Binary options trading has grown tremendously since it was introduced almost a decade ago. It has caught the attention of the general public and Wall Street entrepreneurs alike. A lot of people have embraced binary options as a good investment. This is because, despite some traders complaining of lost money, trading in binary options offers high returns in investment. Trade profits are on the same level, if not more than the real stock market.
The Increase in popularity of binary options trading has brought with it a large number of brokerage firms to serve, and of course make money off, the wide client base. Many have taken the making money part a bit too far and disregarded the interests of the investors. When you visit any site/forum on binary options, you are more likely to come across disgruntled and frustrated traders swearing that binary options as a whole is a scam. The most common grounds for complaints are bad decisions by the personal brokers, poor customer service and problems when performing withdrawals.
You, as a trader, can protect your money by simply having beforehand knowledge of your broker before setting up an account with them. This review seeks to not only give you extensive information, but also an impartial and unbiased look into one of Binary options most prominent brokers, 23Traders.
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23Traders is a binary options brokerage firm established in 2013 and under the control and ownership of Hermes Ventures Ltd. The main offices of 23Traders are in Anguilla Island and they also have an office in London, under their parent company Hermes Ventures Ltd.
According to their founders, 23Traders originated when 23 binary options traders were put together in a boardroom and simply asked what features they would like to see in a brokerage firm. Well, that’s quite a funny way to generate a business idea.
The broker offers around 83% payout on trades, which is comfortably within the standard payout by all brokers.
What does 23Traders have to offer?
Free Trading Signals – By now, every broker is aware of the impact of providing free trading signals to their clients and 23Traders does just that. Although the accuracy of the said signals is questionable, they at least try to make them available to traders for free. The trader always has the final say on what to trade in and how much to invest.
The SpotOption trading platform – This is the best and most popular trade platform in the binary options trade, no question about that. Like any other broker you are likely to come across, 23Traders makes use of this awesome platform and for that it is only fair to give some props. The trading platform offers various types of trade options to choose from. Traders get to choose from the usual high/low, speed trading, Forex Pairs, money ladder, One Touch and the Long Term options. Thumbs up for this, 23Traders.
Educational materials – To their credit, 23Traders offer a large collection of educational resources to their clients. Traders have access to insightful information and sources of knowledge such as:
A detailed glossary of words and phrases used in binary options trade.
An extensive video library containing numerous instructional videos traders’ can watch and learn from.
Free ebooks in which you can learn the basics and the best trading strategies.
Regular Webinars which educate traders on various things.
Personal one on one trading lessons to new and also experienced traders.
Assets– A wide range of assets (more than 200) from the leading securities exchanges in the world including commodities, stocks, currency pairs and indices is also available on this platform. They also deal in the digital currency, Bitcoin which may not be such a good idea. Many governments have restricted the use of Bitcoins in their countries as it is vulnerable to fraud. This is thus a bad move by 23Traders here.
Mobile app – The broker offers its traders the ease and convenience of trading that mobile devices offer. They have a mobile app which can be downloaded on Google Play Store for Android, and Apple Store for iPhone devices. Currently, almost all binary options brokers have mobile apps so this is nothing remarkable. No extra points here.
A review of a broker would not be complete without looking at the other features that traders may or may not find important. Features such as banking and deposit/withdrawal policy if not correctly managed and secured may leave a bad impression on the trader and make them leave. Question is, does 23Traders meet expectations? Well, there’s only one way to find out and that’s by reading on.
For many traders, the banking system of a broker has to be top notch. The trader has to be assured that their money is secured according to internationally set financial guidelines and that they can access it any time they want. 23Traders has meet expectations here, and nothing more, since their banking system is using the fool-proof SSL Software and is certified by VeriSign. Again, this is the standard practice among all serious binary options brokers, 23Traders have added nothing innovative or unique.
You can make deposits to your 23Traders account using credit cards, wire transfer and other popular eWallets. Credit cards accepted are basically the same as in other brokerages, Visa, Maestro, American Express, MasterCard, you know the usual. Minimum amount you can deposit this way is $250 and the funds are available for trading immediately.
Deposits by wire transfer are made through the broker’s Lovcen Bank Account. The minimum deposit is set as $500 and is available for trading after 2-5 business days. Other methods you can use to deposit are Skrill, Neteller and ecoPayz. The minimum deposit is same as credit card deposit.
The 23Traders deposit policy is quite decent, and very few complaints are made about hitches in depositing. Good job here, 23Traders. They could certainly make deposits more convenient by accepting the use of PayPal which is internationally renowned and with more than 150 million users.
As a protective measure, 23Traders requires that withdrawals only be made using the same method used to deposit. There is also a compliance policy in place whereby the client has to confirm his/her identity before any withdrawal.
