Is OptionBit Safe?
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Binary options trading can be a very lucrative practice for many; the learning curve is not very steep and thus even the ‘average Joe’ has the potential to be a successful trader. The same cannot be said of many other established trading practices such as commodities or even foreign exchange which require more specialized knowledge. The downside is that unlike other trading practices, binary options are largely unregulated, and many unscrupulous brokers target unsuspecting customers with lures of large bonuses and seemingly high returns. Outright fraudulent practices are also unfortunately not uncommon, and that is why review sites such as this one exist, in order to help customers make better-informed choices when selecting their preferred binary options broker.
With that being the case, the question of whether a particular broker is safe or a scam is an extremely common one. That is why we examine each broker very closely by reading independent reviews and trying it out ourselves before making our own opinion about each particular binary options broker.
Now, let us take a look at OptionBit. Our assessment of this broker has gone quite successfully, revealing many positive features that set this broker apart from many competitors. In this article, we’ll be looking into some more details about this broker and its security characteristics.
To begin with, OptionBit is currently regulated by CySEC (Cyprus Securities and Exchange Commission) which currently regulates the majority of European binary options brokers. Any broker licensed by this regulatory body undergoes many procedures that aim to reveal whether or not it can be trusted.
Going back to the question asked at the beginning: is OptionBit safe? Well, let’s just say that we would trade there ourselves without any hesitation. Even with so many other great binary options brokers out there, OptionBit is still an incredibly attractive and interesting choice to make. Let’s see what it has to offer.
The first question any trader considering trading with OptionBit will probably ask is whether or not there are any rightful complaints about this broker. Other than checks with official regulatory and registry bodies such as the ones discussed above, another way to determine the legitimacy of a particular binary options broker is keeping a look out for customer complaints. Often such complaints will be posted as comments on review sites or on specific trading forums. While complaints can definitely help paint an overall picture of a broker, we caution against relying too heavily on such complaints due to one reason: oftentimes, the complaints themselves lack legitimacy!
You see, as the binary options broking market is largely unregulated with minimal barriers to entry, there is a multitude of choices available to customers, and thus, competition is nothing short of ferocious. Most, if not all, binary options brokers, legitimate and illegitimate alike also utilize generous affiliate marketing programs to promote their services. These two factors mean that customers should read customer complaints and reviews with a critical eye, as it is not unlikely that some, or even more than some of these complaints are nothing more than attempts by competitor brokers and their respective affiliate marketers to discredit others while promoting their own. It is not uncommon to see the same complaint about a broker being copied and pasted multiple times across numerous sites.
That being said, there are also review sites which claim that they received plenty of complaints against a certain broker, and those sites (usually accompanied by suspiciously poor English grammar and sentence structure) typically do not bother to dig deeper into its broker reviews, trusting any rumors that are out there.
All that aside, are there any legitimate complaints that people have with OptionBit? Well, after scouring the Internet, we found that the main issues that former OptionBit customers had with the broker were withdrawal difficulties and some minor usability issues. The former, withdrawal difficulties, is probably the most common complaint seen in this industry, and it is not surprising as often it has nothing to do with a broker itself but rather some banking problems that lead to this misunderstanding. However, we note that the sheer volume of customer complaints relating to withdrawal difficulties at OptionBit was much lower compared to its competitors.
The second complaint that we saw was quite minor and related to the fact that some traders had some initial difficulties finding some features or statistics on the page during their first days trading. This is also rather common, as we all know it takes some time to get used and feel completely competent using a new website, no matter how user-friendly and well-designed it is. Luckily, the broker also offers great customer support that is there 24/7 to help new users with their difficulties.
To summarize, while complaints themselves should not function as a primary barometer when evaluating a broker but more as a secondary one; when considering the small number of complaints against OptionBit coupled with their nature, the broker can be said to have a rather high customer satisfaction rate.
One thing we noticed about OptionBit is how few account packages they offer. While most binary options brokers offer anywhere from 3 to 5 account packages (usually from starter all the way up to VIP), OptionBit offers 3 account packages: Mini, Standard, and VIP. They also have a ‘Diamond’ account package, however, that is something you obtain after trading with the broker for some time
The VIP account package enjoys welcome bonuses of up to 75% plus loyalty bonuses of up to 100%. They also get twice daily market reviews, 2 free monthly withdrawals, unlimited 1-on-1 trading sessions as well as a ‘market expert’ (which based on customer complaints, would more than likely be an expert salesman who is paid by how much he can convince the VIP member to keep depositing in his trading account) as a personal account manager.
Overall, the incentives offered to its VIP customers are quite attractive when compared to its competitors. Typically, VIP members on other brokers would receive at lower bonuses, maximum 1 market review a day. To conclude, when it come to account options, OptionBit is slightly above average.
OptionBit Welcome Bonus
Like most brokers, OptionBit offers welcome bonuses to entice potential customers. Such welcome bonuses are set at a maximum of 30% for their Mini package, 50% for their Standard package, and 75% for their VIP package. It is further noted in their terms and conditions page that the maximum amount of bonus that a trader can receive is $10,000. Both bonus percentages offered as well as the maximum bonus amount is somehow higher compared to their competitors, so in terms of bonus amounts, we have to once again rate OptionBit as ‘slightly above average’ compared to the industry.
On an even more positive note, we rate OptionBit’s bonus withdrawal policy as better when assessed against the industry. In the vast majority of cases, brokers stipulate that when a trader’s account is credited with a bonus, that trader’s account funds, including the original deposit cannot be withdrawn (usually barring severe financial penalties) until a certain minimum trading volume is met. This minimum trading volume is usually calculated as a multiplier, typically in the 20 to 60x range, of the trader’s total account funds, being the original deposit plus the credited bonus. Clearly, this policy is one that is open to abuse, as a small bonus amount can be used to lock in a trader’s deposits, however large they may be. As such, we look negatively upon this practice, despite it being an industry standard.
In OptionBit’s case, the multiplier is set at 30x, which is on the lower end, however, it is also applicable to the bonus amount and not the total account funds, meaning that the absolute minimum trading volume would be much lower compared to its competitors. Further, OptionBit also offers traders the option to withdraw their original deposit amount even prior to the minimum trading volume being met; the only penalty is that traders will forfeit the bonus and any subsequent profits. This is far more permissible compared to the general industry standard although still not as good as some brokers which keep bonuses and deposits completely segregated until the minimum trading volume is met, meaning that original deposit trader’s funds amounts can be withdrawn without any penalty whatsoever. Nevertheless, we still look positively upon OptionBIt’s bonus policy, and we also like that they explicitly state that traders are free to reject any bonuses offered. This indicates that the bonus policy is unlikely to be abused.
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