IQ Option Review
30 Second Summary
Pros / Cons
- Low Minimum Initial Deposit Requirement
- Cutting edge Trading Platform
- Quick withdrawals
- Secure account verification
- Smaller range of markets than some rivals on forex and cfd
- Auto-trading and EAs not supported
Managed and owned by IQ Options Europe Ltd, IQ Option is a financial services provider that is based in Cyprus. Designated as a Cypriot Investment Firm (CIF), the trading platform comes under the jurisdiction of the Cyprus Securities Exchange Commission (CySEC). They have offered online trading services for many years, and continue to expand their offering.
It is authorized to provide financial services to clients from the European Economic Area (EEA) under the CIF license #247/14. The trading platform first went live in 2013 and since then, it has grown by leaps and bounds. With its low minimum deposit requirement at $10 and free demo account, IQOption has truly made online trading accessible for everyone. In 2020, IQ Option also introduced margin trading. This moves them alongside the more established brokers and CFD operators in the EU and beyond.
Binary Options however have been restricted in the EU by ESMA. It is still possible to trade forex, CFDs, and forex options – plus professional traders can still use binaries if they fulfill one of three criteria:
- Trade size -10 trades of ‘significant size’ per quarter
- Portfolio Size – A total investment portfolio of €500k or more. Holdings can be across brokers.
- Experience – You work, or have worked, in the financial industry and gained experience in complex financial instruments.
One step IQ Option has taken to improve product choice for EU traders to introduce “FX Options”. Covered in more detail below, these offer traders the same fixed risk that binary options would have – but will have larger potential upside, all based on the movement of the underlying. These options may prove a good alternative to many European traders looking to use a similar binary product, but with a regulated firm.
Is IQ Option suitable for day trading?
One of the most important factors to consider when looking for a broker to conduct day trading with is looking at the type of instruments that are available for trading.
With IQ Option since the broker offers CFDs that allow traders to open and close their market positions at any time, it is a suitable broker for day trading. In addition, the broker is well regulated and this helps to ensure that your money will be handled professionally and ethically.
IQ Option Awards
IQ Option has won some of the most prestigious awards in the industry, including:
- 2017 award of Excellence – The Academy of Interactive and Visual Awards
- The Intelligent Trading App for Binary Options – Mobile Start Awards
- Century International Quality Gold ERA Award – Business Initiative Directions Group
- Best Technology Application – The Web Marketing Association
- Best Binary Options Broker Europe 2015 – Global Banking and Finance Review
- Best Mobile Trading Platform – IFM Awards 2015
Safety and Regulation
Over the few short years that it has been operational, IQ Option has won numerous awards praising the quality of its services and its reliability. Today, it has been recognized as one of the leading brokers in the industry as well. To bolster its image as a reliable broker, traders will be pleased to know that IQOption is a regulated broker under the jurisdiction of the Cyprus Securities Exchange Commission (CySEC) under the name of holding company IQ Option Europe.
As a regulated broker under CySEC, this means that IQ Option is also a MiFID compliant broker. In other words, IQOption is permitted to offer its services to clients within the EEA. Another benefit for clients of being regulated by CySEC is the fact that IQOption is also a member of the Investors Compensation Scheme. Under this scheme, each of IQ Option’s clients’ funds is protected up to a maximum amount of 20,000 euros.
But for traders that are outside the EEA, their accounts are managed by a separate sister company called IQ Option Ltd. The company is based in Mahe, Seychelles, and is regulated by the Seychelles Financial Services Authority (FSA).
IQ Option accepts traders from Thailand, South Africa, Singapore, Hong Kong, India, France, Norway, Sweden, Denmark, United Arab Emirates, Saudi Arabia, Kuwait, Luxembourg, Qatar, and most other countries.
Traders can not use IQ Option from United States, Japan, Israel, Turkey, Belgium, Russian Federation, Australia, Canada, Germany, Italy, Netherlands, Romania, Spain, Portugal, United Kingdom, Ireland.
Rather than opting for a standard trading platform, IQ Option has chosen to provide its clients with a proprietary platform designed specifically to cater to their trading needs.
The same platform is used for CFDs and for binary options trading. Well designed to be user-friendly, the platform features a large chart which is a great help for traders who wish to monitor the conditions in the markets. Margin trading is also now available with certain instruments.
