Why RaceOption Sucks In 50 Words
For starters, this broker doesn’t inspire a lot of confidence, and ThatSucks! big time. Then there’s the video chat, which is a common feature of all the brokers in the FGC family (we don’t know if they are still part of FGC but the websites are almost identical). I don’t mind talking to girls, but I don’t think video chat is what we’re here for and the fact that they are not very knowledgeable in trading matters doesn’t help either.
Why RaceOption Doesn’t Suck In 50 Words
*crickets*… *more crickets*… actually, there is something that doesn’t suck: charts provided by TradingView. However, these charts are only available if you click on “Charting Tools” at the top left of their platform and you will have to return to their platform if you want to place a trade. If you’re an experienced trader who likes to dabble into price action and technical analysis, you’ll love these charts but then again, if you are an experienced trader you will probably work with a more serious broker.
Is RaceOption A Scam?
Although there have been some complaints about RaceOption, we can’t say for sure if this broker is a scam or not. In the past, it was clearly stated they were operating under the umbrella of Finance Group Corp but it’s unclear if that is still the case, however, what is clear is that RaceOption shares a similar website layout to BinaryMate, BinaryCent, and Finrally, and they even share the same Live Video Chat operators. These brokers are not really my first choice when it comes to professionalism and safety… and that’s me being nice about it! In fact, RaceOption is an almost exact copy of Finrally. Check for yourselves: look at the two websites side by side and you won’t be able to tell the difference (other than the name of course).
I consider that all of the above are warning signs and on top of that, RaceOption shows a “Regulated” logo on their website but upon asking live chat for more details, I hit a wall of excuses and running around the bush, then I was advised to contact their legal and compliance department. What’s the deal with that? If you are regulated, give me your license number. As simple as that.
It’s rather interesting that most of their traffic comes from the United States, but Binary Options brokers are not allowed to advertise in the US or to accept clients from the US. RaceOption even acknowledges this more than once on their website (bottom of the homepage and T&C document). So what are Americans doing on the website? Anyway, I have no way of knowing if any of these visitors are actual clients, and last time I checked Americans were allowed to access the Internet, so maybe they just visit the website because they like it…
Should I Open An Account With RaceOption?
RaceOption is an online broker that offers Binary Options and CFD trading on currencies, cryptocurrencies, stocks, and commodities. It is operated by Makerun Corp, a company registered in the Marshall Islands, which is not regulated by any known financial authority. In the past, RaceOption was run by Race Projects Ltd. and was part of FGC (Finance Group Corp), however now there’s nothing on the website to indicate a connection to the Group.
According to their web traffic, RaceOption launched sometime around October 2017. It’s unfortunate that I have to play detective and check web traffic statistics to find out when a broker was launched but hey, it is what it is. Nowadays some brokerages are as transparent as a brick, so they don’t bother to offer that info on their website or to answer my questions about it. Also, did I mention they are unregulated? And did I mention they claim to be regulated? Well, they don’t actually say it but they do show a “Regulated” logo on the website and when I asked about it, they shrugged me off.
The trading platform itself is not bad but it has limited features and is fairly simplistic, so an experienced trader will probably need something more complex. They do offer the possibility to use TradingView charts and that’s a plus because several technical analysis tools can be used on this type of chart. As mentioned above, clients are not able to trade directly using these charts.
Accounts start at 250 USD and are categorized into Bronze, Silver, and Gold, each with different perks and features. For example, you will get an individual account manager for the Silver and Gold accounts but not for the Bronze. Does that mean that no one will call me if I open a Bronze account? I doubt it. The silver account requires a $1,000+ deposit and for Gold, you will have to deposit north of $3,000.
As for education, that’s almost completely missing or at least I couldn’t find anything that can be considered a trading tutorial, let alone a trading school. They mention some videos, but I couldn’t find them no matter how hard I searched. All that’s available in the Education section is the FAQ, which can hardly count as learning.
All in all, this is a mediocre broker and an almost exact copy of Finrally, which is a carbon copy version of the defunct Finpari, which was a known scam. So, I don’t know what to say: is this the evolved version of a scam brokerage or are they something completely new and maybe trustworthy? However, if I even have to ask that question, the answer is clear for me: don’t risk it!
