Getting to know IQ Option
IQ Option -founded in 2014- is currently one of the most popular trading platforms among users, among other things, for its variety when choosing what to trade: Forex, stocks, cryptocurrencies or binary and digital options (the latter two are not allowed in the European Union, and therefore in Spain. From OkBrokers we recommend trading with other instruments since, in our opinion, investing in binary options involves taking too many risks).
In addition, it allows you to start trading without putting your assets at stake, i.e. with a free demo account. A really interesting possibility for those who are not very knowledgeable in this area. At OkBrokers we recommend using regulated brokers and, if you are a beginner, start without money. Don’t get carried away: it is better to be patient and then reap what you have sown.
Regulation and licensing
Is IQ Option a scam? No, IQ Option is not a scam. If you are thinking about trading with this broker, it makes sense to do what we all do: “Google it”. Then you will see that there are many pages that question the legality of this trading platform. At OkBrokers we have analysed it and we want to clear it up for you. One of the arguments used to suspect the illicitness of its operation is the fact that it is formed by two companies. But there is an absolutely simple explanation for this: geography.
We explain (and let’s be very honest):
- IQ Option Europe Ltd: is responsible for managing the operations of the IQ Option platform for Europe. It is based in Cyprus and is regulated by the Cyprus Securities and Exchange Commission (CySEC).
- IQ Option LTD: handles trading in the rest of the world, is based in St. Vincent and the Grenadines and is not regulated.
Therefore, IQ Option is a CySec regulated broker since 2014 and its license number is 247/14. Being legally protected by this Cypriot institution, it is perfectly qualified (from a regulatory point of view) to operate in the rest of Europe and to do so it has to follow the legal guidelines and regulations imposed by this body. We can safely say that IQ Option is not a fraud.
IQ Option’s asset offering
In total there are just over 100 financial assets available on this platform. Among them are the most commonly requested ones such as:
- Forex: IQ Option gives you access to the world’s largest and most liquid foreign exchange market. Profits (or losses) are derived from the difference between the bid and ask price of your chosen currency.
- CFD Shares: CFDs (Contracts for Difference) allow you to trade the movements in share prices. Whether it goes up or down, by trading CFDs you can profit from any market movement.
- Cryptocurrencies: IQ Option is a cryptocurrency broker, which is logical given the real passion for cryptocurrencies in recent years.
If you would like to see the full list of assets available on this broker’s trading platform, we recommend you visit IQ Option. To do so, simply click on the button at the top of the page.
IQ Option trading platform
IQ Option’s trading platform can be accessed and operated from the web, without the need to download anything. But if you want to carry it with you at all times, you can download the app available for iPhone and Android, which allows you to trade on IQ Option from mobile devices.
In the download section there are options for desktop and mobile: for Mac it is compatible with OS X; for Windows it works with 7, 8, 8.1 and 10. Ideally you should have 4GB of memory – but 2 is usually enough – and just over 17 megabytes of disk space. Make sure you have this space before installing your trading app.
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IQ Option Commissions
As with other trading platforms, IQ Option charges some trading fees. We review the most common ones:
- Spread: is the difference between the bid price and the ask price, therefore, it is variable and will depend on the market conditions in which you trade and the price of the chosen asset.
- Overnight fees: if you want to keep your positions open overnight, you will have to pay a small fee for this.
- Withdrawal: When withdrawing funds by bank transfer there is a fee of $27. Please bear this in mind when choosing your withdrawal method.
- Inactive account: after 90 days without having made any movement on your account, it will be classified as inactive and you will be charged an amount of 50 euros per month, which will be deducted from your balance. This charge will never exceed the total balance.
IQ Option’s commissions are reasonable but are above those charged by other brokers.
IQ Option Demo Account
At OkBrokers we recommend (especially if you are new to online trading) to start trading without real money. IQ Option gives you the option to open a free demo account for which you only need to register on their website. Once you have done so, you will receive 1,000 virtual dollars so that you can practice without using real money. Try it “pretend” until you are ready to play “for real”.
Depositing and withdrawing funds
The minimum deposit at IQOption is $1 and the maximum deposit is $20,000. However, there are several deposit methods with different characteristics:
- Card (Visa or Mastercard), Skrill, Neteller, WebMoney and PayPal: the minimum deposit is 10 EUR, 10 GBP or 10 USD and the transaction is done instantly.
- Sofort: minimum deposit of 10 EUR, 10 GBP or 10 USD and 1 to 5 minutes to complete the process.
- Bank transfer: minimum deposit of 10 EUR, 10 GBP or 12 USD and 3 to 5 working days for completion.
A good choice of payment methods is something to consider when deciding to work with a broker and IQOption is a good choice in this regard. Be sure to check all available payment methods before you start trading as they may vary depending on where you live. This is especially true for e-wallets.
Conclusions and opinion on IQ Option
- The most important thing: IQ Option is a reliable broker, like all the brokers we recommend at OkBrokers. It is not a scam. Spanish traders should know that the Spanish subsidiary of IQOption is regulated by CySEC.
- The range of assets on offer is interesting, although not excessively broad compared to other brokers.
- The design is one of its strong points: it is easy to navigate and simple to operate thanks to its intuitive trading platform.
- The educational offer leaves something to be desired, although the option to practice with a free demo account is very remarkable.
- This broker has reached a remarkable level of popularity that translates into millions of trading accounts opened on its website and from a large number of countries.
- A positive aspect is the low minimum initial deposit, which is perfectly suited to the needs of retail investors.
Finally we would like to mention the risk warning of this broker: CFD service. Up to 80.6% of retail clients lose money with this broker. CFDs are complex instruments that carry risks of losing money due to leverage.
FREQUENTLY ASKED QUESTIONS
WHAT IS IQ OPTION?
IQ Option is an online broker that started its activity years ago. Despite having focused its service on binary options, this broker has evolved into an internationally recognised brand.
Whether you are trading from Spain or Latin America, you should know that IQ Option accepts users from all over the world. If you want to know more about this broker, we invite you to read our review and opinion about IQOption.
IS IT A SCAM?
IQ Option is not a scam. Its Spanish subsidiary is regulated by CySEC and operates in accordance with European regulation.
DO YOU HAVE A DEMO ACCOUNT?
If you want to trade with real money or have not yet decided to make an initial deposit, IQOption is a broker to consider as it offers the possibility to open a free demo account.
Here you will have a starting balance of a fictitious $1,000 with which you can trade as if it were real. This will allow you to make use of the IQOption platform before you even risk your capital.
WHAT INSTRUMENTS DOES IT OFFER?
IQOption has chosen to introduce financial instruments in its catalogue. Today you can find Forex currency pairs, a good variety of cryptocurrencies or stock CFDs.
Users trading from outside the European Union will also have access to binary options. Please visit our website for more information on the financial assets available through this broker.
WHAT IS THE MINIMUM DEPOSIT AT IQ OPTION?
Small investors will be pleased to know that this broker allows a low initial deposit when opening a real trading account.
Deposits of funds with IQ Option can be between $1 and $20,000.