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IQOption Review 2022

Updated:
4.2
Trust
4.1
Fees
4.1
Platforms and Tools
4.7
Customer Support
4.7
Tradable Instruments
3.1
Account Types and Terms
4.2
Deposit and Withdrawal
3.9
Research
4.3
Education
4.4
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Please note: This is a review of a standard retail account opened with IQOption Europe Ltd, one of the two entities operated by the broker. We evaluated the usability of IQ Option’s custom-built web trader platform and its mobile app version. The functionality of the website and the competitiveness of IQ Option’s trading conditions were also tested.

Data were collected between the 30th of June and the 1st of July.

The Big Picture

IQ Option is an award-winning broker that has become a household name amongst retail traders with its excellent custom-built platform and comprehensive supporting materials. The surge in the popularity of derivatives over the last several years paved the way for IQ Option to establish itself as one of the leaders in CFDs and options trading.

The broker is licenced by a top-tier regulator and offers CFDs trading at acceptable costs. Retail traders can also opt for FX options trading, while professionals may speculate with the very risky binary and digital options.

And while IQ Option offers very good overall conditions for retail trading, the amount of tradable instruments is not varied enough. We also found the offshore licencing of its non-European entity to be weaker than the licencing of its primary entity. Despite this, IQ Option provides a well-balanced and diverse mix of trading solutions that can benefit both beginners and seasoned traders.

IQ Option Key Takeaways for 2022

  • We evaluated IQ Option across 9 categories (Trust and Stability, Fees, Tradable Instruments, Account Types, Deposit and Withdrawal, Research, Customer Support, Education, and Platform and Tools).
  • IQ Option was awarded high marks in the Platform, Education, and Customer Support categories. Traders are able to gain a unique perspective on markets thanks to the platform’s unconventional nature. IQ Option’s probing educational materials and helpful customer support also stand out.
  • The broker also performed well in the Research, Trust, Fees, and Account Types categories. IQ Option strikes a very good balance between services, fees, and transparency, with some exceptions.
  • Where it underperformed is in the Tradable Instruments category. There are only a few commodities and no indices, while the number of currency pairs and stocks is average compared to the broader industry.
  • With its multiple trading solutions, sophisticated platform, and competitive costs, IQ Option is suitable for beginners and advanced traders alike.

What Sets IQ Option Apart From Other Brokers?

What sets IQ Option apart from other brokers is its attention to even minor details. Where something is lacking in IQ Option’s service, it appears firmly committed to making up for it. And where things are already meeting industry standards, the broker tries to find new and inventive ways of improving its service.

A good example of this is its sophisticated platform which includes 100 trading indicators. And while this diversity is impressive on its own, what really stands out is the inclusion of explanations of how each indicator functions. A bubble appears each time you mouse hover over a particular indicator, describing its structure and application.

A description of a trading indicator on IQ Option’s platform
A description of a trading indicator on IQ Option’s platform

Who is IQ Option For?

IQ Option’s service is primarily directed toward retail CFD traders with different experience levels. It also caters to the needs of high-risk takers who want to have a go at binary or digital options trading. However, you must be classified as a ‘professional’ trader per the MiFID II directive to be given access to these highly speculative instruments.

IQ Option Pros and Cons

Pros Cons
  • Authorised by a top-tier regulator
  • Very innovative platform
  • Excellent customer support
  • Probing education and research materials
  • Accommodates different types of trading
  • Weak offshore licencing
  • Lack of diversity of tradable instruments
  • One of its entities is not perfectly transparent
  • No social trading

 

broker

Between 74-89% of retail investor accounts lose money when trading CFDs

 

About the Author

Plamen Stoyanov
Finance writer, analyst, and author of a book for beginner traders "Bulls, Bears and Sharks" with an experience of over 8 years in retail trading and more than 3 years in the finance area.
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How Do We Rate?

When trading forex and CFDs, it is crucial to know a broker's strengths and weaknesses. That is why FX Empire developed its proprietary rating system. We put the knowledge and expertise of our reviewers to work to bring you the most suitable brokers. A total of 200 variables have been analyzed to help you choose your broker wisely. This chart describes all the categories we evaluated and rated.
How Do We Rate Chart
Visit our methodology page to learn more about our review and rating process.
IQOption Main Features
☑️
Regulations
CySEC (Cyprus), FSA(SC) (Seychelles)
🗺
Supported Languages
Spanish, German, French, Arabic, Russian, Portuguese, Hindi, Chinese, Italian, Lithuanian, Ukrainian, Urdu, Thai, Turkish, Azerbaijani
💰
Products (CFD)
Currencies, Commodities, ETFs, Stocks, Options, Crypto
💵
Min Deposit
$10
💹
Max Leverage
1:30 (CySEC), 1:500 (FSA(SC))
🖥
Trading Desk Type
Dealing Desk, Market Maker
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Between 74-89% of retail investor accounts lose money when trading CFDs

IQOption Full Review

Trust

4.1
How Do We Test A Broker's Trust?
When choosing a broker, trustworthiness is one of the most important things to keep in mind. Always check the broker's regulations, know how financially secure the firm is, and find out whether the broker is transparent and reliable. These factors, calculated into our score, will help you understand if your money is safe.

