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Editor’s Verdict
IQ Option is a CFD broker that provides traders with the unique opportunity to trade pairs of competing assets, such as stocks, against each other. Traders receive a proprietary trading platform, which features tight spreads with commission-free trading from 0.1 pips and a maximum leverage of up to 1:500. I rate IQ Option as best for traders who specialize in highly liquid assets. Its swap-free accounts also make it ideal for overnight strategies. Check out this in-depth review to assess its trading conditions for yourself and see if IQ Option is the broker for you.
Overview
IQ Option Six Core Takeaways:
- Proprietary trading platform
- Swap-free trading for all traders
- Tier 1 regulation
- Dozens of localized payment processors
- High-paying affiliate program
- Limited educational resources for beginners
Headquarters | Antigua and Barbuda, Cyprus |
|---|---|
Regulators | CySEC |
Tier 1 Regulator(s)? | |
Owned by Public Company? | |
Year Established | 2013 |
Execution Type(s) | Market Maker |
Minimum Deposit | $10 |
Negative Balance Protection | |
Trading Platform(s) | Other, Proprietary platform |
Average Trading Cost EUR/USD | 0.8 pips |
Average Trading Cost GBP/USD | 0.9 pips |
Average Trading Cost WTI Crude Oil | $0.03 |
Average Trading Cost Gold | $0.12 |
Average Trading Cost Bitcoin | $250.00 |
Retail Loss Rate | 76% |
Minimum Raw Spreads | Not applicable |
Minimum Standard Spreads | 0.1 pips |
Minimum Commission for Forex | Commission-free |
Funding Methods | 20+ |
Islamic Account | |
Signals | |
US Persons Accepted? | |
Managed Accounts |
IQ Option Regulation & Security
Trading with a regulated broker will limit the potential for fraud and malpractice. I always recommend traders check for regulation and verify it with the regulator by checking the provided license with their database. IQ Option is a tier 1 regulated broker.
Country of the Regulator | Cyprus |
|---|---|
Name of the Regulator | CySEC |
Regulatory License Number | 247/14 |
Regulatory Tier | 1 |
Is IQ Option Legit and Safe?
My review found no misconduct or malpractice by this broker.
IQ Option regulation and security components:
- Founded in 2013
- Duly registered in Antigua and Barbuda
- Regulated in Cyprus for EEA-resident traders
- Segregated client deposits from corporate funds
- Negative balance protection
What Would I Like IQ Option to Add?
I would appreciate a third-party insurance package or membership with the Hong Kong-based Financial Commission to ensure traders remain protected by an investor compensation fund of up to €20,000.
Fees
I rank trading costs among the most defining aspects when evaluating a broker, as they directly impact profitability. IQ Option features competitive, commission-free trading fees.
IQ Option does not charge internal deposit fees, and offers one, free monthly withdrawal. Traders may incur third-party processing costs or currency conversion fees. A $10 monthly inactivity fee applies after 90 days of dormancy.
Average Trading Cost EUR/USD | 0.8 pips |
|---|---|
Average Trading Cost GBP/USD | 0.9 pips |
Average Trading Cost WTI Crude Oil | $0.03 |
Average Trading Cost Gold | $0.12 |
Average Trading Cost Bitcoin | $250.00 |
Minimum Raw Spreads | Not applicable |
Minimum Standard Spreads | 0.1 pips |
Minimum Commission for Forex | Commission-free |
Deposit Fee | |
Withdrawal Fee | |
Inactivity Fee | Yes |
Here is a snapshot of IQ Option trading fees:
The average trading costs for the EUR/USD at IQ Option are:
Average Spread | Commission per Round Lot | Cost per 1.0 Standard Lot |
1.4 pips (Cent) | $0.00 | $14.00 |
1.4 pips (Standard) | $0.00 | $14.00 |
0.7 pips (Pro) | $0.00 | $7.00 |
Swap rates on leveraged overnight positions are the most ignored trading costs. Depending on the trading strategy, they may become the most significant fee per trade. I always recommend that traders check them before evaluating the total trading costs.
