Olymp Trade: Is it Profitable For You??
- 9 August 2020 | 1116 Views | By Abhinav Mishra
A digital option is a type of options contract that gives a fixed payout if the underlying asset such as stocks, bonds, etc. moves past the strike price. There’s an upfront fee called the premium for digital options, which is the maximum loss for the option. Trading Digital Options is tricky for most people. In this article, we are going to talk about Olymp Trade, a platform that lets you trade in digital options, and much more.
What is Olymp Trade?
Olymp Trade is one of the leading international brokers for Forex and Digital Options. The company was formed in 2014 and is managed by Smartex International Ltd. The Olymp Trade platform allows you to earn up to 90% profit with minimum investment. They not only provide a trading platform but also teach you how to earn. They have some of the best analysts who develop original strategies and teach you to use them in an effective way through one-on-one sessions and open webinars.
They offer an easy user interface, world-class customer service, and plenty of options to learn how the different markets work. Olymp Trade can be used by new users as well as experienced traders.
Is Olymp Trade legit?
There has always been a question around the legitimacy of Olymp Trade. The company is regulated by the International Financial Commission (IFC) and headquartered in the Grenadines and St. Vincent. To find if the company is legit or not you can check below parameters –
How long the company been operational – A company that is into the business for a short time span can be questioned but Olymp Trade has been around for more than 6 years now.
Where does the company invest – It is important to know where the company is investing its profits? In the case of Olymp Trade, they are creating a lot of educational videos and blogs in many languages and mostly investing on their website. A non-legit company will never invest in such things.
Countries of service – A company that is a scam will only keep its business in one geographical location. Olymp Trade is operational in more than 100 countries.
Is Olymp Trade safe in India?
Olymp Trade is not technically illegal in India. At the same time, you should know it is in no way controlled or monitored by SEBI or RBI, unlike other trading platforms. This means if you face any issues with regards to the app’s transactions or collections then Indian authorities will not be able to help. Since Olymp Trade is not regularized by Indian authorities, various Indian banks are not dealing with the platform directly, only some international Debit/Credit are accepted on this platform. However, you can use UPIs for your transaction.
Having said this, a lot of people in India are using it and the majority of users have good experience using the platform.
Starting with Olymp Trade
Using the platform is very simple. You can create an account just with your email id. You also have to choose the currency in which you would like to trade. There are only two options though – the Euro and US Dollar. Once you register, you can start trade with a Demo Account, if you chose dollar as your trading currency, you get $10,000 in your Demo account. You can switch to a Live account if you directly want to start trading. If you are using it in India, you can add money to your Live account using credit or debit cards and UPI. Other payment options are GlobePay, Bitcoin, Perfect Money, etc.
How does Olymp Trade work?
There are two types of trades that you can do:
Fixed time – In this, you will choose an asset on which you want to take a position. For example, you can decide to trade on Bitcoin. Next, you decide the amount you want to trade with, the duration for which you want your position to be open, and your call whether the asset will go UP or DOWN in the duration you have chosen.
In the below example, a position was made on Bitcoin for $3 and 6 minutes with a DOWN call. Another trade was made on Litecoin for $3, 6 minutes with a UP call. You see there is a parameter on the screen saying – FIXED TIME 80%. This means, if your call is correct you will get 80% of your traded amount. If not, you lose everything. As in the below example, the Bitcoin position was a success and a profit of $2.4 was made. However, the Litecoin position was closed at a loss of $3.
Forex – This allows you to trade on the difference in financial assets values. You can choose different world currency, cryptocurrency as well as some big companies like Amazon and Alibaba. In this type of trade, you chose a trade amount and make a call of UP or DOWN. The platform will charge you a commission and you get a profit will a multiplying factor. You can set a stop loss for your trade, mention the selling point or close your trade (Check below image for all details).
In the below example, the trade was opened at 96.60626 and closed at 96.76412. Since the UP call was made, there is profit but since there was a commission of $0.25. Overall the trade ended with $0.17 loss.
Olymp Trade as a trading platform
Olymp Trade is easy to navigate for even beginners. Since you get a Demo account and virtual money, you can play around on the platform to learn the features on your own. The interface is very clean and organized, you get everything you need on a single platform. The Olymp Trade platform can be accessed via the web, a smartphone/tablet app (available for Android/iOS), and a dedicated desktop application (available for Windows and Mac). There’s a clear, concise chart on the main page which feature timings and amounts, which helps make it easy to understand. Charts can also be customized via graph color and type.
Features of Olymp Trade screen
Some of the features you have already seen like Amount, Deposit, UP, and DOWN calls – which are used at the time of making a trade. Other features on the platform are –
Withdraw – You can withdraw your profits from the trades. There is no minimum withdrawal limit. Most withdrawals are processed on the same day of the request, although the website says to allow for three working days.