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IQ Option scored above average in the Trust category. While a top-tier regulatory body (CySEC) licences its European entity, its other entity’s offshore licencing by the FSA in Seychelles entails much looser regulatory oversight. And while the website of the former entity is perfectly transparent, there are some issues with the licencing info as presented on the latter entity’s website.

IQ Option Regulation

In our reviews, we examine the licences and regulations of each entity operated by a broker. This allows us to compare each entity’s different levels of protection. We rank licences by various regulatory bodies on a three-tier system, where tier-1 licencing indicates the highest level of regulation.

This is what we found concerning IQ Option’s two entities and their licences and regulations:

  • IQOption Europe Ltd. is licenced by the Cyprus Securities and Exchange Commission (CySEC) under licence number 274/14. CySEC ranks as a tier-1 regulator on our system.
  • Digital Invest Ltd. is licenced by the Financial Services Authority (FSA) in Seychelles under licence number SD085. The FSA is a tier-3 regulator.
IQOption Europe Ltd’s licencing information on cysec.gov.cy
IQOption Europe Ltd’s licencing information on cysec.gov.cy

We have summarised the most essential aspects of IQ Option’s entities in terms of regulation and safety in the table below:

Entity Features IQOption Europe Ltd Digital Invest Ltd
Country/Region Cyprus, Limassol Seychelles, Mahe
Regulation CySEC FSA
Segregated Funds Yes Yes
Negative Balance Protection Yes Yes
Compensation Scheme Yes No
Max. Leverage 1:30 for retail traders 1:1000 for all traders

Why is it Important to Know Where Your Broker is Regulated?

The criteria a broker may be required to meet in order to get authorised differs from regulator to regulator, subject to differences in the legislature. Some offshore regulators are concerned with attracting foreign capital, which is why they may have much more relaxed requirements for brokers, which may ultimately increase retail traders’ risks.

Here is a list of what traders need to be looking for in a safe broker:

  • Segregation of client funds. In order to mitigate the risk of accounting errors, brokers keep their clients’ funds in separate bank accounts from the ones they use for their own corporate funds. Both of IQ Option’s entities comply with this requirement.
  • Negative balance protection. Negative balance protection ensures that a trader’s losses may never exceed the total funds available in their account. Both entities ensure this.
  • Compensation scheme. If the broker becomes insolvent, a client of the company may be reimbursed for losses incurred due to the broker’s credit risk. IQOption Europe Ltd. is a member of the Investor Compensation Fund (ICF), and retail traders with the entity may be compensated for losses of up to 20,000 EUR. Digital Invest Ltd.’s clients are not liable for such a compensation scheme.
  • Maximum leverage. The leverage increases a trader’s market exposure. It multiplies the potential profits and losses of a trade, depending on where the market goes. IQ Option’s European entity has a maximum leverage of 1:30 for retail traders, effectively capping the risk from adverse fluctuations. However, the maximum leverage all traders may choose with the broker’s other entity is 1:1000. The problem with such a massive leverage is that even very small fluctuations in the price may result in huge losses, diminishing the total control a trader may exercise over their positions.

Is IQ Option Safe to Trade With?

IQ Option’s two entities are both safe, though there are discrepancies between the two. IQOption Europe Ltd is safer because the entity is licensed by a top-tier regulator, has negative balance protection, segregated funds, and an investor compensation scheme. Its leverages are also quite reasonable, meeting the requirements of the MiFID II directive.

IQOption Europe Ltd’s risk disclaimer during account registration
IQOption Europe Ltd’s risk disclaimer during account registration

What we found particularly evocative of the high level of safety of the entity is that before you can set up an account with IQOption Europe Ltd., you are asked to state your level of risk-aversion. Almost all brokers are required to place risk warnings on their websites, but IQ Option is a lot more unambiguous in that regard than others. Traders who want to trade with funds they cannot afford to lose will not be permitted to open an account.

Regarding IQ Option’s other entity, traders should remember that Digital Invest Ltd does not have a compensation scheme, and its maximum leverage is way above the industry standard.

Stability and Transparency

In our tests for the Trust category, we also cover factors relating to stability and transparency. Here, we focused on how long the broker has been in business, the company’s size, and how transparent they are in terms of readily available information. We found IQ Option’s T&Cs section to be very detailed and informative.

