In this article, we will be focusing on the regulated broker IQ Option.
They’re a leading CFD and forex broker who are known for their incredibly low minimum deposit.
When opening a trading account with this broker some traders might ask themselves: is IQ Option safe? The answer to this question is yes, IQ Option is a safe broker to trade with.
That’s why we’ve examined the broker’s background and licences to make sure they’re secure. We’ll also show you how to check if a forex broker is safe.
Let’s take a look in more detail now:
How To Check if IQ Option is Safe?
Sadly, scams are not only common in daily life, but also within the trading online world as well. The main problem is that there are many unregulated online trading platforms who just want scam people.
Using one of these unregulated brokers is a dangerous thing to do. Mainly because it can end in money being stolen and fraud.
For example, one common scam is when a fraudulent broker won’t allow traders to withdraw their funds. Instead the broker keeps the money and disappears.
Another scam is when trader’s funds and a broker’s business accounts are merged. Without a clear record of separated accounts, traders cannot follow the actual performance of their capital.
This allows dishonest brokers to easily access and use a trader’s funds.
Unfortunately all these known scams have taken place with unregulated brokers.
This is why it’s so important to use a regulated broker only!
Regulation means that a broker is licenced to operate, and they’re monitored by an official authority. Some important authorities include CySEC and the FCA (Financial Conduct Authority).
They must also follow strict financial rules put in place to protect traders. For instance, they must let you withdraw your money and keep accounts segregated.
To check if IQ Option is safe, (or any broker), always check that they’re listed on the CySEC official website. IQ Option is listed as regulated there and holds an operational licence number.
In fact, every broker should have a licence provided by at least one or more regulative trading authorities. Otherwise they cannot provide a trading service.
Is IQ Option Regulated?
IQ Option is a broker who holds multiple regulation licences.
This means that they’re legit to trade with and not a scam. Some countries will have their own financial registers too.
Here’s a list of all the IQ Option regulations:
- the broker has the licence number 247/14 provided by CySEC, the main authority in the trading world.
- United Kingdom – Financial Conduct Authority (FCA) number 670182
- Italy – Consob in Italy with the licence number 0008204/15
- Spain – regulation by CNMV (National Securities Market Commission), number 3867
- France – regulated by Regafi with the number 75119
- Netherlands – registered to the AFM
- Estonia – monitored by the Finantsinspektsioon
- Czech Republic – regulated by ČNB
Having an account with a licensed broker means that trading is taking place in a secure and trustable environment.
Your money is safe and you can withdraw it anytime you want.
Due to regulation requirements, IQ Option needs to verify the identity of every new trader.
This to keep the platform safe from fraudulent accounts. The broker also needs to do it fulfil anti-money laundering and anti-terrorism laws.
So after opening an account, you’ll need to upload 2 identification documents:
- 1 proof of identity – (passport/driving licence)
- 1 proof of address – (utility/bank statement showing current address)
Once these have been uploaded you’ll be able to start trading. The customer support team will be able to guide you through the steps.
So before opening a trading account and depositing money in it, you must always check if the broker is regulated.
We also wanted to point out that IQ Option clearly features their CySEC regulation on their platform. (See the picture above for example.)
So to conclude, the answer to our key question: is IQ Option safe? – is a definite YES!
Not only are they an established broker, but they are also fully regulated. You can be reassured that they are secure to trade with.
To learn more about IQ Option and its trading accounts, please read our IQ Option review.