RaceOption is a Binary Options, CFD and Bitcoin brokerage operated by Race Projects Ltd, which has a registered office at 306 Premier Building, Albert Street, Victoria, Mahe, Seychelles. Their registration number is 114612 and they operate on behalf of FGC (Finance Group Corp). Support is available via email, video chat and phone (5 different numbers, available on their Contact page).
Is RaceOption A Scam?
Well, it is definitely too early to say for sure if this brokerage is a scam or not…but they operate on behalf of the FGC and if memory serves me right, the same is true for BinaryMate, BinaryCent and Finrally. These brokerages are not really my first choice when it comes to professionalism and safety (and that’s me being nice about it) and 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 all of the above 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.
The traffic numbers tell a very interesting story: in October 2017 they had zero visitors (so that’s probably the month they launched) and in January 2018 that number grew to 90K. It’s not huge but not small either, however, what’s weird is that about 75% of visits come from the United States. Binary Options brokers are not allowed to advertise in the US or accept clients from the US and RaceOption acknowledges that more than once on their website (bottom of the homepage and T&C document). Well 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…
Why Doesn’t RaceOption Suck In 50 Words
*crickets*… *more crickets*… actually, there is something that doesn’t suck: charts provided by TradingView. If you’re an experienced trader who likes to dabble into price action and technical analysis, you’ll love their charts but then again, if you are an experienced trader you will probably work with a more serious brokerage.
Why RaceOption Sucks In 50 Words
For starters, this brokerage doesn’t inspire a lot of confidence and that sucks big time. Then there’s the video chat, which is a common feature of all brokers that operate on behalf of the FGC. 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.
Should I Open An Account With RaceOption?
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 brokerage was launched but hey, it is what it is. Nowadays 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.
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. Anyway, they don’t specify how much I have to deposit for the Silver and Gold, because… why bother.
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 brokerage 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!
Surprisingly enough, we couldn’t find complaints about RaceOption and this is probably due to the fact that they are very new at the time of writing this. However, 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 one and the same.
RaceOption Regulatory Warnings And Announcements
At the time of writing there were no warnings or announcements issued by financial regulators against RaceOption. We will update if necessary.
The exact bonus percentages are not specified but the requirements for withdrawals are: if the client wants to withdraw the bonus, he/she has to turnover the initial funds + bonus 20 times. If clients wish to withdraw their own funds (initial deposit or profits), they will have to reach a minimum turnover of 3 times. If the client wants to withdraw funds from the account before the turnover has been reached, a 20% maintenance fee will be deducted.
I have to mention that the information above was found in a Microsoft Word document available on RaceOption’s website in the section Bonus Rules. Such a file can be easily modified by them without prior notice so it’s best to check the bonus rules before opening an account.
Withdrawals take up to one hour according to RaceOption (this almost sounds too good to be true). The methods are credit cards (only Visa supported) and e-wallets (Neteller, Skrill) 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.
Trading Bitcoin With RaceOption
At RaceOption you can trade CFDs and Binary Options on a relatively wide range of cryptocurrencies, 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) in 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 no the lowest either. The platform is alright, not extraordinary but easy to use and functional. Demo accounts are available only if you deposit.
Number Of Assets And Expiry Time 14/20
RaceOption has a huge selection of assets listed on their Asset Index page but when you log in you won’t find nearly as many on the trading platform. For example, they list tons of stocks and indices on the website but on the platform, I could only find 4 stocks and zero 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 (Visa only), e-wallets (Skrill, Neteller) and cryptocurrency. Wire transfers are not available or they don’t provide this information on the website. The bonus percentage is not disclosed either but the turnover is 20 times the bonus + deposit.
Website Extras 11/20
The website is almost identical to Finrally, so all their features have been seen before. Demo accounts are available, trading contests and Bitcoin trading.
RaceOption Overall Ratings: 63/100