A distinction between IQ Option’s two entities should be drawn in relation to their transparency levels. While the European entity is very transparent, with clear risk warnings and regulation information, the overseas entity is somewhat less so.

While there is a ‘Regulation’ section on the European entity’s website affording quick access to its CySEC licencing, the overseas entity does not have such a component on its website. Also, we discovered a discrepancy between Digital Invest Ltd.’s address information as presented on the website and what is stated in FSA’s register.

In summary, our findings indicate that IQ Option can be regarded as having a good level of trust and stability due to the following factors:

  • At least one of its entities is licenced by a top-tier regulator
  • Both entities ensure negative balance protection and segregation of client funds
  • The European entity’s website is very transparent

Fees

4.1
How Do We Test A Broker's Fees?
Broker fees can be difficult to understand. We test the broker's platforms and examine commissions, spreads, and overnight fees to ensure that you can determine if trading with this broker is worth your time and money.

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IQ Option scored average in the Fees category. Its spreads are acceptable, and the standard retail account affords commission-free trading. The broker’s non-trading fees are also reasonable compared to the industry standards.

The broker’s spreads on most FX pairs are low to medium, while its spreads on commodities are medium to high, the same as for stocks. IQ Option’s overnight charges are also reasonable. Regarding its non-trading costs, there is an inactivity fee charged on dormant accounts. Deposits are free of charge, while withdrawals via wire transfer may be liable for a commission of $31.

Traders do not have to pay commissions or financing fees for trading CFDs or options. However, there is a premium payable for executing FX options. Additional information is available here.

IQ Option Trading Fees

IQ Option Spreads

We tested IQOption Europe Ltd.’s spreads during the London open at 8am UK time and just after the U.S. open at 2.45pm UK time. These are the most actively traded times. The test was conducted on the 1st of July 2022.

Instrument Live Spread AM Live Spread PM
EURUSD 0.7 pips 1.2 pips
GBPJPY 2.9 pips 3.1 pips
Gold (XAUUSD) 46 pips 76 pips
Crude Oil 0.04 pips 0.04 pips
Tesla NA 4.84 points
Apple NA 0.98 points

IQ Option’s floating spreads vary throughout the day, subject to changing market volatility. We found that they tend to be lower during the London session but surge later in the day. What should be mentioned is that the spreads were measured on a Friday. Typically, liquidity drops after the U.S. market open on Fridays, which naturally leads to heightened spreads. But in IQ Option’s case, this upsurge was not very dramatic.

Overall, IQ Option’s spreads on some of the more commonly traded instruments can be quite competitive when trading activity peaks, though at other times, they can be medium to average compared to the broader industry. You can get some general idea about IQ Option’s spreads here.

IQ Option’s Swap Rates

A swap fee is a trader’s cost for holding an open position overnight because of changing interest rates. Swap long refers to the charge deductible or credit receivable for holding a buy position open overnight. In turn, swap short relates to the charges/credits deductible or receivable for holding a selling position open overnight.

The values listed below are for one full contract (100,000 units) of the base currency.

Instrument Swap Long Swap Short
EURUSD Charge of $0.86 Charge of $1
GBPJPY Charge of $0.87 Charge of $1.17

IQ Option’s Non-Trading Fees

An inactivity fee is charged on dormant accounts that have not registered any activity for at least 90 consecutive calendar days. After that period, the inactive account will be charged 10 EUR monthly until activity resumes or the account balance drops to zero. Any dormant account on which no activity has been registered for a period of 12 months may be deactivated. Additional information is available here.

While deposits are free of charge, traders will not be compensated by the broker for any banking transfer fees. For withdrawals via wire transfers, traders may be required to pay a commission of $31 or an equivalent in another currency, depending on the country. Withdrawals via credit/debit cards or e-wallets are free of charge.

Are IQ Option’s Fees Competitive?

IQ Option’s fees can be competitive in certain cases. The lack of commissions on CFDs coupled with the typically lower spreads on assets after the UK open mean that traders are likely to get the most reasonable conditions then. They can also avoid most of IQ Option’s non-trading costs by staying active and choosing the most cost-effective payment methods.

Platforms and Tools

4.7
How Do We Test A Broker's Platforms and Tools?
Platforms are where you trade, so they must be secure, fast, and accessible while offering you the tools you need to succeed. Each broker's desktop, web, and mobile platforms are evaluated according to the order types, speed of execution, ease of use, and other 'need to know' features.

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Platforms and Tools is the category in which IQ Option received its highest mark. We found its custom-built platform to be very flexible, easy to navigate, and innovative. It has some very original features that are not available on other platforms, affording traders a unique perspective on price action. Most importantly, the platform has all the tools necessary for traders to develop their edges.

