Should You Start Trading with IQ Option? Read This Before Signing Up

Nowadays, you don’t need a broker to trade in the stock market. Thanks to technological advancements, you can now buy and sell stocks online. 

Moreover, you don’t have to be an expert to trade because online platforms are now more user-friendly with various tools and training materials. These platforms also allow you to buy and sell stocks anytime, anywhere.

If you’re interested in stock trading, one of the platforms you should explore is IQ Option. Find out how to trade on IQ Option by learning how it works and what kind of tools it offers. This will help you decide whether it’s the right trading platform for you.

What is IQ Option?

IQ Option is a mobile trading platform that allows you to trade various financial instruments such as stocks, foreign exchange (forex), commodities, exchange-traded funds (ETFs), cryptocurrencies, indices, and CFD stocks.^[1]

It is one of the fastest-growing online trading brands in the world, with over 48 million registered users (as of 2020) and more than one million transactions a day.^[2]

Is IQ Option legit? Yes. Founded in 2013, IQ Option is based in Cyprus and is regulated by the Cyprus Securities and Exchange Commission (CySEC). IQ Option caters to traders from over 213 countries, including Malaysia, Singapore, India, and the Philippines.

IQ Option is also an award-winning broker. Its most recent awards include Best Trading Platform in 2022 by FX Daily Info and Excellence in Forex Trading Platform Global 2022 by Global Business Review Magazine. This year, it also won International Business Magazine’s Most Innovative Trading Platform Globe.  

IQ Option for Beginners: 5 Financial Assets You Can Trade

Here are the various assets for trading via IQ Option:

• Commodities - You can trade hard or soft commodities like grains, oils, silver, and gold. 
• Cryptocurrency - Trade top cryptocurrencies such as Bitcoin, Ethereum, Dogecoin, Ripple, TRON, Chainlink, Polkadot, Litecoin, Stellar, Cosmos, Uniswap, and more. 
• Exchange-Traded Funds - Diversify with CFDs on ETFs. Some available ETFs include the S&P 500 ETF, Gold Miners ETF, ETFMG Alternative Harvest, UltraPro Short QQQ, and Daily Junior Gold Miners Index.
• Forex - IQ Option offers a wide range of currency pairs. Currently, 31 forex pairs are available for trading, including EUR/USD, USD/JPY, AUD/USD, GBP/USD, EUR/JPY, and AUD/CAD.
• Stocks - Trade CFDs on 182 stocks of major companies and industry giants for a minimum investment of US$1 (approximately ₱57). Some stock assets available on IQ Option include Amazon, Netflix, Spotify, Coca-Cola, and Microsoft.

Related: Forex Trading in the Philippines: Complete Guide for Newbie Traders

Available Trading Types and Payouts

IQ Option originally started as a binary options broker but now lets clients trade CFDs.

👉 Binary Options

This financial instrument pays a set return for your correct market prediction on an asset’s price within a specific timeframe. You may be able to get up to 95% with this option. However, an unsuccessful prediction will result in investment losses. 

The minimum investment for trading binary options is US$1 with no brokerage fee. The expiry times range from 60 seconds until the end of the month.

👉 Digital Options (Contract for Difference or CFD)

IQ Option trading is CFD-based, which means that by opening a deal on the platform, you will have an outcome based on the changes in the asset price without acquiring it.^[3] You have to predict the direction of the price development and open a deal based on your prediction. 

The outcome also depends on the direction you choose and the actual movement of the price. The payout for this trading option can go as high as 900%, and the minimum investment is just US$1. The expiry time ranges from 60 seconds to five minutes.

Related: COL Financial for Beginners: Learn the Basics and More in This Guide

Different Types of IQ Option Accounts

IQ Option offers three account types—Practice Account, Real Account, and VIP Account.

📌 Practice Account

With this IQ Option account, you will receive US$10,000 of free practice money. Use this to learn how to use IQ Option. 

You can’t withdraw the money, but you can use it for trading in all instruments. A practice account can help you experiment with various assets, trading time, and investment amounts. You can also top-up your practice account, as there is no limit to using the fund.

