IQOption Review 2024

Trust

This section will cover how the different entities of IQ Option are regulated and how this impacts you as a trader. We rate regulators on a scale of 1 to 3, with 1 reflecting the highest level of trust.

• IQOption Europe Ltd is authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC), registration number: 327751. We rate CySEC as a Tier-1 regulator.
• SKY LADDER LLC is a company based in Saint John’s, Antigua and Barbuda, with registration number ILLC 004. SKY LADDER LLC is unregulated.

Why is it important to know where your broker subsidiary (entity) is regulated?

Different regulators provide different levels of protection. For example, IQ Option clients in the European Union (EU) benefit from the oversight of CySEC. It requires that clients have negative balance protection, which means they cannot lose more than their deposit.

In addition, client funds with CySEC-regulated broker entities are protected by the Investor Compensation Fund (ICF). The ICF secures investments of up to €20,000 if a firm becomes insolvent. A trader working with a broker entity regulated offshore would not necessarily have these benefits.

The tables below list the protections and benefits by entity, regulator, and region.

Stability and Transparency

In our tests for the Trust category, we also cover factors relating to stability and financial strength. Here, we evaluate the broker’s longevity in the industry, the company’s size, and its transparency.

IQ Option traces its origins to 2013, marking it as a relatively experienced forex and CFD broker. According to its LinkedIn page, the company is headquartered in Limassol, Cyprus, and has 51-200 employees.

In my research, IQ Option showed high transparency in its regulatory status, listing its regulator in the footer of each page of the eu.iqoption.com website. The website breaks down fees clearly with the General Fees document. The Terms and Conditions document can be found in the footer of each page of the website.

To summarize, my findings indicate that IQOption Europe Ltd can be regarded as trustworthy and stable due to the following qualities:

• Regulated by top-tier CySEC
• Over 10 years of operating history
• High level of transparency

Fees

Trading Fees

I tested the spreads at IQ Option across various markets during the London open at 8:00 a.m. UK time and after the open of the New York forex session at 1:00 p.m. UK time. At these times, the market is typically highly liquid with the tightest spreads. I recorded the data on 6 December 2023.

Spreads of less than 1 pip in EUR/USD marked a bright spot for IQ Options. Such a tight spread makes day trading and scalping viable. The spread of 2.9 pips in GBP/JPY was closer to the industry average. I was disappointed to see a spread of 8.6 pips in the Dow 30 – much wider than most leading CFD brokers.

Commissions

IQ Option does not charge commissions for any instruments including CFDs on stocks. All trading costs are reflected in the spread.

Swap Fees

In the table below, you can see the Swap Long (the cost/credit of holding a buy position overnight) and the Swap Short (the cost/credit of maintaining a sell position overnight) for one full-sized contract. A full-sized contract is 100,000 units of the base currency (the first currency quoted in the pair). I recorded the data on 8 December 2023.

The swap fees at IQ Option are more expensive than average for the industry. Normally a broker either charges or pays interest based on the interest rate differential. IQ Option charges a swap fee even when the client is holding a pair with a positive interest rate differential. Other forex brokers typically pay interest to the trader in this instance.

Non-Trading Fees

Clients are charged a monthly €10 inactivity fee if their account has been dormant for 90 consecutive days. The inactivity fee is lifted when the account becomes active again.

Are Fees at IQ Option Competitive?

To conclude, I rate the fees at IQ Option as not very competitive for the following reasons:

• Wide spreads in most instruments
• High swap fees
• Inactivity fee that starts after just 90 days

On a positive note, IQ Options offers:

• Spreads of under 1 pip in EUR/USD
• No deposit or withdrawal fees (including via bank wire)

Platforms and Tools

The IQ Option web platform has a clean, well-designed interface. It is accessible via a web browser without any downloads required. The interface is intuitive and simple, making it suitable for beginners.

Via the watchlists feature, traders can track a custom list of their preferred instruments. Alternatively, watchlists dedicated to different asset classes are available. In my experience, watchlists are an essential tool for saving time when checking market prices, eliminating the need to look up individual instruments.