IQ Option’s web trader platform, desktop, and mobile app versions have a very easy-to-use interface, allowing traders to switch between charts and other accessories quickly. Different types of traders – scalpers, hedgers, intraday, day, and position traders – are provided all the tools they may require to conduct thorough technical analyses.

The platform can accommodate automated trading, but social trading – also known as copy trading – is not permitted.

IQ Option’s Web Trader Platform

IQ Option’s customisable chart layout
IQ Option’s customisable chart layout

General Ease of Use

In addition to all of the standard industry features, such as watch lists, account information, and available tools, IQ Option’s platform has several very useful customisable features. Traders can modify the chart’s layout, which is handy when conducting multi-timeframe analysis. As shown in the above image, traders can select the number of charts on the main screen and the order in which they appear.

Traders can use this feature to open several charts with different periods on the same instrument. This allows them to quickly observe the behaviour of the underlying price action in the short and long terms. They can thus examine the broader market sentiment while looking for a good entry level to place an order.

Charts

IQ Option’s web trader platform
IQ Option’s web trader platform

The functionality of IQ Option’s charts is great because traders can spot discrepancies in the price action very easily, allowing them to filter out misleading movements. For instance, as shown above, the 4H-chart on the top-left corner underpins a Hammer candlestick near the bottom of the last downtrend – a bullish signal.

The hourly chart on the right reveals a Bullish Engulfing followed by several Doji candles, signalling a mostly neutral bias. Meanwhile, the 30-Min chart below underscores a currently emerging consolidation range.

Another great feature is the possibility of modifying not only the timeframe of the chart itself but also of each separate candlestick. The three charts above all have the same timeframe – 1 day – however, the individual candlesticks differ. Traders can thus scale up or down the price action from two different angles, changing the charts’ level of detail. In other words, traders can determine how much information they want to view at any given time.

Here is a breakdown of the features of IQ Option’s charts in numbers:

  • Trading indicators. The platform incorporates 100 trading indicators, which is above the industry average. IQ Option has separated them into different categories – volume, momentum, trend, volatility, and moving averages – so traders can quickly pick the particular type they need depending on the prevailing market sentiment. And when you mouse over a particular indicator, a bubble appears with information about its applicability. The platform thus serves also as an educational tool.
  • Drawing tools. There are only 5 drawing tools available on the platform, which is arguably its weakest aspect. This lack of variety means that traders have limited ways in which they can outline specific formations in the price action. Nevertheless, they may choose from the most essential ones, such as various lines and the Fibonacci retracement levels. Traders can use those to underscore the direction of an existing trend, potential breakout or breakdown points, and the most important support and resistance levels.
  • Timeframes. There are 18 candle time periods and 7 chart timeframes, amounting to a total of 126 different combinations in which price action can be scaled up or down.
  • Chart types. Price action can be represented in 4 different ways – as a line, with candlesticks (hollow or full), bars, or Heikin-Ashi.

Orders

Traders can also choose the type of market exposure they want to gain from the following order types:

  • Market orders. They are used for immediate entry at the best possible price. Market orders guarantee volume filling though there could be a discrepancy between the requested price and the price where the order actually gets filled.
  • Limit orders. They are placed at a price level different from the current spot price. Limit orders guarantee exact price execution, though there is no guarantee of volume filling.
  • Stop orders. Stop orders are usually used in support of a primary position. For instance, stop-loss orders are placed at a distance from the initial entry of a primary position in order to cap the potential loss that would be incurred if the price action goes against the primary position. Once the price action reaches a stop order’s execution price level, it transforms into a market order and then gets filled at the best possible price.
  • Expiry orders. Traders can use expiry orders to set a date on which the underlying trade is to be closed automatically if it already hasn’t been filled or cancelled by that date.

IQ Option’s Mobile App

IQ Option’s mobile app is probably as flexible as apps can be, given that technical analysis is best carried out on large-resolution devices. The app retains the functionality of the web trader version of the platform, consisting of the same amount of indicators, drawing tools, and other supporting features. It is best suited for monitoring and managing open positions, particularly on the go.

General Ease of Use

IQ Option has recognised the problem of running complex charts on small-screened devices since its app is built with a very efficient design. The platform’s layout is in landscape rather than portrait, which is an inventive way of maximising the amount of information that can be telegraphed without making it hard to read.

The mobile app’s chart (on the left) and the watch list (on the right).
The mobile app’s chart (on the left) and the watch list (on the right).

Charts

Here is a rundown of the most significant features of the mobile app:

  • Trading indicators. The app incorporates 100 indicators, allowing traders to examine different aspects of price action under varying conditions.
  • Drawing tools. There are 5 drawing tools, including trend lines and Fibonacci retracement levels, which can be used to determine vital support and resistance levels, as well as potential breakout or breakdown areas.
  • Timeframes. There are 18 different candle time periods and 7 chart timeframes, amounting to a total of 126 different combinations in which price action can be scaled up or down.
  • Chart types. Traders can choose how to represent price action from 4 options – as a line, using bars, candlesticks, or Heikin-Ashi.

