Launched on May 2010, OptionBit was formerly owned by Novox Capital Ltd. which used to be regulated by CySEC. Today, it is under new management. The new company is Top Volume Solutions Limited and provides a fake address: office at Suite 4, 1st Floor, 23 Engineer Lane, providence industrial estate. They claim to be regulated in Gibraltar by the “Gibraltar Securities and Exchange Commission” (does not exist) with the following Company number: 109085. The real Gibraltar regulator is Gibraltar Financial Services Commission that strictly warns against engaging with Top Volume Solutions Limited! The company, Top Volume Solutions, is not regulated by the Cyprus Securities and Exchange Commission (CySEC) nor the Gibraltar FSC. Furthermore, OptionBit.com is also in the French regulator’s (AMF) warning list.
Is OptionBit Scam?
OptionBit certainly posses a scam threat and if you ask me I would look elsewhere. Both the French and Gibraltar financial authorities have issued warnings against dealing with OptionBit and the new owner, Top Volume Solutions Limited that claims to be regulated in Gibraltar. Due to this change of management, OptionBit is no longer regulated by CySEC either. Furthermore, since we did the review, the number of complaints on OptionBit has increased regarding withdrawals, price manipulations and more.
The FSC says this about Top Volume Solutions:
“The FSC has received information about websites operated in the name of these companies*, for which the company secretary has resigned and also filed a ‘Notice that the company does not have authority to use the address it has registered’ at Companies House. References are made on these websites to the companies’ former registered office addresses in Gibraltar, as if this was where the websites were operating from. The FSC has received complaints from customers, where they describe having been unable to withdraw funds placed into trading accounts operated by these websites or otherwise experienced difficulties when attempting to obtain monies owed to them. None of these companies are or were regulated by the FSC, nor licensed under the Financial Services (Markets in Financial Instruments) Act 2006, to carry on investment business in or from within Gibraltar.” *Company = Top Volume Solutions and a few others.
Please read more here below, under “OptionBit Complaints” on how to proceed in case you are already involved with OptionBit.
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Editor’s Note – Why does OptionBit Suck in 50 Words?
OptionBit sucks because they went from being a CySEC regulated broker to an unregulated broker with new ownership. They were acting unfavorable towards their clients even under the CySEC regulation and are now fully unauthorized. What’s even more alarming is the fact that the new company claims to be regulated in Gibraltar and that’s an outright lie!
Why OptionBit doesn’t Suck?
Despite a few interesting platform features and decent candlestick charts, they are operating illegally and therefore, there are no good reasons for why you should trade with this broker. What good is a nice looking trading platform and website if you can’t even withdraw?
Should I Open an Account with OptionBit?
Like most new Binary Options Brokers platforms, OptionBit platform is 100% web based (available on 10 different languages) and does not require any software to be downloaded. OptionBit trades on TradoLogic, and is protected by Godaddy SSL. OptionBit trading platform is based on the most advanced Binary Options trading systems in the industry, equipped with many efficient tools such as Range, Touch and Digital trade or other In-Trade tools like Close Now and Extend options. You can see multiple charts by clicking on the “Multi” button in the upper right corner of the chart.
OptionBit offers a variety of VIP accounts each with different services and perks. The best perk here is the 2 free withdrawals per month but the deposit amount of 10 000$ is way too high. There are other brokers that offer completely free withdrawals with much smaller deposits and even higher returns!
Not long ago, OptionBit introduced Algobit which is a software that enables you to trade manually or you can let the Algobit follow the signals it produces. I am not a big fan of robots and software as they usually just blow the account. Based on what we have found (see Is OptionBit a scam & OptionBit Complaints below) we can be certain the Algobit is another method for wiping trader’s accounts.
You can trade Binary Options, Short Term, One Touch and Range on the platform and the asset’s index is pretty good, offering 90 assets. You can select a refund in advance on expired options or get to prolong your expiry by using the ‘Extend’ tool or close your position before it expires by using the ‘Close’ tool. The AutoTrade is a new feature that makes it easier for you to execute continuous trades in a trending market. This feature uses the winning Martingale system which is actually a good thing since it will only invest the winning sum each time it reopens a new trade. The trades will stop if a trade results in a loss.
Choosing a Binary Options Broker is not easy at all. Much research has to be done and every potential trader has to do his own Cons and Pros list to draw a certain conclusion. OptionBit still has its disadvantages. But the biggest disadvantages are the serious complaints that have increased and because of the warnings issued by FSC and AMF, we now know which way OptionBit has decided to go – the wrong way. Better to avoid this broker!
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Apparently, OptionBit can and will close your account if they don’t like your trading. Binary options brokers don’t really like traders who win and recently there have been a few complaints about this matter in our Comments section below. We are not sure what is considered abusive trading by OptionBit and what are the exact conditions that can get your account closed.
