Prime24 Options – Are They a Scam?

Website URL: https://prime24options.com/

Founded: 2020

Regulations: No Regulation

Languages: English, All Google Translate Languages

Deposit Methods: Bank Transfer, Credit Card, Debit Card, QIWI, Yandex, Skrill, WebMoney, Neteller, Bitcoin

Minimum Deposit: $500

Free Demo Account: No

Number of Assets: N/A

Types of Assets: Forex, Commodity Futures, Share Indices, Energy

Trading Accounts and Conditions

Prime24 Options offers you the following types of trading accounts:

• Starter: The minimum amount that you are required to deposit is $500, and the spreads start at 1.9 pips.
• Classic: The minimum sum that you are needed to deposit is $3,500, and the spreads start at 1.5 pips.
• Pro: The minimum deposit requirement for this account type is $8,000, and the spreads begin at 1.2 pips.
• Executive: The minimum deposit you need to make for this account is $11,500, and the spreads are also at 1.2 pips.
• Premium: For this account type, the minimum deposit is $25,000, and the spreads are at 1.2 pips.

The maximum leverage offered for all of the above account types is 1:200.

Prime24 Options – Advantages

There are no advantages you will find trading with Prime24 Options.

Prime24 Options – Disadvantages

Here are the many very serious disadvantages to trading with this broker:

• Lies About Regulatory Status

Prime24 Options is owned and operated by a company called P24O Ltd, which they claim is regulated by the MFSA (Malta Financial Services Authority), as well as the US Financial Services Authority. The broker furnishes us with a License number IS/560000 as proof of its authorization by the US Financial Services Authority.

The first mistake this broker has made is declaring that they are regulated by the MFSA. We checked the MFSA’s online register, and found that this broker not their parent company is listed with this financial authority.

Furthermore, there is no agency by the name of US Financial Services Authority! If a broker operates in the United States, then they have to be regulated by the CFTC (Commodity Futures Trading Commission) and NFA (National Futures Association). Both these agencies have extremely stringent regulatory requirements, which is why very few brokers actually offer their services in the US.

So, first-off, we find out that not only is Prime24 Options not regulated, but it has also made up the name of a fancy sounding financial agency to legitimize their operations in the US. This broker is therefore operating illegally, and the lies they have told has clearly proved to us that they are scammers.

Dealing with this kind of a broker is inviting trouble. Such brokers operate outside the limits of the law, which means they have the freedom to do whatever they want with your money.

Regulated brokers are bound by the law to ensure that your funds are safe from losses if case they go bankrupt, or are found to be frauds. Furthermore, many financial authorities also require brokers to participate in financial reparation schemes (similar to insurance), where if the brokers’ customers experience losses due to broker insolvency, then the traders will be reimbursed.

When you deal with an unregulated broker, you get none of these benefits.

Plus500

$100

Minimum Deposit

Start Trading

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Plus500 is a FTSE 250 listed brokerage providing online trading services in CFDs, across 2,000+ securities and multiple asset classes.

 

AvaTrade

$100

Minimum Deposit

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• Blacklisted by MFSA

We are not the only ones to have realized that Prime24 Options has lied about their regulatory standing. The MFSA has also recognized the fact that this broker is operating illegally, and has therefore issued a regulatory warning against them.

The financial regulator, in its public warning, has stated clearly that Prime24 Options is not regulated by them, and that they are operating without proper authorization.

• High Minimum Deposit

Prime24 Options requires you to make a minimum deposit of $500 to be able to trade on their platform. This amount is more than 2 times as high as the market average. Most brokers require you to make a deposit within the range of $100 to $250. In fact, there are a growing number of very trusted brokerages that ask for a minimum deposit of amounts as low as $5.

• MT5 Platform Not Accessible

Prime24 Options claims that they offer their customers the use of the MetaTrader 5 (MT5) trading platform. This platform is the latest trading software released by MetaQuotes, the creators of the world’s most popular trading platform – the MetaTrader 4 software. Like the MT4 interface, the MT5 platform is also very easy to use, and offers charting and technical market analysis tools, as well as automated trading bots called Expert Advisors. An additional feature in the MT5 platform is that you can trade in bonds and ETFs from the same account.

If Prime24 Options actually offered the MT5 platform, we would have marked it as a big advantage. However, when we tried to access the software, we were unable to. Instead, what we were shown was a weird looking dashboard, where we were asked to upload images of our personal IDs.

We strongly advise all traders to never submit copies of their personal documents to unregulated brokers such as Prime24 Options, as the broker can then use this information against you in the event that you file for a chargeback. The broker can also refute any allegation you make against them, if they have copies of your documents.

• Inconsistent Spreads

Prime24 Options offers spreads that start at 1.9 pips, but information about the range of spreads is very inconsistent on their website. And since this broker does not have a demo account and we also were not able to access a live account, we were not able to check the spreads for ourselves to find out what they actually are.

Conclusion 

Prime24 Options is a scammer. The broker has lied about their regulatory status, and has said that they are regulated by a fictional financial regulator. This is not a broker you should trust at all.

Prime24 Options

2.6

User Experience

3.4/10

Payment Options

2.5/10

Security

2.3/10

Support

2.2/10

Reputation

2.4/10

Pros

• None

Cons

• Lies About Regulatory Status
• Blacklisted by MFSA
• Blacklisted by MFSA
• MT5 Platform Not Accessible
• Inconsistent Spreads