IQ Option Broker Review

Is IQ Option a Scam?

No IQ Option is not a scam.  It maintains regulation from CySEC in Cyprus and is registered in Cyprus.  

Founded in 2013, IQ Option is managed and owned by IQOption Europe Ltd, a financial services provider based in Cyprus and is regulated by the Cyprus Securities and Exchange Commission (CySEC). It has a separate company registered in Saint Vincent and the Grenadines for non-EEA countries. As a CySEC regulated broker, it is also MiFID compliant and is a member of the Investors Compensation Scheme.   See below for company registration details:

• IQOption Europe Ltd is regulated by CySEC, license number: 247/14 (operates in the EEA countries)
• IQOPTION LLC  is registered in Saint Vincent and the Grenadines (SVGFSA), registration No. 905 LLC 2021 (operates in non-EEA countries)

Traders in the EEA will be trading under the subsidiary, IQOption Europe Ltd, regulated by CySEC.  

Considered one of the world’s best regulators, CySEC imposes tight restrictions on CFD trading to better protect traders. As a result, IQ Option clients in the EEA will have a leverage limit of 30:1 for Forex trading and will be provided negative balance protection, meaning that traders can never lose more money than they have in their trading accounts. In addition, CySEC regulations ensure that IQ Option keeps its operational funds segregated from client accounts, but also prevent IQ Option from offering promotions or bonuses. 

Considering the CySEC regulation and oversight, IQ Option is regarded as a safe broker. 

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Trading Fees

IQ Option has some of the most competitive trading costs in the industry.

Unlike other brokers that offer a range of accounts with higher minimum deposits linked to tighter spreads, IQ Option offers one live account on its proprietary platform (click here for more on IQ Option’s platform).  

IQ Option has a simple account structure with trading costs that are significantly lower than the industry average. However, although IQ Option states that its revenue is derived from the spread, it is not transparent about how the spreads are derived, and it does not publish the average spreads on its site.

IQ Option’s account was assessed to compare the costs to those of other brokers. The costs were evaluated based on the trading fees on one lot (100 000 USD) on the EUR/USD, including the spread and commission:

Spread x Trade Size + Commission = Total Trading Cost (USD):

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As you can see from the table above, IQ Option offers one commission-free account with trading costs included in its variable spreads.  This means that the spread will fluctuate and get wider or tighter depending on trading volume and market volatility.  However, at 7 USD per lot traded, IQ Option’s trading costs are significantly lower than the industry average. The trading costs on the EUR/USD at other good brokers tend to be around 9 USD per lot traded.

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Broker

Trading Conditions

Base Currencies

EURUSD (Standard)

Trading Cost (Standard)

EURUSD (Best)

GBPUSD (Best)

USDJPY (Best)

Commission

IQ Option

3/ 5

EUR, GBP, USD

0.80 pips

USD 8

0.80 pips

1.30 pips

0.90 pips

USD 0

Pepperstone

5/ 5

AUD, USD, JPY, GBP, EUR, CAD, CHF, NZD, SGD, HKD

0.60 pips

USD 6

0.17 pips

0.59 pips

0.26 pips

USD 0

Capital.com

5/ 5

USD, EUR, GBP, PLN, RUB

0.60 pips

USD 6

0.60 pips

1.30 pips

0.80 pips

USD 0

Swap Fees

Another important cost to consider is the swap rate charged on positions held overnight.   Interest is paid (or received) for each night a position is held. When trading a currency, you are borrowing one currency to purchase another. The swap interest fee is calculated based on the difference between the two interest rates of the traded currencies.

IQ Option charges a swap fee of 0.01% – 0.5% and during times of extreme volatility, up to 1.7% of the face value of the position for keeping a position open overnight.   This is in addition to the interbank interest rates charged by the bank.  

Overall, IQ Option’s trading fees are some of the lowest for a market maker in the industry.

Non-trading Fees

IQ Option’s non-trading fees are higher than other similar brokers.

