Pocket Option Review - Not Recommended Broker

Summary

 

Pocket Option is a non-regulated broker, registered in Saint Lucia and Saint Vincent and the Grenadines, which are both Caribbean countries considered as being an offshore tax haven. The UK’s regulatory body, the Financial Conduct Authority (FCA) issued a warning about the company providing services without authorization.

We do not recommend trading with this broker.

We at BrokerChooser care about our users: we want to make sure you have a good understanding of how investing works, and we have reviewed over 100 brokers to help you decide which fits your needs best. We also want to help you to avoid bad experiences.

In this article we highlight a broker that we do not recommend based on the objective research of BrokerChooser’s analysts. Read below to find out which brokers we do recommend!

 

Find a reliable broker

 

Choose a reliable broker from our selection of the best stock brokers, best forex brokers, and best crypto brokers for 2022.

If you want to start your search from scratch, use our proprietary broker finder tool for a tailored recommendation.

Pocket Option overview
Regulation IFMRRC
Foundation date 2017
Annual financial statements published No
S&P credit rating No
Big 4 auditor No
Listed on stock exchange No
Banking background No
Investor protection No

Pocket Option Review - Not Recommended
Regulation

The company behind the Pocket Option website that provides brokerage services is PO Trade (SV) Ltd, which is registered in Saint Vincent and the Grenadines, considered to be a Caribbean offshore tax haven. PO Trade Ltd, meanwhile, is registered on the neighboring island of Saint Lucia.

The company says on its website that it is regulated by the International Financial Market Relations Regulation Center (IFMRRC), which is not an official regulatory authority.

The UK’s regulatory body, the Financial Conduct Authority (FCA) warned in September 2021 that PO Trade may be providing financial services or products in the UK without any authorization from the FCA.

Pocket Option Review - Not Recommended
Main issues

  • We had difficulties establishing what company is behind Pocket Option. On different pages of the website, it says that all brokerage activity is provided by PO TRADE LTD, but on other pages, it names Gembell Limited, which is registered at the Republic of the Marshall Islands, another jurisdiction often seen as offshore heaven.
  • It is not regulated by a government agency or any trusted regulatory authority. The FCA has also issued a warning about its unauthorized promotion and selling of financial services.
  • Note also that it is not available for residents of any of the EEA countries, nor in the US, the UK, Japan, or Israel.
  • Investor protection is not guaranteed and the terms to access it are vague. The customer agreement only states that “all disputes between the company and the client are resolved in a complaint procedure by negotiation and correspondence”.
  • Withdrawing funds can only happen through a “manual mode” and the company reserves the right to prolong the process for 14 business days. Fees are not clear on the website.
  • The company also reserves the right to amend the customer agreement in whole or in parts without notifying the customer, according to the “public offer agreement” available on its website. It also clearly states that “the company is not liable to the client for any losses incurred as a result of using the service provided by the company”.
  • Chat and a phone number are available but no customer service is provided via email, only through a form on their website.

 

Pocket Option Review - Not Recommended
How to get your money back

Pocket Option claims it is supervised by the International Financial Market Relations Regulation Center (IFMRRC), which is not an official regulatory authority. It states on its website that it has a compensation fund, but the terms on which you can access it are vague.

As a general rule, we recommend that you thoroughly check your broker before you deposit any money. If in doubt, document everything, make screenshots, save emails and chats, so you have as much proof as possible in case you need to turn to the authorities.

If you do get scammed by a broker, here are a few options you can try to get your money back:

  • You can turn to your bank and file a chargeback request; a mechanism whereby the banks involved in the transaction return the disputed funds from the account of the seller of the service if the service was not provided.
  • You can take legal action and issue a so-called Mareva (or freezing) injunction against the company.

Pocket Option Review - Not Recommended
How to spot if a broker is a scam?

There is a higher likelihood that a broker might be a scam if:

  • it is not regulated at all
  • it is regulated under a jurisdiction widely seen as an offshore haven (e.g. Vanuatu or St. Lucia)
  • it is featured on a warning list of a top-tier regulator (e.g. the UK’s FCA, or the SEC in the US)

 

If you would like to know more about scams, how to avoid them, and how to get your money back, read our Forex trading scams page.

Author of this article

Eszter Zalan

Author of this article

Eszter is a Brussels-based content editor and writer with over fifteen years of experience in journalism. She thrives in researching complicated issues and explain their essence in a plain and clear language to guide you through the world of finance.

Eszter Zalan

Content Editor

Eszter is a Brussels-based content editor and writer with over fifteen years of experience in journalism. She thrives in researching complicated issues and explain their essence in a plain and clear language to guide you through the world of finance.

Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology

Share

Comments

×