The online broker with the name IQ Option is a rather young company. It was not until 2013 that this provider entered the market and, according to its own statements, set itself the goal of becoming the provider of the best product on the market. IQ Option offers a free demo account, requires a minimum deposit of only 10 Euro and offers returns of up to 91 percent per trade. In addition, a total of 79 different underlying assets from the commodities, indices, foreign exchange and equities sectors are offered for trading in binary options. Crucial is however naturally also for all investors the question whether the offerer is respectable or whether one should be careful before fraud or Abzocke. We would also like to answer these questions in detail in our test.
Exchange trading has many facets, in addition to various asset classes, a number of strategies can be applied and a number of instruments can be used. In this context, the binary option seems to be particularly suitable for investors who wish to access a multitude of different investment opportunities with one instrument. In addition to a basically infinite selection of possible underlyings, the binary option instrument can also benefit from different exchange phases, similar to regular warrant trading. The trading principle, in which either falling or rising prices are set, is also offered by IQ Option. The provider has only been on the market for a few years and has already provided a good basis in this time.
The professionally designed website in particular immediately catches the eye, but of course also the balanced and well-structured trading offer. A genuine highlight is thereby the performance, which the investor with IQ option can obtain with some option variants: With up to 91 per cent net yield the investor can nearly double his employment, if he lies correct with his forecast for the price development. In addition, our experience has shown that the company, which is domiciled and registered in Cyprus, can of course also be traded very effectively via the browser-based platform. However, there was a minus point for the provision of information on the website, as many contents are unfortunately only available in English. What we also found in our test with regard to the individual categories now follows in our review. We would like to start with the offer.
Well-structured_offer with 79 underlyings
The investor has the choice between 79 values of the categories commodities, currencies, indices and stocks. While there is currently only a single stock in the commodities category and only six different indices are offered, the selection for the other two categories is much greater.
For the indices, there are only a few stocks from London (FTSE 100), Frankfurt (DAX30), Paris (CAC40) and New York (SP500 / Nasdaq / Dow Jones), while in the area of binary options on equities a total of 50 stocks can be selected. In addition to many European and American stocks, these include some stocks from Asia, such as the carmaker Toyota or the Bank of China. Overall, the focus is on stocks from the banking, financial services, energy, internet and telecommunications sectors.
A quick look at the forex supply: Here you can trade all combinations of majors as well as some other currencies such as the New Zealand Dollar, the Russian Ruble or the Swiss Franc. A total of 22 pairs are available. As at present only commodity the precious metal gold can be traded in addition as binary option.
Even if this selection may appear to one or other as too small, then our experiences nevertheless showed that the values for the trade were obviously selected deliberately. With the exception of indices, trading is possible around the clock in all categories, with at least one asset from a specific sector always being available in the equities category. This also makes strategies that focus on a specific economic segment very feasible.
In terms of possible returns, a specific value is issued for each option. Maximum returns of up to 91 percent of the invested capital are possible with IQ Option, which is a very high level in comparison with many other brokers. On average, however, the returns in trading are rather below this value, as our experience shows. In addition, IQ Option also offers its customers the prospect of a repayment of up to 45 percent of the stake if the development was incorrectly predicted.
bonus for new customers
Recently, the regulatory authority CySec banned all deposit bonuses for new customers with binary options brokers. Of course, IQ Option also complies with this requirement and does not offer a bonus.
Disbursements and Deposits: Several options are offered
Few problems should arise when processing deposits and withdrawals. In addition to the two credit card variants VISA and MasterCard, IQ Option also offers investors the option of using a range of Internet payment services for deposits and withdrawals. The list of available providers includes Skrill, Neteller, Webmoney, POLIPayments and WireTransfer. These services handle payment transactions very reliably. However, no detailed information can be found about the fees charged by IQ Option for payment transactions when using a service. It is therefore highly advisable to contact customer service to clarify this issue. The General Terms and Conditions of Business are of only limited help in this matter, as they are currently only available in English, as are many other contents. From the customer’s point of view, there is still room for improvement. The minimum deposit required by IQ Option from the customer is relatively moderate at only 10 Euros.
