a Scam or Not
There has been continued speculation as to whether or not Olymp Trade is a scam. As an options trading platform that is registered outside of the best known regulatory branches, it is an easy question to have. This article will answer your burning questions around whether or not Olymp Trade is a scam.
What is Olymp Trade?
Olymp Trade is a trading platform that allows traders to set options for currency pairs, commodities, stocks, indices, and cryptocurrencies. This means the platform allows traders to open a position predicting the price will go up or down. This is also known as binary options trading because a trader is typically only able to choose up or down. On Olymp Trades platform traders can also push, meaning they believe the price will remain the same.
Trade durations can be set in one-minute increments up to twenty-four-hours. Traders are able to see the percentage profit they will make for each trade before they place it. This allows them to pick the pairs that they best understand and will be most profitable. Upon choosing that the price will go up, down, or remain the same for a currency pair, index, or stock the money is taken from the trader’s account to cover the trade. Once a successful trade is completed the money is immediately credited to a traders account.
Unlike some other options trading platforms Olymp Trade does not take a percentage of trades, deposits, or withdrawals.
How is Olymp Trade not a Scam?
There is risk inherent within all trades; those executed on Olymp Trade’s platform are no exception. Olymp Trade is a member of International Financial Commission. This membership effectively insures traders on the platform, providing them protection from fraudulent activities on the part of the broker. To become a member, the Commission investigated Olymp Trade’s practices to determine it was not a scam. The International Financial Commission acts as a third party intermediary between the trader and Olymp Trade if a trader feels they have been cheated or scammed by the platform. If Olymp Trade scammed its traders each trader would be eligible to receive up to 20,000 Euro from the International Financial Commission.
Beyond Olymp Trade’s membership as mentioned before they do not have a typical pay structure. Unlike some platforms, Olymp Trade does not take a percentage of traders’ earnings, whether at the moment of the trade or upon withdrawal, charge transaction fees, or scam traders with hidden fees. With the exception of a small fee for keeping a position open overnight. Many people use this as their justification in their belief that Olymp Trade is a scam. Though there are few fees, Olymp Trade has a better way to turn a profit.
To better illustrate why Olymp Trade does not need to charge fees while not being a scam: two traders are placing opposing options on the platform; Charlie believes the price will go up and Rajesh believes the price will go down; they both open a $100 position for five minutes with the potential of earning 80%. At the end of the five-minutes, Rajesh is correct and $180 is added to his account. The $100 dollars Charlie lost is used to cover the $80 Rajesh earned, and the remaining $20 is collected by Olymp Trade. This is how Olymp Trade is able to charge few fees while not being a scam.
The money that is collected from opposing positions is used to create a reserve to handle any trades that do not have an opposite. Trading is risky; therefore most traders are not going to be correct with every option they choose. When a trader is not correct their deposit covers the earnings of someone whose strategy won out. There are maximum wager limits to ensure that all gains can be covered.
Olymp Trade is not a scam because it holds a reserve of money to pay out to winning bids if there is no opposing trade. This reserve grows with every wrong choice and since there are not 100% options: meaning you bid $100 and are correct you would receive $200, the reserve will hold.
What Else Should I Know?
Traders can receive VIP status with qualifying deposits, granting them access to live advisors who respond in 15 seconds or less on average, higher earning potential, and risk-free trades. VIPs also receive access to exclusive webinars and trading strategies.
Payouts are quickly made directly to the bank account or e-wallet traders use to deposit money. Withdrawing funds is simple and are generally completed within 3 business days. There is a minimum withdrawal limit, but no maximum. With a scam, traders would not receive their money or be charged exorbitant fees drastically reducing their payout.
The user interface was made to be intuitive, easy to use, and understand. Olymp Trade provides educational materials on trend indicators and different strategies. A chat box helps deliver information about the many different topics. There are a continuously increasing number of videos and webinars on a range of topics. New ones come out often to keep traders up to date with the latest trends and platform changes.
To complement their educational material Olymp trade provides a free demo trading platform. New traders are able to set up accounts without making a deposit to the platform. Traders have a safe space to try and learn new strategies in a live market setting without risking their own money.
There is also an Analytics section. Technical analysis gives traders an opportunity to take an in-depth look at individual assets and pairs traded on the platform. The Economic calendar shows relevant events for the coming week. There is also a convenient section on Volatility as affected by trading times and what that means for the trader. Trading signals assist traders in making educated decisions based on compiled data.
In conclusion, Olymp Trade is not a scam. Trading is a complex world. Olymp Trade is a fantastic trading platform to learn on, perfect for anyone looking to experiment with binary options, even if only to practice strategies. Though as a platform Olymp Trade does not adhere to usual fee structures and money-making practices, it is not a scam but an innovator in the realm of options trading.
SOURCE: MEDIUM.COM
