Beware! Prime Options FX 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.
Prime Options FX is a fairly typical example of a scam website trying to capitalize on the hype around cryptocurrencies and the lack of knowledge about financial trading among the general public. In this review, we will look in detail at the evidence that Prime Options FX is not the legitimate broker it claims to be.
Prime Options FX Regulation and safety of funds
|Guaranteed Funds||Segregated Accounts||Negative balance protection|
|Prime Options FX||❌||❌||❌|
|UK regulated brokers||£85 000||Yes||Yes|
|EU regulated brokers||€20 000||Yes||Yes|
|AU regulated brokers||No||Yes||Yes|
|US regulted brokers||Yes||Yes||No|
Legitimate forex brokers provide clear and detailed information about the legal entity that owns and operates them, where it is based, what licences it has and which regulators oversee its activities. Lack of such details or improper presentation of them are always a red flag that we are probably dealing with a scam.
Company name and applicable jurisdiction are not specified in the Prime Options FX Terms and Conditions. This in itself is unacceptable for any legitimate business. On the homepage of the website we see an incomplete UK address. Checking the databases of the relevant financial regulators shows that there is no authorised broker using the Prime Options FX brand and domain.
Another European financial regulator, the Spanish CNMV, has identified Prime Options FX as a fraud and blacklisted it.
Under no circumstances should you trust your money to such websites full of false and contradictory information. Instead, you can turn to one of the many companies that really work under the supervision of respected regulatory bodies like Cyprus Securities and Exchange Commission (CySEC) or Financial Conduct Authority (FCA) in the UK.
As their customer you will enjoy a number of guarantees including negative balance protection and guarantee for your funds if the broker goes bankrupt, which goes up to EUR 20,000 in EU and 85,000 GBP in the UK. Regulations in the UK and EU include some important measures designed to improve investor protection and promote market integrity and transparency, such as transaction reporting. Regulated brokers are also required to segregate their operational funds from the client’s money.
Prime Options FX Trading software
|Analytical tools||Auto trading||Custom indicators||Mobile apps|
|Prime Options FX platform||❌||❌||❌||❌|
|MT4||30+ indicators||✅||✅||Android and iOS|
|MT5||50+ indicators||✅||✅||Android and iOS|
|cTrader||40+ indicators||✅||✅||Android and iOS|
The most important tool for trading financial assets is software. The Prime Options FX website does not mention a trading platform. After registering an account, it becomes clear that this supposed broker has no trading software at all. In the dashboard we only see a simple chart with current Bitcoin prices, which does not have any trading functionality.
If you use the services of a licensed broker, you will get the opportunity to use established software with advanced features and versions for all types of devices and operating systems. The most widely used trading platforms in the industry are MetaTrader 4 (MT4) and MetaTrader 5 (MT5).
These platforms have established themselves as industry standard because they offer a wide range of features, including a variety of options for customization, multiple account usage, designing and implementing custom scripts for automated trading and backtesting trade strategies.
Prime Options FX Trading instruments
|Prime Options FX||❌||❌||❌||✅||❌|
Prime Options FX advertises that it offers cryptocurrency and binary options trading. Both types of trading are banned in the UK, where Prime Options FX claims to be based.
Prime Options FX Spreads and cost of trading
|Prime Options FX||XM||FBS||FXTM|
When registering for a Prime Options FX account, a choice has to be made between different “trading plans”, but nowhere is there a description of the conditions attached to them.
Legitimate forex brokers offer a variety of trading account types tailored to the needs of clients with different capital and investment intentions. These brokers also provide clear and detailed information on trading parameters – leverage, spread, commissions, order execution method, etc.
Prime Options FX Maximum leverage
|Prime Options FX||❌||❌||❌||❌||❌|
|UK regulated brokers||30:1||5:1||❌||10:1||10:1|
|EU regulated brokers||30:1||5:1||2:1||10:1||10:1|
|AU regulated brokers||30:1||5:1||2:1||10:1||10:1|
|US regulated brokers||50:1||❌||❌||❌||❌|
High leverage creates the opportunity for more significant profit, but correspondingly increases the risk of sudden and excessive losses. All leading regulators therefore restrict leverage for retail traders.
Regulated brokers offer higher leverage only to professional clients who must meet very high standards for capital and experience and forgo the guarantees enjoyed by retail traders.
Prime Options FX Deposit and withdrawal methods
|Deposit time||Withdrawal time||Price|
|Crypto||24 hours||24 hours||Fee depends on crypto|
Prime Options only allows the deposit of funds via cryptocurrencies.
This is typical of financial scammers. Cryptocurrencies are their payment method of choice because on the one hand they allow the scammer a degree of anonymity, and on the other hand they do not allow the scammed to ask for a refund.
While there are some legitimate brokers that accept digital currencies like Bitcoin, they do so alongside other transparent payment methods such as credit/debit card, bank transfer or popular e-wallets like PayPal, Neteller or Skrill.
Prime Options FX Minimum deposit
|Prime Options FX||XM||FBS||FXTM|
According to the FAQ section of the website, the minimum deposit required is 200 USD. For a significantly lower amount, you could be trading with a leading brand in the industry.
Prime Options FX Withdrawal requirements
|Trading volume||Fee/Tax on withdrawal||Minimum withdrawal|
|Prime Options FX||Bonus+Deposit x30||Not specified||$100|
|UK regulated brokers||No||No||No|
|EU regulated brokers||No||No||No|
|AU regulated brokers||No||No||No|
|US regulated brokers||No||No||No|
The minimum withdrawal amount is 100 USD, but such shady brokers generally do not allow their victims to withdraw funds. To this end, they use confusingly described minimum traded volume requirements and other tricks. Prime Options FX requires that the amount of the deposit plus the bonus be traded 30 times before a withdrawal can be requested.