The IQ Option platform has 23 different layouts for charts you can choose from. I find this a key feature because it allows you to follow and trade multiple instruments at once. An example of where this comes in especially handy is if you are trading a strategy based on intermarket correlations. Trading from the chart is also available, allowing you to enter orders as fast as possible.

Charting within the IQ Option Platform is robust, with a better-than-average range of indicators, drawing tools, time frames, and chart types. Traders can make use of the following range of charting features:

• 100+ Indicators. These include classic trend, volatility, volume, and momentum indicators. A range of exotic indicators like Fractal Chaos Bands are also available.
• 18 Time frames. Traders can choose from 18 time periods, from five seconds to one month.
• 5 Drawing Tools. These include Fibonacci lines, trend lines, and horizontal lines.
• 4 Chart Types. Traders can choose between Bar Charts, Japanese Candlestick Charts, Heikin-Ashi Charts, and Line Charts.

The IQ Option platform provides flexibility with a strong range of available order types:

• Market orders. Traders use market orders to buy or sell an instrument at the best current price.
• Limit orders. Traders use limit orders to buy or sell an instrument at a specified price or better.
• Stop loss orders. Traders use stop-loss orders to buy or sell an instrument when its price reaches a specified level.
• Take profit orders. This feature allows you to set a limit order at which you exit your position profitably.
• Trailing stop orders. Traders use trailing stop-loss orders as a stop-loss order at a defined percentage or dollar amount away from an instrument’s current market price. This order type allows traders to secure profits when they are in a winning trade while not having to exit the position. Currently, trailing stop orders are only available on non-margin trades.

The position monitoring panel makes it easy to keep track of the profit and loss of your market positions in real time and view your net P/L. You can also check your pending orders here.

The IQ Option platform offers alerts to help optimize your trading performance. You can set up alerts to inform you about when the price of an instrument reaches a specific level. Alerts can be delivered via the platform or by push notification.

The IQ Option platform has a built-in feed of analysis from sources including Reuters, Daily FX, and FXStreet. A steady flow of stories is published throughout the day. I found this to be a good source of trading ideas at hand within the platform. Earnings and economic calendars are also available via the Market Analysis section of the platform.

IQ Option Leaderboard is an innovative feature that allows you to quickly view which traders have made the most money on the platform over a period of one week. You can use the tool to find out your rank worldwide and in your own country. Another interesting feature of the leaderboard is that it allows you to see which instruments top clients are trading.

IQ Option Order Execution Model

IQ Option is a DD broker (Dealing Desk broker) and a Market Maker. The company is the counterparty of clients’ trades and takes this risk onto its own book.

Platform Languages

The IQ Option platform is available in 15 different languages, to accommodate clients from across the globe.

My Key Takeaways after Testing the IQ Option Web Platform

The IQ Option web platform really shines in the area of design, and I especially appreciated its uncluttered interface. As a technical trader, I was impressed by the above-average range of chart indicators available. I like to watch multiple instruments at once on the same monitor, so I made good use of the various chart layout grids. Charting is robust, and the range of order types provides traders with flexibility. This is an intuitive platform that can cater to beginners while also having advanced features to accommodate experienced traders.

IQ Option Mobile App

The IQ Option mobile app is available for Android and iOS. The app is set to landscape orientation rather than portrait, which works well for analyzing charts. It incorporates the key features of the web platform, like watchlists, advanced order types, alerts, trading from the chart, and the market analysis feed. Two-factor authentication is available for an added layer of security. It is also possible to chat with support and deposit/withdraw funds via the mobile app.