Security and Regulation: EU regulated, Headquarters in Cyprus
The Online Broker IQ Option, like so many other providers in this field, has chosen to have its headquarters in Cyprus. The Cyprus Securities Exchange Commission, short CySec and IQ Option, is responsible for the regulation of financial service providers in Cyprus. As Cyprus has been a member of the EU for many years, its authorities are also bound by European minimum standards. This means that binding rules and regulations are already guaranteed in the EU. The standards include membership in the Investors Compensation Fund, an association for deposit protection that applies to the credit balance on the trading account. The general terms and conditions do not contain any useful information on the amount up to which this protection applies. Investors who wish to receive reliable information should therefore not be afraid to contact customer service.
It should also be critically noted that the IQ Option pages do not indicate whether customer deposits are managed on separate accounts or with another institution. This important standard, which is observed by most providers, ensures that in the event of insolvency, for example, the company’s creditors do not have access to customer deposits. In principle, this ensures that customer deposits cannot be used for the purposes of the company.
In any case, IQ Option’s customers can rely on standards valid in Europe and thus assume that the online broker is a reputable provider who does not have to reckon with fraud or rip-off. However, the fact that information about the standards applied in the company is handled so sparingly remains an important point of criticism. It remains to be hoped that IQ Option will improve this in the near future.
Support and customer service: some more air up
If we pointed out in the previous section that you should contact customer service if you have any questions about the security standards in your company, then you must first state with regard to the offer that this is not as easy as you might expect. In the Contact section of IQ Option’s website you will find several addresses, including the headquarters in Nicosia, Cyprus, and a location in London. A separate phone number is only given for the latter location. So a profound knowledge of English is required if you want to clarify your questions via this contact.
The only other possibility is to contact the support of IQ Option via email. For this you can use your own email address. However, it is better to use the form offered by the Online Broker. By specifying a category, questions can also be directed to the support. When waiting for the answer, IQ Option customers may have to be patient, because there is no live chat either.
Very well-designed website and access to mobile_trading
Whoever moves around the IQ Option pages for the first time immediately has the impression of a very professional presentation. The visitor can marvel at various animations and the corresponding categories are also very clearly presented and easy to find. However, there are some deficits hidden behind this, especially for users who are only proficient in the German language. Obviously, the responsible persons have not yet succeeded in completely implementing the appearance for the German market. Again and again one encounters sections in the search for information that are only available in English. Sometimes the language even changes in the middle of the text. This does not make a particularly good impression, especially with regard to the terms and conditions.
Positive, on the other hand, is the compact educational offer. Here the trader is gradually introduced to trading binary options by means of ten video sequences. Beside an idea of the possibilities of the trade over the platform and the procedure of the registration, one can experience so also much over the individual trade strategies. Among other things, the user will find well-prepared articles that deal with the use of trend lines in dealing with binary options or explain the importance of Japanese candles for trading. In most cases also these training offers are however only available in English.
While the compact however quite informative videos are available also not announced visitors, there are a set of further offers for the explanation of strategies, among other things the Alligator or Bollinger ribbons, which are open however exclusively to registered users. Some web-based interactive educational formats are also offered. However, there are no live webinars in which one can exchange information with trade experts.
IQ Option uses a browser-based platform to conduct the actual trade, which gives traders good opportunities for trading. Using an app, mobile trading is of course also possible at any time. A separate application is available for both Android and iOS, so that trading can also be carried out while on the move using a smartphone or tablet.
Conclusion – Many possibilities with IQ Option – if you can speak English
All in all, IQ Option offers a quite decent overall offer, the variety of which, however, can only be fully exploited if you speak English. Customers should take this into account when considering choosing IQ Option as their broker for binary options. The offer and the conditions themselves are quite attractive, the profit rate of 91 percent, which only few other online brokers have to offer, should be emphasized. Investors do not need to worry about security either. The Cypriot CySec ensures compliance with all necessary standards. It can therefore be assumed that it is a reputable provider. That things like fraud or Abzocke play a role seems excluded against this background.
I like to handle binary options. But I was no longer satisfied with my broker. Now I tried my luck with IQ option. That was a very good idea. The platform is very user-friendly. I can also make relatively small deposits.
written 6 months ago
The trading I learned thanks to the IQ Option demo account. Only with a little knowledge I started in the demo account without any risk or money. What I personally also like is the low minimum deposit of 10 Euro. And the minimum deposit is 1 Euro. In the beginning I was very careful. But meanwhile I also make higher stakes.
written 5 months ago