If you've heard the name Pocket Option but aren't quite sure what they do, we're here to fill you in. Pocket Option is a web-based financial trading platform that allows users to engage in derivative transactions involving various assets, such as equities, foreign exchange, commodities, and market indices.
Pocket Option also operates as a binary options broker. Traders can speculate on price movements and make binary predictions with fixed potential returns. However, the binary options industry has gained a notorious reputation due to the prevalence of scams, and Pocket Option hasn't escaped scrutiny.
The UK's Financial Conduct Authority (FCA) has issued a "beware" notice regarding Pocket Option's practices. With these factors in mind, it's no wonder that many are skeptical and hesitant to trust this platform. Now that you have a glimpse into the world of Pocket Option, we will provide a comprehensive review so you can determine if it is the right option for you.
History of Pocket Option
In 2017, a team of IT and FinTech professionals came together and founded Pocket Option. This group of specialists wanted to create a space where people do not have to compromise to earn in the financial markets, where trading would be more accessible, convenient, and fun.
The company is located at Ajeltake Road, Ajeltake Island, Majuro, Republic of the Marshall Islands. Even though it was launched just recently in 2017, as compared to other brokers, Pocket Option has established itself as one of the best binary options brokers; this is shown in that its services are available in many countries across Asia, Africa, and South America.
A large number of countries accept the full operation of Pocket Option services. These countries include Thailand, Russia, Turkey, Indonesia, Malaysia, Japan, South Korea, China, UAE, Persia, Serbia, Brazil, Chile, Venezuela, Colombia, Nigeria, Malaysia, Vietnam, South Korea, and many more. As much as Pocket Option extends its tentacles to these countries, its services are unavailable in European Union countries, the UK, the US, Japan, and Israel.
Pocket Option Regulations
When dealing with Forex Brokers, it is essential to choose a broker that is reliable and regulated by a known regulatory body. This is a measure to safeguard your capital, avoid scams, and lose money.
Pocket Option is regulated by the International Financial Market Relations Regulation Center (IFMRRC). This financial regulator is not well-known, but the platform's longevity suggests that Pocket Option is safe, as some metrics do. These metrics include:
Over 10 million customers (100,000+ active users).
$500,000,000+ in trading turnover.
Customers in more than 95 countries.
An average trader's income is over $850 per month.
Also, as part of the regulations of Pocket Option, its parent company, Infinite Trade LLC, is registered in the Republic Of Costa Rica, at San Jose- San Jose Mata Redonda, Neighborhood Las Vegas. The Registrar of International Business Companies certifies that having satisfied all the requirements for incorporation under the International Business Company Act, all the requirements of said Act have been complied with in accordance with the mandate granted to the Office of Mwali International Services Authority by the International Act 2001 of the Autonomous Istand of Mwali (Mohéli).
However, with all these regulations, one might still be skeptical about doing business with Pocket Option as no government regulates it, nor does it have an option for two-factor authentication. As said in the earlier part of this article, different regulatory authorities have issued warnings regarding Pocket Option. This warning often states that Pocket Option operates without any regulation or license in that country. For instance, the FCA of the UK published a warning in 2021 that the firm provides services in the UK without authorization. In 2022, it was also on the CFTC's Red List, stating that it accepts funds from US clients without a license.
Commission and Fees
The fee schedule of any broker is very important in a trader's choice of broker. This is because whatever broker the trader chooses, along with its commissions and fees, will determine the extent to which the trader will get profits.
Pocket Option has hardly any fees as this binary options broker charges no trading commissions. It is free of charge. Also, no fees are charged for traders to make deposits or withdrawals. And the few non-trading fees are insignificant compared to other brokers in its league. Pocket Option does not charge the inactivity fees that many other brokers charge. So, if you do not use your account for any time, you can avoid having any accrued fees.
Tradable Assets
Pocket Option provides over 100 assets for trading. These assets include some of the world's top currencies, including USD, GBP, AUD, NZD, JPY, etc. It also trades commodities like gold, UKBrent, and silver and stocks, including Microsoft, Google, Apple, and many others. These named assets in each category are just examples of assets available to trade; there are many more. This broker is among the few brokers supporting cryptocurrency, including EOS and BTC. This suggests there is more than enough range of assets on Pocket Option for everyone to trade with as little as a $50 investment.
Pocket Option Platforms
On the Pocket Option, there are four different platforms on which users can access the markets. Its web platform is on its website, where it is accessible to anyone with any device that has an internet connection. The second platform is the PC, which can be easily installed on a PC. There are also Android and iOS platforms that allow users to trade on the go. These platforms give traders equal access to all the features that Pocket Option provides for free. Therefore, choosing which platform to use boils down to preference and convenience.