In addition, the platform comes with a wide selection of trading tools that are typically not found on any binary-capable trading platform. Some of the advanced trading tools that we can see popular technical indicators such as Moving averages, Bollinger Bands, MACD, and RSI.
The brand often adds a new feature to the platform to offers traders more flexibility. One such feature is the ‘position top-up’. This allows a trader to hold a trade open if it is approaching a stop loss. It gives the trader more scope to allow trades to recover before being closed. It must be used with discipline but offers traders new risk management or trading strategy options.
Mobile Trading Platform
For traders that are unable to remain at their trading terminal for any prolonged period of time, they can install the mobile trading app that has been provided free of charge by IQ Option.
The mobile trading app which has been designed specifically for smartphones and mobile devices, allows traders to check their account status, keep updated with all the developments in the market as well as execute trades.
Trading Accounts Offered
Unlike most CFDs and binary brokers, IQ Option has only chosen to offer 3 types of trading accounts, a standard trading account, a VIP account, and a demo account. To open a standard account, only a minimum deposit of $10 is required. As for the VIP trading account, you need to place a minimum deposit of $1900 (or currency equivalent) – but hit a trading volume of $15000.
Both types of trading account entitle the trader to participate in the IQ Option’s weekly trading competitions. However, the VIP account will entitle the account holder to additional trading benefits like free participation in the trading promotions, 3% additional returns, and the service of a personal manager.
Potential traders who wish to try out the platform can first sign up for the demo account. It is provided free of charge and doesn’t require any “pre-deposit” like some brokers are requiring their clients to do first. The demo account comes pre-loaded with $1000 practice money which you can use to execute your practice trades.
IQ Option offers the best demo account terms in the industry. It is a No deposit demo account. The balance can be restored to $1000 as often as required, and the practice account is useable long term, there are no time restrictions.
The demo or virtual account can also run alongside a real money account – not “instead of”. This allows real money traders to change into the demo account, and trial a new strategy or strategies without risking real money. It is the most flexible demo account available and is entirely risk-free. This offering, coupled with the low minimum deposit, is why this broker has grown so quickly. It is also why the brand attracts beginners and novices. It demonstrates real confidence that they have the best trading platform, and know that once traders have used it – they will stay with them.
What is the minimum deposit requirement to open a trading account with IQ Option?
The minimum deposit at IQ Option is $10.
How long does it take to withdraw money from IQ Option?
IQ Option aims to execute every withdrawal request within 24 hours. However, in extreme cases, the withdrawal process can last up to 15 days.
Promotions and Contests
In line with CySEC’s regulations, IQ Option no longer offers any kind of deposit bonuses. The only kind of promotional offer which traders at IQOption are able to participate in is the trading competition which they can join for an entrance fee. Prizes for the competition range from $100 to around $100,000.
There are regular trader tournaments across the trading platform – each carries its own set of terms and conditions. These are generally competitions based on trading success with a leaderboard. They are a method by the broker to encourage trading, so the tournaments are usually decided via the amount of total profit over a given period. They offer a great way for traders to compete against each other and create a lot of interest. The terms will often vary – so one tournament might focus on short-term options, while the next might look at a specific asset class, like forex.
Often there are substantial prizes for the winners of these competitions. These range from cash rewards, to more unique prizes, such as the recent Aston Martin race day experience. These gave winning traders the chance to enjoy a race day in one of the sponsored Aston Martin Racing cars. These tournaments really increase the customer-friendly feel promoted by the firm, and they are worth looking into.
Please note tournaments are only available to Non-EU clients.
Assets and Products Offered
Currently, traders at IQ Option can trade in 90+ different types of underlying assets. They consist of a selection of currency pairs, market indices, stocks, and commodities. They also offer a range of binary options that can be compared to Binary.com and Nadex.
Recently, IQ Option has also added a selection of 12 different types of cryptocurrencies for its clients to trade in.
The list of markets available to trade is constantly growing. Recently, the firm expanded its list of stocks and shares and took a total beyond 150. Expect this expansion to continue in all areas. IQ also spread markets across all products, so things like Oil, Gold, and Silver were added to Digital trades asset lists. Minimum trade sizes do change with each product. So binaries and digital options can be opened for $1, but a Forex CFD has a minimum trade size of $20, and FX Options $30 (Or Euro or GBP equivalent).