Orders

IQ Option’s mobile app affords some of the most popular order types:

  • Market orders. They guarantee volume filling at the best possible price (the closest to the requested price), depending on the underlying liquidity levels.
  • Limit orders. Limit orders guarantee precise price execution, though the order itself may not get filled if the spot price does not reach the limit order’s execution price. Unlike market orders, which are filled around the spot price, limit orders are placed either above or below the spot.
  • Stop orders. Stop orders are triggered when the price moves to a predetermined level, in which case they get transformed into market orders and filled at the best possible price. They are typically used to support a primary position. For instance, stop-loss orders can effectively close an existing trade if the market goes against it by a certain margin.
  • Expiry orders. Traders can use expiry orders to set a date on which the underlying trade is to be closed automatically if it already hasn’t been filled or cancelled by that date.

Tradable Instruments

3.1
How Do We Test A Broker's Tradable Instruments?
In this section, we check the broker’s market offering and how varied the instruments and asset classes are. It will allow you to check if they offer what you're looking for and what you can trade.

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IQ Option scored below average in the Instruments category, which is its lowest mark in our review. The broker offers CFDs and options trading, though the latter is only available to professional traders. The biggest problem is a lack of diversity when it comes to instruments from different asset classes.

IQ Option offers over 120 instruments from different asset classes, including cryptocurrencies and ETFs. Those can be traded as CFDs, FX options, binary and digital options. However, the variety is not great. There is a reasonable amount of currency pairs and stocks, but there are only 3 commodities and no indices. And given that IQ Option’s spreads on most stocks are medium to high compared to the industry, this leaves traders even more limited in their choice.

On the other hand, we found IQ Option’s ‘Industries’ section especially useful. Traders wanting to trade the shares of a particular company can learn how the industry it belongs to performs as a whole. Moreover, they get important information about the company, like its market capitalisation and its latest share price change. All of this information can be very helpful when looking for an instrument to trade next.

IQ Option’s industry breakdown
IQ Option’s industry breakdown

What are CFDs?

Contracts for difference (CFDs) are derivatives used to speculate on the price of an underlying without physical delivery. For example, a long position on gold would generate a profit as the price rises or incur a loss as it falls. This is achieved without having to purchase actual bars of gold. One of the biggest advantages of trading CFDs is that traders can get in and out of the market almost instantaneously, thereby catching even minute changes in the price of the derivative.

What Can You Trade With IQ Option?

We have broken down IQ Option’s tradable instruments by type:

  • 33 Currency Pairs
    • Majors, Minors, Exotic
  • 3 Commodities
    • Gold, Crude Oil WTI, Crude Oil Brent
  • 192 Stocks
    • Financials, Energy, Retail, and Others.
  • 14 FX Options
    • Majors, Minors
  • 12 Cryptocurrencies
    • Majors, Minors
  • 23 ETFs
    • Various
IQ Option’s instruments by asset class on the platform
IQ Option’s instruments by asset class on the platform

A similar categorization can be found on IQ Option’s platform. For instance, traders can opt to sort their lists of instruments from different asset classes by popularity. The selection process for what instrument to trade is thus enhanced, which is important in such a dynamic environment.

Forex Commodities
EURUSD, GBPUSD, EURCAD, USDJPY Gold, Crude Oil, Brent Oil
Stocks FX Options
Amazon, Intel, Apple, Tesla CADJPY, AUDCAD, USDCHF, USDJPY
Cryptocurrencies ETFs
Bitcoin, Ethereum, TRON, Dash Gold Miners ETF, Energy SPDR, China Large-Cap ETF

In addition to CFDs trading, clients of IQ Option can also trade the available instruments using options. The broker offers three types of options trading – FX options, binary and digital options. FX Options are available to retail traders and resemble vanilla options. They give the trader the right but not the obligation to be exercised at a pre-determined exchange rate (of the underlying currency pair) at a future date. Options are purchased by paying a premium.

Binary and digital options are available only to professional traders. The former are exotic derivatives instruments with a fixed potential payoff and a single strike price (the spot price). Traders either get that fixed amount or nothing at all. Digital options, in contrast, can have multiple strike prices.

Binary options are extremely risky instruments because they give traders little control once placed. They are nevertheless very popular amongst high-risk takers and gamblers because they can generate huge returns in a very short time. Additional information can be accessed here.

Customer Support

4.7
How Do We Test A Broker's Customer Support?
Traders tend to underestimate customer support, but it might be a crucial feature in moments of crisis. In our rating, we check the contact methods available, how accessible a live agent is and how helpful the responses are. This information will allow you to know if a broker can provide full support when you need it.

