Is IQ Options Legit? If So, Can You Trust Giving Your Money To “Expert Traders?”

Binary options have become increasingly popular after the introduction of several option platforms. Binary options are the options contracts, the outcome of which depends on the happening of an event(price changes in the underlying financial instrument). The price of these contracts increases or decreases depending on the yes/no proposition.

IQ Option, 365Trading, BinaryTilt, etc., are the popular binary options brokers with online platforms available to traders worldwide. However, binary options are not regulated and legal in many regions of the world. It is one of the reasons why most traders consider binary options platforms a scam that is just looting money from the traders.

But what is the reality? In this article, we will discuss the work behind binary options and why they are often viewed as scams. We will take the example of IQ Options, the most renowned and popular Binary options broker with an online trading platform. We will discuss if IQ Option is legit and if you should trust giving your money to expert traders.

Summary of IQ Option

Here is a quick overview of IQ Option:

NameIQ Option
NatureBinary Options
Minimum Trade Value$1
Minimum Deposit$10
CompatibilityDesktop(Mac & Windows) & Mobile
Payout91% amount in case of correct prediction
Deposit MethodsCredit/Debit Cards, Skrill, WebMoney, CashU, Neteller, Maestro, MoneyBookers
Islamic Account OptionYes
WithdrawalCredit/Debit Card, Moneybookers, Skills, CashU, WebMoney, Maestro, Neteller
Processing Time Of WithdrawalUp to 3 business days
Regulated Or NotNot Regulated
Availability By CountriesNot available in the US, Israel, Japan, Belgium, Italy, Germany, Canada, Russian Federation, Australia, Spain, Romania, Netherlands, and Turkey.
Mobile ApplicationYes(iOS & Android)
Number of traders100 million +

What Is IQ Option?

IQ Option is one of the most popular and fastest-growing online brokers for trading binary/digital options. The online broker is the best option for people who don’t want to hold trading positions and want to earn returns in short periods of time. The company was founded in 2013 as IQOption LLC, and they offer several financial instruments. However, the binary and digital options are the most popular ones.

Why?

Because IQOptions started the business by just offering binary/digital options. However, the portfolio has expanded with more financial instruments like CFDs, ETFs, stocks, Forex, Cryptocurrencies, commodities, etc.

 IQ Option is headquartered in Saint Vincent and the Grenadines. The company has over 100 million registered users and 40 million monthly active users. The online broker has earned multiple awards, including Best Trading Platform in 2014, Best Technology Application in 2016, and Award of Excellence in 2017.

Overview Of IQ Option Trading Platform

Here is the overview of the IQ Option trading platform’s features in detail:

Charting

An analysis is the most important aspect when you are looking to make a decision in trading and investing. Therefore, having a platform with a charting tool and analysis helps to map out the right trading strategy. With IQ Option, the traders get access to different charting tools like Hollow Candles, Candle charts, Bars charts, Area, line charts, etc.

Technical Indicators

The easy-to-use platform has several trading tools and technical analysis. If we talk about IQOption, the platform has four widely spread indicators: Alligator, RSI, moving averages, and Bollinger bands. Bollinger bands are based on moving averages and standard deviations to create a corridor for price movement. RSI( Relative Strength Index) works with candlestick charts to indicate the strength and magnitude of price change.

Free Demo Account

Yet another feature of IQ Option is the free demo account that works like a real account where beginner-level traders and investors can learn more about options trading and investment in different financial instruments. The demo account comes with $10,000 in virtual money, which can be used to practice 24/7.

Financial Instruments Availablity

The platform started with binary and digital options but expanded its financial instruments portfolio. Currently, a wide range of financial instruments and securities is traded on the platform, including ETFs, Forex, Stocks, and commodities. According to IQ Option, the online broker allows clients to trade 500+ assets, including the most popular ones. You can also trade shares, gold, oil, etc.

