ZoomTrader is a binary options broker which opened its doors in 2012 and is based in British Anguilla. The company accepts traders in the USA, and at first glance, appears to have some attractive offers. High bonuses are available, there are six currencies you can trade in, more than a dozen payment methods accepted, and a whole set of online training videos which are accessible to anyone.
This is not a company that we can recommend trading with, however, since there are numerous complaints online, and unless this company has a lot of enemies, they are all factual. Is everything about ZoomTrader 100% negative? No, they do have some nice features, but nothing you cannot find at another, more honest broker. Read ahead to learn more about ZoomTrader’s features and complaints and why we suggest you steer clear.
Opening a ZoomTrader Account
There are five different account tiers available to new traders, starting with the Mini account for deposits of $200-$499. This account comes with a 20% bonus. The highest account tier is the Platinum account for deposits of $5,000 or more. This account comes with a bonus of 100% (up to $5,000). All the account tiers feature some benefits, but at the higher levels, there are quite a few listed, including a dedicated manager, faster withdrawals, several risk-free trades, trading strategies, charts and signals.
You can deposit in Euros, British Pounds, Australian Dollars, Chinese Yuan or Brazilian Reals, which would be great for traders in China, Brazil or Australia, if we commend recommend ZoomTrader. Along with credit and debit cards and wire transfer, more than a dozen online payment vendors are accepted. These include Skrill, CashU, UnionPay, Moneta, Yandex, SOFORT, and others. There is a $40 fee for wire transfers, and also for “withdrawals made after the first of every month.” Presumably this means additional withdrawals past your first one, not withdrawals on dates other than the 1st of the month.
Trading Features and Resources
ZoomTrader is powered by Technologic, a familiar trading platform which is used by many brokers. You will find 66 trading instruments, including currencies, commodities, indices and stocks. The minimum trade size is $5, and the maximum trade size is $500, with the average payout ranging from 75-85%. There is no out-of-money refund.
One of the appealing features of ZoomTrader is the wide array of trade types included. Not only can you do a standard High/Low trade, but you can also participate in One Touch or No Touch trades, Touch Up/Down trades (a simple variation on the Touch trade type), Range trades, or Turbo (5 minute) trades. With so many trade types, there are a lot of ways a trader could potentially make money on the site. At least, that would be the case if the site allowed traders to profit, and there are strong indications that they do not.
Daily market updates and a trading blog are offered on the site, but there was no indication of early closure or rollover or additional tools to control trades. That is a major drawback. Other features which would be useful are also prominently missing, like mobile trading or demo trading. Demo trading in particular is an indispensable learning tool, and one to three free trades for higher account tiers does not make up for its absence.
The site does not do poorly when it comes to providing other learning materials. There is a glossary, some how-to pages, an eBook, and a whole set of video tutorials on risk management, technical analysis, and trading psychology. Initially these tutorials looked very exciting, as they seemed to show good faith—but then we saw the customer reviews.
Terrible Reviews Online for ZoomTrader
First off, customer service appears accessible through a number of channels: web form, email address, telephone number, or live chat. When we tried to reach a customer service agent on live chat during standard market hours on a weekday, nobody was there. The live chat window went straight to a form submission for our questions. This is never a good sign. Imagine how hard it would be to get a hold of ZoomTrader if you had a problem.
While researching ZoomTrader to try and find some third party information on the site, we came across numerous complaints on websites like www.complaintslist.com and www.ripoffreport.com. In fact, out of dozens and dozens of binary options brokers we have researched, we haven’t found more complaints for any other broker. Complaints regard a number of different issues.
As an example, trades sometimes expire 30 to 60 seconds later than they should, resulting in money lost. A customer service agent (always a guy named Jack) writes back, saying that the site has “issues” and will be “fixed soon.” After equivocating, Jack will then point the customer, who has unfairly lost money on a trade that should have won, to the Terms and Conditions, stating that the broker is not responsible. Other complaints involved bonuses. Customers who requested they not be issued a bonus were issued a bonus anyway, which disrupted their money management plans. Still other customers were unable to withdraw their winnings or their original deposits. Customers were regularly harassed to talk on the phone instead of using the chat or email system where records could be produced.
These complaints are so pervasive and specific it is difficult to imagine them being anything other than accurate. On top of that, the positive reviews we unearthed for this company (and there were not too many) all were obviously written by affiliates, exaggerating the advantages of the company and oversimplifying trading as a business.
This is why despite the fact that many of ZoomTrader’s features are appealing, we urge customers to stay away from them. Research this company and you will discover the same complaints we did, and they are not hard to find. All you have to do is input the company name into Google and you will find complaints on the very first page. There are many other binary options websites which offer excellent features and far better customer service, and moreover, are actually trying to do business. ZoomTrader appears to be a scam through and through.