Below is a list of trading cost examples for buying and selling the EUR/USD, holding the trade for one night and seven nights in the commission-free Pro account.
Taking a 1.0 standard lot buy/sell position in the EUR/USD, at the average spread and holding it for one night in the Pro account will cost the following:
Average Spread | Commission per Round Lot | Swap Long | Swap Short | Total TradingCosts |
0.7 pips | $0.00 | -$0.00 | X | -$7.00 |
0.7 pips | $0.00 | X | -$0.00 | -$7.00 |
Taking a 1.0 standard lot buy/sell position in the EUR/USD, at the average spread and holding it for seven nights in the Pro account will cost the following:
Average Spread | Commission per Round Lot | Swap Long | Swap Short | Total TradingCosts |
0.7 pips | $0.00 | -$0.00 | X | -$7.00 |
0.7 pips | $0.00 | X | -$0.00 | -$7.00 |
Noteworthy:
- IQ Option offers swap-free trading on qualifying assets to all traders
IQ Option Trading Hours
Asset Class | From | To |
|---|---|---|
Currency Pairs | Sunday 23:01 | Friday 23:00 |
Cryptocurrencies | 24/7 | 24/7 |
Commodities | Monday 00:00 | Friday 22:45 |
Crude Oil | Monday 02:00 | Friday 22:45 |
Gold | Monday 00:00 | Friday 22:45 |
Metals | Monday 00:00 | Friday 22:45 |
Equity Indices | Monday 00:00 | Friday 23:00 |
Stocks | Monday 02:05 | Friday 22:00 |
ETFs | Monday 15:30 | Friday 22:00 |
Range of Assets
Traders can diversify through a balanced mix of highly liquid assets. The ability to trade assets against each other, for example, Coke against Pepsi, presents a unique method to capitalize on competing assets in the same sector, similar to how Forex pairs function.
IQ Option offers the following trading instruments:
- Forex
- Cryptocurrencies
- Versus Pairs
- Commodities
- Indices
- Stocks
- ETFs
- Binary Options
- Digital Options
- Blitz Options
Currency Pairs | |
|---|---|
Cryptocurrencies | |
Commodities | |
Crude Oil | |
Gold | |
Metals | |
Equity Indices | |
Stocks | |
Stocks (non-CFDs) | |
Bonds | |
ETFs | |
Options | |
Futures | |
Synthetics |
IQ Option Leverage
Maximum Retail Leverage | 1:500 |
Maximum Pro Leverage | 1:500 |
What should traders know about IQ Option leveraged trading?
- Maximum Forex and commodity leverage is 1:500
- Index and cryptocurrency leverage maxes out at 1:500
- Traders using Versus Pairs can use up to 1:100
- Equity traders get 1:40
- Not all assets qualify for the maximum leverage within a sector
- Negative balance protection exists, ensuring traders cannot lose more than their deposit
- Traders must always use appropriate risk management with leveraged trading to avoid magnified trading losses
Account Types
IQ Option offers an identical Standard account to all traders, while non-EEA residents also may qualify for a VIP account.
Notable features I observed related to the IQ Option account types are:
- A $10 minimum deposit for Standard accounts
Swap-free trading for allnside, the absence of a rebate program for high-volume traders.
IQ Option Demo Account
Demo trading does not grant exposure to trading psychology and can create unrealistic trading expectations. Therefore, I want to caution beginner traders when using demo trading as an educational tool, and they should consider the limitations.
What stands out about the IQ Option demo account?
- The IQ Option demo account has no time limit and a $10,000 balance
Trading Platforms
Traders receive the proprietary IQ Option trading platform and mobile app. It features a user-friendly interface, over 20 technical indicators, customization, and an in-platform news feed, and an economic calendar. It also allows traders to upload scripts and create custom indicators.
