Is IQ Option Safe?
IQ Option is a popular online CFD & forex broker. They’re also known for offering good educational features, and a very low minimum deposit.
On their trading platform you can also find great analysis tools and an economic calendar.
However, when finding a broker to use, the main question you should ask yourself is IQ Option safe?
To answer this for you, we’ve looked at the following points:
- how to check if IQ Option is safe
- their regulation licences
By the end of this article, you’ll be reassured that IQ Option is a safe broker to trade with.
Let’s get started!
How To Check if IQ Option is Safe?
The main thing to check to see if a broker is safe to use, is to make sure that they’re regulated.
This the key to avoiding unregulated brokers who are involved with many trading scams.
Unregulated brokers are dangerous to use, mainly because they’re not monitored. They’re usually fraudulent and just out to steal user’s money.
For instance, 1 common scam that unregulated brokers like to do is to prevent users from withdrawing. Instead the broker keeps hold of the money and disappears.
In order to protect yourself, only use regulated forex brokers!
Luckily, IQ Option is a regulated broker and their platform is secure.
Regulation means that a broker holds active licences, and they’re monitored by an official financial authority. Some important authorities include CySEC and the Financial Conduct Authority (FCA).
Because they’re regulated, brokers like IQ Option must follow strict rules to protect traders. For instance, they must let you withdraw your money when you want, and they must keep client accounts segregated from the company accounts.
To check if IQ Option is safe, (or any broker), always check that they hold active regulation licences. When we checked, IQ Option holds an active CySEC licence.
Ideally, every broker should have multiple trading licences from various regulation authorities. IQ Option holds various licences and is registered to multiple financial bodies.
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.
The broker has 2 holding companies which are both regulated. The one you’ll gain access to all depends on your country of residence.
For example, if you live in the EEA (European Economic Area) or the UK, IQ Option is regulated by CySEC under the company name ‘IQ Option Europe‘.
If you live in a country that is regulated by CySEC, one bonus is that IQ Option is part of the Investors Compensation Scheme. This means that client’s funds are protected in case of insolvency, up to a max amount of €20,000.
If you’re living outside of Europe, for example Australia, the broker’s holding company is registered under the name ‘IQ Option Ltd‘. This branch is regulated by the FSA (Seychelles Financial Services Authority.)
Both branches are fully regulated.
Here’s a list of all the IQ Option regulations & registrations:
- regulated by CySEC, licence number 247/14
- regulated by FSA
- United Kingdom – in register to the Financial Conduct Authority (FCA) number 670182
- Italy – registered to Consob with the licence number 0008204/15
- Spain – in register to CNMV (National Securities Market Commission), number 3867
- France – registered to Regafi with the number 75119
- Netherlands – registered to the AFM
- Estonia – in register to the Finantsinspektsioon
- Czech Republic – registered by ČNB
Why Use a Regulated Broker?
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. This is because regulated brokers must let their clients withdraw their funds. The only requirement is that a client’s account must be verified before requesting a withdrawal, which is necessary due to regulation requirements combating fraud.
This is why IQ Option must verify the identity of every new trader.
Verification helps to keep the platform safe from fraudulent accounts. The broker also needs to do it fulfil anti-money laundering and anti-terrorism laws.
So before opening a trading account and depositing money in it, you must always check that the broker is regulated.
IQ Option Background
One thing that we checked to see if IQ Option is safe, is to look at their background.
Checking the history of an online broker is a good way to see if they’re a legit platform. For instance, it’s good to check if they’ve been established for a while or if they have won any industry awards.
IQ Option was founded back in 2013, and now has more than 7 million registered traders. The fact that they have so many users, also helps to show that the platform is authentic and not a scam.
They offer their own self-developed trading platform and have a very low minimum deposit of $10. Interestingly, IQ Option has also won many awards, which also boosts their reputation.
For instance, their trading app won the 2017 Award of Excellence from the Academy of Interactive and Visual Arts.
Awards are a good indicator that a broker is legit, because they’ve been recognised by others for doing well in an certain area.
Plus to keep trader’s personal info safe from hackers online, IQ Option use SSL technology to keep their trading platform secure.
IQ Option Safe Conclusion
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’re also fully regulated. You can be reassured that they are secure to trade with.
The fact that they have millions of registered users is also a good indication that they are not a scam.
IQ Option has also won many awards for their platform and forex trading app. For instance, they won the 2017 Award of Excellence during The Communicator Awards. Respected awards are also a good indication that a broker platform is reputable.
Although it’s up to you to find a broker that fits your trading needs the best, we think that IQ Option could be a very good choice- especially if you need a good trading app and a low minimum deposit amount.
Because they hold regulation licences, you can be assured that IQ Option is safe to open an account with, and they are a legit broker service.
To learn more about IQ Option and its trading accounts, please read our review.
Author of this article and founder of Tradingonlineguide.com
My aim is to help you increase your trading knowledge with helpful content. I come from an economic background and have a strong passion for forex trading. With more than 6 years in the online trading world, I want to share my financial knowledge so that anyone can develop their investment skills.
In my spare time I enjoy cooking and travelling.
Here you can learn more about our review methodology.