Recently we’ve seen a lot of people promoting Zoomtrader as a good binary options broker, but the reality is completely different. In fact we have received a lot of complaints about Zoomtrader, people are saying they are scam.
The complaints were mainly about difficulties to withdraw money. A lot of traders deposit money and never see it again. While we cannot verify if such claims are true, there are so many complaining people about Zoomtrader, that something must be seriously wrong with this binary options broker.
The first sign of warning comes from the fact that Zoomtrader is not regulated. They used to be based on Cyprus, where they would have to be regulated by the CySec, so they moved to the British Anguilla, where they are basically uncontrolled. By the way, the CySec gave them a fine anyway for offering binary options on Cyprus without a license.
But let’s continue, when we look at the Terms and Conditions, we cannot believe that something like that can be legal anywhere. In our opinion it is a scam, because they basically do everything they can to prevent you withdrawing your money. Let’s take a look.
Prices can be manipulated
The first thing you should notice on the Zoomtrader’s home page is: “The prices we present on our site are the ones ZoomTrader is willing to sell options at and are not necessarily the real time market prices.”
That means that they basically can give you any price they want. So should you win a trade, they can say: ‘Oh, sorry, we are giving you this different price, which means that you lose your trade.’ So they can make you lose all your trades, if they want, they can manipulate everything like a casino, there are absolutely no rules and they say it openly.
Another unbelievable condition concerns withdrawals. They say that „the minimum amount necessary for withdrawals is 200 in all currencies.“ And guess what, the minimum deposit is also 200, so if you make just one losing trade, you cannot withdraw the rest of your money back until you deposit again.
To further complicate withdrawals, you will not be able to withdraw anything, not even your deposit, until you execute trades in an amount of at least 40 times the bonus you were given when depositing money. Blocking deposit withdrawals by bonuses has been declared illegal by the CySec, but as Zoomtrader is not regulated, they can do anything they want.
And if you think that you can avoid this by not accepting bonuses, there is this sentence in the TOS: „Furthermore, we may, at our sole discretion, credit the user with up to one hundred percent (100%) bonus for each deposit made by the user.“ So there you go, they can force you a bonus whenever they want, which will block all your withdrawals.
Conclusion – do not trade with Zoomtrader
As you can se, they do literally everything they can to keep your money. Their conditions about withdrawals are unseen, this is something impossible with serious binary options brokers. So if you want to trade, stay away from Zoomtrader, that is our advice.