Is IQ Option a Good Platform for Your Investments?

Josep Garcia

10 July, 2021

IQ Option

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IQ Option is a highly popular trading platform with presence in thirty countries. It has seven million registered users; I suppose not all these users are active traders, but have registered to check out their demo account.

It’s regulated by CySEC in Cyprus and registered with other governmental organisations such as British FCA, CNMV in Spain, the Italian Consob or Regafi in France.

iq option review broker

Of course, before deciding whether you want to start trading with IQ Option you’ll have lots of questions on their commissions, functionality and the assets you can trade with them.

To answer all these questions and any doubts, I’m sharing this detailed IQ Option review and sharing my insights on this trading platform.

Opinions about IQ Option: Summary

IQ Option allows you to trade with derivative products (CFDs), a bit over 250 different assets are available (e.g. stocks, ETFs, commodities, crypto and Forex) – that doesn’t seem like an awful lot. If you’re a finance professional you’ll also be able to trade with options. Their platform is well-designed and looks modern, and the spreads are reasonable.

If you’re not an experienced trader, IQ Option is not the best option because you won’t be able to operate without leverage. It’s also not possible to buy the real asset (e.g. stocks or ETFs), you can only invest on derivative products. In this case, you might be interested in taking a look at alternatives such as DEGIRO, XTB o eToro.

71% of small investors incur losses when investing in CFDs with IQ Option. CFDs are complex high-risk products due to the leverage. You risk losing your investment.

Pros and Cons of IQ Option

I’m going to go through the main advantages and disadvantages of IQ Option, so you have an overview of what to expect from this trading platform.

The pros to consider:

  • Modern application: The IQ Option platform is modern and easy to use, and the graph analysis is highly practical albeit somewhat limited (I’ll tell you more about this below).
  • Spreads: Generally speaking, I find the spreads IQ Option charges reasonable compared to those from its competitors, although this is a bit difficult to judge.
  • Fast support: Whenever I had to contact IQ Option support they were always fast. I believe support in other languages than English is a bit slower.
  • European regulation: IQ Option is based in Cyprus, and thus is subject to European financial regulation. As well as this, IQ Option is duly registered with European organisations such as Spain’s CNMV, Regafi in France or Consob in Italy. It’s also registered with the British FCA. For the time being it’s not regulated with organisations from the United States, Japan or Australia, among others. This means you will not be able to operate from these countries.
  • Options: If you have a professional account you’ll be able to operate with options; not many other brokers allow this.

And the cons to consider:

  • Somewhat slow web app: In my experience, their web app, although well-designed, is a bit slow. If you install the app in your computer it should be faster.
  • Few assets: Unfortunately, IQ Option does not offer the widest variety of assets for you to trade with. At the moment this review was written, it only has a total of 260 in stock, ETFs, Forex, commodities and cryptocurrency CFDs. There are other brokers that offer more variety.
  • Inactivity fee: If you don’t use IQ Option for three months you will be charged a monthly inactivity fee of $/£/€10.
  • It only operates with derivatives: Unlike some of its competitors (e.g. eToro, XTB o DEGIRO), you will only be able to operate with derivative (mainly CFD). These are more complex than other securities (e.g. real stock).

Who Should Use IQ Option?

Undoubtedly, IQ Option is only a valid option for those who wish to operate with derivatives, basically for traders. Its most attractive feature is probably that those who are interested and have financial professional profiles can operate with options as well as CFDs.

Unfortunately, IQ Option does not have the widest asset variety. This might not be ideal for many traders. Other platforms such as Plus500, XTB or eToro offer more options.

IQ Option in Detail

Criteria Comment
Country and regulation
Cyprus, Italy, Spain, France, United Kingdom, etcetera.
IQ Option is regulated by CySEC (in Cyprus), registered in various governmental organisations such as the CNMV (Spain), CONSOB (Italy), FCA (United Kingdom), CNB (Czech Republic), AFM (Netherlands), Regafi (France), etc.

