Note: Binary options are not promoted or sold to retail EEA traders.
Whether you are a new binary options trader or a veteran, you must have heard or read about IQ Option. It is the single most popular binary options trading broker today. Maybe you have finally decided to start trading in binary options and someone recommended IQ Option. What do you need to know about it before you get involved? Before starting trading with any given binary options broker, you need to understand their operations. Your understanding of the binary options broker you choose to work with is central to how successful your binary trading efforts will be. This is an IQ option complete guide. It responds to the query, what is IQ option and how it works?
About IQ Option
IQ Option is a binary options broker headquartered in Seychelles. The broker operates a proprietary custom-made web platform, and Android and iOS App platforms. IQ Option is the binary broker with the highest number of subscribers. At the moment, the broker boasts of over 25 million subscribers. IQ Option offers over 90% profit on the staked amount in payout. These are some of the highest payouts in the industry. So, what makes IQ Option popular? Can you make money on IQ Option? Is IQ option scam? What is the best way to trade on IQ option? These are the fundamental questions that this review is going to try and respond to. After going through the review, you should be able to decide whether IQ Option can work for you or not.
This IQ option broker review will strive to remain as honest and truthful as possible. The aim is to help you make an informed judgment about the suitability of IQ Option for you and your trading strategy. You need to realize that they are people on IQ Option losing in as much as some are winning. Have you ever wondered, how does IQ option make money? Well, all binary options brokers survive off the fact that a better percentage of the subscribers are losing. We aim to help you make an objective judgment, on whether IQ Option is the best broker for you to trade binary options with. Maybe you have a winning strategy you have been using on a different broker. Can it work on IQ Option? You will be able to tell after we explore various aspects about IQ Option in great detail.
IQ Option Account
The most basic step to getting started with IQ Option is signing up for a trading account. On this section, we shall explore various aspects about an IQ Option binary options trading account. You can sign up for three types of accounts on IQ Option. The accounts are;
1. Demo account
This last thing you ever want to do is to deposit all your money on a binary options broker account, while you know nothing about trading in binary options. You will most likely than not lose that money. So, to give you a practicing platform and time to understand how the trade works, IQ Option offers you a Demo account. The Demo account mimics the features of a real account and gives you a certain virtual amount to start with. It is the IQ option without an investment account.
However, there is a twist to the demo account. As already mentioned, binary options brokers profit from traders’ losses. They will, therefore, do anything to ensure you make that initial deposit. You will find that you are winning more often than not on a demo account. That happens with any other demo account out there. This because a demo account has a virtual financial markets charts with algorithm generated signals. Many people get on a real account hoping to replicate their success on a demo account there, only to get a rude awakening. There is no harm in starting with a demo account, but use it to get acquainted with how the account works.
2. Real Account
This is the most popular account on IQ Option. You will be required to make a minimum deposit of $10 to gain access to this account. The account offers you up to 45% in cashback. It also gives you access to the web of brokers trading competition. You can get extra perks by depositing more. If you deposit more than $100, IQ Option will give you free trading signals, and you will get more access to trading opportunities.
The term “free trading signals” sounds enticing. Many traders do not take time to scrutinize these aspects carefully. A trading signal from the account does not necessarily help you win. It just notifies you of the possibility of a profitable trade. What determines whether you actually win, is your judgment of the situation. You need to have a strategy with which you can execute the signals. Acting on the prompts offered by the signals is a not a prudent thing to do.
3. VIP Account
The last account type you can get on IQ option is the VIP account. This account requires that you make a deposit of $3000. The IQ Option VIP account benefits include; 60% cash backs, unlimited access to trading opportunities, personal account manager, and periodic financial markets analysis by IQ Option’s resident analyst. These are great services which when properly utilized can earn you some profits. They do not guarantee you any profits though.
IQ Option offers a wide range of methods of depositing or withdrawing money. Among the IQ option deposit methods are;
- Credit Card
- Wire Transfer
They are the same for withdrawals too. The best way to withdraw money from IQ option depends on which one is the most convenient for you. The IQ option withdrawal process requires that you withdraw funds through the same channel that you deposited.
So, how do IQ options work? Before we get there, you need to understand the trading assets that IQ Option offers.
IQ Option has arguably the widest range of trading assets. It has assets in the following categories.
|Category||Number of Assets|
A wide variety of assets is always a good thing. You get to trade with the asset that you are most comfortable with. If you are a beginner, you should probably start with the 59 assets directly classified as options, before you get to choose any specific one. You need to have a good knowledge of the financial market of a particular asset if you choose to specialize.
