IQ Option review (2022): is it a reliable broker?
IQ Option is a user-friendly CFD broker that allows you to actively speculate on price rises and falls in the market. In this review, you can read whether IQ Option is a reliable party.
|Products:||CFD crypto, Forex, shares|
|Deposit money:||Creditcard, Skrill, PayPal|
What is IQ Option?
IQ Option is a CFD broker: you can actively trade in the price development of popular shares, crypto, currencies and commodities.
IQ option has been around since 2013 and is one of the most popular providers for active speculation. The company has over 7 million registered users and processes over 1,000,000 transactions per day.
How do CFDs work?
With a CFD, you speculate on price rises and falls. CFD’s have some unique features:
- leverage: you can take a larger trading position with a small amount
- Short: you can speculate on a falling price with a short position
Keep in mind that CFDs are risky investment products that are only suitable for short-term investments. Would you like to read in detail how trading in CFDs works? In this article, you will find a clear explanation.
- IQ Option offers an extensive range of investment products
- The software of IQ Option excels in user-friendliness
- IQ Option is a reliable party with numerous possibilities
- The customer service of IQ Option is quick & professional
What are the disadvantages of IQ Option?
- You can only speculate with CFDs at IQ Option
- Speculation on cryptos is expensive
How do you open an account at IQ Option?
Opening an account with IQ Option is easy. Initially, you only need to leave an email and password. It is also possible to open an account with IQ Option by using your social media.After you have opened an account, you can get started right away with a free demo. You can try trading with a $10,000 demo.If you want to trade with real money, you have to enter some personal details. You also have to take a short knowledge test: this allows IQ Option checks whether you have enough experience to get started with CFDs.I rate opening an account as positive within this review: the steps speak for themselves, so you don’t waste a lot of time on this.
What can you invest in via IQ Option?
You can speculate at IQ Option by using CFDs in:
How does IQ Option work?
In this short guide, we will discuss how to open a trading position within the online software of IQ Option. On the IQ Option website, you can see an overview of the products in which you can invest. You can see how many people buy or sell a CFD share, and you can also check the latest news is.When you want to open a trading position, you can press the buy or sell button:
- With the buy button, you speculate on a rising price
- With the sell button, you speculate on a falling price
You can then enter the following data within the software:
- Amount: how many do you want to buy or sell
- TP (optional): at what amount do you automatically take a profit
- SL (optional): at what amount do you automatically take a loss
- Price: enter a price at which you want to buy/sell. When you do not enter a price, you will open a position at the current price.
After you opened a position, you can find your open trades in the overview. You can also check here whether there is still enough money in your account. Since you can use leverage, you can open a larger investment position with a smaller amount.
With a leverage of 1:10 you can invest $1000 with $100. Your margin has to cover this trading position. At a leverage of 1:10, the price only needs to fall 10% to lose all the money in your account.
If your margin is no longer sufficient, you may have to deal with a margin call. Your position will then be closed automatically. You can prevent a margin call by depositing money.
Reliability of IQ Option
When choosing a broker, reliability is of course important. IQ Option has grown rapidly: in 2020 there were more than 7,000,000 people who opened an account with this broker. On average, 21,489 trades are opened per day with a total trading volume of $53 million per month.
The company has also won several awards, including one for best software. IQ Option’s investment software is of a high standard, so I definitely agree with this award.
IQ Option operates in Europe and is therefore regulated. Within the European Union, IQ Option is regulated by CySec which is the regulator of Cyprus. In other regions, IQ Option can be regulated by different parties.
Finally, it is good to know that customer funds are saved on separate accounts. As a result, you do not lose all your money in the event of bankruptcy. Personally, I think IQ Option is a reliable broker.
Deposit & withdraw money
You can start trading at IQ Option with small amounts: from $50 you can already make a first deposit. You then need at least $1 to open a trading position. IQ Option offers the following payment methods:
- Bank transfer
Payments with PayPal or credit card are processed quickly. You can also quickly withdraw money from your IQ Option account. You can transfer your funds to your bank account at any time.
You will have to deal with various costs at IQ Option:
- Swap Fee
- Charges for inactivity
- Withdrawal Fee
There is always a difference between the buy and sell price. For example, you can buy a stock for $10 and sell it for $10.05. In this case, the spread is $0.05 per share. When you use leverage, these costs increase as you buy more stocks.
When you use CFDs to open your position, you borrow money from the broker. You can open a much larger position with leverage. If you keep the trading position open for more than a day, you pay a swap fee for: the amount varies per effect.
Charges for inactivity
If you do not open any trading positions for 90 days, you will be charged $10. Therefore, withdraw your funds when you want to stop trading at IQ Option.
IQ Option charges a higher extra commission on cryptos. It is therefore in my opinion not attractive to trade in crypto at IQ Option. A suitable alternative is Binance.
Withdrawing money at IQ option is almost always free. IQ Option only charges 2% when you withdraw more than once a month. Therefore, do not abuse the system and only withdraw money when necessary.
My experiences with the IQ Option platform
The strongest point within this review is the ease of use of the IQ Option platform. The software looks superb and opening a position can be done quickly within the chart.
Another strong point is that you can easily place multiple charts next to each other. This allows you to compare multiple stocks or time periods with each other and open positions in no time. This makes IQ Option very suitable for active traders.
You can also perform extensive analyses on the graphs. With a mouse click, you can add technical indicators, and it is also possible to draw levels on the chart yourself.
You can also follow the news from multiple sources within the software. This allows you to stay informed on the latest developments in the financial markets.
Are you curious how other investors are performing within the IQ Option platform? You can instantly see how much profit the most successful traders have made in the last 30 days.
IQ Option’s customer service is top-notch. You can easily reach them by phone, email or live chat.
It is a pity that the customer service is only available in English. I, personally, don’t find this a problem, but I can imagine that not everyone is equally happy with this. I tested the customer service myself, and I immediately received an answer.
Conclusion IQ Option review
IQ Option is a suitable broker for active traders who are looking for a comprehensive & user-friendly platform. Since you can try the options for free with a demo, IQ Option is a good broker to start with. Be aware of the risks, as active speculation is risky!
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