24Option Review

24Option logoIn our review of the 24Option, you will find that this broker offers top notch binary options trading. The broad span of their service provisions makes the user feel completely comfortable with every phase of the entire process. We have found that most newbies in binary trading find it to be a bit too extensive and needless to say, they are a bit apprehensive at first.

However, the 24Option team immediately helps clients to realize the benefits are completely greater than any risks and clients immediately feel at ease. The platform is phenomenal with a full category of trading options that offer investment amounts to appeasing every budget. You can also access your account from any mobile device to enable you to utilize all the trading chances.

24Option is one of the recommended binary options brokers in 7BinaryOptions.com.

Basic information:

Online since: 2010
Jurisdiction: Cyprus, EU
Software: TechFinancials
Max Returns: 88%
Bonus: 100%, *bonus terms and conditions apply
Minimum Deposit: $250
Minimum Investment: $24
Maximum Investment: $100 000
Currencies: USD, EUR, GBP, Yen
Mobile: Yes
Countries: All nations excl. USA & Australia

Pros:

– Very good deposit bonus
– 60 s option
– Excellent customer service
– Free signals
– Mobile Trading

Cons:

– Doesn’t take US traders

7 Binary Options Rating:

4,5 stars

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Is It Regulated?

24option-regulationsSometimes it is hard to analyze the trustworthiness of a binary options broker. After all, a fantastic and professional website doesn’t mean anything. Large bonuses and extensive features are no guarantee of honesty or sound business practices either. Finding out whether a broker is trustworthy is crucial. The first thing that we do is analyze and review any broker, regardless of whether they are new to the market or one of the more established players.

We use a number of methods for comparing how trustworthy the various brokers are, but the most important is whether or not they are regulated. Regulation provides third-party oversight to ensure that the broker is not doing anything that might harm or unfairly disadvantage its customers. When looking at the regulatory status of the various binary options brokers that are available, 24 Option is in an elite group.

This is because 24 Option is regulated by CySEC. In fact, it was one of the first binary options brokers to be officially recognized by CySEC when the regulator started to monitor the industry.

CySEC regulation is impressive in itself, but 24Option has taken it a few steps further. Specifically, it also has a licence from the UK’s Financial Conduct Authority. This is a further marker of trust, but it also means 24Option has access to traders based in the UK – one of the world’s financial capitals. This allows it to offer a better user and trading experience.

In addition, CySEC was one of the first brokers in Europe to get certified under the European Union’s Markets in Financial Instruments Directive. This certification is further proof of the platform’s professionalism, plus it gives the broker access to traders in Europe and many other countries in the world.

It is important to say that it is healthy to be skeptical when looking at binary options brokers – the industry has too many cowboy operators. 24Option ticks all the right boxes, so it is worth further evaluation.

Available Assets

24option-assets

Generally speaking, brokers that offer a large number of assets offer the best trading experience. This is because you have more choice and can diversify and/or target your trading strategy to suit your needs. You will not be disappointed by the range of assets available at 24Option.

It has more than 120. This is more than almost all other brokers and is probably due to the fact that 24Option is one of the longest operating of all binary options brokers. It gives you the choice of over six stock, commodity, indices, and currency exchanges.

The stocks include many of the biggest and more well-known companies in the world. This includes oil companies, technology companies, telecommunications companies, car manufacturers, and more. There are around 60 to choose from; and because they are major stocks, you will find a lot of information to analyze and track, which should help your decision making process.

Commodities are a popular asset for many traders involved in binary options, and many include specific commodities as part of their overall strategy. With 24Option, you can choose from a number of commodity options including gold, silver, crude oil, copper, and platinum. You can even place trades on coffee.

The range of indices available at 24Option is not as good as the other types of asset, but there are still all the big names. This includes Dow Jones and the FTSE 100, two of the most followed indices in the world. You can also trade on the S&P 500 as well as Russia’s MICEX and China’s Hang Sheng.