Advanced charting is available within the app, sufficient to do in-depth technical analysis of the markets while on the move. Traders can work with:

• 100+ indicators
• 4 Chart types
• 7 drawing tools
• 18 time frames

The IQ Option mobile app doesn’t skimp on order types either – traders can use standard and advanced order types:

• Market orders
• Limit orders
• Stop Loss orders
• Trailing Stop orders (only available on non-margin trades)

My Key Takeaways after Testing the IQ Option Mobile App

This is a robust app that incorporates the key features of the web-based platform. The main difference is that on the app you can only open one chart at a time, whereas on the web and desktop apps, you can view up to 9 charts at a time. Surprisingly, some drawing tools like Fibonacci Arcs and Fibonacci Spirals are only available on the app.

The combination of landscape orientation, 1-click trading, and trading from the chart made for a smooth trading experience in my tests. I rate this innovative app as better than average for the industry.

Tradable Instruments

CFDs (Contracts for Differences) are financial derivative products that allow traders to speculate in various markets without owning the underlying assets. Tradable instruments at IQ Option include the following:

• 62 Currency Pairs. A currency pair combines two different currencies, with the value of one currency quoted against the other. For example, EUR/USD, which reflects the value of the euro measured in dollars.
• 9 Commodity CFDs. Commodities are raw products, such as gold and oil.
• 376 Global Stock CFDs. IQ Option offers trading in stock CFDs from exchanges ranging from the NASDAQ to the Tokyo Stock Exchange. A stock is a security that represents partial ownership of a corporation.
• 22 ETF CFDs Exchange-traded funds (ETFs) are financial instruments that track an index or sector and trade like a stock on an exchange.
• 12 CFDs on Indices. Available instruments range from Taiwan to Brazil stock indices. An index is a basket of trading instruments that are used to gauge a market sector, stocks within an exchange, or the economy of a country.
• 26 Cryptocurrency CFDs. Cryptocurrencies, such as Bitcoin, are digital currencies that are secured by cryptography.
• 3 CFDs on FX Options. FX Options give the buyer the right, but not the obligation, to buy or sell a currency pair at a specified rate on or before a specified date.

In the tables below, you can see a selection highlighting the variety of instruments available at IQ Option:

My assessment indicated that IQ Option is particularly strong in the areas of indices and crypto. There is some room for improvement in the range of available commodities and currency pairs.

My Key Takeaways After Exploring IQ Option Tradable Instruments

For a mid-sized broker, I was impressed by the range of tradable assets at IQ Option. Traders can find the most popular instruments at this broker, and with the availability of CFDs on ETFs, Crypto, and FX Options, IQ Option beats the industry average.

Customer Support

Support is a key component of a broker’s offering – whether you are a new trader looking for guidance on how to use the platform or an experienced trader who needs help fast to exit their positions in the event of a technical glitch.

I tested IQ Option customer service over two weeks with dozens of queries, ranging from platforms to fees and regulatory issues. Chat support was on hand quickly, and reliably answered my questions.

Via email, support was also good, with fast and satisfactory answers to inquiries. However, I was unable to reach support by phone. Every time I called I got a recorded message saying all specialists were busy.

Deposits & Withdrawals

Deposits

The processing time of 3-5 business days for bank wire transfers is fairly standard for the industry. With the availability of credit/debit cards and digital wallets as funding methods, traders have the convenience of funding accounts instantly.

Withdrawals

IQ Option earned points in our review by not charging a withdrawal fee via wire transfer, which is quite common among other brokers. Processing times are relatively fast in relation to the industry average.

Account Types and Terms

Account Application

To open a live account with the EU entity of IQ Option, prospective clients must provide the following information:

• Personal Details: Name, address, date of birth, citizenship.
• Employment Details: Employment status, industry.
• Financial Details: Annual income, net worth, source of funds.
• Level of Trading Experience: Length of trading experience, number of trades per year, frequency of trading activity.
• Proof of Identity and Address: Passport, driver license or identity card, household utility bill or a bank statement (address).

Note: In the background and experience section of the application process, IQ Option asks some basic questions relating to CFD and options trading.

Demo Accounts

IQ Option offers demo accounts via the IQ Option web/desktop platforms and mobile app. It is super easy to set up a demo account with IQ Option as you simply need to register with your email address and set up a password to get started.