Pocket Option Account Types
Pocket Option offers 5 main types of accounts. These include a Novice Trader Account, an Experienced Account, a Master Account, a Professional Account, and an Expert Account. Each of these accounts is tailored to a specific need of traders, and traders can easily choose the one that best suits the trading experience they seek.
- Novice Trader Account: With a Novide Trader account, users can have a balance of less than $100 and a transaction limit at most the $1000 bar. It is the smallest account available on Pocket Option.
- Experienced Account: The Experienced Trader Account offered by Pocket Option has a higher minimum deposit requirement of $1000, and users can access a broader selection of positions in the market. With this account, traders can boost their profitability by 2%, depending on the position.
- Master Account: The Master Trader Account allows for a 4% rise in user profitability. The minimum deposit in this type of account is $5000. It is possible for users of this kind of account to request a return of transactions completed with a difference of a single pip and a maximum sum of $10 and to enjoy priority processing of withdrawals. However, the highest amount that can be spent on a single transaction is $2,000.
- Professional Account: This Pocket Option Professional Trader account has a minimum deposit of $15,000, which is on the high side, and the account's profitability is expected to improve by 6% as time progresses. However, the highest amount that can be used in a single transaction is capped at $3,000. Also, users can experience additional bonus offers like the refund of transactions completed with a difference of 1 pip and a value up to $50, as well as fast withdrawal processing priority and a personal manager.
- Expert Account: The Expert Trader Account was created for working professionals. It has a minimum opening balance of $50,000. With this kind of investment in the account, traders can receive a rise in profitability of up to 8% and a return on the transactions they have performed with a difference of 1 pip (capping at a maximum amount of $100). They can also access high-priority actions for processing money withdrawal requests, premium offers and promotions, and personal, customized discounts.
Apart from these 5 main types of accounts, Pocket Option also provides a demo account where users can learn the ropes of trading before launching out with a live account.
Pocket Option Account Registration
To open an account and register with Pocket Option, here is a step-by-step guide:
Go to the Pocket Option website
Click on the sign-in button, and then choose the registration option.
Complete the form as prompted on your screen.
Review the details you have provided, and submit.
You can then check your mail and follow the account verification processes.
Pros and Cons
There are always perks that make particular brokers stand out from others. Some features that differentiate these brokers from one another may be good or bad; they may also be why a particular user prefers one over the other. For Pocket Option, different features are present or absent, making it either a good choice as a broker for you or a not-so-good one.
Pros
There is a relatively low threshold for beginners seeking to enter the market, as the first deposit starts at $5
With the social trading platform feature, beginners can copy the trading of more experienced traders.
Also, this social trading platform helps users generate passive income.
Cons
It is not licensed by any reputable regulator.
Identity and phone verification are mandatory;
It typically lacks quality training for traders;
All the accrued bonuses expire when an application for funds withdrawal is made if the conditions for increasing the trade turnover are not met;
Withdrawal procedure is too slow;
Customer Support
Pocket Option provides vibrant customer support for its customers. With their support desk, customers can easily complain by opening a ticket, and they can expect the support team to respond. Another option for customers is to reach out to them through their hotline, where they can directly contact customer care and get an immediate response when there is a pressing issue. Their support also includes a community of traders with different levels of experience that users can chat with and have their questions regarding trading answered.
Conclusion
Pocket Option has its highs and lows, as reviewed in this article. At first glance, you can try to run from doing business with it due to the valid warning put out by the FCA against it. Taking a second glance, you would see that some other regulatory bodies are regulating it, and while it may not fit into the FCA's standards, it fits into theirs. One perk that comes with using Pocket Option is its low commission and fees and the different types of accounts it offers to different levels of clients. As opined in this article and from other reliable sources, Pocket Option remains one of the best binary options brokers. However, more research should be conducted before traders decide on a broker.
FAQs
Is Pocket Option a legitimate platform?
Pocket Option is a binary options broker that has been operating since 2017. While it has received mixed reviews, it is a legitimate platform. However, it's important to note that binary options trading carries significant risks, and users should exercise caution and conduct thorough research before engaging with the platform.
Does Pocket Option offer bonuses and promotions?
Yes, Pocket Option offers a 50% deposit bonus on the first deposit when opening a live account. However, users must meet certain conditions to claim the bonus, such as making a net trading turnover of fifty times the bonus amount. It's important to carefully read and understand the bonus rules before accepting promotions.
What are the payout percentages on Pocket Option?
The payout percentages on Pocket Option vary depending on the asset class. The payouts range from 45% to 80% for commodities, averaging 63.57%. For indices, the payouts range from 45% to 67%, with an average of 45%. It's important to remember that these percentages are not guaranteed, and losses are statistically more likely.