Redwood Options Review
Redwood Options is a binary options brand which has already garnered a lot of positive reviews, despite being relatively new to the scene. There is a persistent rumor that Redwood Options is run by the same people who run the well-known broker TradeRush. There appears to be no actual foundation for these rumors, however, as Redwood Options is operated by Platinum Dome Investments Ltd., while the company that operates TradeRush is known simply as TradeRush. While Redwood is lacking in some features (mobile trading, early close, a proper demo account), they have an informative site that is easy to navigate, and many different types of options to trade.
Redwood Bonus Options and Risk-Free Trades
When you go to open an account on Redwood Options, you have the option of depositing with your credit or debit card, wire transfer, or CashU. Redwood is clearly catering to international customers, offering many different account currencies including Australian Dollars, Canadian Dollars, Euros, British Pounds, and US Dollars. USA customers are accepted. The minimum deposit is $200, and the minimum withdrawal threshold is $100. Aside from the standard $30 fee for wire transfers, there are no other fees.
There is no demo account advertised anywhere on the site, but the customer service agent I spoke to implied that it is possible to talk to an account manager about opening one. Regardless, new accounts come with risk-free trades. One very interesting option new customers are given is the choice to accept bonus money or additional risk-free trades. Redwood offers incredibly generous bonuses, including match bonuses of 100% on up to $10,000. Not everyone likes to trade with bonuses, though, and if you are a more conservative trader, you may want to take advantage of the option to choose risk-free trades instead. This is a great way to get extra practice and possibly make some extra money along the way. Some sites force you to accept a bonus with restrictive terms that can make both trading and withdrawals difficult. Redwood does not force its customers to trade with money that isn’t theirs.
Trading on Redwood Options
Sixty-one different currencies, stocks, indices, and commodities are available to trade on Redwood Options. The SpotOption platform allows you to place High/Low trades, One Touch trades, or 60 Second trades. Option Builder gives you control over your expiry time, and Open Platform gives you a better look at what is going on visually with the market. Double up and rollover are available to help you trade, but early close is not, which is a bit of a drawback.
You can trade as little as $5 on 60 Second trades. The minimum for other types of trades is $10. If you want to place larger trades, you can trade up to $5,000, which is a reasonably high limit. It is noteworthy that account tiers run as high as $10,000 for initial deposits as well. Clearly Redwood is interested in catering to traders with large and small accounts, and not leaving anybody out.
Plenty of Resources
If you are looking for a broker who goes out of its way to foster education, Redwood may be a good choice. Along with the standard glossary, FAQ, and basic how-to pages, you will find a trading eBook, market reviews, and additional benefits for higher account tiers. Some of these include a dedicated account manager, video platform walk-through, trading strategies, money management training, portfolio structure, and breaking news.
Redwood Customer Service
Customer service was a bit of a mixed bag. You can get a hold of Redwood via live chat, toll free telephone, email, or web form. When I got on live chat, I only had to wait for a few seconds before an agent appeared on the line. That was a pleasant surprise. The agent answered all my questions, which was also a pleasant surprise.
The only issue I had with the agent who was talking to me was that he did not seem to entirely understand my questions. I explained that I was writing a review, and yet he still tried to sell me on the idea of talking to an account manager about opening a demo account. He mentioned special promotions as well, which seemed like a bit of a hard-sell to me—particularly given that I was not even a customer. He steered carefully around my questions about regulation, stating that Redwood expects to be regulated within a few months (which is possible, but unlikely). He also was baffled when I asked him about TradeRush, which seemed unusual to me, given TradeRush is so well known. I appreciated that the service agent was trying to be helpful, but it was clear to me he had been told to take any opportunity he was given to sell me on services.
Redwood Options certainly has a lot going for it. The website is very nice; I had no problems whatsoever finding information. There are also a lot of third-party reviews of Redwood, many of which look legitimate. This implies to me that they are already forging a strong reputation in the binary options community—even if many reviewers are confused about their relationship to TradeRush (or lack of one). Redwood provides traders with numerous resources and promotions, and the option of saying no to a bonus and receiving free trades instead is a wonderful one.
The biggest red flag with this company is the hard-sell from the customer service agent. On one hand, it is great that they are actually providing customer service. That already puts this company miles beyond most of their competitors. On the other hand, it is always good to be cautious when someone is clearly more interested in making a commission than they are in helping you out. This broker definitely has positive potential, but if you are interested in trading with Redwood, it would be wise to talk to a customer service agent first on the phone to see what kind of treatment you receive.