There are 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) 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. This is the only way in which how one can properly forecast and 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 16 Cryptocurrencies and recently, full-on CFDs. (131 of the trending stocks and counting); 27 top EFTs, 6 Commodities, and 3 Indices.
This 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 and a 24/7 chat system. It requires full registration (verification) along with a minimum number of trades. See the Ts & Cs in your portfolio.
Larger investment amounts (approximately $3000 equivalent and above) will entitle you to a personal account manager who you can call/email and chat during business hours.
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 as little as 5 dollars’ or euros’ (or however much you wanted to) worth of Amazon, McDonald’s shares/stocks or Bitcoin*.
However small it is 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).
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, you add 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. This 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.
Fund your account:
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).
They also offer an “overnight” service (leverage or multiplier) for the seasoned trader who can come into a trade knowing he/she will make a profit that day. So 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 them closing it, there is a small charge or what is dubbed the overnight fee – which is an increment of the overall amount. So basically you pay interest on a loan you take to trade with them. Again this feature is only for veterans and calculated risk-takers.
Like any offer or service, there is no free lunch when it comes to trading securities. It can be cheaper to do it yourself than to go to a traditional broker – if you know what you are doing of course!