Pocket Option's Regulatory Claims: Fact or Fiction?

The online trading provider Pocket Option is a blend of praise and criticism. While some users remain loyal clients, others vehemently accuse it of being a scam.

BrokersView is going to dig into the doubts around Pocket Option. Why you’d better not give any trust to this firm? You will find the answer here.

No Regulation

An authorizing license from a reputable financial regulator is the basic but crucial proof of client protection for a trading services provider.

According to the information presented by Pocket Option on its website, Infinite Trade LLC owns and operate the brand Pocket Option.

On July 11, 2023, the Mwali International Services Authority (MISA) suspended the license of Infinite Trade LLC. However, even today, the company claims to be regulated, presenting an outdated MISA license on its website.

It is also worth mentioning that the Central Bank of Comoros has challenged the authority of MISA, by accusing it of being a fictitious financial regulator. According to the CBC, MISA lacks the proper authorization to oversee offshore companies or issue licenses for financial products and services to online platforms and illicit entities. Reports indicate that MISA's "license" application process and associated fees are alarmingly lenient, leading some illegal trading platforms to exploit this situation by purchasing licenses from MISA and masquerading as legitimate entities.

_{The Central Bank of Comoros does not recognize the authorization of MISA.}

Besides, Pocket Option used to be a brand of Gembell Limited, a company that registered with the Marshall Islands Registry (IRI) but was canceled. Please beware that IRI is not a financial regulator.

_{Gembell Limited has no license to provide financial services.}

In other words, Pocket Option has never been a regulated financial service provider, giving no protection for client funds. And regulatory warnings issued by reputable financial regulators are strong proof of Pocket Option's bad reputation.

_{Regulatory warnings against Pocket Option.}

Allegation of A Client

Complaints against Pocket Option are not rare to be seen on the Internet. A client of the firm shared his unpleasing experiences and warned others against dealing with Pocket Option.

The client started to try out a trading strategy that came to him by trading with a Demo account offered by Pocket Option. After three months of preparation, he felt he was ready for the real markets and deposited $1000.

Within a year, he deposited $10000 but withdrew only $4000. The client believed Pocket Option manipulated market data and counterfeited the trading results, putting him at an overall loss.

According to the message record provided by the client, the same trades came out with opposite results on the demo account and the real account, with one profited and another lost.

_{Source: Reddit. Client accuses Pocket Option of being a scam.}

The client also accused the firm of giving rewards for positive reviews. Picture of the message record showed that a staff member of Pocket Option promised to give a ‘risk-free’ code for a review. The code can be used for canceling losing trade and compensation, said the staff member.

_{Source: Reddit.  Pocket Option's positive reviews may be lack of credibility.}

Pocket Option’s reputation is a complex tapestry woven from both commendation and skepticism. However, the most concerning fact is the absence of a financial license, giving no protection to client funds.