Generally speaking, it’s possible to operate with IQ Option if you live in a European country (including the United Kingdom). Unfortunately, it’s not possible to operate with IQ Option if you live in the United States, Japan, Israel, Australia, Russia or others.

Deposits









It’s possible to add funds to IQ Option via a bank transfer (it will take 3 to 5 days), using your credit or debit card and electronic wallets such as PayPal, Neteller, Skrill, etc. The minimum deposit’s 10 €. You will not be charged deposit fees.

With IQ Option you can have your account in different currencies (e.g. Euro, United States Dollars or Sterling Pounds); however, be warned that the first deposit you make will set the currency your account is configured with, and it will not be possible to change it afterwards.

Demo account









You will be able to access an IQ Option’s demo account with a virtual balance of $/$/£10,000, so you can experience how it works. It looks like the demo account is not limited in time, you can use it for as long as you want to.
Products & trading
Stocks It’s not possible to invest in real stock with IQ Option; you can only invest in CFDs of some stocks.
ETFs & Funds With IQ Option you cannot invest in ETF or investment funds; the only way to do this is investing via a derivative ETF products like CFDs.
Forex It’s possible to invest in 41 currency pairs using CFDs, or through options (if you have a professional account) in 20 currency pairs.
CFDs IQ Option’s main investment assets are CFDs. You can find CFDs for stock (177 total), ETF (23 total), cryptocurrency (12 total), Forex (25 total) and commodities (4 total). The truth is that other trading platforms offer a bit more variety.

If you have a professional account, that is, if you can prove to be a finance expert, you’ll also have access to options with IQ Options. Be aware that they don’t have many available (48 total) though.

Cryptos It’s also not possible to purchase cryptos using IQ Options. You can, however, trade cryptocurrency derivatives (CFD). There are ten cryptocurrency CFDs (Etherum, Dash, Bitcoin, etc). Take a look at eToro if you’re thinking of buying cryptos.
Other products Finance professionals will have access to forty options if they so wish. Investing in fixed-income products such as government bonds is not possible.
Types of orders









You will be able to operate via market orders, take profit, stop loss (fixed through percentages). It’s also possible to establish a dynamic stop loss to increase or decrease it if the asset’s price moves in your favour. Be aware that the price of the order execution is not guaranteed, as for instance during high volatility periods.
Leverage









It’s possible to increase leverage if you have a professional account and live in a European country. IQ Option offers users from other countries higher leverage levels. You will be able to adjust this level, but never to remove it completely.

This means that, for example, if you invest $/€/£100 in stocks, your real investment may be $/€/£150 – if the price goes up, you will have higher profits, but if it goes down you will have more potential losses.

Fees
Trading IQ Options itself does not charge direct fees for trading (selling or buying) assets, but there is a spread between the purchase and the sale price favouring IQ Option. This amount varies depending on the asset you are trading.
Overnight fees If you keep any open position after the market closes you will have to pay a financing fee; this is around 0,01% and 0,6%, but it can go as high as 1,7% of the value of your position.
Inactivity fees If your account is inactive for over 90 days you will have to pay an inactivity fee of $/€/£10 a month.
Other fees To trade with cryptocurrency CFDs there is a 2,9% fee on the traded amount.

There are no fees for currency exchange, as long as you make your deposit in your account’s currency (Euro, Pounds or United States Dollars). They also don’t charge to withdraw funds from your account, unless you decide to withdraw funds via a bank transfer.

Platform features
Available platforms









It’s possible to use IQ Option in any modern browser. Its interface is easy to use and sports a modern design. My main complaint is that it’s a bit slow. It’s possible to download their app for computers (both MAC and PC), which seems to move somewhat faster than the browser version.

You may install the IQ Option app in your Android or iPhone phone. It seems to work fine, but other brokers get better ratings for their mobile apps. Some users complain that it uses a lot of mobile data.

