Magnum Options Review
It’s important to remember that just because a trading broker or rooobot doesn’t qualify as a full-scale scam does not necessarily mean it can be recommended. These days, the sheer number of trade bots and brokers doing the rounds is such that unless you’re working with the best, there could be much to gain from moving elsewhere. Some bots and brokers do a decent job; others fall short of the mark, and then there are those that perform over and above the rest.
The job of a quality binary options broker is to make it as easy and rewarding as possible to trade online. In the case of a bot, these are the kinds of systems that are supposed to take care of most of the hard work on your behalf, making it as easy as possible to make a profit. Technically speaking, therefore, the former of the two has the easier job – it’s still up to the trader to make all the necessary decisions. Which is why it is so surprising that so many continue to do a rather substandard job of it.
Magnum Options Trading Platform
So, what’s the story with Magnum Options? After putting the platform through its paces and seeing what other customers have to say, how does Magnum Options compare with the competition?
Well, the truth of the matter is that things get off to a pretty decent start with the whole experience at Magnum Options. The site as a whole appears to be very well put together and doesn’t make the mistake of publishing OTT promises that will never be kept. Instead, a very realistic 81% maximum payout is advertised for successful trades, which is just about the industry average and a decent average to work with. On top of this, the site runs very smoothly and offers easy access a decent amount of information.
So far, so all seems okay, but you’ll find out more soon that could have you raising your eyebrows.
As for the actual trading itself, you’re presented with a window that offers instant access to a wide variety of trading instruments. Rather than just sticking with a few common types of trading, Magnum Options provides access to Binary, Pairs, Long-Term, 60-Seconds, One-Touch, Ladder, FX/CFD and Spot Follow options, all from the same platform. Although this may dazzle a new trader’s eyes, many other more well-recognized binary brokers offer such options. Better yet, these five-star brokers primarily realize that no matter what kind of trading you’re into, you’ll find something to suit in their platform.
The Magnum Options library of available trading assets isn’t the biggest currently on the market, but nonetheless features a range of important stocks, indices, Forex currency pairs and commodities.
Magnum Options Account Types
At the time of our review, there were a total of five different account packages available, featuring various perks and advantages for customers. There’s the Mini Account for $500, Starter for $1000, Silver at $5000, Gold at $10,000 and Platinum at $25,000.
It was a little disappointing to see that the Platinum Account was the only option with a welcome bonus of 100% available – the lower-tier accounts only earning 25%, 30%, 50% and 75% respectively. On top of this, it’s also a little on the excessive side to ask a minimum deposit of $500 for the most affordable account available. That’s a bit too high compared to other more trustworthy brokers in the industry, which only require $250.
The $500 account comes with very few perks and features, making it a less-than-appealing prospect for newcomers and casual traders. In fact, Magnum Options recommends the $5000 account its initial choice, which suggests a broker that isn’t focused on casual traders or newcomers. Which is where one of the biggest problems with Magnum Options comes into the equation – the total lack of any demo account.
The only way of getting to see what’s on offer with the Magnum Options platform is to open an account with at least $500 of real money, before being able to access anything. This simply isn’t good enough. These days, demo accounts represent marks of confidence in the services being offered and a gesture of honesty and transparency for customers. Where demo accounts are not offered, you have to wonder why – what is it they’re too worried about to offer demo accounts, before asking for cash?
TIP: Very few brokers don’t offer a demo account, but they don’t need to because they have an A++ track record, positive reviews, and vast educational instruments. Check out ones like Opteck, Stockpair, BinaryTilt.
In the case of Magnum Options, this is extremely disappointing.
Magnum Options Trading Experience
The rest of the important components are all decent enough at Magnum Options. There’s a decent archive of learning materials available; again you won’t be able to access them without first handing over a fair amount of your money. What’s more, the level of educational resource access you’re provided with will vary significantly, by the account level you choose. Magnum Options accepts a variety of global currencies, though is disconcertingly vague when it comes to transfer times and conditions. They simply say that card payments are ‘fast and easy’ while bank transfers ‘may’ incur fees. A little on the non-committal side, to be frank.
It’s possible to trade with as little as $5 on the line at any one time. Which is the kind of thing that’s great for beginners, but a little irrelevant if you’re already asking minimums of $500 to sign up in the first place? If this was lower, it could be considered good for newcomers. As it stands right now at $500, it isn’t.
As for customer service, the Magnum Options claims to available on a 24/7 basis with various methods of contact available, so no real complaints there. We put them to the test with a variety of questions and queries on various matters to do with both accounts and trading in general, finding them not to be as helpful as indicated on their website. To ensure it wasn’t just our experience, we searched various trading forums and found other ex-customers were also disappointed with the Magnum Options customer service.
These days, high-quality customer care on a 24/7 basis is a fundamental prerequisite for any broker looking to be taken seriously. So make sure you select binary brokers that have 100% high-quality customer support at your beck and call.
Magnum Options – Scam or Legit?
Does magnum options have scam tactics up their sleeves?
Earlier this year, the British Columbia Securities Commission added Magnum Options to its growing list of investment companies it advises the public to stay away from. The extract reads as follows:
“The British Columbia Securities Commission (BCSC) on Friday updated its Investment Caution List, which features the names of unregistered foreign brokerage firms that have solicited investors to open trading accounts, offered them unqualified investments and the names of businesses connected, or purporting to be connected, to British Columbia that have solicited investors in other jurisdictions to purchase unqualified investments. The latest addition to the list is Magnum Options, operated by Hampshire Capital Ventures Ltd.”
We also came across a published news story of a 61-year-old woman, who claimed to have been conned out of more than $10,000 after being scammed by Magnum Options. The report from CBC.ca is as follows:
It’s “very unlikely” that a 61-year-old woman who was recently defrauded of thousands of dollars online will ever see that money again, the Manitoba Securities Commission (MSC) says.
“The Manitoba woman filed a complaint with MSC after an online transaction with Magnum Options fell through. The so-called firm isn’t registered to sell securities anywhere in Canada and persuaded the woman into establishing a $10,200 USD trading account with a credit card, the MSC added.
“These unregistered firms are slick, professional and often very friendly,” MSC senior investigator Jason Roy said in a statement. “They make investing look easy, but the real goal is simply to part you from your money.”
The woman contacted MSC after mysteriously losing $2,000 from her account. She tried pulling the remaining $8,200 but Magnum Options said she had to finish two trades before they would let her do that, MSC said.
The company then told the woman which trades to do, according to MSC. She then received an emailed statement from Magnum showing her account was now empty.
“It’s very unlikely any of her money will be recovered,” Roy said. “Most of these companies are operating offshore, using bogus credentials. It’s an international shell game for the internet age.“
Once again, therefore, experienced we didn’t personally have with Magnum Options, but nonetheless paint an unfortunate picture of the way they do business.
The Final Conclusion
Bringing it all together, we cannot give our recommendation to Magnum Option for a few reasons. So while there were a few points that could stand to be improved, we didn’t personally encounter anything to suggest that Magnum Options is a scam operator. However, the same couldn’t be said for some other customers, having reported encounters we found to be rather worrying.
First of all, there’s no demo account. Secondly, $500 is just too much for the most affordable account. Last but not least, the reports of rogue trading activity from the Canadian press simply don’t instill the kind of confidence needed to work with Magnum Trader.
- Attractive Website
- Mobile App
- 24/7 Customer Service
- Worrying Press Reports Of Scam Activity
- No Demo Account
- Entry-Level Account Too Expensive ($500)
- Official Warnings From Authorities
- Too Risky to Trust