February 2015: There is are four FPA Traders Court Guilty verdicts against OptionRally. The FPA considers these to be more reasons not to do business with this company. The FPA now considers OptionRally to be a confirmed scam.
March 2015: The FPA is still waiting to hear from OptionRally's Legal Department. We'd like to know how placing trades on a suspicious account would prove that no AML laws are being violated. We'd like to know what would happen if a real money launderer opened an account and placed a few trades.
Until this is cleared up by OptionRally's CEO, the FPA strongly recommends AGAINST depositing any money with OptionRally under any circumstances. If you have any funds with OptionRally, the FPA recommends withdrawing them as soon as possible.
August 2014 WARNING 2: An OptionRally employee has posted a claim that AML laws force all clients to make trades. He says that if a client makes a deposit and decides not to trade, AML laws prohibit the OptionRally from processing a withdrawal request until some trading is done.
The employee declined to answer questions about this claimed law.
The FPA does not know of any legitmate broker having such a requirement or any AML law requiring a client to place trades before a withdrawal is placed.
The trader initially gave into demands to allow an OptionRally employee to place trades in the account. He then reports that he changed his mind and told OptionRally to place no trades in the account. Trading proceeded against the client's wishes and $400 was lost.
This loss of money appears to have been the equivalent of a successful AML investigation. The remainder of the account was refunded. Based on the words and actions of OptionRally, it appears that allowing an employee to place losing trades is required to prove that money laundering is not happening. The FPA is left to wonder what OptionRally would do in a real case of money laundering.
The only good news out of this incident is a report that OptionRally also refunded the loss.
UPDATE: The client later reported an unauthorized charge against his credit card by OptionRally. The company so far has refused to pay back the money.
August 2014 WARNING 1: An OptionRally employee posted in 2 separate threads in the Scam Alerts folder while pretending to be a satisfied customer of Option Rally. You can see these incidents HERE and HERE.
The FPA considers this sort of action to be extremely unethical. Until this issue is resolved, the FPA recommends AGAINST doing business with OptionRally.
The FPA requests that the CEO of OptionRally contact us to discuss how to resolve this incident.