Overview of Trading Platforms
MT4 | |
|---|---|
MT5 | |
MT4/MT5 Add-Ons | |
cTrader | |
Proprietary Platform | |
Automated Trading | |
Social/Copy Trading | |
DOM? | |
Guaranteed Stop Loss | |
Scalping | |
Hedging | |
One-Click Trading | |
OCO Orders | |
Interest on Margin |
Unique Features
The fast withdrawal processing times and Versus Pairs are the unique features that stand out the most.
Research & Education
IQ Option does not publish research, which I do not consider a negative, as IQ Option is an execution-only broker with no conflict of interest.
What about education at IQ Option?
IQ Option maintains a blog with educational content, a YouTube channel where beginners can find valuable content, and short video tutorials on its website.
My conclusion:
- I advise beginners to search for in-depth education covering trading psychology and the relationship between leverage and risk management
- Avoid paid-for courses and mentors
Customer Support
IQ Option offers 24/7 customer support via live chat. It also responds to e-mails within 24 hours. The website describes the products and services well.
Customer Support Methods |   |
|---|---|
Support Hours | 24/7 |
Website Languages |     |
Bonuses and Promotions
During my IQ Option review, IQ Option features deposit and no-deposit bonuses. Risk-free trades were also available, and IQ Option hosts tournaments with real cash awards. Active traders also qualify for trading-related perks.
Opening an Account
IQ Option has a swift online account application asking for the country of residence, e-mail address, and desired password.
What should traders know about the IQ Option account opening process?
- IQ Option complies with global AML/KYC requirements
- EEA traders can verify accounts by uploading a copy of a government-issued ID and one proof of residency document
- IQ Option may ask for additional information on a case-by-case basis
- For traders outside the EEA, live account verification is not mandatory. Also, deposits and withdrawals to the same credit card do not require verification
Minimum Deposit
The IQ Option minimum deposit is $10.
Payment Methods
IQ Option accepts bank wires, credit/debit cards, internet banks, e-wallets, local payment methods, and crypto.
Withdrawal options |      |
|---|---|
Deposit options | |
Accepted Countries
During my IQ Option review, the broker stated: “The information on this site is not intended for residents of Belgium or the United States of America or for use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.”
Deposits and Withdrawals
The secure IQ Option Dashboard handles financial transactions for verified clients.
What are the key takeaways from the deposit and withdrawal process at IQ Option?
- Deposit and withdrawal limits depend on the payment processor
- IQ Option does not charge internal deposit fees
- Third-party payment processing costs may apply
- One monthly withdrawal is free, additional withdrawals incur a 2% withdrawal fee with a $1 minimum and $30 maximum
- Traders should consider potential currency conversion fees of 4.00%
- Deposit processing times are instant
- Withdrawal times are instant on 68% of transactions, but may take up to three business days
- Traders can request withdrawals 24/7
- The name on the payment processor and IQ Option trading account must match in compliance with AML regulations
- Payment processor availability depends on the geographic location of traders
Is IQ Option a Good Broker?
I like the trading environment at IQ Option for its competitive trading fees, swap-free trading for all traders, and generous leverage. It also allows 24/7 withdrawals, and the average execution time is less than one hour. The asset selection features highly liquid assets, including Versus Pairs and binary options. Beginners receive introductory educational content. Therefore, I recommend IQ Option for traders, especially from Saudi Arabia and Latin America. IQ Option is legal in the jurisdictions where it accepts traders. IQ Option provides the infrastructure for traders to earn money, but it depends 100% on their strategies and market understanding. Traders can withdraw funds 24/7, and IQ Option has one of the fastest withdrawal processes among all brokers. IQ Option is not an investment platform but a trading platform with competitive trading conditions.FAQs
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Can you make money on IQ Option?
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Is IQ Option a good investment?
Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.