If you are new to trading then I would like to introduce you to IQ Option. Unlike most brokers, IQ Option charges little to no commissions and fees. In fact, there are no hidden costs. Apart from offering its users a smooth experience, this is also one of the main reasons it is among the most popular brokers in the trading industry.
With IQ Option, you will be able to safely trade, free from high inconsiderate commissions and fees. In fact, there are no trading fees. A trading commission is the money that is charged when a trader opens or closes a trade. By not charging this fee, IQ Option has stood out from most trading brokers and pulled back from the middleman notion.
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Absolutely no trading fees and commissions.
Opening and closing trade positions for a profit is the main activity that takes place in the trading industry. IQ Option assures that you will not be charged even a cent as you go about this. This is a feature that only a few premium trading brokers offer. In fact, most trading brokers will charge this fee claiming that it is their main source of revenue. But these fees further narrow your profits.
How Does IQ Option Earn Then?
You might have been thinking that fees and commissions are the main revenue sources for most trading brokers. It's sensible to think that and yes, IQ Option does charge some fees and commission, but it is not the main source. IQ Option legitimately earns its profits by covering your activities and operations in trading markets. This means that IQ Option only stands to make a profit when a trader makes a profit.
IQ Option doesn't benefit from your losses or commissions. You can now see that IQ Option and traders share a common interest. It is because of this common interest that IQ Option has gone the extra mile to support traders. It does this by offering trade training, customer support, and offers. All this effort is made to ensure that you stand a better chance at trading and making a profit. It's a win-win situation.
IQ Option has assured you of no opening or closing, fixed charges or variable commissions. But what about the CFDs spread? This might seem confusing at first since you might be asking why does IQ Option charge higher when buying securities through them as compared to the ‘outside' market. The difference between the prices is not at all a commission.
Account Fees.
You should know that IQ Option doesn't charge any fee when opening or closing an account with them. The minimum amount for a deposit is not a cost. In fact, this amount also happens to be the minimum amount you can trade with. This assures you that not even a cent will disappear or be charged from your account.
It is also important for you to know that there are no withdrawal or deposit fees charged on IQ Option. However, there are two cases when you can be charged for withdrawing the money. These are:
- When you withdraw your money for the second time in a month (calendar month is taken into account) there is a fixed fee of 2%. The minimum and maximum fees for each currency are listed below.
- PHP min. 50 max. 1,500
- RUB min. 50 max. 1,500
- GBP min. 1 max. 25
- ZAR min. 15 max. 450
- THB min. 30 max. 1,000
- TRY min. 5 max. 150
- EUR min. 1 max. 30
- BRL min. 5 max. 125
- IDR min. 15,000 max. 450,000
- MYR min. 5 max. 125
- VND min. 25,000 max. 750,000
- USD min. 1 max. 30
- CNY min. 7 max. 200
- When you withdraw your money without any trading activity after depositing funds and it is more than 80% of the overall deposit IQ Option has the right to charge an additional fee. Such behaviour is treated as fraudulent intent and make IQ Option proceed with unnecessary payments carried out by external payment providers.
You can also access IQ Option's app on your Android or iOS device for free and be able to carry on with your trading while on the move.
Fees Charged In IQ Option.
Swap fee.
This fee is charged if you keep your trade on going overnight. It's usually 0.6%. You should take note that the swap fee only takes effect on CFDs securities such as forex, cryptocurrencies, ETFs, commodities, and indices.
Also, take note that this fee triples from Friday To Saturday.
Dormant fees.
An amount of €10 is usually charged if your account doesn't record any activity for 90 consecutive days. The same amount or an equivalent of any currency is charged monthly after that, should your account remain dormant. This fee is applicable to all account types and forms of trading both binary options and CFDs.
IQ Option will do its best to maintain contact with you so you stay informed. However, in the case of 12-month inactivity and lack of sufficient funds in the account for the administration fee, the company may lower costs to cover administrative expenses and entirely close such an account.
Verification Account Closure Fee.
If you fail to successfully submit your identification documents for verification within 15 days after making your first deposit, all your money except the profits made will be returned to your account. If your balance is above €5 then no fee will be charged but if your balance is below €5, a fee of up to €5 will be charged.
