OptionWeb was launched in 2012 but fully became an operating company in 2013. It is owned by the Cyprus company named Lionsman Capital Markets and is licensed and regulated by the CySEC, under the Cypriot government. This seems legit so far, let’s proceed to see what else you’re about to find out.
Although there are a vast amount of companies that have a CySEC license, there are still concerns regarding a trader’s safety when opting to open an account with OptionWeb as a preferred broker. OptionWeb claims to operate a trading platform made by SpotOption, but the validity of the regulation is not crystal clear as it could be that the broker had developed its own interface.
You shouldn’t solely select a broker based on the technical aspect if a broker is regulated or not but in accordance to its entire reputation that has in the online trading community. Our team has discovered that OptionWeb has rumors buzzing around the web of being a scam and resources show that complaints are not uncommon.
OptionWeb has put a lot of effort into building an enticing website and offering plenty of promotions to attract trading clientele. They inform their traders about managing their risk and make an attempt to provide traders documentation to try to back up their legitimacy. Unfortunately, there are still concerns about OptionWeb appearing to participate in fraudulent activities, and there’s no shortage of negative feedback floating around social networks.
OptionWeb claims to be appropriate for professional traders and newbies just entering the binary options market. After careful analysis, we have found that an investment that rewards users with very high payouts for short-term options is very risky. Naive traders who join OptionWeb appear not to be aware of this and feel as they have been cheated when they lose their money to these types of trades.
We believe OptionWeb, could do a better job informing new accounts much better about what risk levels are at hand with each type of trade. Instead, it seems as though OptionWeb is allowing new clients to risk their initial investment without any forewarning. Traders that are relatively new to binary options trading, also feel that the platform is not as simplistic to provide a seamless experience.
After conducting the OptionWeb scam review, we feel as though OptionWeb could be promoting false promises to new traders and that the platform is not user- friendly as the site claims. This could justify the reason why this broker’s reputation is going downhill as more new traders appear to complain that they are being taken advantage of.
Review Verdict: Since OptionWeb has raised a high degree of speculation, we strongly suggest you proceed with caution and choose more professional brokers to invest with. We’re not calling OptionWeb a scam, but it does NOT get a 5-star rating like other binary brokers in the industry.
Is OptionWeb a Scam Broker?
Before initially opting to go with a binary options broker, interested traders must ensure their own security and safety of investments. Online trading has opened the gates to many brokers entering the market, in which have traders questioning a broker’s credibility. OptionWeb may prove to be regulated and operated by Lionsman Capital Markets, under a license number 175/12, but sometimes that doesn’t make a company 100% transparent. Additionally, OptionWeb is authorized by the Cyprus Securities Exchange Commission and other European regulative bodies, as well as the UK’s FCA. As traders, you may feel a bit relieved that there is some regulation behind the broker. However, it doesn’t complete the entire picture to say they are honest and transparent.
TIP: Many professional traders could vouch explaining a regulated binary options brokers does NOT always equal an ethical one! When choosing a trustworthy broker, regulation may be a priority BUT so is their REPUTATION.
Although OptonWeb may flash their regulation all over the web, our team has come across a few inconsistencies regarding their reliability in payouts that they promote. It can be reported that OptionWeb’s payouts appear to keep changing, which is a major concern. When payouts keep fluctuating (especially lowering), it doesn’t allow you to accurately apply confident aspects of the most fundamental trading strategies. In one instance we found OptionWeb claiming up to a 90% payout, and then later we found it to be an 86% payout rate.
We cannot explain the fluctuation or what is really true about OptionWeb regarding its payout rates. It seems a bit confusing overall, but in our tests, they appear to provide something much less. Our experts have many years of experience, and we could not reach the high payout rate – so we can only imagine the disappointment other traders may face.
OptionWeb Assets & Software Platform
The OptionWeb trading platform claims to be one of the easiest platforms available to traders. The interface has a similar set up that resembles a number of other broker platforms on the market. Which means that if a trader already has some experience, the learning curve may be less. However, taking on different perspective – we didn’t find anything special. So although experienced traders may be familiar with the platform, there may be not much to gain if you open an account.
On another note, it seems as though OptionWeb does not do a great job at providing easy navigation on the trading platform. Unfortunately, new traders could lost on the interface, even though it is being marketed “perfect” for starters as well. In our experience, we beg to differ as we’ve come across much more user-friendly interfaces with many more asset options too. (We’ll get to asset selection in a bit)
Although there are online educational resources to try to help traders in their strategy, the material may be far too complicated to understand. New users have made various complaints that the reports they are provided are more catered towards financial and economic professionals; not for new binary options traders.
This broker offers only 70+ assets to its traders such as currency pairs, stocks, indices, and commodities. We think this is a limited list, as we know binary brokers that have over 100+ assets and some close to 200+ assets to choose from.
Moreover, the trading options include traditional choices like High/Low, Long-Term, One-Touch and Pair Options. OptionWeb seems to promote more Short-Term options that have expiration times of 30 seconds to 24 hours. Although short-term contracts offer high returns, experienced traders know this is NOT ideal for beginners. It’s like jumping into the ocean, without knowing how to swim first.
When on the OptionWeb website, new accounts appear to be pitched that short-term is a great way to go. But is it? We believe it is very wrong on their end. Hence the online complaints you’ll find many losing their investment. Is it really a new traders fault? In this instance, it may not be the trader’s fault.
Does OptionWeb Deserve Your Deposit?
To begin, you need to initially register on the OptionWeb site, which is free to open an account. For all traders who are new to the game, this is very standard as opening an account is free among the majority of binary brokers. After that, you have to deposit the minimum amount to begin trading, which is 200 USD or EUR, but make sure you choose the correct currency when you register as you are not able to change the currency later on.
Also, be very careful, as we have found complaints that OptionWeb did not inform its users the important detail of checking the right currency! It resulted in many complications and difficulty withdrawing funds. Whether this is done on purpose or not, we cannot say 100% for sure, but the negative feedback doesn’t seem to be going down. So a word of cautions.
OptionWeb accepts various payment methods: Credit or debit card, bank transfers, and online payment services like Skrill and Neteller. Additionally, when you are ready to withdraw money from your account, you can receive your earnings following their procedure.
The Final Verdict
Our team at Scam-Rank cannot deem 100% that OptionWeb is a scam, but we highly advise a word of caution. Although they are regulated and licensed, you should do your own due diligence and not depend only on hearsay. A company’s reputation is a major key factor when seeking a broker and you need to get a well-rounded perspective.
Although OptionWeb markets its self quite strongly, you must be wary when opening an account as their intentions appear manipulative as per our investigation. Compare to other broker platforms available; OptionWeb does not seem to be the easiest platform solution for beginner traders as everything is explained in advanced terminology. This could lead to many trading failures or mistakes, according to others who have tried this broker.
We suggest you check out more reliable and honest brokers that can offer you much higher satisfaction in your overall trading experience.
- Min. Deposit Only $200
- Standard Payment Methods
- Complex Educational Materials
- Not Ideal for Novice Traders
- Average 75% Payout Rate (Low)
- Limited Asset Collection