FX Options are a very new product. So new in fact, that they are currently only available across the five major currency pairs. Available in EU regulated markets, they offer fixed risk investments, similar to binary options. There is a set expiry for each FX option and the potential payout is dependant on the underlying asset price. So where a trader believes a strong price move is imminent, payouts reach 2000% and more.
As the expiry approaches, payouts tend to grow as these options are affected by the same delta and gamma values as traditional options. There is a $30 minimum trade placed on FX options, but they can be sold at any time up until expiry. So if a trader has brought either a call or a put, both can be sold prior to expiry to either lock in profits or cut losses.
These are a great way for EU traders to still access fixed risk trades. As the product grows in popularity, IQ will doubtless expand the range of markets and expiry times (currently only 1-hour expiries are available).
In an effort to match eToro’s crypto copyfund, IQ delivered the Cryptocurrency Multiples to its clients. These effectively work like a leveraged trade, so price movements in the underlying assets are magnified. IQ Option first introduced this idea with Bitcoin x 100. This amplified the price movements by 100 times, creating huge opportunities and risks for traders.
That product was so popular, that IQ has expanded the concept to Ethereum, IOTA, Ripple, and others. The multiplier factor ranges from x20 to x50 and x100 on Bitcoin as mentioned. At present, these products are only available to Non-EU traders.
Specific strategies for use at IQ Option are difficult to detail due to the vast options available. From rainbow strategy to technical analysis a trader’s choice is endless. A winning strategy for EURUSD may not work for trading oil, and learning lessons from a 60-second strategy may not improve results for 5 minute or longer trades.
The demo account is a great place to experiment and find winning strategies, however. Every trader will need to find their own system, and the unlimited demo at IQ gives traders a better ‘sandpit’ than vs Plus500 for example.
Binary Options vs Forex Trading
The binary vs forex debate is another complex argument when looking at strategy – it will always come back to the trader, their risk appetite, and their favored length of trade. Unlike ExpertOption and HighLow, IQ Options offers both products to its clients. Strategy elements like money management are really a question for each trader, as only you can know your risk appetite.
The last point on strategy is that there is no such thing as a ‘no loss’ system. Some trades will win, some will lose, but a winning strategy is profitable in the long term. Anyone offering 100% accuracy (or anywhere near) is very likely to be dishonest. Discussions on Reddit or Youtube are extremely unlikely to be legitimate traders giving away winning systems for free!
Trading Signals And Automated Trading
At present, IQ does not deliver signals to traders. There are sentiment indicators that give a feel for market sentiment, but no automated signals. Expert advisors are often a feature promoted at other brands, but ultimately an employee of the broker acting on behalf of the trader is unlikely to be impartial. IQ does not offer an expert advisor service on a standard account.
The firm prefers to enable and educate its traders to make their own trading decisions.
Trading Costs And Fees
IQ Option is transparent with its fees and costs. In order to see what trading at IQ will cost, you need to consider:
- Spreads – The difference between buying and selling prices. This is often variable and will depend on volatility, liquidity, and even the time of day.
- Swap Fees – These are fees applied for positions held overnight. Charges vary from 0.1% to 0.5% and will be higher when positions are held over the weekend.
- Dormant Account Fees – If an account is inactive for 90 days, IQ will start applying a charge of €10 (or currency equivalent) each month, assuming the account balance is above zero.
- Withdrawal Fees – There are no fees on the majority of payment service providers, but bank transfers do attract a charge of $31 (or currency equivalent).
- Commission – On certain cryptocurrency trades, a commission of 2.9% will be charged. This charge does not apply to any other asset.
What is the maximum leverage available at IQ Option?
The maximum leverage offered by IQOption is 1:500 for non-EEA members. EEA traders will see leverage capped at 1:30. EEA traders can, however, register as professional – this means the regulatory limits do not apply to their account. Visit IQ Option for more details.
One of the major plus points of IQOption is its customer service. To ensure that traders at IQOption can get the assistance they want whenever the need arises, the broker has made its support services available 24/7. They can contact the support team through email, live chat, or the telephone. For the benefit of traders whose mother tongue is not the English language, IQOption has also translated their website into a dozen different languages.