Currencies are traded in pairs. You have to pick the currency that you think will perform better within the set timeframe out of the two. The currencies included in the various pairs are the world’s major currencies, so you should be able to do plenty of research and trend analysis. The currency pairs that 24Option offers include:

  • USD/EUR
  • USD/CHF
  • USD/CAD
  • USD/GBP
  • GBP/JPY
  • EUR/JPY

You should remember that research is the crucial part of every trading strategy whatever asset you choose and whatever type of option you decide to trade. Make sure you get to know the markets you trade in as much as you can.

What is the Trading Platform Like?

24option-trading-platformAnalyzing the trading platform is a crucial part of determining the quality of a binary options broker. The trading platform is essentially the user interface— the place where you gather information, monitor data, place trades, and manage your account.

Trading platforms vary greatly from broker to broker, but you can put them all into two broad categories. The first is a custom built platform, and the second is a platform based on software created by well-known providers (SpotOption is probably the best-known example). There are advantages and disadvantages to both approaches.

Creating a custom platform means the broker can optimize the platform for its customers, i.e. tailor it to the services it offers, the assets it offers, and the options it offers. A custom built platform also gives the broker more control over making it easy to use and ensuring every trader has all the information they need.

Using a third party platform, on the other hand, is less costly to develop and less risky, as the software is already tried and tested.

This is all important, as the trading platform offered to customers can make or break a binary options broker. In other words, the trading platform is more important than special offers, bonuses, or other marketing tools. After all, if traders don’t like using it, they won’t.

24Option chose to use a third-party platform from the Israeli company TechFinancials. It is an established name in the binary options and forex broker industries.

Therefore, its platform is well tried and tested. It is also intuitive with an attractive and easy to use design.

While it is also free from clutter, it is packed with information, so you can make the right decisions for your trades. This includes prices that are updated in real time. Real-time prices mean any quotes you get are based on the latest available information from the markets.

During weekdays there is also a live feed from Reuters giving prices. It is not available on weekends or during major holidays – times when the financial markets are typically closed.

In addition to the above, there is an impressive variety of pricing options available at 24Option. This optimizes the pay outs, which makes it possible (with the right strategy) to make higher profits. Obviously it is not possible to reach a pay-out level of 100 percent, but 24Option’s score is typically between 87 and 91 percent. This is more than respectable, and is also better than most, if not all, of its competitors.

Some people in the binary options industry describe TechFinancials’ platform as being mid-range. That may be so, but it still manages to have everything the trader needs. This includes advanced traders. For example, you can trade on a wide range of assets that includes currency pairs, the stocks of many blue chip and internationally recognized companies, commodities, and indices.

Analytical tools are available also, so you can gather all the information you need before deciding to make a trade. Most of this is represented in graph form to make it as easy as possible to read and identify trends. Some technical indicators are available too.

This above is just an overview of the platform with a focus on the design and technical aspects of 24Option. Now it is time to get into it in more detail by looking at some of the features and options available. After reading the next section, you will have a better understanding of what 24Option is capable of and what you can expect to achieve.

What Option Types Are Available?

24optionOptions are a type of trade that you can make that will end in either a profit or loss. Generally, there are three main types:

  • Asset specific options – These can only be used to place trades from a specific list of assets.
  • Time specific options – These are trades that stay live for a specific time period before expiring. They can be either long term or short term.
  • Mixture – Other options mix both of the above, i.e. they are limited by both asset and time.

24 Option’s option types fall into these broad categories. Specifically, it has four options you can choose from. They include:

  1. High/Low Option

The High/Low option is one of the most common binary option types. In fact, every broker that we have analyzed offers High/Low options, although some call them Call/Put options. Despite the name, they are the same thing.

In a High/Low option trade, you predict the final price of an asset based on its current price. In other words, you predict whether the final price will be higher than the current price or lower than the current price. The trade will have an expiration time, and you win or lose depending on whether your prediction is correct at that time.

High/Low binary option trades can be placed on a wide variety of assets, including currency pairs and stocks. It is a low-risk form of trading, which means the pay outs are typically lower than other option types that are available. Because they are low risk trades, they are suitable for new traders and cautious traders looking for consistent (albeit low) profits rather than risking big losses in the hope of a big win.