So, you have the IQ Option trading account, and you have seen the assets you can trade with. How do you get started on the trading? How do you ensure you have a high winning rate?
How to Trade Successfully on IQ Option
Before we even get started, it is important to make it clear that nothing written in the review is a blueprint to making money on IQ Option. That being said, the review will highlight several tactics that you can employ to ensure you have a high winning rate. Notice that your money does not double when you win a trade. You get a 90% profit. You will, therefore, require and over 55% winning rate if you hope to make profits.
There is this nothing being sold out there, that it is so easy to profit from binary options trade. You have probably seen those binary options brokers commercials show how one makes easy predictions and wins. It is sad that they never tell you on which basis they make the predictions. Anyone who has been trading binary options successfully for a good while will tell you how laughable those commercials are.
Before we get to the nitty-gritty of the trading strategies you can employ, let’s explore IQ Option’s trading platform. How do you use IQ option? Follow the guidelines below
- The platform is basically the same both on the browser and on the APP. The layout might be a little different depending on the device you are using though.
- Once on the platform, you go to the instruments menu and choose the asset you want to trade with. You will see the current profit margin being offered by IQ Option on that asset. Once you have selected an asset the platform will open up a financial market chart for that asset. The ability to interpret this chart is very crucial. If you cannot interpret the chart, then you will not be trading, but rather gambling. We all know gambling does not end so well. In as much as there is an aspect of luck of in binary options trading, it counts for so little on the profits you can potentially make.
- On the far right of the dashboard, there is a clock, click on the clock to choose the expiration time for which you want to observe the asset. The time will be indicated on the chart with a red line. You will also notice the presence of a white line before the red line. The white line is the deadline before which you have to confirm the trade. The trade is canceled if you don’t confirm it before the deadline. Under the clock icon, there is another icon that you click to set the size of your investment. The minimum investment you can make on IQ Option is $1. You then place a call or put option. what is call and put in IQ option? A call means you predicting that the price of the asset will rise, while a put is the opposite.
This procedure outlined above is basically the steps on how you trade on IQ Option. The prediction part is where the heart of the matter lies. Different people use different strategies. There is no known sure way of making binary options predictions because the variables involved are too many. A number of people choose to enlist for the services of a binary options trading robot. We like to emphasize having a strategy though. So, which are the best strategies for IQ option?
We are going to look at the best strategy to win IQ option next.
We like to believe only a strategy can give you a chance of profiting from binary options trading. Also, finding the right strategy involves trial and error. Therefore, you may have to brave a couple of losses before you can formulate a robust winning strategy. Coming up with a strategy requires that you have the ability to reason critically and draws logical conclusions. Analytical skills come in very handy too. We can tell sure that a better number of the people who profit on IQ Option, or any other broker, have great analytical skills. Below are some strategies you can employ.
Money Management Strategies
Money management strategies involve managing the deposit balance that you have and trying to leverage it in a way that allows you to make more than you lose. Money management strategies can be classified into the following;
You will enjoy more success if you can learn how to effectively manage the risks your money is exposed to. This strategy is crucial for newbies and traders without enough analytical skills. You can approach risk management in various ways.
- First is managing the remaining deposit that you have. As a general rule, we recommend that you do not invest more than 10% of your remaining balance in one trade. Luckily, IQ Option has arguably the lowest minimum investment. You can manage your balance no matter how small it is.
- You need to strike a balance between how much your risk, and how much you can potentially win. That means if the trade you want to make is high risk, you probably want to stake a low amount and vice versa.
Compounding works for someone who has already discovered a winning strategy. Compounding is similar to plowing back your profits to reap more form your strategy. Let’s say you have worked out a strategy that is giving you a profitable winning rate. Obviously, the next step is to increase your stakes. You should not throw all your money into it though. Money markets are very volatile at times. You winning strategy could turn into a losing strategy in minutes. Compounding is the way to go about it. Let’s say you have a balance of $1000, and you put up five trades each with an investment of 10% of the deposit.
If you win all of them, and IQ Option pays you 90% profit, you will have a new balance of 1450. To compound, you need to maintain the same percentage of investment. For the second round, each trade will have an investment of 145. If you win, you will have a new balance of 2102. Compounding is meant to take maximum advantage of a tactic that is working. You can keep this going for so long as your prediction strategy is working.