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IQ Option scored high in the Customer Support category. There is a very useful Help section on the website that traders can refer to for answers to the most frequently asked questions. Additionally, agents are available 24/7 to address issues or questions that the FAQ section may not resolve.

IQ Option’s Customer Support Test

When we test a broker’s customer support team, we evaluate the agent’s knowledge of their website, how long it takes them to respond to questions, and how detailed their answers are. IQ Option’s support performed very well in all components.

We conducted our test on the 29th of June at around 3 pm via the live chat feature available in the main page’s bottom-right corner. Once you open the chat box, you are asked about the nature of your inquiry. If you have a more general question you may be redirected to the FAQ section. If not, you may request to be connected to an operator.

An agent connected almost instantaneously after our request was made. She was very polite and attentive, trying to understand our question about the two timeframe features available on IQ Option’s platform. She was very diligent and asked about a screenshot. She then provided a detailed answer with supporting information and a screenshot of her own.

Our conversation with IQ Option’s customer support
Our conversation with IQ Option’s customer support

Deposit and Withdrawal

3.9
How Do We Test A Broker's Deposit and Withdrawal?
The deposit or withdrawal process can be a tricky one. You may discover that there are hidden fees, or that withdrawal times are longer than you anticipated. We check these factors and others so you know what to expect when trading with this broker.

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IQ Option has a fair amount of payment methods, most of which are free, earning the broker an average mark in the Deposit and Withdrawal category. IQ Option did not score higher because of the high waiting times for withdrawals and also because withdrawals via wire transfer may be liable for a $31 commission.

IQ Option Deposit Methods

Method Fees Processing Time
Visa/Debit Card Zero Instant
Bank Wire Zero 3-5 business days
Skrill Zero Instant
Neteller Zero Instant
PayPal Zero Instant

IQ Option Withdrawals

Method Min. Amount Fees Processing Time
Credit/Debit Card 2 (EUR, GBP, USD) Zero 1-24 hours
Bank Wire 10 (EUR, GBP, USD) 31 USD 1-3 business days
Skrill 10 (EUR, GBP); 12 USD Zero 1-3 business days
Neteller 2 (EUR, GBP, USD) Zero 1-3 business days
PayPal 2 (EUR, GBP, USD) Zero 1-3 business days

IQ Option affords some of the most popular payment methods in the industry. It does not charge any fees on deposits but will not compensate traders for any banking fees incurred from third parties. Withdrawals are also free of charge except for wire transfers, which may be liable for a $31 commission. Withdrawal processing times are also slightly higher than the industry average.

Account Types and Terms

4.2
How Do We Test A Broker's Account Types and Terms?
In order to achieve your trading goals, you need to choose the right account. We evaluate each broker's account types, how easy it is to open an account with them, and the steps involved, so you can decide if it is worth your time to open an account.

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Despite a lack of variety, IQ Option scored above average in the Account Types category. There is one standardised account with competitive conditions for all retail traders. Professional traders, in turn, gain access to more exotic instruments at a higher risk. Swap-free trading is also permitted to clients of IQ Option’s overseas entity.

IQ Option offers a one-size-fits-all account type to all retail traders with no limit on the available base currencies and no minimum deposit requirement. The lack of diversity is compensated by a combination of commission-free trading and floating spreads. Professional traders can gain access to higher-risk/higher-yield assets, such as direct and binary options, but they may lose some of the advantages of the standard retail account. You can find additional information here.

Swap-free trading is not permitted on IQOption Europe Ltd.; however, traders may open Islamic accounts with the broker’s other entity – Digital Invest Ltd.

IQ Option account opening steps
IQ Option account opening steps

Why is Choosing the Right Account Type Important?

In most cases, choosing the right account type boils down to a choice between low spreads/high commissions account types or vice versa. In IQ Option’s case, however, there is no such trade-off. High-frequency traders with large account balances and sufficient experience should instead consider whether to apply for a ‘professional’ status, granting them access to IQ Option’s exotic instruments.

When looking for the right account type, traders need to consider not only the costs but also the risks and benefits entailed by each possibility; it is, therefore, a question of means, trading goals, and risk-aversion. The proper account type should ultimately match a trader’s personal trading style.

What Account Types Does IQ Option Offer?

Account Type Retail Professional
Min. Deposit Requirement None 500,000 EUR
Coverage Under the ICF* Yes No
Digital and Binary Options No Yes
Spreads From 0.7 pips on Majors From 0.6 pips on Majors
Min. Margin Requirement 3.33% 0.2%
Max. Leverage 1:30 1:500

*Investor Compensation Fund under CySEC

There are significant discrepancies between the two account types. The accessibility of the standard retail account is a lot greater since there is no minimum deposit requirement, while professional traders should have portfolios with massive sizes. One additional benefit of IQ Option’s retail account is that it is covered under the investor compensation fund (ICF). Professional traders, in contrast, can opt for bigger leverages. They are also charged with lower spreads and have access to high-risk instruments.

