LiteOptions Review – is lite-options.com scam or good forex broker?

LiteOptions Review – is lite-options.com scam or good forex broker?

Beware! LiteOptions is an offshore broker! Your investment may be at risk.

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LiteOptions is an offshore brokerage which provides its own web-based trading platform. The brokerage requires a minimum deposit of $250, which is the industry average, and provides clients with a wide range of payment methods, including many e-wallets. Further trading conditions, however, are unclear and the brokerage chooses not to offer a test-drive of its platform.

LiteOptions regulation & safety of funds

There is much uncertainty about the corporate information since it has conflicting statements. LiteOptions is supposedly owned by the company Algobit LTD, registered in Mahe, Seychelles, which is acting on behalf of Vanuatu-based company Finance Group Corp. The government of Vanuatu does regulate Forex trading through its regulatory body Vanuatu Financial Services Commission, however, Finance Group Corp. is not among the licensees of the regulator. We find no other mention of a license in the brokers website and that shouldn’t shock us if we have in mind the brokerage’s address. Seychelles is among the most favorite locations for offshore brokerages due to lenient registration requirements. Algobit owns and operates another broker brand – WorldcapitalFX – which have very similar websites and both do not extend a test-drive for interested traders. Both also provide a sort of web-based platform which we got a glimpse of through signing for a real account. Here is a screenshot:

It doesn’t look very neat, on the contrary, it appears quite fake. Furthermore, while researching the brokerage we came upon an official warning issued by the Cyprus Financial watchdog – CySec. On it we read that LiteOptions, just as Worldwide Capital FX, is providing financial services without proper authorization from the relevant authorities and further is taking part in scam operations. It appears Algobit Ltd is running two exposed shady websites which target traders in Europe illegally and outside the law.

We advise traders to only trade with regulated and legitimate Forex brokerage in order to exclude any risk from their transactions.

Prestigious regulatory bodies, such as the UK’s FCA and CySec, require compliance with a number of strict rules that give significant assurance for the safety of the clients funds.

The segregation of accounts is among the rules which are especially important in the trading world, because it drastically lowers the risk of possible commingling.

Another is the participation in a compensatory scheme by which the client’s losses will be covered in the unlikely case the broker goes bankrupt or attempts to scam traders.

LiteOptions deposit/withdrawal methods and fees

Potential clients of the brokerage have a wide array of payment methods available to them.  They may deposit or withdraw via Bank Transfer, Credit Card, Neteller, Skrill, Perfect Money, Vload, Bitcoin, WebMoney, QIWI, Yandex, Payoneer, OK PAY

Furthermore, we read in the Terms and Conditions that there are nasty withdrawal conditions. To be able to claim a withdrawal one must first achieve 100 per cent turn-over on his trading account – meaning he has to trade the amount of his initial deposit or more to be eligible for withdrawal. There is also a withdrawal fee of $50 for wire transfer and a 20% maintenance fee which is quite excessive and certainly not favorable for traders. We must remind readers of all the ways a trader may test the brokerage’s intentions. Firstly, traders are advised to always put up only the required minimum deposit, instead of risking a bigger amount with no certainty. Afterwards, they may also try to withdraw a small amount in order to check for any unexpected fees or delays. Such fees and delays are usually the signs of a scammer.

 

How does the scam work?

Scammers mostly rely on vulnerable and easily tricked people, that is why a well-informed trader is, perhaps, their most difficult target. That is why we believe all traders should be well-versed in the different ways of the scam. Here is the most popular one:

In most cases through clicking a tempting ad with promises for quick and easy profits, you will be redirected to a website like Crown Signals or Top-Algo Trade where registration will require  your address, email and phone number. Your personal information will be immediately shared with brokers in call centers who are just waiting for fresh leads. After a few minutes on the phone listening to the whole prepared brokers pitch , you decide to deposit some $200-250. And just like that –a 25 per cent commission gets wrested from the initial deposit by the broker on the phone.

After stinging you for a few hundred bucks, senior scammers will take you up and begin pushing you to further invest. You may even budge and continue investing.  At some point, however, you’ll probably begin to consider closing the account and getting back your money.

However, now comes the “recovery” part of the scam. After stating that you wish to withdraw your money, it will be high time for the “recovery people” to take it from here. They will begin further stalling in any way possible in order to remove the last guard you may have – filing a chargeback with your bank. This options expires for good after six months or more have passed since the initial deposit.

What to do if scammed?

A scam could happen to anyone, including you, and, in such a case, it would be best to know what options are still available to you. That way you’ll be certain your reaction will be adequate and on spot.

You may contact your bank or credit card provider and file a chargeback, but only within six months of the initial deposit, as was noted above.

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 change it asap!

So-called “recovery agencies” should not be trusted! Such agencies target scammed and vulnerable traders in an attempt to further swindle them into giving away their money. They will require from you an “up-front payment” in order to get your money back, but no such thing will happen!

Rich Snippet Data
Review Date
Reviewed Broker
LiteOptions
Broker Rating
1.21star1stargraygraygray

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