CloseOption Review

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CloseOption is a binary options trading platform established in 2013 in Georgia. The company was officially registered on August 8, 2013, with the registration number D86708031. It was founded to provide a user-friendly trading platform for those with limited knowledge of financial markets who wish to engage in trading activities.

Regulatory Status

CloseOption operates under the regulatory framework of Georgia. Its forex and options trading activities are authorized by license number B 2-08/3647, issued on October 18, 2017, by the National Bank of Georgia. The company's operations comply with Georgian laws, ensuring a legal foundation for all activities.

Services and Offerings

CloseOption presents itself as an international broker offering binary options trading services globally, featuring:

• A real-time trading platform with over 30 currency pairs for binary options contracts
• Free demo accounts for beginner traders
• Weekly binary options contests with cash prizes
• 24/7 customer support services
• Various payment methods for deposits and withdrawals

Account Types

• Demo Account: Allows users to practice in a risk-free environment with virtual funds, available immediately upon registration, making it suitable for novices or those testing strategies without financial risk.
• Real Account: Enables trading with real funds in the live market, where profits and losses are genuine, necessitating awareness of the associated risks of trading binary options.
• Contest Account: Enables participation in trading competitions for a chance to win cash prizes, requiring account verification to access this option, ultimately allowing traders to evaluate their skills against others.
• VIP Accounts: Available for traders who meet specific criteria; these accounts offer enhanced benefits such as higher maximum payouts, exclusive promotions, and other advantages, categorized into levels with increasing rewards.

Banking Options and Payment Methods

• Deposits: CloseOption accepts various deposit methods, including:
  • All major cryptocurrencies
  • MasterCard
  • Visa Card
  • PayPal
  • WebMoney
  • Perfect Money
• Withdrawals: Supported withdrawal methods include:
  • Bitcoin
  • MasterCard
  • Visa Card
  • PayPal
  • WebMoney
  • Wire Transfer

Additional Features

• All account types (demo, real, contest) can be managed with one login, allowing easy switching in the trading platform.
• The platform offers diverse opportunities for traders with different goals, spanning from learning and practice to competition and professional trading.

Leverage

CloseOption's leverage options are contingent upon the type of trading and specific account settings.

Binary Options Trading

In terms of binary options trading, which is the primary service of CloseOption, the platform does not allow leveraged trading. Unlike some competing platforms, which provide multipliers, all binary options trades on CloseOption must be executed using personal capital. Thus, traders must use their own funds for each trade instead of trading with borrowed money.

Other Trading Types

While binary options are the key focus, there are indications that CloseOption might allow leverage for other trading types:

• Leverage options reportedly reach up to 100x and 500x
• The operational cost can differ remarkably based on the leverage setting; for instance, buying 0.01 lots of XRPUSD at 1.12618 could cost around $2.25 with a 500x leverage, whereas it rises to $11.26 with 100x leverage.

Instrument-Specific Leverage Restrictions

It's vital to acknowledge that leverage availability varies across different trading instruments on the platform:

• Commodities and indices tend to have lower leverage options available.
• Lower leverage on specific instruments necessitates more capital to establish positions in these markets.
• The leverage settings may restrict which instruments traders can engage with based on their account funding.

To start trading, CloseOption permits participation in financial markets with a minimal deposit of just $5, although effectively utilizing leverage would probably require higher account balances to manage risks sagaciously.

Asset Types

CloseOption is a binary options trading platform that provides a range of assets from both Forex and cryptocurrency markets. Below are the asset types and markets available:

Assets and Markets

• Forex Currency Pairs: CloseOption facilitates trading in major fiat currencies, including USD, EUR, GBP, JPY, CAD, CHF, NOK, NZD, and AUD.
• Cryptocurrencies: Supported cryptocurrencies comprise Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), Litecoin (LTC), among others.

Traders can leverage CloseOption's proprietary trading platform's capabilities while also using its native token to gain transaction fee discounts.

Trading Accounts and Competitions

CloseOption presents two primary account types:

• Real Account: This account type allows trading with actual funds and has a tiered system with varying payout rates tied to the account balance.
• Contest Account: Tailored for virtual trading in weekly competitions that feature cash prizes, participants must maintain a minimum balance of $500 in their real money account to enter.