Charting









You can choose between 4 types of charts with IQ Option: lines, candlesticks, bars and Heikinb-Ashi. For candlestick charts you can choose the time period (from 5 seconds to 1 month).

It’s possible to create a price alert directly on the chart and indicate levels to open trades. It also allows you to add analysis such as MACD, Bollinger or Mobile Media. Furthermore, it’s possible to draw on the chart adding lines. You will not be able to compare the charts with other indicators (e.g. the price of S&P 500).

Research









IQ Option allows you to access a newsfeed even with your free account. On the other hand, the way the news are laid out is not the wisely designed, the layout is somewhat narrow, which makes reading it difficult – you can also check the news outside the trading platform.

You will also have access to an economic calendar with the IQ Option account. It’s very similar to other platforms, but I would prefer the design to be better integrated into the trading platform.

Education and guides









IQ Option has a good number of tutorials and videos on its platform covering basic trading concepts. Those are somewhat simple, as the explanations could be more detailed. However, they are well-made.
Alerts









You can set price alerts (e.g. you get a notification when the price reaches a certain level) or when a position is about to close. It’s also possible to enable push notifications on your platform. They could be a bit more rounded.
Support









They have chat, email and telephone support. The times I called they helped me without much delay and were very kind; occasionally I had to wait a little bit.
Overall rating









IQ Option offers a trading platform for CFDs (and options if you have a professional account) that is very intuitive and well-designed. The chart-analysing system is especially useful. Unfortunately, you will not be able to trade with as many assets as other platforms.

Is IQ Option Safe?

IQ Option uses SSL connections to encrypt the connection and data exchange with the browser or your apps. It also uses safe payment systems such as PayPal or Skrill.

iq option 2 step authentication

IQ Option 2-Step Authentication

It’s also possible to enable its 2-step authentication which offers an extra security layer as it requires users to confirm access to the broker on their phones.

This platform allows you to see what sessions are open and check the history of who and when used the platform; this way to spot if someone who wasn’t you had access to your IQ Option account.

IQ Option Fees and Commissions

As with most trading platforms, IQ Option will not charge you any fees to open the account, deposit or withdraw funds (unless you use bank transfers to withdraw money).

This trading platform does have an inactivity fee. If you don’t operate for 90 days, you’ll have to pay $/€/£10 monthly.

Another typical trading fee is the financing fee that applies when you hold a leverage position after the market closes. For this, they will charge you a fee of 0,01% to 0,6%. Although in some cases it could go as high as 1,7% – they don’t specify which are these cases.

iq option stock spread

Spread for IQ Option stock

IQ Option will charge you a spread for opening or closing positions. This spread is a margin between the purchase and sale price of a security (they sell at a higher price than they buy). This is how market makers like IQ Option are financed.

IQ Option Spread Examples

Assets Spread
Amazon stock CFDs 0.09%
Apple stock CFDs 0.1%
Coca-Cola stock CFDs 0.212%
EURUSD CFDs 0.026%
EURJPY CFDs 0.083%
EURGBP CFDs 0.104%
Bitcoin CFDs 0.3%
Etherum CFDs 2.037%
Litecoin CFDs 1.528%
Gold CFDs 0.072%
Silver CFDs 0.168%
MSCI Emerging CFDs 0.067%
S&P 500 CFDs 0.023%

Note: Keep in mind that these spreads were the ones established by IQ Option on 8th January 2021, and shall vary across time.

Assets You Can Trade with IQ Option

With IQ Option you can only invest in derivative products; these are not the real asset; their price depends on the evolution of the underlying (real) asset’s price. In other words, with IQ Option you will not be able to invest in, for instance, Apple stock, but you may invest in a derivative financial asset (CFD) on Apple stocks.

