Launched in April 2013, Magnum Options is owned by Hampshire Capital Ventures Ltd, with a listed address at Cavell House Stannard Place, Crispins Rd, Norwich, NR3 1YE, United Kingdom. This company is not regulated and we must note that the address is identical with the one listed by the binary options broker Boss Capital.
Is Magnum Options a Scam?
So far nothing leads us to believe they MagnumOptions is a scam. Several reports from CommuniTraders members approve that withdrawals are being handled on time and the support service is great. They are a legit company, very transparent compared to others but they haven’t been in the business for a long time; however, this alone is not a reason for concern. Nonetheless, our team will keep monitoring and will update this review if something fishy is uncovered. For the time being we consider Magnum Options a trustworthy brokerage.
Update August 2016: They have a different owning company and the address of that company is identical to the one of Boss Capital. There are other similarities between the two brokerages, mostly in website layout but we all know that many brokers look alike so this is not necessarily a reason for major concern. However, we lately see a trend of brokers changing owning companies and this can get confusing sometimes, especially for clients. It could be just a business decision but I cannot help thinking that it could be more behind it. Anyway, that’s just speculation…
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Editor’s Note – Why MagnumOptions doesn’t Suck in 50 words?
I can give the answer to that question in 5 words, not 50: They try to be different. In the binary options industry, finding a broker that is “different” is almost like finding an oasis in a desert. Of course, all brokerage websites offer the same product – binary options – and it’s pretty hard to come up with something that’s never been done before, but most of them look like carbon copies of each other, which is not the case with Magnum Options. Notice: MagnumOptions Stopped accepting US based Traders.
Why does MagnumOptions Sucks in 50 words?
They have a Daily Market Review… and it’s not daily. Or at least that was the case when I visited their website; I am writing this review in the 9th and their most recent Daily Market Review is the 5th. It’s actually too bad they can’t keep it updated because the information contained in it is pretty useful for trading so I really hope they fix this. However, the rest of their service is good so you can always find another source for market reviews and keep using their platform for trading.
Update August 2016: We cannot locate their Daily Market Review anymore so we can only assume they’ve decided to scrap it altogether. Maybe this is a better option than having it on the website without updating it.
Should I Open an Account with Magnum Options?
The platform appeals to different types of traders: although they use SpotOption 2.0 – which is a very good platform to start with – they have added a few extras. At the bottom left corner of each chart you have something called a Strategy Advisor. When you hover with the mouse over it you get the option to choose between RSI, Moving Averages and Bollinger Bands. Clicking on any one of them will automatically generate a trading suggestion based on the technical indicator you clicked. A countdown starts and in 10 seconds you will get your prediction: Call or Put. Of course, you can then check the other two indicators and trade only if at least 2 out of 3 agree. However, I don’t know what settings are used for these indicators and I cannot vouch for their accuracy, but it’s something I haven’t seen on other websites and I think it’s a sign that Magnum Options is aiming high.
On the same note of aiming high, they offer Ladder Options which is quite interesting and I believe we will see more of it in the future. Here’s how it works: the further the asset moves from the strike price (price where you opened the trade), the more you can profit. Also, if the asset is in an uptrend and you trade Puts, the payout is huge, but of course so are the risks. Same goes for a downtrend if you trade Calls, so in other words, counter trend trading is better rewarded. Here’s an example: price is 1.5232 and the payout for an option below 1.5240 is 2.97% (in this case I had less than 2 minutes until expiry). That payout is not impressive to say the least, but – and this is the good part – if it expires above 1.5240, I can get 401.55%. Now that’s impressive in my book. If my option expires above 1.5250, the payout is 773.47%. The further away the expiry price is, the more you can profit (they offer predefined levels). That’s why I like Magnum Options, because they have a different approach and they realize that you cannot be a true leader by doing everything the same as others.
Reviewing Magnum Options was actually a pleasant experience because – and I don’t want to sound corny – they gave me hope that other brokers will step up their game. When everybody is offering the same thing, there’s no real competition among brokers and we get a mediocre service at best, but when one of them introduces something new and exciting, others will soon follow or will start losing clients.
