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RaceOption – Is it a Scam or not?

Photo by Wance Paleri on Unsplash

If you are looking for online trading platforms, specifically for trading binary options, you will come across many warnings of online broker scams. RaceOption is one of these brokers, that are often viewed critically since it has no known regulation and license. However, this is not uncommon when we want to trade with binary options, since many countries have banned them. Still, providers without a license can be a liability. Can we trust RaceOptions, or should we rather stay away from the service?

RaceOption Basic Facts

RaceOption is an online trading platform owned by Race Projects Ltd. Their headquarters are based in the Marshall Islands. Their service was founded in 2017. You can use the broker to trade several assets, like stocks, forex, commodities, and indices.

More importantly, the service allows trading with binary options, which is the most probable reason for its lack of regulation. Many countries, like the EU member states and the UK, have banned binary options trading. That is why the provider cannot get a license that would be respected by these nations’ regulatory bodies, even if they tried.

You can find the relevant information on RaceOption, its features, and services on review websites, like this description of the RaceOption broker on Binaryoptions.com.

Reasons for Critique

RaceOptions is seen as a risky service. Many financial regulators and government authorities, like the New Zealand FMA and the US CFTC have even issued official warnings that Race Projects Ltd and any of its brands should be considered scams. These warnings are based on the fact that RaceOption has no license and is illegally operating in countries where a license and regulation are required by law.

Ongoing Popularity

However, despite these warnings, the broker is still very popular and highly rated on online review platforms. You can use these user experiences to determine whether using RaceOption is an option for you. Make sure to read and compare many different reviews from multiple sources, to make sure you find honest opinions.

RaceOption has several features that make it a popular service, despite its lack of license:

  • The payout times are very fast.
  • They offer withdrawals with up to 90+ % yield.
  • They have several account types with different service levels.
  • They have a fast-acting customer service that is active 24/7.
  • They have good bonus programs.
  • They offer many charts, analyses, and social trading.
  • They offer forex, CFD, and binary options trading.

Access to Banned Trading Practices

Many traders still use RaceOption and its unregulated service because it’s the only way to access trading strategies and assets that have been banned by some countries’ regulatory bodies. These practices, like binary options trading, have a very high risk. Which means you can gain a lot of profit, but also lose it all, and more, quickly. Traders who have the appropriate capital and are confident in their abilities prefer these trading strategies.

Using Online Brokers Without Regulation

If you want to trade binary options, you will need to use a broker without a license in most countries. Still, you will want to make sure that your money and personal data are safe. To find a good service, you can use review sites and most importantly customer experiences. Read the contents of multiple review websites to avoid any hidden marketing schemes.

Additionally, take good care in reading the brokers terms and conditions. When you open an account with them, you agree to the contents of these listings. Here, you can find any kind of loopholes and prerequisites that might keep you from profiting as much from the service as you’d like.

Many users who trade with a broker like RaceOption also advise you to withdraw any kind of profit immediately to avoid losing access to it for any reason.

Conclusion

If you want to trade binary options, you will need to use a service without a license. However, this removes the safety-net of a service that has been checked and is regulated by a government body. This leaves you open to the threat of potential scams. Review websites will help you find services that have left users with good experiences regardless. Their benefits can outweigh the potential risks. Make sure to be extra careful, however, if you are using an online broker without regulation.