Some of the most overlooked trading costs are the non-trading fees that are charged by brokers.  These fees can significantly affect your profitability and so should be carefully scrutinised.

IQ Option does not charge deposit fees, but it charges high inactivity fees..

Additionally, IQ Option charges an inactivity fee of 10 EUR (or equivalent) per month after a period of 90 days of account dormancy.  

Opening an Account at IQ Option

The account opening process at IQ Option is user-friendly, fully digital and accounts are ready for trading immediately.

All traders are eligible to open an account at IQ Option but have to meet the minimum deposit requirement of 20 EUR.  

Creating an account is straightforward, the process is fully digital, and accounts are usually ready immediately.  

1. New traders will have to click on the “Sign Up” button at the top of the page where they will be directed to register an account.    
2. Traders will automatically be directed to a demo account with a balance of 10,000 USD.
3. In order to open a real account, IQ Option, in line with regulatory requirements, requires at least two documents to accept you as an individual client:
   1. Proof of Identification – IQ Option accepts all government-issued identification documents such as Passport, national ID card, driving license, or other government-issued ID. 
   2. Proof of Address – Proof of residence/address document must be issued in the name of the account holder within the last three months and must contain a trader’s full name, current residential address, issue date, and issuing authority. 

After the application is approved, traders can login and fund their accounts.  We suggest you read IQ Option’s risk disclosure, customer agreement, and terms of business before you start trading.

Overall, IQ Option’s account-opening process is fully digital and hassle-free and accounts are generally ready for trading once all documentation has been approved.

IQ Option’s Trading Account

IQ Option offers only one trading account, which is limited compared to other brokers, but its account is suitable for both beginners and more experienced traders.  

A market maker, IQ Option offers trading on multiple assets, including Forex, cryptocurrencies, commodities, ETFs, and shares (click here for more on IQ Option’s tradable assets). 

IQ Option offers a single live commission-free account for Forex and CFD trading. With a single registration, IQ Option clients can open both a real and a demo account, but trading is only offered on IQ Option’s proprietary platform. 

IQ Option’s account is suitable for both beginners and more experienced traders. We define beginner traders as inexperienced traders who have never traded before or have been trading for less than a year. Beginners often do not want to risk trading large sums of money, and will generally not be able to trade full-time during the workweek. IQ Option’s account has a low minimum deposit requirement of 50 EUR, putting it within the reach of beginner traders.

Experienced traders often prefer higher minimum deposits and tighter spreads, in exchange for a commission per lot, which is unavailable at IQ Option.  However, the tight spreads on its account make it appealing to experienced traders too.

IQ Option prohibits hedging and scalping and does not support copy trading on its proprietary platform, but it offers Islamic Swap-Free accounts. 

Real Account

Ideal for beginner traders, this account requires only a 20 EUR minimum deposit and offers trading on 400+ trading assets. The maximum leverage offered on this account is 1:30, and spreads are much tighter than other market makers, at 0.80 pips pips on the EUR/USD. While IQ Option does not allow hedging, scalping, or copy trading, it offers Islamic Swap-Free accounts.

Demo Account

Those afraid to risk real money on trading will be glad to learn that IQ Option has an unlimited, free demo account. Upon opening the account, it is loaded with $10,000 in virtual dollars for trading on 400+ assets.

Overall, IQ Option’s account is more suited to beginners than experienced traders, and trading costs are significantly lower than other market makers.  However, traders should be aware of trading with high leverage and low initial deposits, as this may cause an account wipeout. 

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Deposit & Withdrawal

As a regulated broker, IQ Option ensures that all Anti-Money Laundering rules and regulations are followed. As such, all funds are returned to the source.  IQ Options processes payments within three business days.

IQ Option offers a range of deposit and withdrawal methods, including local bank transfers, international bank wire transfers, e-wallets, and credit/debit cards.

Overall, while IQ Option offers a wide variety of funding and deposit methods, withdrawals can be expensive and processing times are slow.

