Is PowerOption a Scam?

PowerOption is a 100% licensed and regulated binary trading platform!

Choosing a credible binary options broker can be a challenging undertaking. For one thing, scam brokers are a reality that traders have to contend with. They pose as legitimate brokers, and even feature all the trappings you would expect from a fully licensed and regulated broker. The only problem is they are not accountable to any regulatory authorities, and traders risk losing all of their capital. It is therefore especially important to explore all your options with regards to your chosen trading platform. PowerOption has emerged as a credible binary options trading platform and you can find out more information in our PowerOption review.

Understanding Regulation and Licensing

A great deal of emphasis is placed on the regulatory environment within which binary options brokers operate. The most popular licensing jurisdictions include the British Virgin Islands and Cyprus. PowerOption is regulated by CySEC (license number 204/13), and they are owned and operated by one of the world’s foremost authorities in FX trading, AvaTrade. As part of an established brand, traders can rest assured that their investments are properly managed, in a safe and secure trading platform. The most popular jurisdiction for binary options regulation is Cyprus (CySEC), and they require brokers to offer their services in markets which are less restrictive.

The fact that PowerOption is regulated is important, since it establishes credibility and accountability. Traders must still perform due diligence because there are many other factors to take into account besides regulation. Consider the fact that some of the biggest financial enterprises in the world failed on Wall Street several years ago, and they were all licensed and regulated too. Smart trading practices and careful selection of your preferred binary options broker are a good place to start. Things like operational reliability need to be considered too. Once you have invested your money with a binary options broker, after sales service is equally important. Are the customer service agents sufficiently knowledgeable to assist you? What about the reliability of the trading platform? How many different types of tradable assets are there?

How PowerOption Ranks in the Binary Trading World

Fortunately, PowerOption is part of a team that understands the exigencies of the highly competitive world of options trading. The trading platform used by PowerOption is MarketPulse, and it was founded in 2013. Traders can expect returns in the region of 70% to 85%, with the refunds up to 5%. US traders are not accepted, which implies that this binary options broker takes US regulation seriously. There are an estimated 38 tradable assets, with 8 languages and a demo account too. Traders have access to multiple deposit options including debit cards, credit cards and wire transfer. These features are all in line with what one would expect from a trusted binary options broker. Bearing in mind that PowerOption is a relatively new entrant to the binary trading arena, it has already established a name for itself among traders. The FX side of things is known as Ava Trade, and that part of the business has been operating since 2006. The company sports trading volumes in excess of $60 billion monthly which is a clear indication of how popular the trading platform really is.

The minimum deposit amount is $100, which is relatively low in comparison to other regulated binary options brokers. A 100% welcome bonus is available to new traders too. The reliability and potential of this new power player are certainly feathers in its cap. Age aside there is absolutely no evidence to suggest that this is a scam site. It is partnered with the biggest name in the business, which is Ava Trade. In terms of customer concerns, one of the things that does come up from time to time is the rather limited number of tradable options. While they certainly don’t provide unlimited assets in the form of forex, commodities, indices and stocks, they have enough variety to keep even discerning traders satisfied.

Other Features to Consider

The bonuses available at PowerOption vary depending on how much you deposit. For deposits under $299, traders can expect a 50% bonus; for deposits between $300 and $499, a 75% bonus available, and all deposit over $500 qualify for a 100% welcome bonus. This bonus may appear to be small but remember that at many other binary options brokers, the bonus turn requirements are 20-30 times the bonus + the deposit amount. That’s what makes the bonus turn requirements that much more appealing at PowerOption – it’s only 30 times the bonus amount. When it comes to withdrawing your money, note that it will take about 5 business days for withdrawals to be processed and you have options like Skrill and PayPal. As with all other regulated binary options brokers with CySEC, the client’s account is kept separate from the company’s account. This guarantees that if any eventualities crop up, your money is safe.

Viewed in perspective, it is clear that traders at PowerOption will enjoy complete security and privacy. Customer service is on the ball, and highly responsive to queries about the trading platform, bonuses and promotions or list of available assets. The educational centre is second to none and all registered traders can access a wealth of articles, multimedia resources and binary trading content. Since the company is so closely associated with Ava Trade, there’s nothing that you need to worry about as a new or existing trader.

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