24option Scam

A large scam that is run all over the world is the binary options scam. The home base for many of the companies that run these scams is Israel. Investing with these companies offering binary options should be avoided. It can be nearly impossible for you to recover your money. My subscribers have requesting I take a look at 24option. Here is what I have found.

24option Scam Claims

24option’s Mission Is To Bring Binary Options Trading To The Masses.

We do so by providing an intuitive trading platform designed with the latest technological advancements that’s geared towards new traders as well as professionals. We place great emphasis on education, providing a well-rounded library of V.O.D. seminars, webinars, daily news, analysis and more. Our customer service and support is always available to meet your needs, and our account managers know that your success is our success.

Our Vision: 24option was established as a way for traders to invest in binary options on a platform that is user friendly.

Here is a promotional video for 24option:

24option Scam Presentation Video

24option Scam Reality

24option was listed as being owned by a company called Rodeler Limited and was operated from Israel under the name Betamedia.  Now they are listed as being owned by a company called Richfield Capital Limited , No 5 Cork Street, P.O. Box 1708, Belize City , Belize.

Some of the other scams linked with these scammers are:

  • GrandOption
  • 24FX
  • QuickOption

The Autorité des Marchés Financiers (AMF), France’s securities authority, banned 24Option from soliciting customers on French territory. – Source timesofisrael.com

24option does not offer services to the USA, British Columbia, Canada, Australia, Belgium, France and some other regions.  More than likely they do not offer services in these locations because they would be shutdown for running a scam.

A binary option is a type of options contract in which the payout will depend entirely on the outcome of a yes/no proposition.

The yes/no proposition typically relates to whether the price of a particular asset that underlies the binary option will rise above or fall below a specified amount. For example, the yes/no proposition connected to the binary option might be something as straightforward as whether the stock price of XYZ company will be above $9.36 per share at 2:30 pm on a particular day, or whether the price of silver will be above $33.40 per ounce at 11:17 am on a particular day. Once the option holder acquires a binary option, there is no further decision for the holder to make as to whether or not to exercise the binary option because binary options exercise automatically. Unlike other types of options, a binary option does not give the holder the right to purchase or sell the underlying asset. When the binary option expires, the option holder will receive either a pre-determined amount of cash or nothing at all. Given the all-or-nothing payout structure, binary options are sometimes referred to as “all-or-nothing options” or “fixed-return options.”

Here are examples of how the 24option binary options scam works:

I opened an account with 24option with $400 initially. Then I received a call from an account manager. he pressured me to deposit more. I’ve informed him that I’m totally new, he said don’t worry he has several years of experience in forex and will help/guide me to increase my account . He advise me to open 50 lots with $50000 in account and pressurized me every day by calling 4-5 times to deposit more to open more trades as he mentioned repeatedly that I’ve the smallest investment for the event of brexit Artical 50 release. I deposited another $50K he asked me to close all current trades and open 100 lots. When there were margin calls, he advised me not to close the trade, which is why I’ve lost all of my money and I’m in deep depression and debit. As he was aware that I’m new to this he shouldn’t advise me to risk all my money in one trade. Its just another customer for them but I’ve lost all of my life savings and now I’m in deep depression as I can’t pay my bills and have to find work to support my family. Now they are suggesting me to sell my house and invest.

This company is a downright scam! I opened an account and funded it with $300. When you start they are eager to help and very quick to respond. After that the account manager you are assigned ignores your emails, they never phone you back! I’ve been trying to get a hold of my account Manager for weeks now! This place is a scam and I would not recommend this to any person! If you want bad service, want to lose your money and get very angry in the process, 24option is the place to be! Shout out to the worst company I have ever had the misfortune to deal with!!

Once you signup for a scam binary options account the next step is for them to ask for $5000 to $10,000.

“Customers usually balk and say ‘There’s no way I want to deposit $10,000.’ So you pressure them and say ‘If you’re not really serious about making money, then why are we talking right now?’ Traders try everything. Some are really sweet, some try to identify with them, some try to make them feel awkward — whatever the technique is that gets them to deposit. The favorite technique is to say, ‘If you deposit $5,000, I will give you a $5,000 bonus.’ Customers hear that and they say ‘That’s insane. I’m going to deposit.’”

“You’re not allowed to withdraw any of your money until you use that bonus money something like 30 to 40 times over. Let’s say I give you a $1,000 bonus. You would need to trade that until you made at least $30,000 profit off of it, and then you can withdraw your money. But you will never get to that amount. Let’s say you make $10,000 off of it and you say you want to withdraw, in the contract it will say you can’t withdraw. You can take your original money out, but you can’t take the bonus or the money you earned with the bonus.”

“So clients get stuck in the system, because they don’t want to lose all their money, and by the time they trade 30 times the amount of the bonus, they’ve lost everything.”

– Source The wolves of Tel Aviv: Israel’s vast, amoral binary options scam exposed

From the Commodity Futures Trading Commission, here are three ways binary options companies scam people:

1. They refuse to credit your account or reimburse funds after accepting your money. You deposit money into your binary options trading account and are then encouraged by “brokers” over the telephone to deposit additional funds into your account. When you attempt to withdraw your original deposit or the return you have been promised, they cancel your withdrawal request, refuse to credit your account, or ignore your telephone calls and emails.

2. They collect information such as credit card and driver’s license data for identity theft purposes. If a binary options Internet-based trading platform requests photocopies of your credit card, driver’s license, or other personal data, do not provide the information.

3. They manipulate the binary options trading software to generate losing trades. The Internet-based binary options trading platform manipulates the trading software to distort binary options prices and payouts. For example, when a trade is “winning,” the countdown to expiration is extended arbitrarily until the trade becomes a loss. – Source Cftc.gov

24option Scam Conclusion

In my opinion, 24option is part of a long line of binary options scams that have been running for years. They are typically unregistered in the countries they are offering accounts in. Many binary options websites and companies are opened so that if complaints are made they can just move on and continue to scam people. The home base for these scams is actually Israel. Avoid the 24option scam.

If you have lost money to a binary options scam, there is a company that has recently been opened that helps people get their money back. It is called Wealth Recovery International. They have a U.S. office in New York. You can give them a try and let me know what you think of them.

Disclaimer: I have no relationship with Wealth Recovery International and receive no financial incentive from them.