Platforms

Trading Platform

• Web-Based Platform: CloseOption provides a proprietary web-based trading terminal that is compatible with all major browsers like Google Chrome, Internet Explorer, and Firefox. This platform can be accessed from both desktop and mobile devices, enabling users to trade from anywhere without requiring downloads or installations.
• User-Friendly Interface: The platform design prioritizes simplicity and accessibility, catering to both newcomers and seasoned traders. Navigation within the trading room is intuitive, facilitating easy transitions among various functions and assets.

Trading Tools and Features

• Chart Analysis Tools: The platform offers effective charting tools, including graphic drawing tools and technical indicators. These resources assist traders in assessing price movements and formulating informed strategies without overwhelming complexity.
• Demo Account: CloseOption features a complimentary demo account option, replicating the real trading environment with virtual funds (up to $1,000, resettable up to ten times), allowing users to practice and explore platform features without risk.
• Mobile Access: Traders can tap into the full functionality of CloseOption’s trading platform via smartphones, ensuring convenience for users on-the-go.
• Asset Variety: The platform enables trading binary options on popular assets such as major cryptocurrencies (BTC, ETH, BCH, LTC) and various forex pairs (USD, EUR, GBP, JPY, CAD, CHF, NOK, NZD, AUD).
• Native Token Utility: Users can enjoy discounts on transaction fees by using the platform’s native token (PCN) when trading.

Comparison Table: Platform Features

Fees

CloseOption maintains a relatively straightforward fee structure for users, highlighting several noteworthy aspects:

CloseOption does not impose commission fees for trading binary options on its platform, providing a significant benefit for traders aiming to reduce trading expenses.

While CloseOption promotes "Zero Fees On Deposits & Withdrawals," some exceptions and recent alterations should be considered:

Deposit Fees

The majority of deposit methods incur no fees, with a singular exception:

• MasterCard payments come with a processing fee of up to 8.4%, although CloseOption covers this cost for users. For instance, if a user deposits $100 with an 8.4% fee, CloseOption will absorb that fee.
• This processing fee is sometimes waived during promotional periods.

Withdrawal Fees

As of August 5, 2024, CloseOption has reduced its cryptocurrency withdrawal fees as follows:

• Bitcoin: Decreased from $2-$15 to $1-$10
• Tether (TRC-20): Reduced from $2 to $1.5
• Tether (BEP-20): Remains at $0 (fee-free)
• Tether (ERC-20): Decreased from $2-$8 to $1.5-$6

CloseOption specifies that these rates might be revised in response to network congestion or changes in crypto market conditions.

Account Maintenance Fees

Users should be cautious of potential inactivity fees:

• Accounts that remain inactive for over three months will incur a 0.5% fee based on the account balance.
• A $10 reactivation fee applies to reopen an inactive account.

Platform Usage

The CloseOption trading platform is web-based and works with major browsers, including Google Chrome, Internet Explorer, and Firefox. There are no additional costs for utilizing the platform or accessing features like multiple charting styles, analysis tools, and order history tracking.

Pros

• User-Friendly and Intuitive Platform: CloseOption features a straightforward, easy-to-navigate interface, making it accessible for beginners and convenient for experienced traders preferring a streamlined trading environment. The platform is optimized for both desktop and mobile users, ensuring a clutter-free layout for quick trade execution and monitoring.
• Free Demo Account: Every user can take advantage of a risk-free demo account with virtual funds, facilitating practice of trading strategies without real money risk. This is beneficial for new traders learning the ropes as well as seasoned traders testing new strategies.
• Low Minimum Deposit and Trade Size: CloseOption necessitates only a $5 minimum deposit to start trading, with trades commencing at $1, making it very accessible to traders with limited capital.
• Weekly Trading Contests: The platform hosts weekly trading competitions that frequently include cash prizes. Many contests are either free or require a minimal entry fee, offering traders a chance to compete and refine their trading skills while potentially earning rewards.
• Multiple Deposit and Withdrawal Methods: A variety of payment options for funding and withdrawing increase convenience and accessibility for traders.
• No Fees on Trading, Deposits, or Withdrawals: CloseOption does not impose trading fees, deposit, or withdrawal costs, enabling traders to retain more of their profits.
• Extensive Educational Resources: CloseOption offers a blog filled with tutorials and articles designed to help traders enhance their knowledge and develop effective strategies.
• Round-the-Clock Customer Support: 24/7 customer service ensures that trader inquiries and issues are promptly addressed.
• Attractive Bonuses and VIP Accounts: The broker provides bonuses, promotions, and options to upgrade to VIP accounts based on deposit levels, which can offer further benefits.
• Fast and Reliable Trading Execution: The performance of the platform is stable, allowing for quick and seamless order processing to prevent traders from missing valuable trading opportunities.