What is CFD Leverage?

The leverage determines a trader’s overall market exposure. When trading Contracts for Difference (CFDs), positions can be opened for a fraction of their value because of the leverage. Essentially, the broker lends the trader money so that the latter can open bigger-sized positions. The leverage multiplies the profits a trader generates from winning positions and losses incurred from failed trades.

IQ Option Account Opening Process

We have summed up the steps of opening an account with IQ Option:

  • Step 1 – To start the registration process, click the ‘Sign Up’ button in the top-right corner of the main page. You’ll first have to state your country of residence, email address, and enter a password. Alternatively, you can use one of your social accounts, such as Facebook or Google. After you click ‘Proceed,’ a live account and a demo account will be opened for you.
  • Step 2 – Immediately afterwards, you will have to verify your email by clicking the link that has been sent to you. Next, you will have to fill in personal information, such as your name, address, and citizenship.
  • Step 3 – You will then have to complete the ‘Background & Experience’ section, where you will be asked whether you are looking for short-term/high-risk/high-return products or for capital preservation and long-term investment products. This is IQ Option’s way of ensuring that traders are familiar with the risks.
  • Step 4 – Then, you’ll have to complete the remaining sections: ‘Investment Appetite’, ‘Annual Income’, ‘Net Wealth’, ‘Anticipated Annual Investment Amount’, ‘Preferred Payment Method’, and ‘Main source of funds’, as per the KYC policy.
  • Step 5 – Finally, you will have to provide information regarding your trading experience and answer some questions in order to demonstrate your knowledge level.
Part of IQ Option’s KYC questions
Part of IQ Option’s KYC questions

Why is a Demo Account Important?

Demo accounts are crucially important for two reasons. Firstly, they allow traders to test out the broker’s services in a safe environment before they move forward with funding a real account. Secondly, demo accounts allow traders to periodically test the performance of their strategies and tweak their parameters in order to adapt them to the ever-changing market conditions.

Traders signing up for a live account with IQ Option are automatically given a practice account as well.

IQ Option Supported Countries

IQOption Europe Ltd. accepts clients from the following countries: Austria, Bulgaria, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Saint Vincent and the Grenadines, Seychelles, Bahamas, and The Netherlands.

Digital Invest Ltd. does not accept clients from the following countries: Afghanistan, USA, Canada, Australia, Israel, Palestine, Japan, Syria, Iran, North Korea, the Russian Federation, the United Kingdom, Belarus, Gibraltar, Ukraine, Gibraltar, and any country of the European Economic Area.

Research

4.3
How Do We Test A Broker's Research?
Research options provided by brokers may not be seen as the most important feature for some traders, but they can give you an edge over the competition. Staying on top of important market news announcements and being aware of big themes can be very helpful. The rating system provides a clear picture of how well your broker fulfills this service.

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IQ Option scored above average in the Research category because of its rich and diverse supporting materials. The broker has an excellent news feed section where traders can access market news and analyses from different sources. The research content is suitable for both beginners and advanced traders, though there are no trading ideas or webinars.

IQ Option’s news feed section contains a pool of third-party market breakdowns and analyses of current developments, which traders can use to screen the most important trading opportunities. The feed section is equally well-suited for newbies and seasoned traders.

IQ Option did not receive a higher grade because it no longer has research webinars, and its technical analyses do not say how much the price of a given asset could appreciate or depreciate next.

IQ Option’s ‘News Feed’ hub
IQ Option’s ‘News Feed’ hub

Research Tools

In addition to the news feed section, IQ Option’s research content falls into several other categories:

  • Technical analyses. Traders can read about the prevailing market sentiment on a given instrument directly from the platform. IQ Option’s technical analyses do not explicitly suggest the likely future direction of the market; however, they show the underlying buying and selling pressures and the main pivot points. Traders can use the technical breakdowns to determine the key battlegrounds between bullish and bearish pressures on charts with different timeframes.
  • Economic calendar. Also accessed directly from the platform, traders can use the calendar to inform themselves about the economic releases that are likely to move the market in the near future.
  • Industries segment. The stocks offered by IQ Option are segregated by industry. When you pick a particular industry from the list, you will see the market cap of each company and the percentage change in its share price. This tool is important because it affords traders a quick look at the current performance of the individual companies, as well as a general idea about the industry’s current state as a whole.
  • Stock collections. Traders can also pick stocks based on some other factor, such as ‘The Biggest U.S. Aerospace Companies’ or ‘Warren Buffett’s Favourites’, from the stock collections catalogue.
An example of IQ Option’s technical analyses
An example of IQ Option’s technical analyses

Education

4.4
How Do We Test A Broker's Education?
Educating yourself on how to trade the financial markets can make the difference between success and failure. We check the educational content provided by the broker, its quality and suitability for beginners and advanced traders.

