24option News: Suspicion of investment fraud – two arrests. In a nationwide raid initiated by the Cologne police, two operators of the website 24option.com were arrested. The charge? Investment fraud – and this has been going on for years.

On their trading platform, the two 30-year-old men are said to have faked supposedly serious investment trading and thus defrauded more than 100 investors of a whole six million euros.

The suspects’ actions allegedly followed the following pattern: By deliberately manipulating the quoted prices, the investors’ chances of winning were automatically zero. The total loss was thus deliberately brought about. The authorities searched several flats, among others in Frankfurt, Cologne and Düsseldorf. In the process, they managed to seize several possible pieces of evidence, including digital data carriers and accounts.

One of the two arrested suspects, a certain Kevin S., is said to be known under the name Binary King. Although the alleged perpetrators were arrested in Germany, the investigations indicate that the operators of the internet platform 24.option are an internationally operating criminal ring. Connections lead to Cyprus – where the company headquarters and the call centre of 24option.com are located – as well as to Israel.

In Tel Aviv, several private and business addresses were already searched in the summer of 2021 and numerous pieces of evidence, such as data carriers and assets of more than 10 million euros, were seized. 24option has already been in the sights of the media and police authorities since 2018.

24option experiences – The start of trading

24option Experiences – The provider 24option was previously one of the best-known traders for binary trading. Now 24option increasingly offers products in the area of Contracts for Difference (CFD) and Forex. The reason for this is the now stricter regulations for binary options in Cyprus.

The market there is controlled by CySec. Immediately after logging in to 24option, customers can choose between five different account models. The minimum withdrawal is EURO 250.00. For Forex trading and CFD trading, the individual account models differ with regard to the respective spreads.

At 24option, it is possible to switch to a higher level account. In the forex trading area of 24option, 48 currency pairs are offered at the start. Among them are well-known pairs such as EUR/USD and USD/CHF.

24option offers spreads between 1.5 and 3 pips for the most traded currencies. In CFD trading at 24option, traders shall be able to bet on a variety of national and international stocks. Indices such as DAX30 or US30 are taken as a basis, as are commodities such as gold or silver. 24option uses the MetaTrader 4 trading platform, which can be downloaded onto your own computer.

24Option – CFD Trading

The provider 24Option was – until its switch to CFD and Forex trading – one of the best-known traders of binary options. According to the 24Option website, it is operated by the investment company Rodeler Limited. According to the company’s own information, it is registered in Cyprus, which is also where the company’s registered office is located.

However, the Financial Services and Markets Authority (Belgium) and the Ontario Securities Commission (Canada) have the operator of 24Option on their warning lists. The French financial regulator Autorité des Marchés Financiers went a step further.

24option bitcoin – trading with cryptocurrency

In addition to the options already mentioned, 24option also offers CFDs of cryptocurrencies. The online broker claims to be one of the first to offer this option. Currently, the following digital currencies are offered at 24option:

  • Bitcoin
  • Ripple
  • Ethereum
  • Dash
  • Litecoin
  • Monero
  • Stellar

In addition, 24option offers so-called “advanced training” on the topic of cryptocurrencies. According to their own statement, so that their customers can trade “with higher confidence”. However, trading with cryptocurrency CFDs is by no means safe. This can even be guessed at on the 24option website:

  • The value of digital currencies usually changes very quickly. For this reason, there is no guarantee that the value of cryptocurrencies will remain stable.
  • We present here the growing popularity of digital currencies. However, we warn our clients that there are some potential risks when trading CFDs of virtual currencies – the main risk is the inherent volatility.
  • The value of virtual currencies can fluctuate greatly (they are highly volatile) and can lead to significant losses in a short period of time.
  • Such products are complex and involve high risks and for this reason lead to a high risk of loss of your entire balance.
  • The trading of these products is not covered by any European legal framework and is outside the regulated activities of the Company, which is regulated by the EU Markets and Financial Instruments Directive (MiFID).
  • These products are not suitable for all investors and therefore you should not trade such products unless you have adequate knowledge and experience and fully understand the specific features and risks associated with them.
  • Trading in these products does not give you protection from the Investor Compensation Fund (ICF).

