Note: Binary options are not promoted or sold to retail EEA traders. If you are not a professional client, please leave this page.
There is an array of online trading platforms out there that are freely available to use. We, however after testing a few have our reasons for choosing IQOption as a favourite.
IQOption has its roots in where it gets its name: (trading in) financial security called Binary Options*. Options are high-risk security popular with the platform since the early days seconded by Foreign Exchange (Forex).
These complex financial securities naturally require a lot of analysis and a certain level of statistical analysis.
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 IQOptions have offered for years allowing them to expand steadily on the number of securities offered: 12 Cryptocurrencies, (Contract for Difference) CFDs. (184 of the trending stocks and counting); 24 top EFTs, 4 Commodities, and 58 Forex pairs.
*Bear in mind you only trade Cryptos also as CFDs and cannot physically store them on IQOption or on your hard-drive/wallet.
**CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
We will not get into the workings of Options, Forex, or Crypto trading now. You can read up and watch useful guides and videos on them on the resources page, on their website, or via the trading application itself.
The salient perks
This actually brings us to the first selling point of this platform:
(1)access to training and support. As a member (and even trial user) of IQOption, you get up-to-date news relating to the securities being traded, video tutorials, and online support via email.
Larger investment amounts ($3000 equivalent and above) will entitle you to a personal account manager as a premium user.
Premium users receive additional support via phone and emails from a personal account manager and also by a 24/7 chat system.
The minimum requirement to start trading is 10 Euros/Dollars.
The second and most useful offer by the online broker is giving you the ability to (2)trade-in increments.
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 as little as 5 dollars’ or euros’ (or however much you wanted to) worth of Amazon, McDonald’s shares/stocks, Gold, or Bitcoin.*
The third and most overlooked benefit provided on this trading platform is the ability to (3)open/hold several positions of one security (Stock forex pair, Crypto, or EFT) 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 an asset you bought earlier when the price of that asset was lowest even as the price of the same asset continues to rise or fall.
However small your investment is, when the price of the CFD rises, you make a little more on it. At the end of the year, your winnings will be subjected to capital gains tax or income tax if you are a day trader.
Most domestic CFD brokers are obliged to tax the income of each transaction directly and to deduct the tax from the withdrawal amount. But since IQOptions is foreign to most traders (based in Cyprus), the onus is on you to declare tax to your local authorities.
Funding your account
Adding money to trade on IQOption is easy and can be done in several ways: via bank transfer, Paypal, Neteller, Skrill, WebMoney, N26 Bank, or credit cards like Visa/Mastercard. Payments and don’t take long (a few minutes) to reflect on your trading account.
Other things to look out for
For instance, you will need to pay attention to the spreads – which change regularly. 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).
IQOption also offers an “overnight” service (for leverage or multiplier) for seasoned traders. Day-traders can come into a trade knowing he/she will make a profit that day. You can borrow up to 5, 10, or even 100 times the amount to get ‘x’ times the profit!
If the trade carries over to the next day however without you closing it, you incur this small charge or what is called an ‘overnight fee‘. It is an increment (0,001) of the overall amount but can accumulate the longer you keep the trade open. So basically you would effectively be paying ‘interest’ on a loan you take to trade with them. Again, this feature is only for veterans and calculated risk-takers.
Be sure to check out the full terms and conditions before starting a trading portfolio.
Like any offer or service, there is no such thing as a ‘free lunch’. When it comes to trading securities. You can gain a lot in a short time but you can also lose money just as quickly. It can be cheaper to do it yourself than to go to a traditional broker – but only if you know what you are doing of course!