Base Currencies

IQ Option has a limited number of base currencies compared to other brokers.

Trading accounts can only be denominated in five base currencies – MYR, EUR, GBP, RUB, and USD.

It should be noted that for traders that trade in large volumes (more than 10 lots a month), it is better to open an account denominated in USD, especially for trading on assets such as the EUR/USD. This is because when trading a USD quoted currency pair with a EUR account, there will be a small conversion fee for every trade made.

Overall, IQ Option offers fewer trading account currencies than most other large international brokers.

Trading Platforms

Unlike most CFD providers, IQ Option only provides its own trading platform, which cannot be customised and does not allow for algorithmic trading.

Unlike most CFD providers, IQ Option only offers its proprietary trading platform. This could be a concern as most similar providers also offer MetaTrader 4 or 5 in conjunction with any first-party software. 

IQ Option’s proprietary social trading platform is very popular among new traders.  The platform looks fantastic, is very easy to use, and has a solid reputation in the trading community.  It features a large chart which is a great help for traders who wish to monitor the market conditions. Margin trading is also available for certain instruments.

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Broker

Platform Choice

Copy Trading

Platforms

IQ Option

4/ 5

No

IQ option

Pepperstone

5/ 5

Yes

MT4

MT5

cTrader

Capital.com

4.5/ 5

No

MT4

Capital.com

In addition, the platform comes with a wide selection of trading tools, including Moving averages, Bollinger Bands, MACD, and RSI.  It also allows traders to establish alerts based on more than 100 technical indicators and an economic calendar.   

However, unlike platforms such as MT4 and MT5, IQ Option’s platform is not customisable, and traders who are used to setting up their own charts over a bespoke workspace will be disappointed.  In addition, the platform does not offer the execution speeds of the Metatrader platforms, nor does it offer algorithmic trading.  

Another disadvantage of using the IQ Option’s platform versus third-party platforms is that none of the trading tools available on the Metatrader can be integrated directly into the platform.  Additionally, traders who use third-party platforms such as the Metatrader suite can take their own customised version of the platform with them should they choose to migrate to another broker.

Overall, IQ Options’ platform is a good choice for beginner traders because of its simple and intuitive interface, but compared to third-party platforms such as MT4 and MT5, it lacks the execution speeds and doesn’t allow for automated trading via expert advisors or other trading algorithms.

Mobile Apps

IQ Option’s mobile trading platform is average compared to other brokerages.

For traders that are unable to remain at their trading terminal for any prolonged period of time, IQ Option offers a free mobile trading app, available on Android and iOS. The mobile trading app has been designed specifically for smartphones and mobile devices, allowing traders to check their account status.  Mobile functionality is most of the indicators and tools available on the desktop version. 

Trading Tools

IQ Option offers a limited range of trading tools compared to other similar brokers.

IQ Option’s trading tools include various charting tools and technical indicators.  However, unlike other similar Forex brokers, it does not offer any additional sentiment indicators or analytics services such as Autochartist or Trading Central, and the proprietary platform also does not integrate with any third-party tools. 

The online trading platform offers a great variety of charting tools. These help traders predict future market movements and include candles, hollow candles, bars, areas, and lines.

IQ Option also has 13 different indicators that users can access through the charting interface. The indicators help traders discover trends and find trades with good profit potential.  Indicators include:

• Moving Averages
• Bollinger Bands
• Moving Average Convergence Divergence (MACD)
• Awesome Oscillator
• Volume Indicators
• Parabolic SAR
• Relative Strength Index (RSI)
• Stoch or Stochastic Oscillator indicators 
• Average True Range (ATR)
• Average Directional Movement Index (ADX)
• Fractals 
• Commodity Channel Index (CCI)

Overall, IQ Option’s trading tools are limited compared to other brokers, but its technical indicators and charting tools are excellent. 