Underage Account Closure Fee.
An amount of $20 will be charged if a person who opened the account has not reached the age of maturity in the country where he resides. This fee will be taken on the 8th day after the closure of the account giving the time for that person to withdraw his funds. If there is less than $20 in the account, a fee of up to $20 may be charged.
Commissions for Holding Cryptocurrencies.
Depending on how long you wish to keep your crypto positions open, there are maintenance fees charged.
- For 3 months – 0.25%
- For 6 months – 0.50%
- For 9 months – 0.75%
- For 12 months – 1.00%
- For 13 months – 1.25%
- For 14 months – 1.50%
- For 15 months – 1.75%
- For 16 months – 2.00%
- For 17 months – 2.25%
- For 18 and more months – 2.50%
Fees Connected to Particular Trading Instruments on IQ Option.
CFDs on Forex
- Spread is a one-off cost and it is the difference between the ask and the bid price. This difference is displayed in pips and indicates the opening cost. The spread varies depending on the time, trade size, volatility and liquidity and other factors. For instance, the spread is 2 pips when the ask (buy) price for the underlying asset traded at 1.2039 is at 1.2040 and the bid (sell) price is at 1.2038.
- A swap fee is charged for keeping a trading position open through the night. It is normally 0.01% to 0.5% though, in some extreme conditions it can reach 1.7% of the face value of the transaction. The fee is three times higher when you hold the position open from Friday until Saturday.
CFDs on Cryptocurrencies
- Spread is the difference between the ask (buy) and the bid (sell) price. Let's take BTCUSD as an example. Let's say it is traded at 30,000. You might see the bid/ask price on IQ Option as 29,600/30,400. In such a case the spread is 800.
- A swap fee is an ongoing cost for holding the position open overnight. It is generally from 0.01% to 0.5% but in extreme conditions, it can reach 1.7%. It triples on Friday.
CFDs on Stocks
- Spread. If the underlying asset Tesla/USD is traded at 600, the bid/ask price could be at 599/601. The spread in our example is 2.
- IQ Option has the right to charge a swap fee from 0.01% to 0.5% of the face value of the position that remains open overnight. In extreme conditions, it can reach 1.7% and it triples on Friday.
CFDs on ETFs
- Spread is the difference between the bid and the ask price and it depends on many factors.
- Swap is the fee taken for holding the position open overnight and is equal to 0.01% – 0.5% (in special circumstances up to 1.7%) of the face value of the position. It is three times higher on Friday.
CFDs on Commodities
- Spread, as a difference between the ask (buy) and the bid (sell) price is presented in pips.
- Swap fee, 0.01% – 0.5% (in special circumstances up to 1.7%) of the face value of the position is charged for keeping the position open overnight. It triples on Friday.
CFDs on Indices
- Spread is a difference between the ask (buy) and the bid (sell) price and reflects the cost of opening a transaction.
- A swap fee is taken for holding the transaction open through the night. It is 0.01% – 0.5% (in special circumstances up to 1.7%) of the face value of the position. It triples on Friday.
Binary Options on Forex, Stocks
- There is no spread in binary options.
- There is no swap fee either.
Digital Options on Forex, Stocks
- There is no spread in binary options.
- There is also no swap fee charged.
IQOption LLC's PSPs
Below, you will find the list of payment service providers for IQOption LLC. Next to each, there will be the country where they are registered together with the regulatory body (if exists).
- Skrill Ltd, United Kingdom, Financial Conduct Authority (reference number 900001)
- Neteller (Paysafe Merchant Services Limited), Isle of Man, Isle of Man Financial Services Authority (reference number 1357)
- ECommPay Limited, United Kingdom, Financial Conduct Authority (reference number 607597)
- Webmoney (Paymaster24 LTD), United Kingdom, Financial Conduct Authority (reference number 599682)
- CardPay, Malaysia, Securities Commission Malaysia
- Accentpay (G-Services LTD), Russian Federation
- Cubits, United Kingdom, Financial Conduct Authority
- QIWI, United Arab Emirates, Dubai Financial Services Authority
For verifying the information check out IQ Option's general fees and commissions.Â
This article should have taught you all you need to know about IQ Option's fees and commissions. If you have questions then feel free to ask in the comment section below.