For many new traders, the primary question they have is, “Is the platform I want to trade on a scam?” The reality is, many digital options platforms are out to take your money. Some will survive for a few months or years before closing shop. Those that are truly legit will offer excellent services and, give their information freely to third party websites.
Doing your investigation on these third party sites will help you find answers to questions like; How does IQ Option get their prices from? Is IQ Option about to shut down? and many more.
Luckily for you, I’ve done the investigation on your behalf. Read on to know whether IQ Option is a scam platform or not. In other words. Can you trust iq option?
- 1 How do you do a background check on an options trading platform like IQ Option?
- 2 My analysis of IQ Option using hypestat
- 3 What’s the likelihood that IQ Option might collapse?
- 4 Where does IQ Option get their quotes?
- 5 Can you make money on IQ Option?
How do you do a background check on an options trading platform like IQ Option?
The first thing to look at when considering an options trading platform is their site. It should be on a domain name that’s exactly the same as the company name. For example, IQ Option should be hosted on the iqoption.com domain.
Using third party websites to do a background check on IQ Option
You cannot fully rely on what the IQ Option owners say about their site. You’ll need to do further digging to know if these claims are true or not. That’s where third party websites come in. But what exactly will you be searching for?
Here are some checkpoints.
- How many visitors does the platform receive per day? That is, how many unique visitors (with unique IP addresses) visit the site each day? If the site attracts high traffic, you can assume that it’s quite popular.
- How is the site ranked by third party sites such as Alexa.com? Sites that rank high in third party websites not only attract huge traffic, but are considered trustworthy.
- Where is the site hosted? The best options trading platforms are hosted in North America and Europe. It’s an indicator of investment in the latest technology to enure that the platforms are running smoothly.
- Look at where the platform’s traffic comes from. Are many people accessing the site directly or from third party sites? Those that access IQ Option directly are very likely to be account holders. This can be an indicator of just how many traders the platform has. Indirect traffic comes from other sites. They can be traders or not. For example, you might read one of my guides, find a strategy you like and go to your IQ Option account to trade with it.
- Finally, you should look at the distribution of the traffic. That is, from which countries are IQ Option visitors coming from? If the traffic is distributed over hundreds of countries, it’s an indicator of the platform’s popularity.
To find all this information, I recommend using hypestat.com. This is a free site analysis website that draws information from top sites such as Google and Alexa.com. All you need to do is type in the domain name of the site you’re doing a background check on and you’ll get all the details.
The great thing about this site is that you can use it in countries where Google has been banned.
My analysis of IQ Option using hypestat
IQ Option Has about 1,732,794 unique visitors per day. It also has 2,044,697 page views meaning each visitor check out at least 1 page on the site. It’s worth noting that these statistics aren’t static. They will change each day.
Hypestat then shows that IQ Option is ranked 750 in the world by Alexa.com. This accounts for about 0.123% of global internet users.
Now, in order to know how IQ Option ranks against other financial trading and investments platforms, I used a different site which you can find here: https://www.similarweb.com/top-websites/category/finance/investing
IQ Option servers are hosted in Cyprus. In addition, it supports HTTPS (secure server) which is a technology that encrypts data sent to their servers.
14.21% of all unique site visits are direct. That means for every 100 unique visitors, 14 will type the IQ Option domain name directly. 83.07% reach the platform through referral sites such as iqoptionwiki. Less than 2.5% find the site directly through search engines.
From the world map below, you can see that majority of IQ Option trades come from South and Latin America, Asia and Africa. The table below it also provides additional information like how IQ Option is ranked in specific countries and actual percentage breakdown of how many are actual users of the site.
It also helps to compare IQ Option with other platforms you’re thinking of joining. One popular platform we usually discourage traders from joining is GGBinary. Here’s a snapshot of what I found about the platform.
What’s the likelihood that IQ Option might collapse?
IQ Option has been operating since 2014. The good thing is that the platform has continued to evolve. They have invested a lot in making the platform transparent and easy for traders to use. New features and assets have been introduced along the way. These are signs that the platform intends to remain active for a long time.
However, due to emerging financial regulations, you might find the platform discontinuing their services in certain countries (or hopefully complying to the new regulations).
If options trading is banned in your country, can you still trade on IQ Option?
Many traders will try to play the system by using technology such as VPNs to trade options if they’re banned in their countries. I’d recommend trading other financial instruments such as CFDs and forex. Remember IQ Option has hundreds of different assets you can trade and you only need a few to make money.
What would happen if all traders in a banned country withdrew their money at the same time?
Being a regulated broker, IQ Option is expected to keep trader’s money separate from their own money. This means that your withdrawal request will be processed even if all other traders in your country place withdrawal requests.
This however doesn’t mean that IQ Option will likely collapse if such an event occurs. Due to the reputation they’ve built, it’s likely that new traders will join the platform.
Let’s look at Google Trends for better insight into where searches for IQ Option come from.
What Google Trend says about IQ Option searches from different countries
After entering “iq option” in Google Trends, the result showed that interest in the platform comes from people in 40 different countries. These are colored in blue. That means traders from at least 40 countries are accessing IQ Option within a single month. This leaves out a high number of countries (gray) where IQ Option is yet to get clients from.
The truth is, IQ Option has many clients from all over the world. The platform is making money by offering their trading service. So it makes no sense why they would opt to shut down their operations in the near future.
Where does IQ Option get their quotes?
Online brokers cannot just guess some random prices and offer them to traders. This would be cheating. The prices must match what’s currently offered in the financial markets.
So where does IQ Option get their quotes?
The platform reports that all prices are provided by their quote provider (DevExperts). After receiving the quotes (real time Ask and Bid prices) IQ Option then calculates their prices using the formula Bid + Ask/2. This gives them the price to offer traders and eliminates the need for a spread.
This therefore means that the price you get isn’t the actual real time market price. However, it lies quite close to the real time Ask and Bid prices existing in the markets. IQ Option actually provides a way to verify the quotes you’re getting through their Historical Quotes tab.
Note that Historical Quotes is only available in real trading accounts.
Now what does this mean for trading?
Simply put, it puts 60 second traders at a slight disadvantage.
Since the price quoted on your chart isn’t what’s exactly what’s in the market, it means a slight change could mean a lot when trading 1 minute.
Let’s say IQ Option gives you a quote of 1.45782 but the real Ask is 1.45853 while the real bid is 1.45209. If you choose to go long on a 1 minute trade, it’s very unlikely that the prices will reach the real Ask price let alone get higher within 1 minute. The same goes if you decide to enter a short position.
But this is quite possible if you trade longer periods that last 5 minutes or more.
Can you make money on IQ Option?
Given the data collected from various third party websites, IQ Option is a popular options trading platform. That means that traders are flocking to the site to make money. It also means that folks are actually making money here.
But what about you?
It takes time to truly understand how IQ Option works. This means reading all you can on their website. It also means you should take your time to learn how the platform really works.
Making money as an options trader carries is risks. Majority of traders on IQ Option end up losing money. This is due to many factors which include emotional trading and not understanding how the platform really works.
If you really want to make money on IQ Option, take time to learn first. Then use the IQ Option demo account to get a feel of how the real account works.
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