Though an array of trading platforms exist out there that are freely available to use, we, however after testing a few have our reasons for choosing IQOption as a favourite. Debunqed will, therefore, highlight the three simple, but often taken for granted benefits, of using this platform to trade.
IQOption has its roots in where it gets its name: (the trading in) a financial security called options. Another high-risk security popular with the platform since the early days of its inception is Foreign Exchange (Forex). These complex financial securities naturally require a lot of analysis and a certain degree of impulse based on statistical analysis and forecasting to accumulate sizable gain (in profits).
In order to make sound judgments and be successful with your trades a number of trading and analysis tools have to be used – this is what they have offered their clients for years and have kept them as they expanded on their securities offered from up to sixteen Cryptocurrencies and recently, full-on CFDs. (44 of the trending stocks and counting).
Which actually brings us to the first selling point of this platform: great (1)access to training and support: as a member (and even trial user) of IQOption, you get access to up to date news relating to the securities being traded, videos tutorials and online support via email. Addition support in the form of phone support and emails from a personal account manager (during business hours) and a 24/7 chat system require full registration (verification) along with a minimum number of trades (see Ts & Cs) in your portfolio.
The second and most useful offer they provide is the ability to (2)trade in increments. The minimum requirement to start trading is 10 Euros. So you can build a successful portfolio with a mixture of trades each on as little as $1 or 1 Euro on any of the aforementioned securities!
Your profit will be determined by how much higher the price of what you have ‘bet on’ goes (or drops). So technically, you can purchase 1 dollars or euros (or however much you wanted to) worth of Amazon, McDonald’s shares/stocks or Bitcoin* – however small it is and when the price rises, you make a little more on it. You are rewarded for successful profit positions closed with useful OTN tokens. This is something other platforms don’t allow and some rather force you to buy full shares or the cheaper securities mandatorily in bulk.
*Bear in mind you only trade Cryptos and cannot physically store them on IQOption.
The third and most overlooked benefit provided on this trading platform is the ability to (3)open/hold several positions on one security at any given time. What this means, is that you can buy at several prices and close them individually – when you want. This way, you are able to take profits on the trade you made earlier when the price of a security was lowest as the price of the same security continues to rise.
To illustrate this last feature let’s say you in the space of a year; bought the relatively new Cryptocurrency called Tron (TRX) (currently trading between 3 & 5 US cents) at 0.003c. You purchased 10 000 units (which works out to $30) and then later that year purchased it again at 0.04c (500 units which works out to $20) and then finally as the price was surging and you had some extra money to invest knowing it wasn’t going to stop, at 10 cents a pop (another 500 units costing you $50). So, your entire portfolio of Tron cost you $30 + $20 + $50 = $100.
You could then sell off the first purchase of 10000 units at 0.003cents when the price hits 10 cents for a profit of 10 cents x 10 000 =$1000 minus the (initial) $30 = $970! So the other two positions that initially cost you $70 would remain ‘open’ and continue to hopefully gain higher profits as the price rose beyond 10 cents. The $970 would go into the trading account to be cashed out or used to fund the next best thing…
This is just a simple illustration of how you could hold on to a security while selling off bits to maybe fund a holiday or an emergency. In reality, the prices could go both ways but it is important to be resilient and patient when conducting trades – which while they can get you quick results like the above illustration showed, usually take months or even years.
Please read the terms and conditions carefully to help you make a more sound comparison with your trading platform. Though IQOption doesn’t charge high deposit fees like many other online brokerages – you will pay a percentage of commission on each purchase (2,9% on Cryptos for example).
In addition, you will need to pay attention to the spreads – which can change. The spread is an amount charged above the normal price of the security (which is basically the cost of using it and will vary from security to security based on its volatility).
Like any offer or service, there is no free lunch when it comes to trading securities – it is cheaper to do it yourself than to go to a traditional broker – but test yourself first with a free demo before delving in if you are a complete beginner.