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IQ Option scored high in the Education category. The broker offers a rich collection of educational videos, articles on various topics, webinars, and a glossary. These highly informative and diverse materials can serve a twofold purpose – as a guide to beginners and a reference to more experienced traders.

IQ Option has multiple educational videos on its website and YouTube channel, covering the basics of trading and the proper use of the platform. The YouTube channel is also where you can access its webinars. There is also an excellent blog section on the website, containing hundreds of highly informative articles on different trading and investing topics. IQ Option’s articles include lots of supporting images and charts, making the materials more accessible to traders with varying levels of knowledge.

An educational article by IQ Option
An educational article by IQ Option

The Bottom Line

IQ Option is a derivatives broker offering CFDs and options trading to retail and professional traders from Europe and elsewhere. Its European entity is reputable owing to its CySEC licencing, while a tier-3 regulator authorises its other entity.

The broker has an excellent custom-built platform that can be used to carry out probing technical analyses. It incorporates multiple unique features that make the platform stand out with its flexibility and ease of use. IQ Option also has extensive research and education materials and excellent customer support; its trading costs are also reasonable.

Where the service of the broker does not impress is in regards to the tradable instruments it offers. There is not a great variety, and even though professional traders can trade with binary and digital options, retail traders are somewhat limited in their choices. There are no indices, only three commodities, and a moderate amount of FX pairs that can be traded as CFDs.

We found IQ Option suitable for both beginners and experienced traders, even though it does not offer social trading. Its comprehensive educational and research materials can cater to the needs of traders with varying degrees of experience, while the sophisticated platform provides a seamless trading experience.

FAQ

Where is IQ Option based?
IQOption Europe Ltd. is headquartered in Limassol, Cyprus. Digital Invest Ltd. is based in Seychelles.

Is IQ Option safe?
Yes, its primary entity has a very high degree of protection

How does IQ Option make money?
Via the spreads it charges.

Is IQ Option suitable for beginners?
Yes, it has a rich collection of educational and research materials.

How do I deposit funds in an IQ Option account?
Traders can choose from several payment methods, including credit and debit cards, bank wires, and e-wallets.

What is the minimum deposit for IQ Option?
There is no minimum on a standard retail account. In order to qualify as a professional trader, you need to have a portfolio of at least 500,000 EUR.

How do I withdraw money from IQ Option?
Traders can withdraw funds using credit or debit cards, bank wire, Skrill, Neteller, or PayPal.

How long does it take to withdraw money from an account at IQ Option?
Most payments are processed within 1 to 3 business days.

How much is the maximum leverage at IQ Option?
1:500 for professional traders. For retail traders with the European entity the maximum leverage is 1:30.

How can I open an account with IQ Option?
By clicking the ‘Sign Up’ button that can be found at the top-right corner of the main page and following the instructions.

What platforms does IQ Option offer?
IQ Option has its own custom-built platform.

Does IQ Option offer a demo account?
Yes, IQ Option offers a demo account.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money

broker

Between 74-89% of retail investor accounts lose money when trading CFDs

See IQOption Full Information
Broker General Information
Trading Features
Other Details
Headquarters Country
Cyprus
Foundation Year
2013
Regulations
CySEC (Cyprus), FSA(SC) (Seychelles)
Publicly Traded
No
Number Of Employees
200
Trading Desk Type
Dealing Desk, Market Maker
Trading platforms
Proprietary
Restricted Countries
United States, Russian Federation, Belgium, Turkey, Japan, Syria, Israel, Canada, Sudan, North Korea, Latvia, Iran, Australia
Supported Languages
Spanish, German, French, Arabic, Russian, Portuguese, Hindi, Chinese, Italian, Lithuanian, Ukrainian, Urdu, Thai, Turkish, Azerbaijani
Min Deposit
$10
Max Leverage
1:30 (CySEC), 1:500 (FSA(SC))
Deposit Options
Wire Transfer, Credit Card, PayPal, Cryptocurrencies, Skrill, Neteller, Moneybookers, Webmoney, QIWI
Withdrawal Options
Wire Transfer, Credit Card, Skrill, Neteller, Webmoney, Moneybookers, QIWI
Cryptocurrencies
Bitcoin, Dash, TRON, Ethereum
Products (CFD)
Currencies, Commodities, ETFs, Stocks, Options, Crypto
Demo Account
Yes
Islamic Account
Yes
Segregated Account
No
Managed Account
No

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