Update August 2016: Although the features above are now common among most SpotOption brands, they still remain useful to traders. However, except for some minor changes, Magnum Options are the same as they were last time we reviewed them. They had a good start but faded soon after and couldn’t move ahead of the pack. They still claim to offer “unique characteristics” such as: “100% web based” (wow, unique just like 99.9% of the other brokers), “no download required” (again, so unique…), “no requirement of previous trading experience” (show me a broker that actually requires you to have experience before opening an account!). To sum it up, Magnum Options doesn’t have anything special and are not a monument of professionalism but that doesn’t mean they are bad, just that we expected more from them.
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Magnum Options Complaints
We do the search, you need to read! You can do a similar search at home, do it yourself style. Search for MagnumOptions scams, fraud, complaints, etc and visit forums and review websites. Remember! some websites only using words like scam/fraud to get you in, but they are not really uncovering any secrets! So better look inside comments and forums posts made by users.
Our “Comments” section below this review has a surprisingly low amount of comments and complaints. Magnum Options have been in the business for a relatively long time now but people don’t talk about them as much as they talk about other brokers. This could have 2 reasons: either traders are not interested in this brokerage or Magnum are doing a good job and everybody’s happy. Either way, most of the complaints are about the broker always asking for more money from clients. I don’t approve of that, but that’s what salespersons are paid to do. If you don’t want to give them more money, just don’t.
Magnum Options Bonus
The Bonus policy is pretty straightforward according to their FAQ section: “If you choose to accept a bonus, you will be required to execute trades to the value of thirty times your initial bonus funds. Therefore, in order to withdraw any funds, the preceding stipulation must be fully met and fulfilled.” Also, the bonus percentage is not mentioned but from a Live Chat operative I got the information that you will receive a 20% bonus for a $250 deposit.
According to their Terms and Conditions, the withdrawal of any funds is impossible before a trading volume of 30, 40 or 50 times has been reached (this applies if the client has received a bonus). Keep in mind that your own money cannot be withdrawn before the bonus turnover is reached. We consider this a very unprofessional tactic of tying your money to their platform.
Magnum Options Withdrawal
Withdrawals are pretty standard: you can use credit cards, debit cards (the money will go to the same card which was used for deposit) and wire transfer. Minimum withdrawal is 100 EUR or USD, depending on the account currency. For wire transfers, you get one free transaction per month and additional withdrawals will be charged a $30 fee.
It takes Magnum Options up to 4 business days to process the request and additional 5-7 business days will pass until the money reaches you.
Magnum Options Extras
In this section I would like to mention of course their Ladder style options and the Strategy Advisor feature which is not guaranteed to bring you profits, but it increases your chances of a successful investment.
Magnum Options Ratings
User Friendly 18/20
The platform is easy to use and has enough features to satisfy even the most experienced traders. The website is easy to navigate and well structured. Update August 2016: US clients are no longer accepted and I couldn’t find the option to change language so I can only assume that only English is available and that’s not very user friendly for someone who doesn’t speak or understand the language.
Number of assets and expiry times 18/20
Their basket of assets is composed of 74 stocks, 33 currency pairs, 8 commodities and 36 indices. All this is more than enough for any trader and you should find good trades at most times. The expiry times will also satisfy all types of traders since they range from short term (60 seconds) to medium term (hourly, 4 hour, end of day) to long term (end of week/month/year).
Commissions, Support and Effective return 18/20
There are no commissions or fees for deposit or withdrawal except a $30 fee which is charged if you want to make more than one monthly wire transfer withdrawal. The payout is 81% which is average-to-high for the industry and the refund for unsuccessful trades goes up to 10% which is very good. The support is quite helpful and polite but at times it took a bit too long for them to answer my questions.
Deposit, Payment and Bonus 13/20
Minimum deposit is $200 which is rather normal for the industry and can be done via credit/debit card or wire transfer. Withdrawals usually take up to 3 business days to process and additional 5 to 7 days will pass until the money will reach your account. For exact bonus conditions you should talk to one of their representatives but according to their FAQ section, the wager is 30 times the bonus amount.
Update August 2016: The account structure has changed, with the lowest account starting at $500 (Mini). The minimum deposit is still $200 and the two statements seem to contradict each other but that’s what they list on their website (we assume than an account manager will clear this up). Processing time for withdrawals is 4 business days, the bonus scales up depending on the account type and the required turnover is 30, 40 or 50 times the bonus but they don’t specify the criteria on which the actual number is decided.
Website Extras 15/20
The Strategy Advisor and the Ladder Options make great additions and I would like to see more of these features on other platforms as well. The trading academy is good as well.
MagnumOptions Overall Ratings 81/100
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