Can You Make Money with IQ Option?

forex trading

IQ Option is a well-known digital broker providing trading services to customers worldwide. They provide trading for various instruments including CFDs on forex, stocks, cryptocurrencies, commodities as well as binary options and digital options.  Having started operations in 2008, IQ Option has gained a favorable reputation in the options industry among both small and large market participants. 

IQ Option provides functionality, a user-friendly interface, and trader friendly conditions. Minimum deposits start from $10. The minimum trade size is $1. The platform executed almost 1,8000,000 trades on a daily basis in 2017 and had a user base of 25,580,000. 

What Can You Trade in IQ Option?

When it comes to the instruments offered by IQ Option, they focus on catering to every type of trader, both experienced as well as the novice. Hence, they provide a huge selection of trading instruments including CFDs on forex, commodities, stocks, and even cryptocurrencies. 

However, IQ Option is most famous for offering binary options trading on various stocks, forex pairs and some commodities. It also offers both digital options as well as Over-the-counter binary options. Trading is also available over weekends. 

The payout percentages involved with options trading may change from time to time.  The maximum payout percentage for binary options is 95% and that of digital options is 900%. These are both based on the amount to be credited for a successful trade. 

Besides CFD trading on cryptocurrencies, IQ Option also allows traders to utilize their own cryptocurrency exchange in their trading profile. It provides traders the opportunity to execute limit and market orders using several indicators and advanced charts. IQ Option also provides users the Hodly cryptocurrency wallet which they can access directly using their IQ Option login details.  Users can purchase from a total of 15 cryptocurrencies, either through debit card or credit card. 

Differences between European traders and non-European traders

IQ Option is a registered entity in Cyprus and is regulated by CySEC. It is also registered at St. Vincent and the Grenadines. Due to various recent changes in international regulations such as the 2018 ESMA ban, there have been quite a number of changes in the way EU based traders and Non-EU based traders can trade. Regulations state that EU-based traders (except professional traders) are not allowed to participate in binary options. 

Thus, even though non-European traders can still access binary options as well as digital options using IQ Option. However, both of them are outlawed for EU-based traders. To get past this, IQ Option has introduced FX Options trading for retail traders in the EU. 

FX Options are similar to binary options and come with expiry times such as 10, 20, 30, 40, 50 and 60 minutes. Traders can choose from six FX options. It is also available to non-EU traders, even though they have access to binary and digital options trading. 

Risk and chances of Trading

It should be known to traders that success in trading depends on any factors besides just the broker or trading platform one chooses. Success in trading requires a lot of skill, hard work and experience. IQ Option provides a very good trading platform for newcomers to get acquainted in the market and attain profitability in a much quicker way. However, one should fully understand the risks involved before proceeding. 

Options, cryptocurrency, and forex trading involves leverage which possess a high degree of risk to a trader’s capital. If they are not careful, it can result in the loss of their entire capital. An estimated 74 to 89% of retail traders have lost money while trading CFD products. They should always allocate the amount of money they can afford to lose when investing in trading.