Recommended Level: Advanced+
IQOption is an alternative to the traditional bitcoin and cryptocurrency exchanges on the market. It features much higher security with a much more reliable brand, that has to adhere to European exchange and security regulatory frameworks – which is not the case for bitcoin or cryptocurrency exchange sites in general, just yet. IQoption is an alternative to traditional bitcoin exchanges, a much safer, and more reliable option, trading CFDs rather than cryptocurrencies directly, meaning they are much less susceptible to the ongoing hacks and closures you often hear about in the bitcoin trading industry.
What is a Bitcoin CFD?
With IQoption you do not actually hold the bitcoin or cryptocurrency you buy, instead what you engage in is a contract with the broker (the exchange – IQoption). This contract is known as a CFD (this stands for Contract for Difference). Just like if you were to buy Bitcoin from Binance or Coinbase or any other dedicated cryptocurrency exchange, you can never lose more than your initial investment, and your earnings will be the exact same on IQoption trading a CFD as it would have been if you were to buy Bitcoin on a traditional bitcoin or cryptocurrency exchange. The only real difference there is, is that you do not actually own the Bitcoin or cryptocurrency that you buy, you simply enter into a contract with the broker (IQoption in this case), that will award you the profit if the price of the asset increases or you lose part of your investment if the price of the asset decreases (just like it would have with a traditional Bitcoin exchange). The good news is, that as there are no Bitcoin or cryptocurrencies actually being exchanged on their platform, there are almost zero risks of intruders/hackers gaining access to the platform and stealing their assets. With the ongoing issues faced with traditional Bitcoin exchanges, where recently Binance lost $40 Million in a hack, and Cryptopia had to close its operations, after being unable to cover the loss from a hack in January 2019, it is no wonder that more and more people are interested in safer alternatives. Add to this, your funds are ensured with IQoption, should the broker for some reason fail.
Cryptocurrencies Available on IQoption
IQoption currently features 11 of the most popular, reliable and trusted cryptocurrencies for trading on their bitcoin cryptocurrency exchange.
- Bitcoin (BTC)
- EOS (EOS)
- OMISEGO (OMG)
- TRON (TRX)
- Qtum (QTUM)
- Ripple (RPX)
- Dash (DASH)
- Litecoin (LTC)
- Ethereum (ETH)
- Bitcoin Cash (BCH)
- ZCash (ZEC)
Deposit & Withdrawal Methods
With IQoption there is no need for an overcomplicated process of having to first to buy bitcoin from one exchange, to then transfer it to the exchange you really want to trade on, and then commence buying and selling bitcoin. With IQoption you can deposit and withdrawal normal fiat with the payment options you already know how to use. Currencies accepted are EUR, USD, GBP, and RUB. You can deposit and withdraw using the following payment methods:
- Visa Debit and Credit Card
- Master Card
- Maestro Card
- Bank Transfer
- Skrill and
By default, you are able to deposit and withdraw up to $1,999 choosing from Bank Transfers or VISA. You can lift these restrictions by following their quick and intuitive verification process.
Transaction & Trading Fees
IQoption charges zero deposit and withdrawal fees unless you decide to do a bank transfer, in which case the bank will charge you for their services (31 USD).
On trading fees, here is where it differs from traditional bitcoin exchanges a little bit. Typical Bitcoin exchanges will charge a one-off trading fee, whenever you buy or sell a coin only, that is usually around an industry average of 0.25% per executed trade, so if you buy $100 worth of Bitcoin it would cost you $0.25 to make that trade. IQoption has an overnight fee that is applied every evening at the same time for keeping your buy or sell position open. If you are to buy Bitcoin at $100, the next day IQoption will charge a fee of 0.065% for that transaction, or for keeping your contract open. This means that if you were to buy $100 worth of Bitcoin on IQoption, they will charge a fee of $0.065 for keeping that position open overnight. So if you plan on holding a position for a long period of time, you may want to factor that into your calculations and choice of Bitcoin exchange to choose from.
Supported & Restricted Countries
Due to its strict adherence to international financial regulatory compliance standards, the company maintains an open global position but stipulates it is important that the customer is aware of their own jurisdiction’s law (a typical legal fallback). The only country they appear to be rejecting from registration and trading is at the time of writing Belgium.
Naturally, as IQoption got its start from being a stock trading platform, it adheres to much stricter financial regulations than is the case from bitcoin exchange sites that are dealing only in Cryptos, such as Binance for instance. It is regulated by the Cyprus Securities and Exchange Commission (CySEC), and also holds financial trading licenses in the UK, Italy, Spain, France, Netherlands, Estonia, and the Czech Republic. This ensures that the company complies with internationally recognized financial standards, which very few if any, pure bitcoin exchanges do.
To add to this, IQoption is also a member of the Investor Compensation Fund, which is designed to protect and secure your funds, in case the exchange for some reason should become unable to fulfill their obligations, i.e. in case of hacks, bankruptcy or other issues. Due to the lack of regulatory frameworks in Cryptocurrency trading, usually, bitcoin exchanges provides no such guarantee. Take the recent defunct Cryptopia, currently going through administration, where there is nothing in place to safeguard and protect their customers’ assets in such incidents.
How is IQOption’s Customer Support?
Having personally tested out their support, I can say that I am thoroughly happy with the level of service, the general attitude and the time it takes to respond and resolve a case through their Live Chat. It is most definitely one of the better services I have personally experienced.
IQOption Trading Liquidity
As IQoption is not a traditional Bitcoin exchange that actually sends coins around on their exchange, but rather engages in a contract for a position you take, the trading liquidity is completely irrelevant and not something to be concerned about.
Ease of Use / Traders’ Experience Level
Their portal is one of the more advanced portals on the market, yet designed to be easy to use and intuitive for anyone looking for a beginner entry into trading Bitcoin CFDs or other cryptocurrency CFDs.
You are able to design your own watchlists at the top of their page, allowing you to quickly monitor the most important assets of your interest.
You can have one market open at a time if that is easier for you, but you also have great tools that can expand your overall market visibility, allowing you to monitor and trade across as many markets as 9 at one time, from one browser tab.
They have gone to great length to provide you with an extensive learning video library, that will expand your knowledge base and your understanding of different asset classes and also how to use IQoption’s Bitcoin CFD exchange. These are accessible at all times on the exchange with a click of a button, without stealing your trading real-estate or navigating you away from the website, ensuring you can keep monitoring your markets with minimal disruption.
Desktop & Mobile Apps
IQoption features a desktop app designed for a smoother and faster experience, but can also be accessed from their website portal.
They also have apps available for iOS and Android on their website.
Bitcoin CFD Reading Recommendations
- What is a CFD (1m40s)? https://vimeo.com/280774334
- What is Leverage (1m36s)? https://vimeo.com/280774409
- How to trade CFD (0m48s)? https://vimeo.com/280775011
- What is a CFD (Wikipedia Read)? https://en.wikipedia.org/wiki/Contract_for_difference