Beware! This is an offshore broker! Your investment may be at risk.
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AllOption is a MT4 forex brokerage which, according to the info on the website, is powered by Atlantic Ocean ltd, located in Sofia, Bulgaria. There is a lot of information missing on the website and without a demo account we couldn’t see the spread, nor the leverage offered by the brokerage. AllOption does require the hefty sum of $500 as a minimum deposit which is double the industry average.
AllOption regulation & safety of funds
The brokerage does not explicitly state it is regulated on its website. There is also a lack of clarity regarding the registered address of the brokerage. All this inclines us to seriously question the legitimacy of the brokerage. Furthermore, the missing regulation requires us to state all the risks traders are exposed to if they decide to trade with AllOption.
No Safety – Compliance with the regulatory standards of a reputable authority such as Cysec in Cyprus compels a brokerage to segregate accounts i.e to handle the clients money separately from their own. In this way the chance of foul play is significantly lowered and traders should always take notice of such a requirement.
No compensatory scheme – Regulation also guarantees potential clients of the brokerage participation in a compensatory scheme by which possible losses of traders, in the unlikely case of the brokerage’s bankruptcy, will be covered, up to 50 000 per person.
No Capital Requirement– Compliance with Cysec also requires the broker to have a starting capital of € 730 000 which significantly lowers the risk of them being frauds, since not many scammers can pull through with such an amount.
AllOption Deposit/Withdrawal methods and fees
Unfavorable withdrawal conditions are among the disadvantages of a brokerage that we must have in mind. AllOption has a minimum withdrawal amount of $500, otherwise clients may not get a hold of their funds. What this means is that, if you have less than $500 left in your account, the brokerage will require you to add the neccessary amount to your funds in order to get your money back.
How does the scam work?
Scammers have come up with all sorts of ways to swindle misinformed traders, but it typically goes as follows:
An ad will redirect you to a shiny website with assurances that you’ll cash in a huge profit. You need only register and give away your address, phone number and email. Only minutes later, that same data will be shared with a number of brokers waiting to pick up the phone and start badgering you with trading offers. After a few minutes you decide to deposit $200-250 and, at the same time, hand the broker a nice commission of $50.
The scam, however, continues and what follows is called the “retention”. Senior scammers will now begin addressing you on the phone with pledges how you will win big, only if you invest big. After further investing with the brokerage, your trading performance will worsen and you’ll begin wanting to close the account.
Finally comes the “recovery”. After stating that you wish to withdraw your money, the scammer will begin pleading with you to wait it out, six months at the most. The reason for this is to simply remove the last defense you may have – filing a chargeback with your bank. If six months expire, that option is closed and your money is gone for good.
What to do if scammed?
In the unfortunate case you are scammed, there may still be a few available options for you, although, we cannot guarantee they will work.
You may contact your bank or credit card provider and file a chargeback, but only within six months of the initial deposit.
If, however, you have provided the broker with your credit card details, immediately cancel your credit card. If you have given information regarding your online banking pass – you should switch it asap!
Third parties, known as “recovery agencies” should not be trusted. They prey on scammed clients with promises of getting their money back, but only if you pay them up-front. There is absolutely no assurance they will deliver on their promises and we advise potential scammed traders not to trust them!