24option payout – advice from a law firm

If you come across one of the dubious providers, the only way out is often to go to a lawyer. We have experience with hundreds of cases of irregularities in CFD and Forex trading. Our law firm has been able to obtain repayments of deposits, payouts of profits and the assumption of legal fees. If you too have been affected, contact our law firm.

Binary Options

An integral part of the landscape of brokers for binary options is the provider 24option. Private investors have been able to invest there since 2010. They allegedly receive returns of up to 88% for successful trades. Does the 24option platform work seriously or is it a scam?

The stated goal of 24option is to offer the most intuitive system for newcomers and professionals. Accordingly, the trading platform offers ease of use. The trading program is web-based and a software download is not necessary.

The well-known program Scipio is used. Via the browser of the smartphone or tablet, one can trade all over the world. Alternatively, apps for Android and iOS are available. You can start with a free demo account.

The account gives access to all instructional videos. The Basic account type starts at $250 and offers charts and 82% payouts per successful deal. In addition, it offers around-the-clock customer support.

Customers have access to the basic package of the analysis provider Trading Central. Each account type updated at 24option also offers third-party trading alerts. These include information about events that could affect trading strategies. Payouts are calculated automatically by the system.

24option Experience

24option describes itself as a premium platform and leading broker for CFD. The company also proudly presents their partnership with the Italian football team Juventus Turin. But is the platform as fair and safe as the advertising suggests or is it a rip-off?

Not all CFD providers are regulated by financial regulators. 24option is one of the providers that are supervised by the relevant regulatory authorities. Since the broker is based in Cyprus, it is the authority CySEC. As the supervisory authority of an EU member state, this authority is responsible for ensuring that legal guidelines are adhered to.

24option – Ban in France

In August 2016, the French financial supervisory authority banned 24option from offering services in France. The ban is directed at the company Rodeler Limited, which is behind the 24option platform. The reason given was that the company had not fulfilled its obligation. Namely, to act fairly and honestly in the interest of the customers. The ban affects both existing and new customers.

24option Experience Withdrawals

At 24option, different account types are available. These have different functions. With a silver status (deposit of at least $ 1,000), traders receive a daily market overview. From the gold status (deposit of at least $ 10,000), traders also receive more information on CFDs.

However, investors can lose their entire capital if their predictions were wrong. In total, more than 110 underlying assets can be traded. These include currencies, commodities, shares and indices.

Traders can choose from classic to exotic and potentially risky trading opportunities. Basically, the trading software is easy to use. Nevertheless, traders at 24option have several options to set prices and products. There are not only the classic order options.

There are options where prices have to reach a certain value within the specified time period. 24option offers possible returns between 82% and 88%. There are one-touch options, high-yield options and short-term bets under 60-second options. Easy Closure is designed to allow traders to limit losses.

How does CFD trading work?

CFD trading gives investors the opportunity to participate in the following price movements:

  • Equities
  • Indices
  • Currencies
  • Commodities

With a CFD, the price difference (spread) between the entry and exit time is traded via a contract for difference. Investors can profit particularly from the so-called leverage effect in CFD trading. The term leverage comes from trading with warrants.

The leverage indicates the ratio in which the warrant tracks the price movement of the underlying asset. The simple leverage is calculated by dividing the prices. This value indicates the number of warrants that investors can purchase at the current price of the underlying.

Investors can trade two types of CFDs:

  • which profit from rising prices (Long CFD),
  • which profit from falling prices of the underlying (short CFD).

Compared to share trading, CFD trading requires relatively little capital to be invested. Nevertheless, investors can participate in all price movements. CFDs are offered through brokers with a margin account. CFDs cannot be bought from one broker or sold to another broker.