IQ Option App

IQ Option app is also one of the main highlights of the platform, as it comes with a very user-friendly interface, powerful features, and trading tools. The mobile app is available for both iOS and Android users. However, Apple blocked the IQ Option app due to regulatory restrictions on binary options. The main highlights of the IQ Option app are as follows:

  • User-friendly with a comprehensive user experience
  • A secured platform where your investments and personal data are encrypted and secure
  • Directly deposit money from the mobile app
  • Chart settings, trend lines, and other technical indicators are available in the app as well
  • Notification center, so you never miss an update about an event or tournament.

IQ Option’s VIP Account

 IQ Option offers a VIP account for traders who want to start with a significant amount as the initial deposit. The VIP account offers higher profits, unique offers, exclusive webinars, a community where professionals can have discussions on trading, and 24/7 support from Customer Service.

Reasons To Like IQ Option

Here are some reasons to prefer IQ Option as an online broker:

  • You get free access to the Demo account for practice
  • Customizable dashboard and easy-to-use trading platform
  • Simple user interface so that beginners can also easily understand the trading
  • The high percentage of payout, up to 91%
  • More than 500+ asset classes for the investors to trade
  • Islamic account for swap-free trading according to shariah rules
  • IQ Option App is a go-to place for always staying updated about the trading
  • A very low minimum deposit
  • One transaction can be as low as $1
  • Transparent pricing, terms, and conditions
  • No hidden fees or charges for using the platform

Reasons To Avoid IQ Option

Here are some of the reasons why IQ Option might not be the best online broker to invest your money:

  • It is a regulated platform but not by FINRA or SEC. Generally, the broker platforms by FINRA and SEC are considered more trustworthy. Therefore, a lot of users get paranoid about the regulation by CySEC(Cyprus SEC).
  • The desktop user interface for IQ Option is very complicated for beginners. Therefore, the company should work to improve the user interface and user experience.
  • Binary and digital options are the most popular trading options on IQ Options. However, these instruments are considered spammy. Therefore, you might not want to join a platform like that.
  • No negative balance protection is provided to the investors and traders on IQ Option

Is IQ Option Legit?

If the question about legitimacy is concerned, the answer is that IQ Option is a 100% legitimate platform. There is no doubt about the online broker’s legitimacy as it allows trade in 500+ assets.

Why is it restricted in many countries, or why do people think it is a scam?

Here is where we need to discuss the difference between the platform and trading instrument. IQ Option established itself as a platform for binary options. Therefore, the repute of the platform is often associated with binary options.

Why are binary options considered a scam?

Binary options are not actually a scam or spam. Instead, these are types of options contracts directly dependent on the outcome of a yes/no proposition. The control of the trader is limited in the binary option once purchased. It is because the exercise of the binary options is automatic and not in the trader’s control.

As a binary options trader, you don’t have the right to buy or sell the specified assets. You have to wait until the option expires. At the expiry, the trader will get predetermined cash if the option executes and will get nothing if it doesn’t execute as proposed by the trader.

Due to the betting nature of options, these contracts are often considered a scam. Another reason reputable regulators like SEC and FINRA do not regulate binary options brokers is the non-availability of negative balance protection or reimbursement of customers’ funds.

However, the shady nature of the binary and digital options is not conclusive evidence that IQ Option is a scam. The platform is very popular, with over 100 million users and 40 million active users every month. It is a 100% legitimate platform, but your choice of the trading instrument can make it look like a scam.

Can You Trust Giving Your Money To Expert Traders?

You can trust giving your money to expert traders and online brokers like IQ Option, but after thorough research of what is good and what is not. Even if you want to invest in binary options, you must know how to leverage the charting tools and technical analysis indicators to predict an outcome and trade the options accordingly.

Another way to avoid losing your money in binary options is to not invest in such options. Even if you want to trade on a popular platform like IQ Option, you can choose other asset classes and financial instruments with better predictive analysis and returns. This way, you won’t lose your money but will actually be able to earn a profit on your investment.

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