Transactions – This section tells you all types of transactions you have made on Olymp Trade – Deposits, Withdrawal, partial withdrawal, internal transfer, and bonuses.
Blog – This section contains blogs created by Olymp Trade about the platform and trading in general.
Education – This section teaches you everything related to trading – starting from trading basics to indicators to advanced fundamental analysis.
Assets – Lists all the assets which can be traded on the platform. The different categories of assets are commodities, stocks, indices, ETF, currencies, and Cryptocurrency. Every possible information related to each asset is provided in this section.
Indicators – The platform provides you different indicators to make projection and understand the market.
Leverage – with Olymp Trade are variable and depend on the types of trade you are doing. The Olymp Trade website offers attractive leverages up to 1:400 but not on everything. For the most popular forex pairs such as the benchmark EURUSD, leverage is set at 1:30. This is an officially sanctioned level which is much the same across most regulated online brokers. Minor pairs such as NZDUSD, AUDCAD, USDSGD, EURNOK, and EURPLN have leverage of 1:20.
- Number of users – The platform has 247,256 users making a trade on a live account in the last month,
- Average size – Average size per trade on the platform is $5.1
- Trading volume – is continuously on the rise for the last couple of years
- Payouts – The number of payouts is increasing an average of 7% each month.
- Unlike most other platforms, you can access the Olymp Trade website 24 hours a day, seven days a week, 365 days per year. Essentially, investors can trade whenever they see fit via mobile and desktop devices.
Types of account
Starters – This is a free account, ideal for amateur traders. The rate of return in this type of account is up to 82%, funds withdrawal time is up to 2 days and the maximum trade amount is $2000.
Advanced – It expands trading possibilities by giving you the option to achieve results quickly. You will have to deposit $500 for this type of account. The rate of return in this type of account is up to 84%, funds withdrawal time is up to 1 day and the maximum trade amount is $3000.
Expert – This is the best what Olymp Trade offers to traders, it has the greatest number of tools and privileges. This plan is for professionals. You will have to deposit $2000 to start using this plan. The rate of return in this type of account is up to 92%, funds withdrawal time is a few hours and the maximum trade amount is $5000 and $4000 for Fixed Time and Forex Trade respectively.
Other advantages of the paid plans are reduced commission (under Expert commission is reduced by 20%) and risk-free trade (only under Expert).
What is risk-free trade in the Olymp trade?
Risk-free is a tool that safeguards your money in case of an incorrect forecast. If you open a risk-free trade and it ends up in a loss, the trade amount will be returned to your account.
Is Olymp trade good or bad?
Having seen everything about Olymp Trade you can say it is a good platform to learn to trade. It gives you a demo account, an education platform that is completely free, and covers everything. You can start learning by watching education videos and then move to webinars.
Is Olymp Trade gambling?
Many people consider trading options is a form of gambling. They think it is only down to luck whether you make or lose money. The truth is, options trading is so much more. Options trading requires you to develop all set of skills. To succeed as an options trader you will have to spend hours analyzing the charts, reading and learning, and implementing different strategies. So labeling Olymp Trade as a gambling platform will be incorrect. However, if you start trades with no knowledge and background, all you are doing is gambling.
How does Olymp Trade make money?
Olymp Trade makes money through fees and commission. They charge you a service commission also known as a subscription fee. It will be only taken if you did not make any operation on your real trading account for 180 days. A valid operation is opening transactions or depositing/withdrawing money. The service commission is $10 or it’s equivalent in the account currency and is taken monthly until the movement on the account appears.
There is also a transaction commission at Olymp Trade when you are trading on Forex markets as seen in the example above. Every time you open a position you will see the amount of commission that will be taken from your account.
Another fee through which Olymp Trade makes money is rollover commission. A certain amount of money will be taken from your account if you keep your position open through the night.
What is the best time to trade in Olymp trade?
There is no time that works for all trades and assets. You will have to choose on what asset you want to take a position and based on that best time can be decided. Also, you need to decide what kind of market suits your type of trading – high volatility or less volatility. For example, if a market with high volatility suits your plan best, you should aim at the time period from 12.00 GMT to 19.00 GMT.
How do you predict Olymp Trade?
There are two types of analysis you can do to predict a trade – fundamental and technical analysis. Fundamental analysis focuses on data from financial records, company assets, economic reports, market share, and events on the economic calendar. The technical analysis identifies trading opportunities by analyzing statistical trends gathered from trading activity, such as volume and price movement. Olymp has an Analytics section and for fundamental analysis, they provide an Economic calendar.
Overall, it is a good platform to try trading. Olymp Trade is incredibly popular in many countries and has an intuitive and unique user interface which makes trading as easy as can be.