn’t Suck in 50 Words?
Right from the first minute I spent on poweroption.com, it was clear to me that I am dealing with a different breed of broker. First of all, there are no mysteries related to who they actually are and you don’t have to feel like a detective: PowerOption is a trading name of Ava Trade Ltd. which is one of the giants of the Forex industry, regulated by the CySEC under license number 204/13. So PowerOption benefits from the market experience of its older Forex brother and from the safety which comes with regulation.
Why does PowerOption Suck?
Compared to other binary options brokers, PowerOption is without a doubt one of the top players but as we know, even the best companies suck sometimes: at the moment they don’t offer Out of the Money protection. In other words, there’s no refund if your trade doesn’t go your way. However, they assured us that in a short while OTM refunds will be available. Of course, we will keep monitoring and inform you as soon as they introduce such a refund.
PowerOption Full Review – A Real Powerhouse by AvaTrade
First thing we have to note is the fact that PowerOption is rather new on the binary options scene (they launched in late 2013) but they are a part of the Ava Group. The Forex side of the Group is called Ava Trade which has been in business since 2006 and the company’s total trading volumes surpass $60 billion per month. This clearly goes to show that PowerOption benefits from the experience of an entire team of true professionals and the fact that they are such a young binary options broker is not a concern.
Powered by MarketsPulse, the trading platform is extremely user friendly and has a special feature which has always been one of my favorites: it offers the possibility to trade directly from charts. In other words, you will see two arrows next to the current price (one for Call and one for Put); click on either of them and a small window will appear for you to confirm your trade and choose your investment amount. It’s true that trading binaries is easy on other platforms as well, but this is a nice addition which I am sure appeals to a lot of traders. Most of the education material requires a trading account so you will have to sign up before you can have access to some videos, tutorials and an e-book but basic information is also available to unregistered users.
PowerOption’s trading accounts require a minimum deposit of $100 which is rather low compared to the majority of brokers out there but we don’t recommend opening an account with just 100 bucks because the minimum allowed trade is 10 dollars so you will be risking 10% of your entire account on each trade if you deposit the minimum. Their bonus goes up as 100% if you deposit $500 or more so that’s another reason for depositing a higher sum than $100, especially if you are a fan of high bonuses. Despite the fact that PowerOption are new on the market, they seem to have a lot of potential and will probably become one of the true leaders of the industry, especially if they choose to follow Ava Trade’s example of providing a professional and reliable service.
Is PowerOption a Scam?
Although as a binary options broker they are young, there’s absolutely no suspicion of a scam. PowerOption.com is the binary options trading site of Ava Trade Ltd which is regulated by the CySEC and also a huge Forex broker. Poor performance coming from their binary options broker would mean a stain on an almost flawless reputation and we believe they will do their best to keep that from happening. This broker is on it’s way up, high in the sky.
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There are some isolated complaints regarding the fact that PowerOption doesn’t offer a wide range of assets. However, at the time of writing this review, their list of assets is satisfactory (although to the most complex we’ve seen) so either they updated it or it wasn’t really an issue to start with. BOTS team will continue to monitor the internet for any emerging complaints and will update as necessary.
A ladder-style Bonus was adopted by PowerOption: you will get a 50% bonus if you deposit between $100 and $299, a 75% bonus for deposits between $300 and $499 and every deposit above $500 will get you a full 100% bonus. Although we don’t recommend accepting extremely high bonuses, their wager is reasonable: only 30 times the bonus amount. I used the word “only” because some brokers offer 100% bonuses and then require you to trade 20 or 30 times the bonus plus the deposit amount which is an enormous trading volume.
Under normal circumstances it takes about five business days for a withdrawal request to be processed and the money to be sent to the client’s account. The usual methods (Credit/Debit Card and wire transfer) are available for EU customers and Non-EU clients will also have the option to withdraw and deposit through Paypal and Skrill.
Being a part of an industry giant such as Ava Group certainly is a positive extra and adds an increased level of confidence. Regulation also means that clients’ money is kept in segregated accounts, a fact which protects it in case of bankruptcy or other unfortunate events.
- Operated by AvaTrade
- Accurate Feeds
User Friendly 17/20
The website is well structured, translated in 8 languages, the platform is extremely easy to use. Unfortunately US clients are not accepted. The platform is very easy it use, visible, and very innovative.
Number of assets and expiry times 14/20
Their Instrument list contains 13 currency pairs, 8 indices, 12 stocks and 5 commodities. It’s not the widest available out there but I am sure traders will find enough opportunities as the most traded assets are present. The expiry times range from the ever popular 60 seconds to hourly and end of day, with the possibility of using Options on Demand, a feature similar to the Option Builder. One Touch and Range options are also available.
Commissions, Support and Effective return 17/20
There are no hidden fees or commissions for opening an account or trading on it but accounts which are inactive for 6 months will be charged a $25 fee. It’s really not a big deal and compared to the outrageous fees charged by other brokers, this is a “piece of cake”. Customer support is pretty quick to answer and once they do, you will usually get straightforward answers to your questions. Effective return goes as high as 85% but there’s no refund for Out Of The Money trades.
Deposit, Payment and Bonus 17/20
Minimum deposit is 250 US Dollars or 250 Euros, but if you bargain you might get it down to 200 dollars or Euros. Both deposits and withdrawals can be made through Credit Cards and wire transfer but Non-EU clients also have Paypal, Skrill and other e-wallets as an option. The bonus can go as high as 100%, depending on the deposit amount and the wager is 30 times the bonus received.
Website Extras 12/20
Trading directly from charts is considered a positive extra but probably the most important is the fact that PowerOption is the “little brother” of the huge Ava Trade (Forex broker) which is regulated all over the world.
PowerOption Overall Ratings 77 + Regulated (+3) = 80/100
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