Options brokers have been coming up since the early 2000s. Many have gone under due to the tough laws and restrictions being introduced by governing bodies. Others were simply scam platforms out to take trader's deposits before closing shop.
IQ Option is one of the popular online brokers that has hung around for several years. But does being around for some time make them a safe platform to invest your money with? This guide answers the question Is IQ Option legit?
- 1 Overview of the IQ Option platform
- 2 5 Signs your options broker is robbing you
- 3 Is IQ Option Legit?
- 4 So what is the final verdict, is IQ Option legit or not?
Overview of the IQ Option platform
What is IQ Option?
IQ Option is an online options and forex broker. The company also offers other financial instruments such as commodities, CFDs and cryptocurrencies. The company offers their products to traders from different regions including Latin America, Europe and Asia. They've also won several awards and continue to evolve and introduce new features that make trading easy.
Can you make money on IQ Option?
Like with any other broker joining IQ Option doesn't guarantee that you will make money.
Trading in financial instruments carries some risk and majority of traders eventually lose their money. However, the few that actually make money do so because of their knowledge of the markets, use of proven trading strategy and having psychological stability to follow their trading strategy through.
5 Signs your options broker is robbing you
There are hundreds of options brokers operating online today. Many aren't regulated and these must be avoided at all costs. Of those that are regulated only a small fraction conduct transparent business.
One we found is IQ Option. Why do I say this? I and a group of other options traders run some tests to identify some of the ways “legit” options brokers use to rob traders of their money. This broker passed the test. So what ways do these brokers use? Read on.
Manipulating prices to control trade outcomes
Every trader has their preferred asset and trading style. These have been proven to work on many platforms. However, the broker owns the technology that you're using to trade. Therefore, they have the power to change prices at will.
Now if you have many winning trades, the broker might decide to use artificial prices to ensure that your trades start losing. This trick usually involves suddenly changing the prices by a single tick just before a trade expires. To identify this trick, you can open a different platform such as MT4 and run it alongside your broker's platform comparing the price movements in real-time.
Manipulate the expiry time of the trade
Options are set to expire within a specific time frame. So when you enter a trade, it's important that you take a close look at the timer. Does the order get executed at exactly the time you set it to start?
Does the timer count down normally? And finally, does it expire at the intended time? Some brokers will manipulate their timers making their clocks run faster or lag behind to ensure that your trade ends up losing eventually making money for them.
Fishing for large investments placed on single trades
Brokers know that small wins will build your confidence. This tempts you to invest larger amounts in subsequent trades. But once you invest a large amount, the trades usually don't go your way.
This is a tactic used to ensure that you remain on their platforms as a trader. They will entice you with small winnings creating the illusion that you're making money trading options. Once you invest a large amount on a single trade, they will move in taking your money to recover your winnings and a good part of your account balance.
Such brokers know that the majority of traders who lose money this way are likely to make another deposit trying to recover their big losses. And the cycle starts all over again.
Server disconnects right before trade expiry
This is a classic way fraudulent brokers use to rob their clients. Once you've placed your order, you'll happily watch the price move as expected.
But just before the trade expires, the broker's server suddenly becomes disconnected. It could be an internet connection error on your side. But this doesn't mean that your trade isn't being executed.
Remember that the markets don't stop. Once the connection error is resolved (usually within seconds), you'll find that your trade lost.
Withdrawals mysteriously disappear
Many options and forex brokers will have a specific timeline where withdrawals must be processed and deposited into their client's accounts. If this timeline expires, you're expected to ask why you haven't got your money.
Their support team should help you recover the lost money. Fraudulent brokers usually frustrate their clients by using hard-to-track support tickets until the client eventually gives up. So every time you make a withdrawal, make sure that a transaction receipt has been generated.
In addition, make sure that the broker you're dealing with has a mechanism that allows you to keep track of the withdrawals process.
Is IQ Option Legit?
Is IQ Option a scam or fake?
One of the easiest ways to determine a website's standing on the web is through third-party sites. I used similar web to view IQ Option's standing compared to other online finance and investment institutions. Standing at 18th position, this gives it a good reputation among online options and forex brokers.
IQ Option standing among finance and investment companies Another thing I looked at is the distribution of the countries traders come from. From the results, IQ Option has visitors from over 250 different countries.
It's safe to say that majority of these are actual traders. The good thing is that no one country has over 20% visitors meaning IQ Option is trusted by traders from all across the globe. IQ Option has visitors from over 250 countries
Is IQ Option safe broker?
IQ Option was established in 2013 was eventually licensed by CySEC. Their main function is to oversee financial institutions that handle customer deposits.
CySEC guarantee of IQ Option
Like other financial authorities, CySEC will keep a watchful eye on IQ Option's activities. This includes ensuring that trader funds are kept separate from IQ Option operating funds.
It also ensures that in case IQ Option goes bankrupt, traders are refunded up to $20000. But if you have any disputes with IQ Option, it's advisable to first contact their support team to see if can be resolved.
From 2014 to date how has IQ Option developed?
The platform is also available in desktop apps and mobile apps. Other improvements include the addition of popular indicators and tools that make trading easier. The platform also offers VIP accounts which increase a trader's earning potential.
The platform's focus on trader needs has made it popular worldwide and earned it several awards.
IQ Option is continuously evolving
IQ Option complaints
Each online broker will attract trader complaints over time. IQ Option is no exception. One common complaint I came across was delayed withdrawals.
This is a common problem across many online platforms. However, the good thing is that no trader has ever complained that the platform withheld their funds.
So what is the final verdict, is IQ Option legit or not?
Overall, IQ Option is a legitimate and progressive online options broker that serves traders across the globe. It's a good place to make money trading different types of financial instruments. If you're considering becoming an IQ Option trader, I suggest trying the IQ Option demo account first. Just to get a feel of how the platform works.
General Risk Warning: The financial products offered by the company carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose
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