Option94 Scam Broker Review
Are you interested in cryptocurrencies? These are the newest assets in the trading world and have created a lot of hype in a relatively short period of time. Almost every other person wants to trade cryptocurrencies because of their profit potential and are looking for a broker to help them. But, if you do some research on the internet, you will also learn about crypto scams that have been conducted by these brokers and lots of people have lost their hard earned money in this way. There is no doubt that you don’t want to be a victim, but it can be difficult to figure out which broker is reliable.
Most people are unable to distinguish good brokers from the scammers out there and have to learn the hard way. Obviously, it is an experience you want to avoid yet it is very easy to get confused. One broker that can cause confusion is none other than Option94. Owned and operated by Lunoforex PTY Limited, it is a cryptocurrency and forex broker. The parent company claims to have its offices in the United States, United Kingdom and Australia. It provides potential clients with a web-based trading platform that can be used for trading a number of cryptocurrency pairs.
Option94 – Regulation and Safety of Funds
According to the information that you will come across on the website, Lunoforex PTY Limited is an Australian firm and is licensed and regulated by the Australian Securities and Investment Commission (ASIC). In fact, the broker has also provided a scanned copy of the license and given traders the option to download and check it. However, if you check the register of the regulator itself, no such company is listed and there is no record of it. It has given addresses in two other countries, as mentioned above, along with a phone number, but it is not subject to any regulatory oversight in these places either.
Moreover, when you check the website, you will see that the broker offers binary options trading, but this is forbidden in the European Union and it is illegal to offer it. Another confusing piece of information is about ICC Intercertus Capital Limited. According to Option94, this company is responsible for keeping all the clients’ funds. This is regulated by the Cyprus Securities and Exchange Commission (CySEC), yet there doesn’t seem to be any connection between the two companies. No details have been provided as to whether clients funds are segregated or not and if the broker is part of any compensation scheme.
Option94 – False Claims
Another problem with Option94 is that the claim of its licensing and regulation is not the only false claim it has made. It also claims that it has almost 52,000 registered members and yet the brokerage has not been around for that long to get so many members.
Option94 – Too High Profits
The promise of huge returns is a point that has been repeatedly emphasized on Option94’s website. The broker continues to mention that you can earn 55% profits from their basic monthly investment plan. Yet, the broker has failed to mention how it plans on generating these profits. The maximum profits that are promised are 70%, which are deemed as skyrocketing returns. No trading strategy is outlined and they have not mentioned any historical performance either.
Furthermore, it is a general rule of investment that greater returns are always accompanied by greater risk, but Option94 has not mentioned anything about it. As a matter of fact, brokers that are licensed in Europe are obligated to add such a warning to their website and even provide some loss statistics. With than being said, a monthly profit of more than 70% is undoubtedly too good to be true and is an indicator that Option94 is a type of Ponzi scheme called the High-yield investment program (HYIP).
Option94 – Trading Platform
The broker has mentioned that they offer their own web-based trading platform, which means they don’t have the popular MetaTrader 4 that’s the top choice of most traders. There is no demo account option given by Option94, which means there is no way for you to test the trading platform. The tools and features offered by the platform are not mentioned either and no trading conditions have been discussed, which can be worrisome because you have to put up money to find out what the broker is offering and this is a serious risk.
Option94 – High Deposit Requirement
One of the biggest problems with Option94 is that their initial deposit requirement is very high. In order to get started with the broker, you have to deposit a minimum of $2,000. This is a massive investment when you are trying out a new broker, especially one that doesn’t offer a demo account. The industry standard deposit requirement on average is between the range of $100 and $250, but Option94 is asking for a lot more, which is a warning sign as your money may get stuck.
Option94 – Terms and Conditions
The broker has not mentioned their terms and conditions on the website, which is also a problem. This is due to the fact that you cannot know what withdrawal conditions you might accept unknowingly when you deposit funds on Option94. In addition, in the FAQ section, the broker has said that funds that are added through PayPal, Visa and MasterCard are frozen for 30 days so it is better for traders to use Bitcoin, Litecoin or PerfectMoney for making their payment. They have cited ‘security reasons’ for doing so, but this sounds like a complete farce for covering up the unethical intentions the broker has towards the funds of potential clients.
Option94 – Conclusion
This brokerage is a good reminder for traders to always consider the safety-checks they should use when checking a broker rather than taking everything at face-value. Option94 has lied about their regulation from the ASIC, which clearly indicates that the broker should not be trusted and the high profit claims indicate that it is nothing more than an investment scam.