CloseOption stands out due to its low entry barriers and supportive features tailored for both novice and experienced traders, emphasizing user experience devoid of unnecessary complexity. The platform is particularly appealing for those looking for straightforward binary options trading that comes with transparent terms and engaging community aspects such as contests.

Cons

CloseOption, as a binary options trading platform, has a number of disadvantages that traders must consider prior to opening an account. From various reviews, the key drawbacks include:

Limited Trading Offerings

One major drawback is the limited asset range provided by CloseOption. The platform does not feature stocks, indices, or commodities, presenting only around 20 fiat and digital currencies. This restricted selection significantly limits traders’ diversification opportunities.

The platform's TradeRoom offers very basic charting capabilities with just three chart types (line, area, candlestick), four time intervals (5 seconds to 1 minute), and only six analysis tools. This limitation is particularly noticeable when contrasted with competitors like IQCent which integrate TradingView, offering over 70 technical indicators.

Financial Drawbacks

Although CloseOption advertises payouts of up to 95%, these competitive rates are conditional:

• A deposit of $50,000 is necessary to achieve Diamond status for the best payout rates.
• Even upon attaining Diamond status, the 90% payout applies solely to EUR/USD pairs, with significantly lower returns (17%-79%) for other assets.
• Wire transfer withdrawals incur substantial fees ranging from $50 to $100, considerably higher than industry norms.
• There is a monthly inactivity charge of 0.5% plus a $10 fee for dormant accounts.

Platform Limitations

The CloseOption platform lacks multiple features that more experienced traders may expect:

There are no provided signals or social trading tools to assist users in identifying opportunities. There's an absence of copy trading features, preventing users from mirroring successful traders’ strategies. Additionally, the platform does not accommodate advanced trading tools like MetaTrader, thereby limiting technical analysis capabilities.

Regulatory Concerns

Perhaps the most troubling aspect is CloseOption's regulatory status:

The broker operates with limited regulatory oversight, significantly diminishing its safety rating. It lacks authorization from any reputable financial regulator. Reviews have indicated that CloseOption may specifically target US citizens (with more than 39% of its web traffic recorded from the US in early 2021), despite the fact that binary options brokers are prohibited from advertising towards US citizens.

Some reviews have also pointed out that the Terms and Conditions appear to be tailored to shield the broker considerably more than the client.

Other Considerations

Extra issues worth mention include:

The platform's overall functionality is restricted compared to its competitors. There are noted language errors throughout their website and materials. Evaluations from diverse sources suggest that CloseOption often lags behind the leading binary brokers in important areas like payouts and features.

While the appealing $5 minimum deposit option might attract interest, the overall limitations and concerns render CloseOption less competitive in the binary options market when compared to alternatives such as Pocket Option, Quotex, or IQCent.

Customer Support

CloseOption offers customer support around the clock, ensuring assistance is available whenever needed, regardless of time or day.

Communication Channels

• Live Chat: Immediate support and inquiry resolution via live chat on the website.
• Email: Inquiries can be directed to info@CloseOption.com.
• Telephone: Direct phone support is accessible at +442032902097.
• Support Ticket: Users can submit tickets for more formal or detailed concerns.
• Callback Request: Clients may schedule a callback for direct communication with the support team.