CloseOption Review: The Truth About This Scam Broker
CloseOption is a widespread binary options brokerage. Despite the regulatory ban, the company runs its business from the US to Europe.
They are offering bets with 17 forex pairs and several crypto coins like Bitcoin, Bitcoin Cash, Ethereum and Litecoin. The maximum payout for the EURUSD pair is 80%, which is not competitive. Have in mind that maximum payout below 85% is not considered attractive.
However, betting conditions aside, we have some serious concerns about the regulatory status of this investment scam, which we will discuss in this CloseOption broker review.
|Broker Status:||Unregulated scam broker|
|Blacklisted as a Scam by:||CFTC|
|Broker Owner:||Organic Tech LLC|
|Online Trading Platforms:||WebTrader|
|Crypto Asset Trading:||No|
|CFD Trading Option:||Yes|
|Available Trading Instruments:||Forex, binary options|
|Free Demo Account:||Yes|
|Accepts US clients:||Yes|
CloseOption License and Regulation
CloseOption is a Georgian-based binary options brokerage. As such, the company should have a license from the National Bank of Georgia. As a matter of fact, they claim to have one, even providing us with a license number.
Upon checking the website of the said bank, we found no traces of Organic Tech LLC, an owner of the brokerage, or the CloseOption regulation number. The web search shows 0 results for both, implying that the firm trades unregulated.
What’s more, the official EU watchdog, ESMA, banned binary options trading in 2018 due to the risky nature of this type of investment. And yet, CloseOption is soliciting European investors, despite the said ban.
Additionally, while binary options trading is legal in the US, CloseOption broker isn’t. The primary regulator of the country, CFTC, issued an official warning against the scam in June 2022. According to their announcement, this entity operates in the US without being registered there.
CloseOption Trading Software Overview
You’ll find only one CloseOption trading platform, which is disappointing. It’s an oversimplified WebTrader, without a single special function. You can place a call or put positions, and that’s about it.
You’d get so much more with third-party software such as MT4, MT5, or cTrader. Besides advanced functionalities, each of these platforms provides a higher level of fund safety. Millions of users prove you can trust any of them over a lackluster web-based platform that can be used only via a mobile web browser.
Available Account Types at CloseOption
Well, there are no CloseOption account types per se. This firm has decided to go with a single account, requiring a minimum deposit of $5. According to the website, you can invest $5, but a minimum trading size is $1.
However, we found mentions of Diamond and the VIP account without any specifications. It says you can get more perks by upgrading, but we haven’t seen a list of these. All in all, it sounds like a lure to extort more money from you.
The good thing is that you can use a CloseOption Demo account. You can try different trading strategies and see if binary options are the type of trading you’re looking for. It’s probably the only benefit of this investment firm.
Deposit and Withdrawal Methods
Let’s take a look at viable payment options. They state they offer the following ones:
- Crypto payments
It’s unknown why the firm only accepts one credit card brand but not the other major one such as Visa card.
However, note that if you transfer money via crypto, you cannot request a chargeback, and tracing your funds becomes more challenging.
According to reviews we found, CloseOption withdrawals are nearly impossible, so stay on alert.
How Do Offshore Brokers’ Scam Implement?
Trading scams basically have the same principle that is being performed through different sites and by different agents. We already talked about this when we made FewaTrade review and ForbesTrader broker review.
Nonetheless, the core remains the same. The broker first gets your personal information if you have left it on some sketchy sites and then the constant harassment starts. It is important to note that scams like this one can happen to anyone. The agents calling you are persuasive professionals who scam people for a living. Even if you say no, they will continue to call you until you agree to make an initial deposit.
If you have ever fallen victim to this type of fraud don’t feel ashamed. We encourage you to reach out to us as we can help you get your money back.
In this CloseOption review, we gave you a better insight into how this illicit broker operates. Not only are they unregulated and unlicensed but they falsely claim to be.
This broker offers their customers an opportunity to invest in forex and binary options. However, something as basic as their trading platform is missing, indicating that you are dealing with a scam.
On top of this, CloseOption has been issued a warning by American regulatory body CFTC for providing fake trading services without a license.
In conclusion, we advise you to stay away from this and many other fraudulent brokers alike. And also remember to always read the reviews.
FAQs About CloseOption Broker
Is My Money Safe with CloseOption?
No, your money is not safe with this unregulated scam broker, so we recommend you stay away.
How Long Do CloseOption Withdrawals Take?
The withdrawal from CloseOption should take 2-4 business days according to the brokers website.
Does CloseOption offer a Demo Account?
CloseOption allegedly does offer a demo account for any potential new traders.