This review is a result of months spent with the brokerage firm, 24Option. The review team had performed an exhaustive examination of all the firm’s offers and services so as to render a detailed and pointed assessment of 24Option’s over-all capability:
1. The firm’s regulatory status
2. The trading instruments that the firm gives its clients access to
3. The trading platforms that are being offered by the firm
4. The available trading accounts
5. The fees and commissions that are being implemented by the firm
Run by Rodeler Limited, an investment firm that operates under the regulations implemented by the Cyprus Securities Exchange Commission, 24Option is a brokerage firm founded back in 2008. As already apparent by the authority that regulates it, the firm holds its base of operations in Cyprus. For traders wanting to do transactions outside of the European Economic Area (EEA), 24Option clients would be able to do so through a firm called Richfield Capital Limited headquartered in Belize.
It is seen by the online trading community to be a leading CFD and Foreign Currency Exchange provider. Prior to being known in the field for its asset provisions, 24Option used to offer, as the name of the firm strongly suggests, Binary Options. 24Option had expanded to include CFDs to go head to head with its competitors.
Concentrating mainly on the competition, the firm opted to let go of the Binary Options altogether.
To date, while 24Option is brokerage firm that had expanded through its asset offerings, it had received mixed reviews from the online trading community. The reasons for such would be explored in the succeeding segments.
Offers and Services
Commissions and Fees
Probably the most polarizing aspect of 24Option’s service, is its Commission offerings and its fee structures.
The fees being implemented by the firm are seen to be relatively higher by the entire trading industry. For instance, there are no evident discounts for larger volumes that are traded.
What turned the review team off is 24Option’s imposition of high fees to dormant accounts that can amount to €200 each month after six months of being inactive. On top of this, the firm also charges €10 as maintenance fee.
Withdrawals are also not absolved from charges as these come with a 3.5% fee after only the first withdrawal.
Opening an account, on the other hand, would require a minimum deposit of €100.
Available Trading Accounts
There are four types of accounts being offered by 24Option. These are categorized in accordance to the importance and competence of the traders in the trades that they delve in. The specifications such as the offered Spreads, access to educational materials and the type of assets are detailed in the table below:
Accessible Trading Instruments
As of writing, 24Option provides access to over 130 different types of underlying assets. The four asset classifications are as follows:
Foreign Currency Pairs – amounting to 34 pairs
Commodities – amounting to 11 types
Market Indices – a total of 25 indices are offered
Stocks – taken from 61 well-known companies
These instruments, to the opinion of the review team, offer a decent number and selection. As this is the case, it is highly likely that traders who would signing up to for the firm would be allowed to build strong and well-rounded investment portfolios.
Offered Trading Platforms
While solely offering one trading platform, 24Option had been wise in their partnership with MetaQuotes to offer their flagship trading platform, MetaTrader 4.
MetaTrader 4 (MT4) is speedy in trading executions. It is lauded by the online trading community for its efficiency. MT4 is widely used and frequently reviewed; it had received a great deal of positive reviews from the online trading community, something that the review team wholly agrees with.
MT4’s standout features include one-click trading, a number of technical indicators, charting tools, and Expert Advisors (EAs) that allow automated algorithmic trading. Advanced order types are also offered through MT4.
Another facet of the brokerage that throws some people off is its regulation of only one regulatory body being concentrated only in Cyprus. And while it does fall under the EU, it is seen as not entirely robust and more developed.
One more shortcoming is its lack of guaranteed stop loss in trading endeavors conducted outside France.
These are two things that the review team had found could be improved on.
Trade with 24Options Today!
While it is apparent that trading with 24Option does have its shortcomings such as the just discussed issues in regulation and the high costs for account inactivity, the firm does offer sound trading conditions. The good conditions that are fostered by the firm are seen through the following:
1. The trading instruments that the firm offers access to
2. The trading accounts that are available through the firm
3. The trading platform, MT4 that is being used for trades within the firm