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IQ Option Review
Whenever you start reading about the binary options trading, you quickly get to realise that this is a fraudulent industry. Historically, 95% of the binary brokers have been trying to squeeze their clients as much as they can. This has resulted in many financial regulators giving a second thought to the binary trading services, and as consequently, prohibiting those.
But wait, what about the remaining 5% of the binary brokers? These companies have quickly realised that they have to adapt, change their offers and continue serving the clients in the best possible manner. Today we are going to take a look at IQ Option, perhaps the largest and the most advanced binary brokerage that has recently started offering FX, CFD and Crypto trading.
IQ Option in a nutshell
The striking difference between IQ Option and any other binary brokerage is the quality of the website. It clearly stands out and, to be honest, it is much easier to navigate than most of the FX brokerage sites.
Next to the slick design, IQ Option is also a company that is regulated. We certainly do not see this as a huge advantage, as the company is only overseen by the Cyprus Securities and Exchange Commission. This is the EU regulator that has issued the vast majority of the FX brokerage licenses, so it does not really make IQ Option special. Yet it does make it a more legitimate business.
IQ Option Trading Software
Unlike most of the brokers, IQ Option is offering its own trading platform. The software is available as a standalone program for Windows and MacOS. However, you don’t really need to install it, as the web application is as powerful as the standalone version.
The majority of the FX brokers fails to deliver a piece of technology that is at least somehow better than MetaTrader 4. Yet we do feel that IQ’s platform has certainly made an breakthrough in terms of the design and usability. The platform is slick, simple and fully customizable.
In addition to this, it contains lots of items that are making the trader’s life better – various chats, leaderboards, integrated market analyses, FX calendar, and more.
What are the drawbacks?
Great design, amazing support, powerful web trading platform, and lots of trading instruments come at a price. The commissions of IQ Options are not low at all. In case you are looking to trade cryptocurrencies, be ready to pay anywhere between 5% and 10% on average per trade.
Even though it is pretty easy to get the spread compensated by a huge intraday volatility, it still seems like a very expensive price to pay.
However, the conditions for FX pairs are much more attractive. The spreads start from around 0.02% on EUR/USD pair and go up to 0.12% for such pairs as USD/TRY, CAD/CHF and so on.
We have also made an easy explanation of the spread %, for those of you who are used to seeing the spreads as pips. Essentially, 0.01% spread of IQ Option would equal to 1 pip. Hence, IQ’s spread on EUR/USD is 2 pips aka 20 EUR per 1 standard trading lot.
The final thought
While we are sure that IQ Option may not be a suitable broker for the traders with very large accounts due to the trading costs, it does seem like a great starting broker for the people that just want to get their hands on the online trading.
With IQ Option one can trade binaries, cryptos, FX and CFDs. The platform is very intuitive and provides some great gamification experience. Hence, even if you are a seasoned trader, it is still recommended to try out at least on a demo account.