However, more has come to our attention as of December 2015.
There are serious complaints regarding price manipulations where people have recorded evidence of their trades. You don’t have to go far to find these complaints, just scroll down and check out our comment section here below. A couple Google searches will also lead you to hundreds of further complaints on OptionBit. In many cases the account managers have either placed losing trades or manipulated customers to execute losing trades when they have requested for a withdrawal. This is a typical technique scam brokers use to avoid paying out. Extremely delayed withdrawals are a common practice too but the soon as you start doing “well” the payouts stop coming and price manipulation becomes a fact.
More complaints on OptionBit other than in our own comment section can be found here:
No longer being under any regulatory authority’s surveillance, there is not much you can do once you’ve been scammed. The FSC writes; “Any persons who are already involved in any dealings with the above entity (Top Volume Solutions Limited) and have concerns, should contact the Manager, Enforcement on +350 200 40283 or by e-mail: firstname.lastname@example.org”
In the Promotions section, OptionBit informs us that the bonus is 30% for a $200 investment, 50% for an investment of $1000 and 75% if you deposit $10 000, while the wager is 30 times the deposit.
Here at Bots.com we care about withdrawal, even more then we care about depositing. At OptionBit, the maximum withdrawal for C.C cannot exceed the initial deposit amount (there’s a limit), same as many other brokers. OptionBit claims that a withdrawal should only take 7 business days if all of the required documents are sent and verified. Every account gets one free withdrawal per month. VIP (10K+) gets two free withdrawals per month. Any other withdrawals cost $30. 2015 Edit: Withdrawals are dilatory and can at times take over a month. If you are doing well with your trading, expect your withdrawal days to be over.
One thing we liked about OptionBit is the one day 500$ virtual cash account. Unfortunately, one day is just not enough… An extra feature is the recently added Advanced Chart which we find very useful. There are two new recent features. Dynamic Payout; where traders can in advance select their profit-to-loss ratio from 0% up to 20% with 5% increments. And finally, Super Turbo; trade within 15, 30 and 45 seconds expiries.
User Friendly 16/20
OptionBit website offers 100% based Tradologic trading platform. The platform isn’t the most user friendly trading experience but nevertheless, the site is nicely organized, clean and switching between asset categories is easy, especially since the recent improvements they did. Another downside is the OptionBit trading tutorial which is unattractive and not easy at all to read. Site is available in 7 languages.
No. of Assets and Expiry time 16/20
Total of 90 assets: 26 currency pairs, 11 commodities, 13 Indices and 40 Stocks available to trade is an average-to-high basket of assets in the Binary Options industry. Overall 90 assets, short term and half hour to a few hours’ expiry times is just enough to be considered a variety broker. OptionBit currently offers weekend trading, which makes the overall expiry time a little longer.
Commissions, Support and Effective return 14/20
The OptionBit Effective return adds up to 80%, which is between average to high compared to other Binary Options Brokers, but they do not offer any refund in case of Out-Of-Money. The OptionBit support is available via 4 international numbers in the US, UK, France and Spain, by email, call back request (international and multi-lingual) and the live chat which is extremely effective and answered within very few minutes.
Although they are quick to answer, the live chat is only available from 8:00 AM to 6:00 PM Monday to Friday. Also, at the moment of writing this review, they still haven’t solved the T & C issue as they promised. I never got to read it and if you can’t read it either, you should find another broker because knowing what you are signing up on is very important!!
Deposit, Payment and Bonus 14/20
Depositing is only available via credit cars or wire transfer or skrill. The minimum deposit is average compared to Binary Options Brokers- 200$ and the minimum trade amount is 10-20$$. OptionBit Bonus adds up to 500$ from the very first deposit, and the investor can purchase options for as much as 5000$ per option which is very competitive in the industry. Payment is available by credit cards. The bonus is up to 75%.
Website Extra’s 14/20
A good extra feature is the Extend and Close now options, which allows investors to extend or close a trade before the expiry time. OptionBit demo is available and enables amateurs to trade with virtual cash before they make real trades, however, it’s only available after the initial deposit. The best extra feature, added after the website update is the Advanced Chart feature which allows you to actually conduct technical analysis. Their newest feature is the AutoTrader and the Algobit software. With Algobit you can trade either manually by following signals that it generates or simply letting the software itself trade for you.There are two new recent features added to the platform. Dynamic Payout; where traders can in advance select their profit-to-loss ratio from 0% up to 20% with 5% increments. And finally, Super Turbo; trade within 15, 30 and 45 seconds expiries.
OptionBit Overall Score: 74/100
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