Withdrawals by credit card have no set minimum or maximum amount. The client withdraws whichever amount he/she wants. A big minus here is that withdrawals take around 5 days from the approval date to be transferred.
Wire transfer withdrawals have the minimum amount set as $100 and take around 5 days to be ready for Transfer. The client receives the money directly to his/her official bank account.
23Traders Promises vs. Reality
As a marketing strategy 23Traders, as with all binary options brokers, promise heaven. All this is intended to lure traders to join and entrust their money with the firm. But what are these “benefits” you get when using 23Traders as your broker? How true are they?
The first thing you notice, on very large letters, when you visit 23Traders.com is a banner that says that you stand to make $532 per minute. Whoa! That’s in straight terms, a lie. $532 is big money, and to promise traders that they will get that amount is an insult to their intelligence. If traders got that even per hour of trading don’t you think 23Traders would be a market leader in binary options trading?
They also promise traders to provide 85% accurate signals as a trading aid. Now, if you ask any trader who has ever used this broker, they will tell you that this is a bit far from the truth. Reality is, the assets trading market is very unpredictable and only a few binary options brokers can predict correctly, or even close, the outcomes. Also, considering the fact that 23Traders is not among the big players in the trade, you can agree that 85% is a bit ambitious.
Shortcomings of 23Traders
While 23Traders are a quite promising brand, they have some major shortcomings that they will need to address to position their brand on top of the others. As of now, the most common traders’ complaints are on one, or several of the following:
Unavailability of 23Traders in the United States
This is a major disappointment since there is a very large number of Binary options traders based in the States. Not accepting them may be a bad move as there is a lot of money to be made in the American market.
Going by their slogan of “By Traders, For Traders”, one would expect them to have a unique and client-driven customer care team. While they are slightly above average on this, it simply is not good enough. For instance, support is only available in English and Arabic. Yes, a significant portion of the world speaks these two languages but it’s not fair to exclude other languages too. Languages like French, German and Spanish should be present here too as they are spoken by a large number of people worldwide.
The features and quality of the 23Traders support falls right on the expected market standards of 24 hour support, Email, phone call and live chat. No efforts, whatsoever have been made to bring anything new and distinguishable to the table. Traders have been complaining of waiting for extended periods to get their emails replied to which is not good for business at all.
Licensing and Regulation
23Traders have been licensed to operate as a financial services provider by the Vanuatu Financial Services Commission (VFSC). This is pretty assuring to know that they have been regulated. However, this is far below the Binary options market standards which require brokers to have a license from the acclaimed Cypress Securities Exchange Commission (CySEC). Since 23Traders is in competition with these brokers, it is a big shame that they do not meet the set quality requirements to earn a license by CySEC.
Traders are advised to check for the licenses a broker has as a test for legitimacy, or lack thereof, as it is with 23Traders.
This is the major cause of client frustrations about the broker. To start with, they give absolutely wonderful bonuses on deposits, sometimes up to 100%. Perfect, right? Wrong. To be able to withdraw the bonuses, you will need to meet the minimum trade volume of, get this, 40 times the sum of your deposit and the bonus. This practically means that to get a, say $500 Bonus, you will need to have attained a minimum trade volume of $20,000. To make it worse, you have to do this for every single Bonus you are awarded.
In all honesty, the minimum trade volume is a good and commonly used measure among binary options trade brokers. However, the ×40 wagering requirement by 23Traders is unreasonably high seeing as some brokers have set it at ×20.
Secondly, the long periods of up to 5 days taken to transfer withdrawals into the trader’s credit, eWallet or bank account are some of the longest in binary options. Some brokers have even gone ahead and introduced Same Day Withdrawals to increase convenience and make their clients happy.
For a broker whose slogan is By Traders, For Traders, 23Traders seem to be headed on the wrong direction.
Everyone agrees that every binary options brokerage firm has to have some shortcomings, but when they are more than the advantages like in the case of 23Traders, then it should raise a red flag on the trader’s mind. 23Traders, being an average player, have not been extensively proven to be what they say they are, and traders should be wary of that.
To ensure safety of your money, and for your peace of mind, there is an alternative to 23Traders which is Binary Option Robot. The Robot has gained positive reviews from traders’ world over, a sure sign that they have been doing it right. Signing up with Binary Option Robot is free and you get to experience benefits that no other trading software provides. The Automatic Stop Loss program that will help you not lose more money than necessary is a Binary Option Robot exclusive. Combine that with the flexibility of choosing your preferred personal broker among the wide selection of proven high-performance brokers who have passed the Binary Option Robot’s strict tests and you have a winner.
With the Binary Option Robot, you can rest easy and save yourself from ulcers and blood pressure associated with anxiety. Simply put, the robot makes the trades, you make the money!
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Michael Allen is the main author at www.binaryoptionrobotinfo.com. He holds a PhD in Economics and has worked in investment banking for 24 years.
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