Is Pocket Option Legit? Is it Scam or Safe?

What license does Pocket Option have？ Investigate Safety from Basic Information

Founded in 2017, Pocket Option is a binary option broker registered in Costa Rica, operated by a company named Infinite Trade LLC. This broker allows users to trade on the price movements of various assets, such as currencies, stocks, and commodities. They offer a user-friendly platform with features like social trading, instant deposits and withdrawals, and educational resources. However, Pocket Option is not regulated by any major financial authorities, which increases the risk involved in using their platform. To confirm the safety of Pocket Option, we investigated the following three points on the official website and WikiFX.

Basic information 1. Company information and features

The company information and features of Pocket Option are as follows:

Name	Pocket Option
Operating Company	Infinite Trade LLC
Establishment	2017
Country of Registration	Costa Rica
URL	https://pocketoption.com/
Customer Support Phone number	+44 20 8123 4499 （ 10:00-02:00 UTC+2）
customer support email	support@pocketoption.com
chat support	Unavailable
Facebook	https://www.facebook.com/pocketoption/
X	https://twitter.com/PocketOption
Instagram	https://www.instagram.com/pocketoptionofficial/
Youtube	https://www.youtube.com/c/PocketOption

Customer support: Pocket Option's official website is translated into 25 languages. Customer service is available in multiple languages and is available 24 hours a day, five days a week (Monday to Friday).

Fees & Commissions: Pocket Option doesn't levy any charges or commissions for deposits and withdrawals. Their revenue primarily comes from two sources: the losses incurred by traders and the cash spent by users on buying gems and various boosters.

Trading Assets: Pocket Option offers over 100 trading instruments, including FX, commodities, indices, and even cryptocurrencies.

Basic Information 2. License to acquire

We researched that Pocket Option does not hold a license on WikiFX.

What is a financial license？

A financial license is a “business license for financial business” issued by the financial supervisory authority of each country. To obtain a license, an examination by the supervisory authority and a deposit of funds may be required, which is one of the important indicators to determine the reliability of a FX company. The level of difficulty in obtaining the license and the regulations differ depending on the country or institution issuing the license.

The results are as follows:

WikiFX Risk Alert: WikiFX's investigation into Pocket Option reveals that the broker lacks a legitimate license for its business activities, based on a thorough check with regulatory bodies and ongoing monitoring of the broker's operations. Notably, Pocket Option's name is absent from the lists of licensed brokers on the websites of major, respected regulators such as the FCA. This indicates that Pocket Option is not operating in compliance with necessary regulatory standards. As a result, WikiFX has labeled Pocket Option as “No license,” to give traders risk alerts.

WikiFX Low-score Warning: WikiFX evaluates brokers using a comprehensive scoring system that cover five key areas: Regulatory compliance, Licensing, Business operations, Software, and Risk Management. With this framework in mind, we'll conduct an in-depth review of these five dimensions to uncover the reasons behind Pocket Option's low score.

Regulatory: Pocket Option functions without regulation in offering financial services to investors, presenting a high level of risk. Operating in the financial sector without appropriate regulatory compliance is likely to lead to failure. Consequently, Pocket Option received a score of “0.00” in this aspect, reflecting WikiFX's emphasis on investors' funds safety.

License: Pocket Option does not hold any valid license issued by regulatory authorities, which means it does not operate under the necessary oversight to ensure investor protection and compensation for funds.

Business: Pocket Option asserts its establishment in 2017 and is presently in active operation. The platform offers a wide array of trading assets such as currencies, commodities, indices, and cryptocurrencies. In this specific aspect, Pocket Option demonstrates commendable performance, earning a score of 6.99.

Software: Regarding trading software, Pocket Option does not offer the MT4 or MT5 platforms. Rather, it features a complex trading platform, which may not be suitable for novice or inexperienced traders.

Risk Management: Regrettably, Pocket Option lacks risk management tools for its users. Such tools are crucial in trading, as they help traders minimize their potential losses through strategic risk control measures.

Basic Information 3. User Asset Protection

No segregated account provided: Pocket Option does not specify on its official site or in its “Terms and Conditions” document that it segregates management funds from client funds. This practice, commonly adopted by reputable brokers to safeguard investors, is notably absent in Pocket Option's disclosures. For example, Titan FX clearly say that client funds are held in full in a separate account that is completely independent of Titan FX's operating funds. Under this policy, client funds are never used to fund our operations. If there is a problem, they guarantee up to 20,000 euros (about 2.6 million yen) per complaint.

Is Pocket Option Legit Scam or Safe？

We can also investigate whether Pocket Option is a scam through some user reviews on some big review websites, like Trustpoilt.

Here are some of the ones we picked up that might be relevant.