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Broker

Autochartist

Trading Central

Trading View

IQ Option

No

No

No

Pepperstone

Yes

No

Yes

Capital.com

No

No

Yes

IQ Option’s Financial Instruments 

IQ Option offers a limited range of tradable assets compared to other similar brokers.  

IQ Option offers CFD trading on Forex, shares, commodities, cryptocurrencies, and ETFs (click here for more on CFD trading).  

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Forex – Limited compared to most other brokers, IQ Option offers trading on 33 Forex pairs, including majors and minors.  The maximum leverage is up to 1:30 on Forex pairs.  

Stocks – IQ Option offers trading on stock CFDs from more than 192 different companies. Some of them are listed on NASDAQ or NYSE, such as eBay, Slack, and Amazon.  The maximum leverage on stock CFDs is up to 1:5.

ETFs – ETF trading works by tracking commodities, indices, and baskets of various assets. ETFs are in many ways like mutual funds. Users can trade up to 23 ETFs on this platform, which is around the average offered by most other brokers.  Maximum leverage is up to 1:5 on ETFs.

Cryptocurrencies – IQ Option offers its users 12 different CFDs on cryptocurrencies, a wire range than is typically found at other brokers. These include Bitcoin, Ethereum, Ethereum Lite, Ripple, Litecoin, Monero, Zcash, Omisego, EOS, Tron, Dash, and Qtum.  The maximum leverage is up to 1:2 on cryptocurrencies.  

Commodities: IQ Option only offers trading on three commodities, which is limited compared to other brokers.  These include gold and oil.  The maximum leverage is up to 1:20 for gold and 1:10 on other commodities.    

Overall, IQ Option offers a limited range of tradable instruments, which may leave more experienced traders dissatisfied.

IQ Option for Beginners

IQ Option offers a limited selection of educational and market analysis materials compared to other similar brokers. 

Educational Materials

IQ Option’s educational materials are limited compared to other similar brokers. 

IQ Option provides an extensive video library for education purposes. Since the core client base at IQ Option is the younger, less experienced traders who are attracted by the unique social trading platform, the short videos cater well to these traders.  

While most of the videos cover market news issues, there are a set of videos covering the basics of the IQ Option platform and an introduction to CFD trading.  Furthermore, a large portion of the material is focused on cryptocurrencies.  

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Broker

Beginner Course

Advanced Course

IQ Option

No

No

Pepperstone

Yes

Yes

Capital.com

Yes

Yes

Analysis Material

IQ Option offers very few research materials, and most of these are curated by third-party providers.  

A Facebook-style news feed of 3rd party economic news is freely available to all visitors to the IQ Option website, along with a small section on expected high volatility news events. The rest of the analysis comes in the form of tools that are built into the platform.  

Customer Support

IQ Option’s customer support team is available 24/7, which is an advantage for beginner traders.

IQ Option has a 24/7 telephone and live chat customer support service. Most countries have a toll-free phone option while others are charged at local rates.   Customer service is available in 16 languages.  Additionally, the live chat service is only available once traders register an account.   

For the purposes of this review, we found the customer support responsive and polite, but uninformed.  They were unable to answer questions on the average spreads and leverage on various instruments.

Evaluation Method

We value transparency and openness in the way we review the partners. To bring transparency to the forefront, we have published our review process that includes a detailed breakdown of the IQ Option offers. Central to that process is the evaluation of the reliability of the broker, the platform offering of the broker and the trading conditions offered to clients, which are summarised in this review. Each one of these is graded, and an overall score is calculated and assigned to the broker.

IQ Option Risk Statement

Trading Forex is risky, and each broker is required to detail how risky the trading of Forex CFDs is to clients. IQ Option would like you to know that: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Overview

IQ Option offers a single live account with excellent trading conditions, including spreads of 0.7 pips on the EUR/USD in exchange for a minimum deposit of only 20 EUR.   However, its educational and market analysis materials are restricted, forcing traders to self-educate elsewhere.  It also provides a limited number of tradable assets compared to most other brokers and charges high non-trading fees, including high inactivity fees.