Beware! 1PrimeOptions is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
We can say without hesitation that 1PrimeOptions is a broker whose only purpose is to steal from its users, without giving anything in return. This is the classic story of an unregulated broker appearing as if though from out of nowhere, whose clock is ticking. Everything about 1PrimeOptions reminds us of the most common scammer broker look and feel. For example, the structure of the website, the way everything is laid out, the text font, and of course, the trading conditions 1PrimeOptions offers.
A simple and quick registration process was the only thing standing in our way of entering a portal area. The resulting trader’s area is nothing to write home about. The template and features are very shady, and there is an obvious lack of quality.
The trading software that followed is paralleled in quality and quantity with the lackluster client dashboard. There we found out that the EUR/USD cost of trade is actually non-existent. In fact, users cannot trade at all with the software at play here, for the reason that 1PrimeOptions is, as it turned out, a binary options trader. We will explain what this means in a moment. For now, readers should be aware that there is no spread applied here, nor is there an applicable leverage. We can only speak of the financial instruments: commodities, forex currency pairs, crypto, indices, and stocks.
The website is available in English and Spanish.
1PRIMEOPTIONS REGULATION AND SAFET OF FUNDS
There is a worrying amount of open registration information about the broker being located in Saint Vincent and the Grenadines. There is nothing to be proud of here, because Saint Vincent and the Grenadines, a Caribbean country, does not have an FX broker regulator. There is no agency that grants to wanna-be brokers licenses. So, all wanna-be brokerages there keep this status indefinitely. So users might be confused by the difference between registered and regulated, two terms that usually go hand in hand, but not in the case of Saint Vincent and the Grenadines brokers. Being registered there means to be operating your company from there, and furthermore, many illicit firms do not even have an address but supply users with a random post box address.
Without risking to digress, we firmly assert that 1PrimeOptions is not regulated in Saint Vincent and the Grenadines. Seeing that there is no further details on a license, we conclude that 1PrimeOptions does NOT COME WITH A REGULATION, and as such is a risk to all investments.
Be certain that investments in unregulated brokers are almost always lost, never to be seen by the user. Always check for a license before continuing to the next step. Ideally, the FCA or CySEC regulated brokers are the most trustworthy. Under these agencies, brokers are scrutinized every month and are required to follow some of the most rigorous rules in the industry. These include, but are not limited to, segregated bank accounts for all users. Both the FCA and CySEC offer to all their brokers, who in turn cover their clientele, compensation funds: CySEC guarantees up to €20 000 per person, while the FCA guarantees up to £85 000.
1PRIMEOPTIONS TRADING SOFTWARE
As we already mentioned, 1PrimeOptions turned out to be a binary options trading. We first discovered this when we were looking for a spread value.
Binary options trading allows users to bet on the price of a given asset. The price either goes up or down and so does the bet of the client. It’s as simple as that! This type of “trading” is banned in many locations in the world and is very risky, appropriate only to those with experience or money to burn.
1PRIMEOPTIONS DEPOSIT/WITHDRAW METHODS AND FEES
According to the user area, the depositing methods are two crypto wallets. Seeing that users can only fund an account through these two crypto methods, the minimum deposit is $1, or putting it otherwise, there is no minimum deposit.
Withdrawal requests are processed within 24 working hours. According to the Terms and Conditions, a withdrawal below $200 using a bank transfer will be charged a $20 fee. So, now withdrawals can be made through wire transfer? There is no further proof to support this. In fact, we are not sure what the withdrawal methods are, nor what the minimum withdrawal is.
In all honesty, 1PrimeOptions can be a potentially good broker, were it not for the cons we revealed. Binary options trading can be a huge risk but it can also lead to profit. Tread carefully, but always make sure that there is a license.
How does the scam work?
The most popular scam that we will cover today is used by 95% of all illegal brokerages, and other fraudsters. It revolves around soliciting users into depositing, with some room for improvisation. Most users who fall for these sooner or later realize it.
Such scams work the following way: Users find certain ads online intriguing and click on them. The theme of these ads revolves around the perfect care-free life, living of investments and trades. Very alluring stuff indeed. Those that succumb to the temptation of this illusory lifestyle are redirected to a website, either the broker’s or an intermediary one (called robo-site), where they will be asked to give away their basic contact details. Through these, the scammers will start calling or sending emails to any potential investors. Conversations between users and fraudsters are usually dominated by the scammer whose only job is to initiate the first deposit.
Depositing for the first time will bring around the expert scammer, or the so-called account managers, whose sole purpose is to drain you out of all your money. They will relentlessly call, demand, and notify you of opportunities until users deposit further or realize they are being scammed.
Withdrawing from this position is almost impossible. The broker will throw at you everything it has got, its only purpose being to deny your request. Some of the most popular approaches are stalling, denying a request, closing an account, blocking an account, or shutting down the entire website.
What to do if scammed?
A chargeback is the first step towards recovery. Filing for a chargeback is easiest with your credit or debit card provider. What’s more, is that MasterCard and VISA have extended their chargeback period to 540 days.
Investments lost to the scam initially made through a bank transfer should stimulate users to change their bank password and account users’ names ASAP. The next step is to contact their bank and ask them for further instructions.
Avoid crypto deposits at all costs! These are most of the time untraceable and there is no way to get your money back.
On a final note, do not trust any of the recovery agents. In exchange for a fee, these agents will promise to refund all your lost investments. However, once you pay them they will disappear, which leaves the user an even bigger loss.
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