📌 Real Account

This is a standard IQ Option account for trading with real funds and withdrawals. You can still access your practice balance with this type of account. Feel free to switch between your Practice and Real Account whenever you want.

📌 VIP Account

A VIP Account comes with additional IQ Option features such as a personal account manager, training materials, higher profitability rates, and exclusive offers. 

To get a VIP account, you have to make a significant deposit. The exact amount is subject to change.

IQ Option Tutorial: How to Use It on Desktop and Mobile

Signing up for IQ Option is free. Here’s a step-by-step guide on how to use the online trading platform.

👤 How to Create an Account

1. Download the IQ option app in the App Store or Google Play Store to create an account. You can also register via desktop.
2. Fill out the form with the necessary details, such as your email address and password. Make sure to create a strong account password.
3. IQ Option will send you a link via email to activate your account. Click the link to proceed.
4. You will automatically gain access to your Practice and Real Accounts once your account is active.
5. To switch between accounts, go to the traderoom and choose a Practice or Real Account.

💸 How to Deposit to Your IQ Option Account 

Before you can deposit funds, you need to verify your account by providing photo identification. Accomplish this step first.

Once your account is verified, you can deposit funds to your IQ Option using the following payment methods:

• Visa or Mastercard credit card/debit card
• Bank transfer via BPI, Metrobank, RCBC, BDO, Security Bank, PNB, and UnionBank
• Skrill
• Neteller
• Advcash
• Webmoney

The IQ Option minimum deposit for a Real Account is US$10 or approximately ₱570. There is no processing fee for depositing funds.

👛 How to Withdraw From IQ Option 

Now that you know how to deposit, it’s time to learn how to make IQ Option withdrawals. 

To withdraw your money, you must have a verified payment method and use the same payment method when you deposit funds. For example, if you use your bank card to fund your IQ Option account, you can only withdraw using the same card. You can withdraw the deposited amount back to the same bank card within 90 days only. 

Let’s say you made a deposit of US$200 to your IQ Option account and made a profit of US$300. If you want to withdraw $500 (deposit + profits) and 90 days have passed since your first deposit, you must use another available and verified payment method, like an e-wallet or bank transfer. 

This is because the IQ Option system considers withdrawals of deposited amounts and withdrawals of profits (anything over the deposited amount) to be two different operations. 

The minimum amount you can withdraw is US$2 (approximately ₱114), while the maximum withdrawal amount will vary on your payment method. 

It takes three business days to process your request. A small fee may be charged, depending on your payment method.

How to Trade on IQ Option

So how does IQ Option trading work? You can use your Practice or Real Account to trade, as they have the same features. Use your Practice Account with virtual funds to improve your trading skills. When you’re ready, use your Real Account to trade with real money.

1. Go to the traderoom and choose the account you want to use. The chart is in the center, while the buy and sell boxes are on the right-hand side. You can also see your balance and the assets you are trading at the top. 
2. Use the drop-down menu at the top left of the chart to choose which assets to trade. Just provide the amount of the asset you want to buy and submit your order.
3. The desktop view of IQ Option is similar to the mobile version. It has the same features, and you can adjust the leverage, investment, and price.

IQ Option Indicators and Order Types

IQ Option offers various order types and indicators to help you trade. These features can help you create the best IQ Option trading strategy and minimize losses. 

Here are some of the order types and indicators you can use in the online trading platform:

📈 Order Types

• Multiplier Order - This lets you increase your return on investment and risk level using a coefficient.
• Stop-loss Order - You can set your maximum losses with a stop-loss order. This automatically closes a trade when your set losses are reached.
• Take Profit Order - This helps indicate the profit you want to reach. Your order will automatically close when it reaches your goal profit.
• Trailing Stop Order - You can set the stop price with a trailing stop order. It will move with the changes in price in the direction you set it.

📈 Indicators

• Average True Range - It displays a chosen trading asset’s volatility within a period and lets you determine the change range quotes.
• Bollinger Bands - It creates a corridor within which prices move based on moving averages and standard deviations. It is one of the most popular indicators in trading.
• Moving Averages - This may provide you insights into current trends. It includes simple moving averages, weighted moving averages, and exponential moving averages.
• Parabolic SAR - This is similar to moving averages, but the position changes depending on the price. It also moves together with higher acceleration.
• Relative Strength Index - It helps analyze the strength of a current figure. The Relative Strength Index also lets you compare asset price growth and total price reduction.
• Volume Indicator - It shows your chosen asset’s quantities bought and sold at a given period, including interest.

