TraderXP is a Cyprus based binary options broker using the SpotOption trading platform. Frankly, TraderXP doesn’t offer any exciting features and options, and its returns are not the best either – but see for yourself what you can expect from that broker.
Options Return
The returns of TradeXP are as follows:
• For High/Low options the return for EUR/USD is 73%, for Gold – 70%, and for Oil – 70%.
• For 60 Seconds options, the return is 72% return for EUR/USD and 70% for Gold.
• One Touch options maintain a return rate of 400%.
If you make a deposit of $500 and place uninformed and completely random $25 bets, you’ll break even at a success rate of 57.8% – e.g. you would have to win at least 57.9 out of every 100 games to make a profit. These return rates are relatively low compared to the market standards. Brokers like iOption, for example, offer return of 80% on EUR/USD; the return for the same asset on OneTwoTrade is even higher – 85%.
Bet size & refund
Bet sizes: at TraderXP, you can start betting with as little as $25. The maximum bet amount is $3,000.
Refund: if your option expires out of the money, you may not lose the entire amount you bet: TraderXP offers refund of up to 10% (the refund percentage depends on the type of option).
Option Types
High/Low: these are the most common options traded. With them, you bet on the price direction of a certain asset – in other words, you need to guess whether the price will go up or down. Once you make your prediction and place your bet, you need to wait for the option to expire to see whether you win or lose. The expiry time of these options is 1 hour. 60 Second: that’s a variation of the High/Low option type – with the only difference that the expiry time here is 60 seconds for each option. These can be quite useful if you believe to have a steady insight about the direction of an asset’s value – you can place a series of bets on the said asset and hear that sweet “Ka-ching!” sound (Metaphorically speaking. The site doesn’t have any sounds…).
One Touch options offer you the best returns – about 400% – but there is a reason for that. With this option type, you win of you predict whether the price value of an asset touches a certain level or not. Usually the chance of this happening is slim, hence the big return. If the price reaches the required level, though, you don’t need to wait the option’s expiry time as the bet is settled right away and your winnings are credited to your balance.
The Option Builder is an option type, with which you can set your own risk level and adjust the expiry time of your option, thus fully customizing your trade. I must warn you that the option builder is not suitable for noobs. If you are not familiar with binary option trading and with financial market analysis, I’d recommend you go for a more traditional option type.
Once you buy a certain option, it will appear in your account and then you can take advantage of the Double Up and Rollover features. Double up lets you double your bet – it’s very handy for situations when you’re close to the expiry time of the option and you believe you will win that bet.
With Rollover you get to change the expiry time of an option up to 10 minutes before the initial option expires. To use the Rollover functionality, you need to increase your bet size by 30%.
Deposit and Withdrawal
The minimum deposit on TraderXP is $400 and can be made via credit card, Maestro debit card, wire transfer, Moneybookers/Skrill and the CashU online wallet.
Withdrawals are possible via credit/debit card and bank wire. Once your account is verified, it usually takes up to 72 hours for your cashouts to be approved and the money reaches your account for up to 5 business days. Keep in mind that there is a fee of $25 for wire transfer withdrawals.
Bonuses
TraderXP offers welcome bonuses to customers who open an account and make their first deposit. Depending on the deposit amount, the bonuses range from 15% to 50%. Once the bonus is credited to your account, you would have to wager 20 times the bonus and the deposit amount in order to withdraw the bonus. Given that other brokers – say Banc de Binary for instance – offer first deposit bonuses of up to 100%, I think TraderXP can do better.
The broker also has a referral program, where you can earn a $50 bonus for each friend that you invite to the site (keep in mind that conditions apply).
Overall Impression
If I’m broker shopping and come across TraderXP, I would probably dismiss it right away. The broker doesn’t offer any exciting bonuses and promotions, the return is below the average for the market, and the customer support team only replies to you when they feel like it. Given that there are a gazillion binary option brokers out there, I would simply go for one with better conditions and customer service. Additinal EZ Trader is a good oppertunity. Our EZTrader Test you can read here.