27Option – Can You Trust Them?

Website URL:https://27option.com

Founded:2021

Regulations: Not Regulated

Languages: English, Swedish, German, Italian

Deposit Methods:Bank Wire, Credit Card

Minimum Deposit:$100

Free Demo Account:No

Number of Assets:N/A

Types of Assets:Commodities, Forex, Indices

Trading Accounts and Conditions

27Option offers its customers the following accounts:

• Micro Account: Minimum opening deposit for this account is $100. The leverage is a maximum of 1:500 and the spreads start at 1 pip.
• Standard Account: Minimum opening deposit for this account is $500. The leverage is a maximum of 1:300 and the spreads start at 1 pip.
• Premium Account: Minimum opening deposit for this account is $/€25,000. The maximum leverage is 1:100 and the spreads start at 0.6 pips.
• VIP Account: Minimum opening deposit for this account is $/€100,000. The maximum leverage is 1:100 and the spreads start at 0.2 pips.

27Option– Advantages

Here are the advantages of using this broker to trade:

• Attractive Spreads

Despite everything that is wrong with this broker, we must also acknowledge the positives. The spreads offered by this broker for its account types are low, which makes them very attractive to traders.

When we logged into this broker’s platform, we found that the EURUSD spread was at 1.5 pips, which is a positive. Lower spreads mean lower trading costs.

• Low Minimum Deposit Requirement

Another plus is that the minimum deposit requirement is very reasonable. You need to make a deposit of only $100 to start a Micro Account. Considering that the industry average ranges from $250 to $100, it’s a good deal.

However, you should also know that there are regulated and reputed brokers that have much lower minimum deposit requirements. And considering that we have found so many issues with this broker, it would be a good idea to check out these brokers rather than investing with 27Option.

27Option – Disadvantages

While we did find a couple of advantages of trading with 27Option, the disadvantages we found far outweigh the pluses. Here is the list of reason why we don’t recommend this broker:

• Unregulated

The first thing we check is whether a broker is running its business legally or not – and that means checking the broker’s regulatory status. Any broker that is not regulated must be avoided at all costs.

So, we checked. This 27Option is located in St. Vincent and the Grenadines (SVG), which is an offshore jurisdiction. The problem is that SVG does not have regulations in place to oversee forex brokerages. What this means for an offshore broker is that it will need to get a license to operate from another jurisdiction (the regulator of the country that the broker services) to be considered legal.

In 27Option’s case, there is no other licensing information provided. This means that this broker is operating without being regulated, which makes it an illegal entity.

Dealing with such an offshore broker is a sure way to lose money. These brokers are most often scammers that target novice traders. And since they are located outside your country, it is not easy to track them down or initiate legal proceedings against them.

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• Parent Company Linked with Another Scam Broker

27Option is owned as well as operated by a company called Fairline Enterprise Ltd. This is the same company that owns another scam broker called VentusKapital.

Thus, considering that this broker is also unregulated, offshore and its parent company is also known to own other scam operations, we would strongly recommend avoiding 27Option.

• Weak Trading Platform

One of the biggest draws a broker has is its trading platform. Most reputed brokers ensure that they offer only the best trading platforms to their clients – such as the MetaTrader 4 or MetaTrader 5 platforms. These types of platforms offer a wide range of tools that make trading much easier – even for a novice.

However, what 27Option offers is nothing but a simplified web-based trading software with hardly any tools.

• Bonuses Offered

Another issue we have with this broker is that 27Option offers trading bonuses. These are highly controversial promotional offers since they usually come attached with some rather unfair terms and conditions.

And sure enough, these bonuses offered by 27Option are also pretty unfair. The conditions for withdrawal of bonuses state that for sums between 100 to 19,999 Euros, the amount needs to be turned over at least 5 times before it will be paid out. And for sums over 20,000, you need to turn over the bonus amount at least once. What all this means that you need to trade a lot of money before you will be allowed to withdraw your funds.

• High Leverage

27Option offers its clients leverage ratios that are as high as 1:500. These ratios are much too high for the locations in which this broker operates. There are countries that allow for such high leverages, but Europe and the UK are not among them.

And since this broker seems to be targeting Italy, the UK, Sweden, and Germany, we can safely say that these leverages are illegally high. Both the UK and the EU have capped leverages at 1:30 and 1:40 respectively. So, a leverage of 1:500 is outside allowable limits.

• Limited Payment Options

While this broker claims to offer both bank transfers and credit cards as payment options, when we checked, the only way to make a deposit is via a wire transfer. Considering how shady this broker is, it makes sense that that would be the only option available – wire transfers are final and non-refundable. So, once they have your money, that’s it! 

Conclusion

27Option is a broker that is best avoided. This broker is unregulated, is linked with another scammer, has poor terms and conditions and a poor trading terminal. Low spreads and minimum deposits are not enough to redeem this broker. It is best to find another regulated broker.

27Option

2.4

User Experience

3.5/10

Payment Options

2.4/10

Security

2.0/10

Support

2.0/10

Reputation

2.2/10

Pros

• Attractive Spreads
• Low Minimum Deposit Requirement

Cons

• Unregulated
• Parent Company Linked with Another Scam Broker
• Weak Trading Platform
• Bonuses Offered
• High Leverage