Optionstradefx Review – Is this a Trustworthy Broker?

Optionstradefx Review

With the financial markets filled to the brim with online brokers that are promoting their services, anyone wishing to sign up to start trading will find themselves stumped. How do you sort through the seemingly endless options? Each brokerage you check out appears to be better than the previous one and the decision seems to be impossible. What is the one thing you should look for? The key is to find a trustworthy broker because not all of them can fit this criteria, as this Optionstradefx review can reveal.

Every company may appear to be genuine and authentic and a lot of them seem to be quite similar, but you should remember that putting up a website and making big claims does not make a good broker. They need to be able to live up to everything they promise for you to be able to trust them. After all, you have to depend on an online broker to keep your money safe and they also handle your personal data. Would you just hand it over to anyone?

No one in their right mind would do so, which means that you have to be diligent in order to ensure that the brokerage you choose at the end of the day is deserving of your trust. The simplest way of doing that is to take an in-depth look at the offerings of a broker before you open an account. You do not want to find out later that you have made a mistake; it is best to make an effort early on and avoid any disaster altogether.

The good news is that it is not that difficult to do and you should apply this rule to Optionstradefx as well. It is one of the names you will discover when you search for an online broker, but is it trustworthy? Learn the answer below.

Regulation and licensing

The biggest sign that you are dealing with a trustworthy and authentic online broker is that they are regulated and licensed. This means that they are under the oversight of a regulatory authority in the jurisdiction they operate in. It implies that they have to comply with different rules and regulations, ensure safety of funds, be transparent and fair and can also be held accountable in case of an issue. Therefore, most people opt for brokers who have a license and are regulated.

In order to fool people, scam and fraudulent brokers also claim to be licensed and regulated and this is exactly what Optionstradefx tries to pull. It has made a lot of regulatory claims on its website. It first states that it is based in the Seychelles and is regulated by its Financial Services Authority (FSA). Secondly, it also claims to be regulated and licensed as TopFX Ltd. by the Cyprus Securities and Exchange Commission (CySEC).

While there is no mention of Optionstradefx or any other company related to it in the registers of the FSA, you will certainly find a Cypriot company by the name of TopFX Ltd. But, what is telling is that the email, phone number and even domain did not match that of Optionstradefx. This indicates that the brokerage is lying about something as important as regulatory information and no legitimate broker would ever do that.

Furthermore, you will also find at another area of the Optionstradefx website that it also has offices in Australia and Vanuatu and is also regulated in these regions. But, you cannot find the brokerage in the online register of the Australian Securities and Investment Commission (ASIC), or in that of the Vanuatu Financial Services Commission (VFSC). All of this indicates that you are dealing with an unregulated and unlicensed broker that cannot be trusted because it is lying about it authorization.

Trading platform

The most vital feature of an online broker is their trading platform because it has to be used for trade execution. This means it needs to be up to the mark to help you have a seamless trading experience. Considering the big claims that Optionstradefx makes, you would expect it to offer an advanced and capable trading platform, but you are in for a surprise. Why?

This is because Optionstradefx does not appear to have a trading platform at all. The only thing you will find on its website is a chart that tracks markets, which you can find on the internet for free. Why would you sign up with a broker to access it? The whole point of doing so is that you want to trade and Optionstradefx cannot offer you the one feature that you need for this purpose. Does that sound like a trustworthy broker?

Trading conditions

When you check out the trading conditions that Optionstradefx offers, you will discover that it has leverage as high as 1:500. As impressive as it might seem, you should note that Optionstradefx claims to be regulated in Cyprus and no Cypriot brokerage would ever offer such ratios. This is because CySEC has imposed a cap of 1:30 on leverage to be offered to retail traders. Most importantly, the leverage is essentially pointless because there is no trading platform to use for trading.

Payment methods

You have to deposit and withdraw money in your trading account, so payment methods are important. A look at Optionstradefx shows that it only allows you to deposit in the form of bitcoin and Ethereum, which is a common tactic used by scammers. Crypto transactions are irreversible, which means there can be no refunds and there is also anonymity that works in their favor. Genuine brokers will always offer other payment options along with crypto.

Other issues

There are more signs which show that Optionstradefx is not a trustworthy broker. It has provided no legal documentation, so you have no ideas what policies it applies, or the conditions it may have. Apart from that, it is also lying about its business model because it offers investment plans starts at $1,099, but it does not provide any details about how it will work.

Final Verdict

Taking the problems with Optionstradefx into account, you can see that this broker is not trustworthy at all.