Money management strategies work, only if you have great prediction skills. Your ability to analyze and understand various factors affecting money markets is at the heart of your success or failure in binary options trading on IQ Option, or anywhere else. We are going to highlight several strategies that you can employ as far as prediction is concerned. The bottom line is you need to know how to analyze the charts and partners for you to be able to apply the strategies.
Overall Performance Analysis Strategy
This strategy concerns itself with the actual monitoring of the company associated with the asset you are working with. For instance, if you are working with Amazon stocks as the assets, you need to observe closely what is happening to Amazon as a company. Their operations and all factors affecting them, affect the pattern of their stocks on the money market too. For instance, someone trading with Facebook stocks when the company was faced by the Cambridge Analytica scandal, ought to have known that their stocks would be in a downward spiral until the murmurs die down.
Technical factors such as employee stat faction, customer mood, and even the welfare of the partners of the company in question, is critical to the performance of their stocks. It is even better if you can access their financial records. You will be able to make better judgments about the overall performance of the company. This angle makes it simple. If the company is doing good, and the balance sheet is healthy, the stocks will keep going up, and vice versa.
Technical Analysis Strategy
This concept of this strategy is quite straightforward. You make judgments based on past patterns. You can observe past patterns pertaining to a certain asset, and document how it behaves in certain circumstances. If you notice the same patterns and circumstances in the future, you can predict the asset’s behavior with a certain level of certainty. You will still need some good analysis and interpretation skills if you are to get to make some precise predictions.
This strategy does involve the intrinsic value of the asset most of the time. You need to have a keen eye for similar patterns in the money markets charts. The are some analysis tools such as moving average and Bollinger bands that you could make use of. They will help you compare various patterns and be able to identify identical patterns.
Another common question is when the best time to trade on IQ option? Binary options trading whether on IQ Option or anywhere else has no specific great time of trading. It depends on how easy the prevailing circumstances make it easy for you to make predictions.
The above strategies can be employed while trading on IQ Option.
IQ Option Regulation and Licensing
One of the most pertinent issues about binary options trading is licensing. The first concern you should have is whether the binary options broker you want to trade with the licensed and regulated. You will be pleased to learn that IQ Option is licensed and regulated by one of the most respected regulatory bodies, CySec (Cyprus Securities Exchange Commission).
This Cyprus-based commission is renowned for ensuring that binary options brokers are legit. They give room for traders to launch any complaints if they feel they have been duped by a broker that is under their regulation. The recognition of CySec allows binary brokers under it to operate in many countries. IQ Option can operate all over Europe and in other countries around the world. You might wonder, can I use IQ option in Canada? can I use IQ option in the USA? Unfortunately, you cannot. IQ Option is not available in these countries.
can I use IQ option in India? can I use IQ option in Nigeria? can I use IQ option in South Africa? Yes, you certainly can.
You can, therefore, rest assured that you are trading with an authentic binary options broker, and the charts you get on the platform are actual financial markets charts. Winning or losing is therefore dependent on your prowess as a trader. You will rejoice if you have your strategies right. On the other hand, you cannot blame IQ Option if you have no strategy, or your strategy is not working.
Merits of Trading with IQ Option
- IQ Option offers various tools that make the strategies possible. IQ Option educates you on how to compare various patterns and draw logical conclusions. You won’t find that one many binary options brokers.
- IQ Option has a large volume of educational material especially if you are on the VIP account. Serious traders can learn a lot and double their chances of winning.
- Their trading platform is quite intuitive and user-friendly.
- Their payouts are quite impressive
- They offer a wide range of assets to trade with.
- IQ Option is regulated by the respected CySec
- The IQ option minimum deposit is $10 only
- The IQ option minimum withdrawal is as low as $2
There are not many demerits about IQ Options. That does not mean that you will win everything on IQ Option. Winning or losing does not have anything to do with IQ Option. Some cons of IQ Option include;
- The broker does not accept traders from various countries such as USA, Canada, Japan, and Israel, among others.
- The IQ Option trading platform requires fast and powerful devices. You might experience challenges if you are using an old and slow machine.
So, IQ option good or bad. IQ Option has better things than it is bad. Is IQ option really gives money? It all depends on your trading prowess. We hope the guidelines outlined here can give you the IQ option ultimate trading experience.