Existing positions must be redeemed or liquidated with the current broker. As a rule, brokers for CFDs act as market makers. The account and business conditions of the CFD broker usually require a certain amount.

This is to serve as a security deposit (margin). This margin is in the form of money or securities. It is used to settle liabilities arising from futures positions at any time. Investors must deposit a certain percentage of a trade. The remaining position is leveraged in CFD trading.

24option – What you should look out for in providers

Many aspects are important for trading with contract for difference (CFD). These include:

  • the stability of the CFD trading software
  • good support
  • and the services offered, such as a telephone order facility

However, the right choice of a reputable provider is much more important. There are many black sheep in the rapidly growing CFD trading market. Investors should ask themselves the following questions before choosing a provider:

  • Are the clients’ funds kept separate from the CFD broker’s money?
  • Is there a deposit guarantee with the CFD trading provider and how high is it?
  • Which financial supervisory authority monitors the CFD trading provider?
  • Where is the CFD broker’s head office located?
  • Are there any negative reports from clients?

CFD providers have the obligation to inform investors comprehensively about the high risks. In case of inadequate advice or missing information, there are claims for damages. The reversal of the transaction can also be demanded.

Licensing of 24option

The platform 24option is operated by the company Rodeler Limited. The company has its registered office in Cyprus. There, the company is licensed by the stock exchange supervisory authority CySEC. It can be found there under licence number 207/13 – as a Cypriot investment company.

The fact that the company has a licence is basically positive. This indicates that the supervisory authority can exercise some control over the company.

24option – Terms and Conditions

The terms and conditions of 24option are available online in German. They contain many clauses that are not customer-friendly. The scope of the terms and conditions is also problematic – there are a total of 13 documents to be found:

  • Client contract
  • General terms and conditions for bonuses
  • Risk disclosure
  • Dealing with interest and order execution
  • Data protection regulations
  • Company Information
  • Dealing with conflicts of interest
  • Terms of Use
  • Client Categorisation Policy
  • Investor Compensation Fund
  • Complaints Procedure for Clients
  • Pillar III Disclosure
  • General Fees

Only very few users are likely to read through and understand all the terms and conditions. This means that problems are virtually pre-programmed. Some clauses are also likely to be considered not clear and understandable in the sense of § 307 BGB. This can lead to their invalidity.

24option App – Payouts

The 24option app has now been installed over 100,000 times on Google Play. Many bad ratings and reviews can also be found there. There are often reports of rip-offs and fraud. Some users complain that their money was suddenly gone as soon as they had not traded for some time.

In some cases, winnings were not paid out despite repeated requests. Many users report negative experiences, contrary to what the promising advertising would lead one to expect.

The lawyers of the Herfurtner law firm will be happy to answer your questions on the subject of CFD, Forex and 24Option. We are also at your disposal for the enforcement of your repayment claims. What can be traded at 24option.com?

  • Gold
  • Silver
  • Oil
  • Currency pairs
  • Euro Dollar
  • Pound Dollar
  • Euro – Japanese Yen
  • Dollar – Japanese Yen
  • Pound – Japanese Yen
  • Pound – Euro
  • Euro – Pound
  • Australian Dollar – USD
  • USD – Canadian Dollar
  • Euro – Turkish Lira
  • Swiss Franc – American Dollar
  • American Dollar – New Turkish Lira
  • Shares
  • Vodafone
  • Lloyds
  • British Petroleum PLC (BP)
  • Barclays PLC
  • Google Inc
  • Apple Inc
  • Telefonica SA
  • France – Telecom
  • Societe Generale
  • Indices
  • FTSE-100
  • DAX-30
  • Dow Jones
  • Nasdaq Composite
  • IBEX-30
  • CAC 40 Future
  • S & P 500
  • Nikkei 225
  • SMI Future
  • MIB-30 Future
  • Nifty Future
  • ASX 200 Future
  • Hang Seng future

In the comments, you can share your unbiased experience with other affected persons or potential new customers. Our competent lawyers will be happy to answer any questions you may have.