In this article, we will explain how to recognize if a forex broker is safe, and in this case we will be focusing on the broker IQ Option. 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.
Sadly, scams are not only common in daily life and the internet but also within the trading online world as well. The main problem is that there are many online trading platforms and brokers which are not regulated which can lead to fraud.
One common scam is when a fraudulent broker won’t allow traders to withdraw their funds, therefore allowing the broker to keep the money and disappear.
Another scam that has happened a lot with dishonest brokers is when funds and accounts are merged, so without a clear record of separated accounts, traders cannot follow the actual performance of their capital. This allows rogue 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 is so important to use a regulated broker only! Mainly so traders can have peace of mind that their trading won’t be affected by things like this.
In fact, every broker should have a license provided by one or more regulative trading authorities in order to provide a trading service.
Is IQ Option regulated?
IQ Option is one of these brokers with a license.
Here a list of all the IQ Option regulations:
- the broker has the license number 247/14 provided by Cysec, the main authority in the trading world.
- regulation by the Financial Conduct Authority (FCA) number 670182
- regulation by Consob in Italy with the license number 0008204/15
- regulation by CNMV in Spain with the number 3867
- regulated by Regafi in France with the number 75119
- In the register of AFM for the Netherlands
- regulated by Finantsinspektsioon for Estonia
- regulated by ČNB for the Czech Republic
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.
In order to achieve all the regulation tasks, IQ Option asks every new trader to upload their documents of identification and a proof of residence before trading. This is because of the anti-money laundering and anti-terrorism laws that every regulated broker needs to respect.
Before opening a trading account and depositing money in it, it’s always a good thing to check if the broker is regulated. Usually, all the information regarding this is at the bottom of the homepage. (See the picture above for an example).
Coming back to the first question: is IQ Option safe? We can confirm that it is for the mentioned reasons that it is an established and a regulated broker.
To learn more about IQ Option and its trading accounts, please read our IQ Option review.