  1. One-Touch and No-Touch Options

one-touch-and-no-touch-optionsOne-Touch or No-Touch trades are based on price, so they fall into a similar category as High/Low trades. They are a more risky trade, as they are harder to accurately predict. As a result, pay outs are typically much higher.

In both variations of the trade, the broker sets a target price for the asset and an expiration time. If you select the One-Touch option, you are predicting the asset will reach the price set by the broker before the time expires. As soon as this price is achieved by the asset, the trade ends and you get the profits. If the asset does not reach the predicted price by the time the trade expires, you lose the money.

If you select a No-Touch option, you are predicting that the price of the asset will not reach the set price. If it does reach the set price, the trade ends and you lose. To win you have to wait until the expiration time during which the asset cannot “touch” the target price.

This is a risky and, therefore, potentially more lucrative trade because you are making a more difficult prediction. For example, it is easier to predict if a trade is going to go higher or lower than its current value over the next five hours. It is much harder to predict that it will reach a specific value in that time period. Similarly, it is also hard to predict that it won’t reach a target price in that time period. This is because you have to predict both the movement of the price and how much it will move by. With a High/Low option, you only have to predict the direction of movement.

  1. Boundary Options

Boundary options carry a level of risk that sits between High/Low options and One-Touch/No-Touch options. As a result, the pay outs are more than they are for High/Low options but are lower than touch options.

In a Boundary options trade, an asset will be given a boundary price by the broker. This is a price range that includes both an upper and a lower value. To make the trade, you predict whether the asset’s price will stay within the boundary during the time period of the trade or whether it will fall outside the boundary.

This is why there is less risk than touch options, i.e. there are more price possibilities that result in a win.

Because of the nature of Forex markets, most experienced traders do not place Boundary options trades on Forex pairs.

  1. 60-Second Option

This is one of the newest types of options in the binary options industry, and it is available on 24Option. It is a high-thrill, high stakes, high pay out type of option that expires 60 seconds after you open it. A number of variations are available. You can win big, but it is not a method of trading for the risk averse.

Option Expiration Times

option-expiration-timesExpiration times can make the difference between a successful and an unsuccessful trade. In fact, every second counts. Just one second is all it takes to turn a profit into a loss or a loss into a profit. There are no strict rules that determine whether the expiration times offered by a broker are good or not. However, all good platforms offer a wide variety to choose from. This is exactly what you get with 24 Option. The expiration times it offers include:

Short-Term

Short term expiration times allow you to make multiple trades in a short period of time, increasing the opportunities for making a profit. They work particularly well with trades on the stocks of major companies and on currency pairs. Good results can be more challenging to achieve with indices and commodities. Therefore, you should consider the type of asset you are trading on before opting for a short term option. You expect average levels of profit, although the risk is normally on the high side.

The short term expiration times available at 24Option are:

  • One, 15, and 30 seconds
  • Two and five minutes
  • Half an hour and an hour

Long-Term

There are two long term expiration times available at 24Option. They are five hours and a variable length end-of-day expiration time. This is more limited than some other platforms, which also offer longer expiration times; but those timeframes are rarely used by traders. Binary options traders typically prefer shorter terms and like the trading day to close without any open positions. Therefore, the offering from 24Option is sufficient.

Demo Account Availability

24option-demo accountDemo accounts are available for new traders at 24Option. This account lets you learn how to use the trading platform and get to know the features and options of the dashboard. It is not a stripped-down version, so everything you see in the demo account is exactly the same as the real account you will get when you start trading for real.

In the demo account, you can trade; but, as hinted in the last paragraph, they are not real trades. This means you don’t have to deposit or risk any of your own money when using the demo account. You are given $40,000 of virtual money so you can learn how 24Option works. This also lets you try some trading strategies so you have a plan whenever you start putting your own money on the line.

In other words, using a 24Option demo account is a completely risk free way of deciding whether you like the platform. It also lets you find out if it has all the tools you need, and it lets you test trading strategies.

One thing you should remember is that you have to keep your virtual balance above $0. This is because the virtual funds are not replenished, so once it hits zero, you will not be able to make any further virtual trades.