Demo accounts are especially important for beginners as they allow them to practice the strategies and get comfortable with the trading platform without risking real money. The demo account features live quotes and simulates live market conditions. Once users are up to speed on a demo account, they can easily switch to a live version.

Professional Accounts

Experienced traders can open a professional account, which potentially gives access to assets with a higher risk profile. To be categorized as a professional, you must meet at least two out of three of these criteria:

• Trading volume. You have made at least 10 deals (each worth €150 or more) per quarter for the last 4 quarters.
• Sizable portfolio. Your financial portfolio (including financial instruments and cash) exceeds €500,000.
• Relevant experience. You have at least one year of relevant experience working in the financial field.

Professional clients receive the same level of protection as retail clients, with one exception – their funds will not be covered under the Investor Compensation Fund (ICF). Professional clients can change their status back to retail at any time.

Islamic Accounts

The EU entity of IQ Option (IQ Option Europe Ltd.) does not offer Islamic accounts.

Leverage

One of the reasons that traders are attracted to the forex market is the high degree of available leverage. Leverage is the use of borrowed funds to increase the size of your trading positions beyond what would be possible using only the cash in your account. In the table below I cover the leverage available at IQ Option across a range of CFD instruments.

Base Currencies

The base currency is the currency in which your account is denominated. IQ Option offers three base currencies: EUR, GBP, and USD.

Supported Countries

IQ Option EU accepts residents from all countries belonging to the European Economic Area (EEA).

Research

News and analysis reports cover both fundamental themes such as market-moving economic events and technical insights like major support and resistance levels.

Multiple reports are published daily and I rated the material as in-depth and high quality. News and analysis are also available via the web/desktop platforms and mobile app.

My Key Takeaways after Examining IQ Option Research Materials

I liked the blend of breaking financial news and chart analysis coming from various leading sources. Economic and earnings calendars are conveniently available on the website and built into the trading platform.

The Leader Board within the platform is an innovative tool and an interesting source of ideas for assets to trade. I noted that IQ Option has sentiment data within the platform, but it does not appear to work, because for every instrument it shows 50% buyers and 50% sellers. IQ Option could improve by incorporating videos and live webinars.

Education

The IQ Option video tutorials spoon-feed the basics of forex and CFD trading in bite-sized videos of a couple of minutes each. Topics covered include:

• Basics. Covering frequently asked questions about the IQ Option platform (9 videos)
• Margin Trading. Explains lot sizes, pip values, and how to get started using margin. (2 videos)
• Fundamental Analysis. Covers how to trade the news and financial calendar. (5 videos)
• CFD Trading. Addresses key topics like slippage, long and short positions, and swap fees. (11 videos)
• Technical Analysis. How to use technical indicators in trading (6 videos)

These videos make a great starting point for beginners and provide a solid foundation for getting started in the world of forex and CFD trading.

More advanced topics are covered via in-depth articles on the IQ Option blog. Here you can find articles advanced covering topics like Trading with ATR (Average True Range) and Top-3 Indicator Combinations. These articles are good primers on how the indicators work and how you can use them to develop your own trading strategy. The blog also features insightful material on important subjects like trading psychology.

The Bottom Line

The CySEC-regulated entity of IQ Option is an appealing option for beginners to the forex and CFD markets with its innovative platform and mobile app. Traders can experiment with a great range of assets including an unusually wide range of crypto pairs. I found room for improvement in the areas of spreads. Also, IQ Option could enhance its appeal by offering a Raw Spreads account for experienced traders, a feature common among competitors. The addition of a third-party platform like MetaTrader would also help round out the offering.

Despite having trouble reaching support via phone, I found chat support to be very helpful and received what felt like a personalized service. My assessment showed that IQ Option went the extra mile with its educational materials, reflecting a commitment to helping traders get off to a strong start in the markets. If you are a casual trader or newbie to the markets, it might be worth taking IQ Option for a test drive via their demo account.

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