Edit: 24option is now officially regulated by CYSEC: Offical CySEC site.
|Normalized profit||Up to 89%|
|Trading assets||Stocks, Forex, Commodities, Indices|
|Min. Account size||$ 250|
|Min. Trade size||$ 24|
|Special features||High/Low Above/Below, One Touch, Boundary, Early Closure, High Yield|
|Trading Platform||Tech Financials Ltd.|
24Option is the largest binary options broker currently in operation. They have the highest customer base by far of any other brokers and the highest trading volume. They are owned by 247 Holdings Ltd, and began offering binary options trading in late 2010. 247 Holdings are based in Anguilla of the British Virgin Isles, with headquarters in London, while 24Option operate out of Limassol, Cyprus. As of late 2013, they are officially regulated by CySEC.
24option’s asset selection is pretty decent by any standard and the number of Forex options available would not shame any Forex broker. As for stocks, what they lack in numbers, they make up for in diversity. There are many stocks from different markets all over the world, greatly increasing the available trading hours for different markets.
- 32 FOREX Currency pairs
- 11 Commodities
- 22 Indices
- 46 stocks in various markets including Nasdaq and the European Markets
Registering an Account
As can be expected from any binary options broker, registering and depositing money is a very easy feat. They obviously want you as a customer and make it as easy as possible for you to become one.
Like I always say, customer support is really important in a binary options broker. 24option offer local telephone support in 24 countries, as well as email and chat support. As usual, I decided to give their chat support a go.
When you first click their chat support, you get a nice welcome screen which asks you which language you would like the support chat to be held in. There are 7 languages to choose from, although understandably not all of the will be readily available all the time.
I chose English of course. The chat interface is nice, with a useful file upload upload for uploading text files or perhaps screenshots. A nice little addition is also the fact that the chat screen beeps everytime you get an answer from the support person. This is good if you’re waiting for an answer to a question and would like to browse other screens in the meantime.
24option is notorious for having a very large and well educated support team, which was pretty much verified when I called them up for a chat.
Answering was pretty fast and was pretty spot on to what I was asking, which was basically just technical clarification on two of their trading tools.
When I first saw 24Option’s trading interface I thought WTF is this? Where are all my colorful graphs? What’s going on here? Yep, 24Option has a completely different interface from all the other brokers we have reviewed until now. That’s because 24option uses a white label platform solution provided by Tech Financials Ltd. Like all binary options platforms, this platform is also completely web-based.
Main Trading Page
The initial trading page does not offer any fancy graphics or graphs. It’s a no-nonsense, information rich presentation of all the currently available (and unavailable) assets for trade, along with their current position and what the potential payout is on each of them. While this may seem a bit unattractive at first, it’s actually pretty darn good. It gives you an abundance of information of all the tradeable assets in one place. The assets are easily configured so you can also only see the assets that are of interest to you.
You can choose different expiry times for different assets, which is also pretty nice.
When you click on the asset that you would like to trade, you get more details on that asset, including a live chart with live pricing. As usual, I compared the pricing on the chart to my trusty Level 2 trading platform. The accuracy was pretty spot on for a web-based platform. The pricing was the average of both the bid and ask level 2 prices, to a degree of less than 1%, which I think is more than acceptable. If you’re planning on winning trades by being in the money less than 1%, you’re gambling and should do more homework before continuing with binary options.
Getting into a trade is quite easy. You just type in the amount you want to invest in the trade, and the order is immediately placed at the price listed at the moment you clicked the “buy button. This pretty much eliminates any possible slippage that could be caused by processing time or internet lag. The only downside is that, in order to reduce slippage and make the trade immediate, there is no confirmation screen to make sure you want to go ahead with the trade. This just means you need to double check before pressing the buy button. Most people click the second approve button automatically anyway, so I guess it will not be missed too much.
24option trading is somewhat different from regular binary options brokers. They don’t simply offer standard binary options and then additional features. Even their “regular” binary options are not called calls or puts, rather “high/low”.
24option offers additional high payout options, that involve more risk than regular options. With above/below, the trader predicts whether or not the underlying asset will be above or below a certain price point upon expiration. This is riskier than the standard high/low because the strike price is usually around 0.9% away from the current price point already. Payouts however, like I said, are much higher and vary from 110% to 250%.
With One Touch, which is also offered by some other brokers, the trader simply needs to predict if an asset will “touch” a certain price within the given time period. The asset does not need to be in the money in reference to the strike price to be rewardable, but needs to have reached the strike price at least once during the given timeframe. 24option offers standard One Touch options, and High Yield options where the strike prices are placed slightly further away, but the payout is again substantially higher. A nice addition for 24option is the intraday onetouch, which gives a smaller timeframe than the regular ones.
Boundary involves predicting whether or not an asset will be within or outside a certain boundary upon expiration. As with the other assets, 24option also offers regular and high yield boundary options, with higher payouts of course.
For the less patient binary options traders, 24option offers very short term trading, with 60 second, 2 minute and 5 minute expirations. I personally would never trade these types of binary options as they are more of a gamble than anything else, as it is virtually impossible to make an educated prediction of how a stock is going to react within the next few minutes. The only exception for me would be if an asset made a huge gap up or down with news and was due for an immediate technical correction before either coming down or continuing up.
Early Closure Option
Three minutes after entering a trade, the trade is presented with the option to ask for an early close on that position. The winnings will be much less than expiry payouts on one hand, but will be higher than an out of money expiration should you currently be out of the money. This option is all about risk management.
Payouts and Commissions
The payouts with 24Option differs across the board for different assets. Generally speaking payouts are between 70% and 89%, with stocks usually being on the lower side and Forex on the higher end. It’s nice that 24Option also offer high yield options with payouts up to 250%. However, traders choosing to use these options should do so with care and only trade up to a certain percentage of your portfolio on them, and keep the rest with regular binary options.
24Option do not charge any commissions on any of the trades, including the unique ones.
No fee is charged for the first withdrawal made by a trader, but there may be fees involved for additional withdrawals, depending on the payment processing requested. For gold accounts, one withdrawal per month is free and for platinum accounts all withdrawals are free.
As always, we do not recommended accepting any of the bonuses that they may offer you when you make a money deposit. If you do, there may be terms tied to your cash before you can withdraw. It’s always better to waive the bonus and have the freedom of withdrawing whenever you like. On the other hand, 24option do not have the ridiculous x20 times your bonus to be traded, but rather a more reasonable x5 times your bonus.
It is easy to see why 24option is one of the largest and most popular binary options brokers currently available. The trading platform is no nonsense, giving you all the information you need, and is spot on in terms of accuracy and reliability. Support is very good, and available in a number of languages. They have also worked very hard to gain a significant track record among fellow traders, making them one of the most reliable brokers around.
- Good unique trading tools
- Good trading interface
- No commissions on trades
- Fast and friendly customer support
- A variety of high yield trading tools
- Limited NASDAQ stock trading
- Only one free withdrawal for regular traders
- Interface may seem a bit bland upon first look
24Option Website preview:
To start trading Binary Options with 24Option, visit http://www.24option.com
This broker can definitely be recommended!