If you are new to binary options trading or have limited experience, we highly recommend you start with 24Option’s demo account. It is sometimes tempting to jump right in with real money so you can start making real profits, but it is always better to test the system, get comfortable with the platform, and then make an informed buying decision. If you decide after using the demo that you are happy, you can simply deposit money into your account and begin trading for real cash. If you are not happy, you never have to log in to the account again.

Islamic Accounts

Binary options are traded by people from all backgrounds. It doesn’t matter what country you come from, whether you are male or female, how much money you earn, how good your education was, or what your religious beliefs are. The only rule is you have to be over 18. After that, all you need is Internet access, a willingness to learn, a tolerance for risk, and a desire to make profit. However, most binary options brokers don’t have a suitable offering for one section of the community – Muslims.

24Option is unique in this regard, as it does offer the option of an Islamic account. This gives the hundreds of thousands of Muslims interested in binary options trading the opportunity to get an account and trade with the peace of mind that they are doing it on a platform and with an account that complies with Sharia Law.

It is free to set up and own an Islamic account at 24Option, just as it is free to have a standard account. Nothing about the account could be described as usury. This means there are no hidden charges or rollovers. Commission and interest are not charged either.

In addition, Islamic accounts are available in Arabic to cater to Muslims who speak it as their first – or only – language. The site itself is in Arabic as is the user interface. All the help materials are available in Arabic too, including binary options trading tutorials, ebooks, and more.

Possible payouts

We found that 24option payouts are a bit to rave about in the meantime as well. In fact, most payouts tend to be typically higher. The payout is between a 70 and 89 percent on successful traders. For most 60 seconds options, clients have made as much as a 70 percent payouts and that’s great for one minute in our opinion.

Personal account managers explain to the clients that the payouts will vary and change as new assets enter the platform. It is important to remember that clients might lose their invested capital as well. However, most investors find comfort in knowing that all of the payouts are viewable on the trading platform and this includes out of the money payouts.

Account types

Another motivational tool during our review of trade efforts with 24option, is their various account types e.g. Platinum, Gold and Standard account. Platinum account holders generally earn maximum benefits like high/low options, high-yield, boundary, and touch options. They get most update info about latest trends in the market, and they also get personal training session as well. Gold account holders usually get 2% return on each trade that they make and they can also trade all option. Standard account holders can also trade all options and they can access 24 hours customer support as well.

It helps to understand the depths of each account and which best fits your trading style. We found that the insight offered by the personal account manager team to be very useful in helping clients to decide which route to take as a beginner. The free demo account is a must for anyone on an entry trading level. This account provides the platform needed to familiarize yourself with the basics of binary trading options and without it, many newbies would be lost.

24option-account-types

Assets

With 24Option you can trade Binary Option on different underling assets such us currencies, commodities such as gold and silver, leading stocks such as BMW and Google, indices that include S&P500, DAX, and NASDAQ.The assets of 24option review are very encouraging and provide great alternatives for various trade levels.

Boundary options are of course a favorite but we’ve found that High Yield options can be rewarding when traded with care. Traders gain a more clear perspective of the platform and its importance and this causes them to be more attentive to the assets and available options. We also found as a positive incentive that 24option presents the option to close early as on online trading feature.

Screenshots

24option

Deposit and withdrawals

The deposit interface of 24option is very simple to comprehend. It’s obviously simple if one who has never traded can do it. In addition to that, it’s fast and very safe to use, you can deposit your funds in GBP, USD, JPY and through digital payment. With all that’s going on in the world today, safety while trading is essential.

Minimum deposit amount offered by 24option broker is 250GBP, USD, EURO, and approximately 25000JPY. There are various methods of funding allowed for online binary trading, like clients can deposit funds by using Master or Visa Card, Credit card, digital payment method or through bank transfer. The simple process afforded by 24option makes it more enjoyable. The withdrawal standard of 24option is without a doubt more convenient and many other brokers out there.

Customer service

If nothing else we’ve mentioned encourages you to at least give 24option a chance, their superior customer service will win you over at every phase. It is most important to be provided great customer service and this has been our discovery at every phase of 24option. It is essential that we mention the significant number of available languages for 24option. This is a great asset for international traders who desire to trade in their native language.