Pocket Option reviews on Trustpoilt

1. I cannot withdraw my money

2. Pocket Option Sets a Trap for Trader

3. Pocket Option offers a user-friendly interface

Review 1. I cannot withdraw my money

The reviewer claims they were unable to find any way to withdraw money earned on the platform, then he further specifies they were unable to refund their initial deposit back to their Mastercard. This adds to the concern about the platform's withdrawal functionality and potentially suggests limitations or restrictions on user control over their funds.

Review 2. Pocket Option Sets a Trap for Trader

The user feels deceived and unfairly treated by Pocket Option's withdrawal policy. They believe the policy is inconsistently applied and used to prevent legitimate withdrawals. They urge Pocket Option to reconsider their decision and provide a refund. Additionally, they suggest Pocket Option should be more transparent about their policies and communicate them clearly to users to avoid similar situations in the future.

Review 3. Pocket Option offers a user-friendly interface

This user awarded Pocket Option's interface a high rating, praising its user-friendliness and the broker's rich trading options, including binary options, cryptocurrencies, and currencies.

Researching reviews from WikiFX “Truth Reveal”

On WikiFX, there are also some user reviews posted:

Reviews posted on WikiFX are mostly negative, with numerous users labeling it as a scam entity and reporting terrible trading experiences with this broker.

However, there are also positive reviews present, indicating that some find Pocket Option to be a reliable trading platform. This variation underscores the reality that trading experience and feelings can significantly differ among users.

WikiFX Original Research Results

At WikiFX, deciding if a broker is trustworthy or a scam involves looking into reported scams, conducting field visits, and evaluating the broker's withdrawal problems.

The results are as follows:

Independent Investigation 1. Vast Scam Exposures

WikiFX's exposure section serves as the mouth of truth, where many exposure cases gather here. Many victims shared their real experience when trading with this broker, 100% being defrauded. Within the exposure area, it becomes evident that there are 14 documented instances of scam activities linked to this broker, with a majority facing issues in withdrawing funds, leading to reports of financial losses and other malpractices.

A trader from Colombia detailed their experience in 2021, revealing that their journey with this platform concluded after depositing $2,000, which unfortunately never returned to them. Armed with concrete evidence, including screenshots of conversations, this broker is left with no room to obscure its actions.

Independent investigation 2. Field survey results

In WikiFX's “Field Investigation” column, we actually visit local offices and investigate whether or not they are shell companies.

As of March 5, 2024, WikiFX has not conducted an on-site investigation of Pocket Option.

Therefore, it is unclear whether Pocket Option's office is a shell company.

Independent investigation 3: Pocket Option Wthdrawals Policy

When it comes to funding options, Pocket Option claims to offer over 50 types of payment methods. In comparison to its industry peers, this myriad of options is an advantage for Pocket Option. Per its statement, traders should deposit and withdraw in a quick and secure way. However, in fact, many users complaint that Pocket Option has severe withdrawal issues. Now, let's examine its withdrawal policies to explore why:

Quickly, we found something abnormal. This broker on its payment policy states that The identification process must be completed in 10 business days since the company's request. In some cases the company may increase the identification period up to 30 working days. Its identification process is too long. Few brokers would take such a long time to verify clients' withdrawal request and it is not hard to see why many traders complaint that this broker has a long withdrawal time.

Pocket Option boasts over 50 payment methods, offering a broader range of options compared to many in the industry, which positions it favorably. Per its statement, various payment options allow for quick and secure deposits and withdrawals. However, numerous clients complaints highlight significant withdrawal delays. A closer look at Pocket Option's withdrawal policies reveals a potential cause: The identification process must be completed in 10 business days since the company's request. In some cases the company may increase the identification period up to 30 working days This extended verification timeframe is unusually long compared to other brokers, shedding light on the frequent trader grievances regarding prolonged withdrawal processes.

Secondly, this policy outlined in red below is definitely unreasonable, for it grants the company unchecked control over exceptions, raising concerns about fairness and transparency. Besides, this piece of statement lacks clarity about withdrawal eligibility based on deposit history.

Thirdly, let's check this piece of statement: this company is not resonsible for any delay or cancellation of a transaction which was caused by the payment methods. This is not entirely reasonable. While the user is responsible for issues directly caused by their payment method (e.g. insufficient funds), the company still has a role to play. They should attempt to facilitate communication or offer troubleshooting steps within their platform's capabilities. What's more, the company should be transparent about their limitations regarding resolving payment method issues. However, simply stating “not responsible” without offering any support channels weakens communication and might leave users feeling helpless.

Conclusion

To provide a summary, all evidence stated above has assigned Pocket Option, with a low WikiScore of 1.51 out of 10, categorizing it as an unreliable entity within the forex trading industry. Therefore, traders are encouraged to exercise increased caution when dealing with this broker.