IQ Option Review
Trading Accounts
While IQ option doesn't offer multiple account types, like many other brokerages, they do have a VIP account available to those who deposit more than $3,000. It is worth pointing out, the sum shouldn't be deposited in a single, initial transaction (as is most often the case), but all of your deposits must amout to $3000. The VIP account grants you slightly better payout percentages.
IQ Option is regulated by the Cyprus Securities and Exchange Commission (CySEC), one of the few reputable agencies which oversees binary options. This raises their credibility a lot, especially when compared to the majority unregulated binary options broker.
In case you didn't know financial regulation is a key factor of a broker's reputation. When dealing with an unregulated company, you are basically taking their word as the only guarantee you will ever get your money back. CySEC, on the other hand, enforces a lot of rules on the firms it oversees. In terms of the security of client funds, two stand-out as the most significant: client funds must be kept in segregated accounts and brokers must participate in the local compensation scheme.
Segregated accounts are a special type of bank account, which the broker can not access freely. This implies, they can't "borrow" the money you are not using for trading and spend it on company expenses. Additionally the compensation scheme is a collective pool to which all brokers contribute a portion of their profits. The fund then serves the purpose of a guarantee, in case one of the brokerages happens to become insolvent. If you are trading with a binary options or forex broker, regulated by CySEC, your money is safe (against their bankruptcy) to a limit of €20,000.
One of the several unique aspects of IQ Option is the addition of Tournaments. These are events in which participants each put-up an equal predetermined amount up-front and then compete against each other. Tournaments have a fixed start and end time. A new tournament account, with a virtual $100 is created for each participant. Each contender trades, based on his own strategy and at the end of the tournament the top-ranking gainers are awarded. Tournament entry fees currently vary from $1 to $20, which means basically anybody can try them out. Do keep in mind, trading in these events is very aggressive and we would not recommend doing the same with regular options.
On the downside, there are multiple negative reviews of this company in various online forums. While we can't confirm nor deny their credibility, the fact they exist is troubling. The complaints vary from poor execution to slow (or even non-existent) withdrawals, which are serious issues.
Trading Conditions
Trading Options: Binary (Call/Put), Digital Options, Forex and CFD*
Assets: Currencies, Stocks, Indices, Cryptocurrencies
*the Forex and CFD trading modes are a mix between binary options and spot trading. They may seem hard to figure out, at at first, but provide an interesting alternative. Luckily IQ Option provides a video tutorial.