Although live chat is offered in various languages, this isn’t always possible. Most of the support comes through as English but there is support available in 13 other languages. For any binary options trading queries, 24Option has live chat, email and telephone numbers. This is in order to provide excellent customer service in a prompt and professional manner, anywhere in the world.

Summary

Approved24Option trading platform is easy to use for trading binary options  and it provides high returns for traders. It is also CySec regulated and has access to around the clock customer service for any assistance on trading. This all makes 24Option a binary option broker we can highly recommend.

Additional information

Customer Service: Live Chat / Email: [email protected]
Languages: English, Spanish, French, German, Italian, Danish, Swedish, Russian, Latvian, Japanese, Arabic, Romanian, Korean, Finnish, Indonesian, Turkish, Portuguese
Trading Options: High / Low, Boundary, Touch Options, High Yield Options
Assets: Currencies, Stocks, Indices, Commodities
Expiry Times: 60 sec, 2min, 5min, 15 min, 30 min, 1 hr, 24 hr+, End of Month
Deposits and Withdrawals: Visa, Mastercard, Bank Wire, Skrill Moneybookers, Diners Club, JCB, Discover Card, Liberty Reserve, Dankort, Cartasi, Laser, Visa Electron
Withdrawal Time: 1-3 bank days
Demo account: Yes

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References and Further Reading:

  1. Early Experience With Pay-for-Performance From Concept to Practice (Meredith B. Rosenthal, PhD; Richard G. Frank, PhD; Zhonghe Li, MA; Arnold M. Epstein, MD, MA – 2005)
  2. Information, Prices and Efficiency in a Fixed-Odds Betting Market (Peter F. Pope and David A. Peel – 1989)
  3. Gaming machine with variable probability of obtaining bonus game payouts  (Damon E. Gura – 2000)
  4. Method for producing a superior insurance model for commodity event risk (Alexander Eydeland, Daniel J. Mahoney, David B. MacKenzie – 2008)
  5. Multiple progressive gaming system that freezes payouts at start of game (Robert P. Barrie, Jon Bengtson – 1989)
  6. The effects of tax rates and dividend payouts on common stock returns (Alltizer, Richard L; Hamill, James R. – 1999)
  7. Detection and prevention of duplicate trading transactions over a communications network  (Richard Hartheimer, Michael Coleman, Chris Klepka, Geoffrey Poole – 1993)
  8. Web-Based Multimedia Advancements in Data Communications and Networking ( Sridhar, Varadharajan – 2013)
  9. System and method for trading tournaments  (Olexandr Volkov – 2012)
  10. On the Utility of Trading Criteria Based Retraining in Forex Markets (Alexander Loginov, Malcolm I. Heywood – 2013)
  11. Getting Started in Currency Trading (Michael D. Archer – 2012)
  12. Volatility, global information, and market conditions: a study in futures markets (Hung-Gay Fung, Gary A. Patterson – 2001)
  13. Online e-commerce transactions incorporating effects of uncertainty and risk factors (Vipul Bansal, Abhinanda Sarkar – 2009)
  14. Information Management & Computer Security (Juan Carlos Roca, Juan José García, Juan José de la Vega, – 2009)
  15. The Endogenity of the Optimum Currency Area Criteria (Jeffrey A. Frankel, Andrew K. Rose – 1998)
  16. Optimal Search and One-Way Trading Online Algorithms (R. El-Yaniv, A. Fiat, R. M. Karp, G. Turpin – 2001)
  17. Adaptive systems for foreign exchange trading (Mark P Austin , Graham Bates , Michael A H Dempster 3 , Vasco Leemans & Stacy N Williams – 2007)
  18. Trading rule profits in European currency spot cross-rates (Chun I. Lee, Ike Mathur – 1996)
  19. Method of using a computerised trading system to process trades in financial instruments  ( Michael Spencer, Kieron Nolan – 2002)
  20. Centralized electronic currency trading exchange (David Myr – 2005)
7 Binary Options review: 24Option : 4,5 stars.
John Miller
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John Miller

John has worked in investment banking for 10 years and is the main author at 7 Binary Options. He holds a Master's degree in Economics.
John Miller
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