Is IQ Option a scam?
Is this a broker you can trust?
Find out the truth about IQ Option and learn how to best invest in the forex and cryptocurrency markets.
IQ Option Scam allegations
IQ Option is a leader in the field of online trading, forex and CFD trading and cryptocurrency management. This is a large and well developed company which has always been committed to a high level of customer service and client satisfaction.
Nonetheless, there are at times accusations of scam pointed towards IQ Option. It is necessary to investigate why such criticism is made and how it should affect your decisions to trade with this forex broker.
Forex Trading, CFD and Cryptocurrencies
The reason some users accuse IQ Option of scam is simple. These inexperienced traders have wrong expectations when they open an account and invest in Forex or CFD trading. Such financial derivatives offer very high yields which can confuse novice users who are lured by the amazing return rates.
Yet the risks of investing in Forex are as high as the potential gains. These are not simple investment tools and they require knowledge, patience and a dose of luck as well. It is possible to lose funds and earning large sums is unrealistic, especially for beginners.
Thus, these users end up losing money and as a result feel they have been scammed. In fact, no scam occured. Furthermore, IQ Option is very careful in always clarifying the risk factor in order to protect its clients.
IQ Option Features
Far from being a scam, IQ Option is a conglomerate that offers multiple investment options to clients worldwide. IQ Option Europe Ltd is fully regulated by the CYSEC financial authority, allowing European citizens to trade with additional safety. IQ Option Ltd services all other clients.
A further proof that IQ Option wishes to protect your investment is the Demo Account option. This is a practice account with which you can trade using chips instead of real funds. It helps you better understand the nuances of the trading platform, prepare your strategies properly an trust the investment choice you are making today.
Cryptocurrencies and Hodly Wallet
IQ Option is constantly expanding the gamut of tools and options you can choose to invest with and diversify your portfolio. It currently offers CFD trading with cryptocurrencies including Bitcoin, Litecoin, Ethereum and several others.
Another novelty is the Hodly Wallet, a crypto wallet with which you will manage your positions with total safety and several advantages. Among others, the recently launched Hodly Wallet includes:
- Cold Storage – your cryptocurrencies are stored securely offline to avoid any possibility of hacking
- Double verification access – a password and a pin are required to access the account for additional safety
- Trading data – Charts, price ranges and other valuable information is made available to you so you may manage all trades and transactions from one place
- Credit Card purchases – Buy bitcoins, ethereum and several other digital coins with a simple credit card transaction
The Hodly wallet is not the only innovative product IQ Option has created for you. Soon it will launch the IQ Option cryptocurrency exchange, which added to the wallet and the current trading platform, will give you the perfect infrastructure to operated all your trades in one place.
Understanding the risk factor
Forex and Contracts for Difference are sophisticated financial derivatives. The lucrative yields are offered because your positions can be leveraged and multiplied several times. For example, you might open an account with 200 euro and start trading with 10,000. If your position goes up by just 2%, you will earn 200 euro, in other words, potentially a 100% gain on your original investment of 200.
Yet the risk factor is equally huge and works the same way as the example above, except negatively. If the 10,000 position goes down in value as little as 2%, you experience a 200 euro loss. Since your personal original investment was 200, you effectively lose all your funds. Therefore, there is a need for some expertise and much caution when using leveraged positions.
This risk factor receives relevance in all IQ Option press releases, in order to avoid scam accusations and allow users to make correct choices that match their financial possibilities. Definitely Forex and CFD’s are a very attractive and at times profitable tool. Yet no investment offering such high yields can be risk free.
IQ Option Scam Conclusions
- IQ Option is not a scam. Rather, it is one of the leading online trading platforms worldwide, with an array of assets and options available for investors.
- It is possible to open an account with IQ Option with as little as $10. You can start your experience with forex and CFD trading as early as today.
- A demo account is also available for those who want to test the waters before immersing in the dynamic field of cryptocurrencies and currency parings.
- With the grows of Bitcoin and the launching of new crypto coins almost daily, IQ Option is making sure you are well served. They have recently launched the Hodly Wallet.
- The IQ Option crypto exchange being launched these days will allow you to further benefit from managing your online investments. It is possible to purchase cryptocurrency with your credit card!