Thanks to the internet, all sorts of new financial markets have opened up for the average person. This is great news for me, since I’m always interested in investment opportunities. I found reasonable success with Forex trading, but it required a pretty substantial time commitment. So when a friend told me about the fast-paced world of binary options trading, I was intrigued.
With binary options, you trade for short periods of time, and can stop whenever you like. I could trade binary options whenever I had some spare time during the workday. I could even trade while I ate lunch!
More and more binary trade brokers are appearing online. One broker I’ve used often is IQ Option. Here’s a detailed account of what I like about them, and what I don’t:
Binary Trading Explained
Actually, let’s back up a second and take a look at binary options trading. Also called BOT, this type of trading has been around since 2008, although it was mainly a specialized type of trading the general public had little interest in. In 2012, however, binary options began to take off because the average person could now use the internet to trade in foreign markets.
A binary trade is an “all or nothing” trade. They apply to virtually any type of financial commodity. Basically, the investor attempts to predict the price of the commodity at a certain point in the future. If you think the price of the commodity will be higher than the projected price, that’s a “High” option. If you think it’ll be lower, that’s a “Low” option.
You can also use “In” and “Out” options. This is when you predict whether the price of a commodity will be inside or outside of a financial range. There are other options, too, but High, Low, In and Out are the four basic ones.
The success of the commodity is irrelevant to the investor; he or she just has to predict the correct direction the price will move in.
The potential return is known before the purchase is made, as is the risk. Even if you’re completely, wildly off in your prediction, you can only lose the fixed risk. With binary trading, you either win a pre-determined amount, or you lose a pre-determined amount.
Don’t worry if it sounds complicated. I had a hard time grasping it at first, but IQ Option turned out to be a great teacher.
About IQ Option.com
IQ Option is a binary option broker which primarily caters to English and Russian speaking customers from around the world. IQ Options is operated by Alta Vista Trading Limited out of the archipelago country of Seychelles.
Like other binary option brokers, IQ Option facilitates trades. What makes them stand apart from most other sites is their commitment to education. Binary trading is still relatively new, and it’s unfamiliar to many people. IQ Option wants to change that.
IQ Option Demo Accounts are a Great Way to Learn
They’re the first binary options broker to offer full service demo accounts for free. You can participate in real trades without using real money. The demo trades look exactly like real trades. I didn’t just learn about binary options, I also learned how to use the IQ Option interface.
Creating a demo account is easy. You don’t need to deposit any money or talk to anyone at IQ Option. You simply sign up and start. The demo link is featured prominently on the homepage. I really enjoyed the demo account. You see exactly how binary trading works and, since there’s no financial risk, you can learn from your mistakes without worry.
IQ Option in Action
After about a week of using the demo, I was ready to start making some trades for real. The minimum deposit is $10. Other currency options are available, too, but the U.S. dollar is certainly one of the major ones used. IQ Option accepts credit and debit cards, as well as various online payment services. While IQ Option has a good reputation, this was still an international deal. I decided to err on the safe side, and I made my deposit using a VISA card I use only for online transactions. This helps limit my risk should anything ever go wrong.
Different assets are available depending on the time of day, as different markets open and close around the world. The assets available on IQ Option are divided into four sections: commodities, Forex, indices and equities. There are approximately 70 available assets in total.
To make a trade, first you select the type of asset you’re interested in. Then you select the type of trade you want to make (High/Low, and so on). Finally, you select an expiry time. So far, expiry times are between three minutes and 60 seconds. I expect more to be added soon, since longer times seem to be the emerging industry trend.
Prices of IQ Option
IQ Option is so committed to binary option education that they purposefully keep their prices low. There’s only a $10 minimum to open an account, and the minimal investment in a single option is just a buck.
With the $10 Real Account, you get a cashback/bonus option up to 50% (although only through the mobile app), access to 91% returns on each trade. You’re also invited to weekly webinars.
For the serious trader, a $1000 deposit will grant you access to a VIP Account. This includes free trading signals, fast withdrawal processing (within 24 hours), a personal account manager and a monthly meeting to discuss trading strategy with an IQ Option expert.
The minimum withdrawal amount is $10. Depending on where you live, and the amount you’re withdrawing, you may need to provide certain financial documents. This will all be addressed via direct emails from IQ Option and you. Withdrawals are processed within three business days. The average withdrawal fee is $5 for a credit card and $50 for a bank transfer.
Criticism of IQOption.com
Binary trading is confusing and, if you’re not careful, you can lose a lot of money quickly. There are certainly many instances online where people are confusing their troubles in the market with the service provided by their broker. In order to judge IQ Option fairly, you have to look at how well they provide a service, not how complicated the actual trading can be.
I think IQ Option does a great job. While I wouldn’t mind additional expiry times, these one and two minute trades are pretty standard. Overall, I found the trades easy to make, the service reliable and the information very clear and well-written.
Final Conclusion of IQ Option
Binary option trading isn’t an investment strategy like putting your money in a mutual fund or a stock market. Rather, it’s fast-paced and uncertain. Personally, I think this is why I find it so much fun. As long as you only trade what you can afford to lose, you can be a responsible trader.
I’ve been very pleased with my experiences with IQ Option. The amount of information on their site is incredible. I really learned a lot! While I’m new to the world of binary trading, I’ve already developed an interest. I’ll continue to turn to IQ Option as a trusted resource.