Unless you are a professional (IQ Option) client with extensive financial knowledge, the only security you can use to invest will be Contracts for Difference (CFDs). Professional clients will have access to trading options on FOREX.

iq option available assets

Available IQ Option Assets

With IQ Option you will not be able to invest in investment funds, stock, ETFs and fixed-income assets. If you want to make this type of investment you can take a look at brokers like DEGIRO.

And with IQ Option it’s possible to invest in the following CFDs:

  • Stock CFDs: You have nearly 180 different stock CFDs to invest in. Some of these are: Tesla, Baidu, Apple, Amazon or Spotify. Leverage is 1:5.
  • ETF CFDs: With IQ Option it’s also possible to trade ETF CFDs. They have 23 different ones; this doesn’t seem like a lot, right? Leverage is the same as in stock CFDs.
  • Forex CFDs: IQ Option offers 25 currency pairs to invest in through CFDs. Some of these are EUR/USD, AUD/USD, GBP/USD or GBP/JPY. Leverage is 1:30.
  • Commodities CFDs: IQ Option has 4 commodities CFDs in its portfolio: gold, crude oil, silver and Brent barrel. These CFDs operate at a 1:20 leverage.
  • Cryptocurrency CFDs: IQ Option offers CFDs for cryptos such as Bitcoin, Etherum, Ripple or Litecoin, a total of 12. Leverage for cryptocoin CFDs is 1:2.

Note: Please keep in mind that the aforementioned leverage levels are for retail accounts of European users. Other types of accounts may have a different leverage.

Some traders will miss index CFDs; these are very common in other platforms (such as Plus500, eToro or XTB). It’s surprising not to find them on IQ Option.

I must say that there is a certain variety of products with IQ Option, but the truth is that there are trading platforms that offer many more different assets to invest in. For instance, Plus500 or XTB have over 2,000 different assets in their portfolio.

71% Of small investors incur losses when investing in CFDs with IQ Option. CFDs are complex high-risk products due to the leverage. You risk losing your investment.

How Does IQ Option Work?

IQ Option offers intuitive Android and iOS apps to manage your trades. It’s also possible to use a web browser to log on to their online platform and trade from any modern browser. However, I am under the impression, that this app is a bit slow.

iq option trading stocks

Stock trading with IQ Option

But to solve this, there is an installable IQ Option app for Windows (PC) and MAC computers, which is significantly faster than the version on the browser.

If you are considering using an external trading platform (such as Metatrader 4 or 5) with IQ Option, keep in mind that this is not possible. You will have to stick to their own platform.

iq option white interface

White IQ Option theme setting

One thing I really like about the IQ Option platform is that you can change its appearance however it suits you best. For example, you can choose between various interface colours (such as dark and light, among others).

When you make your first deposit you will have to choose what currency you want to operate with. You can choose between US Dollars, Euros and GBP. Keep in mind that once you have chosen a currency it will not be possible to change to another one later on.

choose iq option currency

Choosing IQ Option’s currency

Opening an Account with IQ Option

IQ Option offers a fast way to open an account. You will be able to use your own e-mail and password, or link it to your Google or Facebook account; this last option is good if you don’t want to remember passwords.

iq option demo account

IQ Option demo account

This will give you immediate access to a demo account with a virtual balance of $/€/£10,000, so you can practice and see how this trading platform works before you start with real investments.

To open an account with IQ Option, take the following steps:

  1. Go to www.iqoption.com and click on “Register”
  2. Confirm your e-mail account via the e-mail they will send you
  3. Add your personal details (full name, phone number, etc.)
  4. Confirm your telephone number (you will receive an SMS with a code)
  5. Upload a proof of identity (such as your passport)
  6. Send the required documents
  7. Fill in the form on our trading experience

71% Of small investors incur losses when investing in CFDs with IQ Option. CFDs are complex high-risk products due to the leverage. You risk losing your investment.

Types of IQ Option Accounts

With IQ Option it’s possible to have three different types of account, let me tell you about their differences below:

Demo account

As I already mentioned, a couple of times, IQ Option allows users to register and use an account with virtual money (you don’t add funds) to get an idea of how the platform works, and what assets are available. This is certainly of great help when deciding whether IQ Option is for you or not.