IQ Option Review

Before we wrap up this IQ Option guide, here are the major pros and cons you need to know about the online trading platform. 

👍 Pros of IQ Option 

IQ Option is best for traders who would like to hone their trading skills. It offers an intuitive user interface and many available assets to trade, such as forex, crypto, ETFs, stocks, and binary options. 

Moreover, the free demo account is extremely useful to anyone who wants to try trading. It’s completely free, and you can use it for as long as you need or want. Practice trading with your virtual money until you feel confident enough to do so with a real account. 

IQ Option supports many deposit and withdrawal methods, including debit and credit cards, e-wallets, and bank and wire transfers. The minimum investment is only US$1, and you can deposit as low as US$10. 

It also has a 24/7 multilingual customer service. Lastly, the company has been in the industry for a decade with 40 million registered users and counting, so you know they’re trusted by many.

👎 Cons of IQ Option

IQ Option also has its downsides. For one, trading has a significant level of risk because of the volatility of financial markets. If you don’t have a vast knowledge of risk management strategies and trading principles, you can suffer substantial losses. 

Moreover, beginners may find the trading options and other financial instruments overwhelming and complex. To make good investment decisions, you need some experience with technical analysis and knowledge of market dynamics and factors influencing asset prices. 

Also, IQ Options has a limited regulatory oversight. Although it’s regulated by the Cyprus Securities and Exchange Commission (CySEC) and is subject to EU regulations, it may not be regulated in other jurisdictions, posing a risk to dispute resolutions and overall investor protection. 

As an online trading platform, IQ Option is also not immune to technical issues that can disrupt trading activities and potentially result in losses if you can’t execute your trade on time. 

Read more: 

• Determined to Grow Your Money? Here are 7 Tips to Help You Succeed 
• SSS PESO Fund vs MP2: Which is the Better Savings Program for You?
• Reach Your Financial Goals with the Best Investments in the Philippines

How to Trade on IQ Option: FAQs

1. What documents do you need for account verification? 

Proof of identity and address will be required, depending on your area’s specific rules: 

• Driver’s license/National ID/Passport
• Residence permit/Certificate of Residence
• Utility bill
• Bank statement or tax bill 

2. How long does it take for my deposit to reflect on my IQ Option account? 

The standard maximum time limit for bank transfers is two business days.

3. Can I change my account’s currency? 

Once you set the currency and fund your real account, you can’t change the currency anymore. Make sure to choose the correct currency before proceeding to make your payment. Still, you can make a deposit in any currency, which will be converted to the currency you use regularly. 

4. Is there an inactivity fee on IQ Option?

Yes, there will be a maintenance fee of €10 imposed on inactive accounts (no operations on the trading platform for 90 days). The amount will be applied to the unused balance in the account. 

5. How do I close my IQ Option account?

Go to your profile settings and click the Close Account button at the bottom of the page. Note that once you close your account, you will no longer be able to access your profile or trade using it. 

Final Thoughts

The process of how to trade on IQ Option can be daunting for both newbies and expert traders since so many things are happening in the traderoom. 

But that’s what the Practice Account is for. Its training materials and tools can help you on your trading journey. Use the virtual funds to learn more about how the platform works. 

Before opening an account, analyze the advantages and disadvantages. Any trade comes with a high level of risk, so follow the rules of risk management. 

Once you’re ready, fund and start trading using your real account. Of course, how much you earn from trading in IQ Option depends on your strategy, skills, and the amount you invest. 

Experts say not to deposit all your money into your IQ Option account. Analyze the assets using the free analytical tools. Lastly, don’t exceed 5% of your trading capital when you open a trade. 

Sources:

• ^[1] About IQ Option 
• ^[2] IQ Option Trading Platform in Numbers
• ^[3] What Does IQ Option Do?
• All photos from IQ Option on Facebook