Beware! This is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
TorOption is a forex and CFD broker, offering a selection of currency pairs and CFDs on a web based trading platform and a choice of four account types, with a minimum deposit requirement ranging between 350 USD and 50 000 USD.
We counted 27 forex pairs, some with exotic currencies like Singapore Dollar, Swedish Krona, Norwegian Krone, Danish Krone, South African Rand, Russian Rubble.
Other assets include spot metals like gold, silver and platinum, commodities like oil, coffee, sugar, wheat and cocoa, as well as indices, stocks and even crypto coins – Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Ripple, Zcash, Dash, Litecoin, Stellar, USD Tether and Monero.
As tested with a demo account the EURUSD spread fluctuated between 0,4 pips and 0,6 pips pips, which seem quite competitive. Leverage is caped at 1:25, inline with the new European Securities and Markets Authority regulations that cape the maximum leverage with forex and CFD instruments on the territory of EU to between 1:20 and 1:30, depending on the asset.
TorOption regulation & safety of funds
TorOption is said to be owned and operated by Smart Choice Zone LP – a company with a contact address in the UK. Have in mind that all companies, providing financial services in the UK, should be registered with the local Financial Conduct Authority (FCA). So we diligently checked the registers of the institution, but unfortunately were not able to find neither TorOption nor Smart Choice Zone LP there. So TorOption operations in the UK turn out to be illegal.
Be aware, that unfortunately most unregulated brokers are involved in scam. On the other hand, brokers, holding a license by a respected financial watchdog such as the FCA are obliged to follow strict fiscal and ethical rules, among which to maintain a certain minimum capital adequacy ratio, to keep all clients capital in a segregated, protected from creditors account and even to insure traders money.
For example, in the unlikely case a broker goes insolvent, all its clients will be compensated with up to 50 000 GBP of their trading capital.
TorOption deposit/withdrawal methods and fees
Like with most other brokres you can fund your account at TorOption using major credit or debit cards like MasterCard and VISA, wire transfer and e-wallets, including WebMoney, CashU and Klarna. As we already mentioned, the minimum deposit requirement is 350 USD.
However, be careful with any bonus the broker might offer you, as the right to withdraw money form your account will be linked to a minimum trade volume requirement, which in the case of TorOption is 20 000 time every dollar you have received as a bonus.
How does the scam work?
Scammers may use various scenarios to get to your money. Here is just one, we have come across recently:
You will happen to watch a video on one of the many robo scam websites like Bitcoin Revolution or Bitcoin Method, where you will be told how easily you can make a pile of cash by simply investing with an innovative trading app or platform. All you have to do is to fill the simple registration form, leaving your e-mail and phone.
And then you will be transferred to the website of an unregulated, offshore broker, where you will be asked to deposit something like 250 USD and start making money right away. Besides, your first trades will probably be quite successful and in no time the money in your account will double.
The truth, however is that your account will be manipulated, so that you can easily get hooked and deposit more. Actually, that is when you will receive a phone call by a “senior account manager”, who will advise you exactly this – if you want to make some real cash, you will have to invest more – what about 10 000 USD? And chances are, you will invest those money as well.
In the beginning everything will look fine – you might even be allowed to withdraw a small sum. But if you try to withdraw a more serious amount or if you decide to close your account, it will suddenly turn out you can not. It will be some clause in the Terms and Conditions, linking the right to withdraw to some minimum trade volume requirement or the welcoming bonus, you have accepted in the first place. In any case, they will simply refuse to pay your money.
Have in mind that at some point scammers will require you to send them a photo of your ID and a proof of address (your latest electricity bill for example). They will cite the anti-money laundering legislation, but the truth is, if you send them your personal information voluntarily, they will have a much stronger case, when you file for a charge back with your credit card provider.
Also, some scammers might even try to trick you to install Team Viewer, so that they can have full access to your PC. If you allow this, they will get to your online banking password and credit card number and will try to steal money directly form your bank account.
What to do if scammed?
If you have fallen victim to scammers, immediately file for a charge back with your credit card provider. Have in mind that this will be possible only within six months after you have made the deposit.
If for any reason you have given away your credit card number or banking details, оr if you have agreed to install Team Viewer, block you credit card immediately, delete Team Viewer and change the password for your online banking.
Finally, if you have lost money to scammers, do not try to contact the so called recovery agencies. They will not recover your money, but simply take an upfront payment and basically this is how the story ends.