Real account

This is the real version of the demo account. With it, you can make real investments (risking your money), and trade assets (CFDs). To access this account, you will have to verify your identity.

Keep in mind that opening a real account doesn’t mean your demo account disappears. You will still have access to both. Be careful not to trade thinking that you are on the demo account whilst actually being on the real account.

Professional account

If you are a finance professional, or you can prove that you have a certain experience trading with derivative products, IQ Option may allow you to change to a professional profile. The basic difference is that with this account you’ll be able to trade options and have even higher leverage limits.

How Does IQ Option Manage Taxes?

IQ Option will not withhold taxes on the profits you get from their platform. Thus, you will have to personally manage and pay taxes derived from your investments.

That said, the IQ Option platform offers a review of your operations and profits with their respective dates, which you can use for your tax processes.

It could be that in your country of residence you are required to fill in some forms if you have money or investments in brokers with headquarters outside your country.

Please note: The above tax information is for guidance only and as I am not a tax advisor, this is just a guide and an insight into my personal experience. If you do need further information on this I would advise you to consult an accountant or tax expert.

Alternatives to IQ Option

Perhaps some of the above-mentioned disadvantages are a deal-breaker for you. If that this is the case, here are three alternatives.

DEGIRO

DEGIRO is one of the most popular brokers at the moment in Europe. You can invest in stock and ETFs (IQ Option does not offer this type of asset). Its most remarkable features are an intuitive platform, a wide variety of assets you can invest in and having a simple and competitive fee policy.

DEGIRO Website

XTB

XTB broker for beginners

XTB’s advantage is that it allows you to invest in the real asset as well as derivatives. For instance: you may buy stock or ETFs on XTB just as you would on DEGIRO, but you can also trade CFDs just as you would on IQ Option. Additionally, XTB offers many more assets than IQ Option.

Please note: Keep in mind that with XTB it’s not possible to invest in real assets across all countries. If you are in an EU country you will probably be able to invest on real assets such as stock, something which is unlikely with other countries (e.g. United Kingdom).

eToro

etoro is an alternative to degiro

eToro is another extremely popular trading platform, with millions of active users. With this broker you can also invest in real assets (such as stock and EFTs), but its popularity is, probably, because they allow you to copy other investors. It’s also possible to invest with CFDs using no leverage. Another eToro advantage is that it allows you to buy and sell real cryptocurrencies, not many brokers offer this.

IQ Option Review: Parting Thoughts

We have taken an in-depth look at IQ Option, but before we finish, I would like to remind you about some key aspects of this broker:

IQ Option has a modern and intuitive interface, as well as decent Android and iOS (iPhone) apps. Opening an account is easy and can be done 100% online. Their customer support team is usually fast, and spreads are competitive and on a par with other platforms.

On the other hand, with IQ Option it’s only possible to trade with derivatives (CFDs and options). I would also like the web platform to be a bit faster. But the main disadvantage is probably that they don’t have as many assets to trade with as their competitors.

By now you should know whether IQ Option is a good option for you, but if you still have any questions or concerns regarding this platform, please leave a comment and I will try to help you.

Latest updates

26 Jul 2021 – Moved to upskillwise.com

26 Apr 2021 – Affiliate disclosure added

01 Mar. 2021 – Initial review

71% of small investors incur losses when investing in CFDs with IQ Option. CFDs are complex high-risk products due to the leverage. You risk losing your investment.

Josep Garcia

I am Josep Garcia, I live and work in Barcelona. I have a fulfilling 9 to 5 job as a digital marketer, but I also have several side gigs I enjoy working on. When I decided to launch my own website (in 2016) I took on the challenge of learning how to program, as I wanted my site coded from scratch. I have to say that finding online educational resources (I used Lynda at the time) was a blessing.
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