Makerun Corp. lists the address Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960. We cannot verify if this is the actual location of their offices. The broker can be contacted at phone at +18299476393 and email [email protected]
A funny thing is happening: RaceOption is reporting all the negative user reviews on Trustpilot for “Advertising”. It’s true that most of them are advertising recovery services (and most of those are scams as well), so we cannot give a lot of credibility to those reviews, but the fact remains that people are rating them very low (borderline scam) on Trustpilot.
Another thing worth mentioning is that in threads and comments about RaceOption, people are complaining about Finrally, saying they haven’t received their withdrawals for 2 or even 6 months. It is unclear why this is happening but one reason could be that people realized that Finrally and RaceOption are run by the same people.
RaceOption Regulatory Warnings And Announcements
22.06.2018: French regulators Autorité des Marchés Financiers (AMF) and Autorité de Contrôle Prudentiel et de Résolution (ACPR) warned the public against the activities of several unauthorised forex and binary options providers; RaceOption was one of them. See warning here.
Bonuses can go up to 100%, depending on the initial deposit: 20% for a $250 deposit, 50% for deposits above $1,000 and 100% for deposits above $3,000. The requirement for withdrawing the client’s own money is a minimum turnover of 3 times deposit + bonus. If the client wants to withdraw funds from the account before the turnover has been reached, a 20% maintenance fee will be deducted. The bonus is NOT available for withdrawal.
Withdrawals take up to one hour according to RaceOption. This almost sounds too good to be true and the fine print at the bottom of the page reads: “Withdrawal time after confirmation”. We don’t know how much this confirmation will take and RaceOption doesn’t offer any additional information.
The methods are credit cards, PerfectMoney but also cryptocurrency (Bitcoin, Ethereum, and altcoins). They don’t offer wire transfer withdrawals or at least they don’t talk about this possibility on their Withdrawal page. Turnover requirements apply in case you’ve received a bonus but what’s weirder is that you will have to reach 100% turnover on your own deposit before you can ask for a withdrawal, even if you have not received any bonus.
Trading Bitcoin With RaceOption
At RaceOption you can trade CFDs and Binary Options on a relatively wide range of cryptocurrencies (13 pairs), including but not limited to Bitcoin, Bitcoin Cash, Litecoin, Ripple, Ethereum, and Dash. The payouts range from 50% to a maximum of 70%, which is pretty high.
According to their Withdrawal Methods page, you can withdraw directly to Bitcoin, Ethereum, and altcoins. I don’t really understand how this is possible, considering that you are not buying cryptos on this brokerage, but trading CFDs on them. Maybe they will automatically convert my fiat balances (USD, EUR) into crypto coins? Doubtfully…
User Friendliness 13/20
The website is available in 4 languages (English, Russian, Spanish and French), which is not the most I’ve seen but not the lowest either. The platform is very simplistic, not extraordinary but easy to use and functional. Demo accounts are available only if you deposit. US traders are not accepted.
Number Of Assets And Expiry Time 14/20
The asset basket is very limited and seems geared towards currencies and cryptocurrencies. There are only a few stocks, a couple of commodities, and no indices. Maybe the specific markets weren’t open at the time of my visit but if that’s the case, they should inform their clients about it.
Bitcoin (and altcoins) trading is available in the form of CFDs and classic Binary Options. Expiry times vary from Turbo (1 minute to 30 minutes in increments of 1) to Intraday and Long Term.
Commissions, Support, And Effective Return 13/20
Opening an account is free but clients will have to pay a 5% fee when withdrawing to a credit card. Support is available through phone, email and video live chat. The effective return for binary options on cryptocurrencies ranges from 50% to 70%. Binary options on other assets have higher payouts.
Deposit, Payment, And Bonus 12/20
Deposits start at 250 USD and can be made via credit cards, Perfect Money, and cryptocurrency. Wire transfers are not available or at least they don’t provide this information on the website. Bonus percentages range from 20% to 100% and to withdraw your own deposit you will have to trade at least 3 times the deposit + bonus, otherwise, you will pay a 20% fee. The bonus cannot be withdrawn. If you haven’t accepted a bonus you will still have to turn over the deposited funds once before you are able to withdraw.
Website Extras 11/20
The website is almost identical to Finrally, so all their features have been seen before. Demo accounts are available (only if you deposit real money), trading contests, Bitcoin trading, and copy trading.
RaceOption Overall Ratings: 63/100