IQ Option offers a variety of contact methods:
- Email: – email@example.com
- Website: – https://iqoption.com/
- Telephone Support – Offered in 18 countries including Australia, India, Thailand, Brazil, Germany, and Spain (Helpline details on the site)
- Group Details: Registration No. HE327751
- Address: Yiannis Nicolaides Business Center, Agiou Athanasiou Avenue 33, 4102, Agios Athanasios, Limassol, Cyprus
Deposit and Withdrawal
For the funding of trading accounts at IQOption, the broker has provided support for several methods of fund transfer. These methods include transfer by credit cards, e-wallets, and bank wire transfer. Accepted credit cards include VISA, Mastercard, and Maestro. As for the eWallet options, they include popular wallets such as Neteller, Skrill, Perfect Money, and Webmoney.
To withdraw funds, traders can also use the same methods that they used for making a deposit in the first place. Processing of withdrawal requests typically takes one business day but can be as fast as a few hours if the withdrawal method is by eWallets. For credit cards and bank wire transfers, the entire withdrawal process can take as long as 10 business days to be completed.
Growth in Asian markets has also led IQ Option to expand its reach in that region. As a result, bank transfers are now possible from a wide range of banks in this area:
- Thailand – Bangkok Bank, Kasikorn Bank, Krung Thai Bank, Siam Commercial Bank, Bank of Ayudhya, Government Savings Bank, TMB Bank.
- Indonesia – Central Asia,Negara Indonesia, Rakyat Indonesia, CIMB Niaga,Mandiri.
- Vietnam – Vietcombank, Asia Commercial Bank, Bank for Investment and Development, Techcombank, Vietin Bank, Sacombank, Donga Bank, Eximbank.
- Malaysia – Maybank, Hong Leong Bank, RHB Bank, Public Bank, CIMB Bank, AmBank
- Philippines – Help2Pay – Supports both BDO (BDO Unibank) and MTB (Metrobank)
South American options are also being expanded:
- Brazil – Jeton Wallet (Supporting Boleto Bancario), and AstroPay (Boleto, Itau, Bradesco, Banco do Brasil, Caixa, Santander)
- Argentina – AstroPay (Supported banks; Pago Facil, Santander, Banco Galicia)
Perfect Money can also be used across South America, including Colombia. Perfect Money is actually also a valid choice across Nigeria and Pakistan too, as well as parts of Europe.
Jeton will also support IQ Option traders from India and a range of banks catering to South African traders have also been added.
China Union Pay can facilitate deposits and withdrawals for traders in mainland China, Hong Kong, Taiwan, and Macao.
Few brokers can boast what IQ Option offers: a high quality and user-friendly interface, a diverse range of instruments, free educational resources, a replenishable demo account, stellar customer service, and a trusted reputation. This platform is one of the few to keep up with the growing expectations of traders, ensuring that it delivers the best trading experience possible for its clients.
All brokers listed on our website are regulated by at least one financial regulator and have never been reported as a scam. Our reviews and overall scores are based on the key areas above, in a combination with our opinion and commentary.
The reviews are shared and discussed with the brokers, but the authors of our website always have the final word. Furthermore, we always strive to keep the information on our website updated and relevant for our readers.
What helps us stand out is that we always test our brokers with an anonymous live account, to ensure we deliver the most accurate information and experience to our readers. Finally, our reviews and evaluation are always independent of any financial compensation we may receive from the brokers.
There is a very high degree of risk involved in trading securities.
With respect to margin-based foreign exchange trading, off-exchange derivatives, and cryptocurrencies, there is considerable exposure to risk, including but not limited to, leverage, creditworthiness, limited regulatory protection, and market volatility that may substantially affect the price or liquidity of a currency or related instrument. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable, or that they will not result in losses. Learn more at Wikipedia.
All investments involve risks and are not suitable for every investor. The value of securities may fluctuate and as a result, clients may lose more than their original investment. The past performance of a security or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk it does not assure a profit, or protect against the loss, in a down market.
There is always the potential of losing money when you invest in securities or other financial products. Investors should consider their investment objectives and risks carefully before investing. More details here.
Looking for more information on brokers and trading? Have a look at our trading guides:
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- Best Binary Options Brokers for 2021
- Best Online Stock Brokers for 2021
- Best Trading Apps for 2021
- IQ Option Website – https://iqoption.com
- IQ Option – Online Investing Platform – https://play.google.com/store/apps/details?id=com.iqoption&hl=en&gl=US