IQ Option fees and costs for traders
|Type of fees||Fees from|
|Trading fees||Commission, Spread|
|Forex trading fees||From 0.2 pips|
|Stock trading fees||From 0.2 pips|
|ETF trading fees||0.3%|
|Crypto trading fees||0.2%|
|Saving plan fees||/|
With a wide variety of trades, IQ Option has emerged as one of the leading CFD and options brokers in recent times. This article’s prima facie aims to discuss and demystify the costs associated and the withdrawal policy adopted by the multinational online binary brokerage.
We will also talk briefly about the variety of trading options they offer so that you can enter the world of online trading with some basic knowledge. Let us take a closer look at their fees.
Overview of all fees and costs:
|💰 The minimum deposit fee for live trading:||No|
|💵 Deposit fees:||No|
|💸 Withdrawal fees:||2% from the second calendar month|
|💻 Account maintenance fees:||$ 0|
|⏳ Inactivity fees:||After not being active for 90 days, you will be charged a $10 monthly fee|
|⚡ Fees on digital options trades:||No|
|Fees on forex & CFDs||From 1.0 pips|
|⏰ Overnight fees:||From 0.01 to 0.5% (even 1.7% in some cases)|
|💱 Currency conversion fee:||No|
|📊 Market data fee:||No|
|📲 Trading platform fees:||No|
What you will read in this Post
Spread fees, commissions, and swap fees
This platform takes ‘Swap Fee’ or ‘Overnight Funding,’ which will be charged on CFD positions left open overnight. This fee is set at 0.01% – 0.5% of the face value of the position and affects CFDs on forex, ETFs, cryptocurrencies, and commodities.
IQ option has no commission fees. A fee of 2.9% will be charged if you open a ‘long’ cryptocurrency position. For example, if you invest $10 to buy the equivalent in Bitcoin, you will be charged $0.29 for opening the position (or 2.9% of $10).
The spreads fee are variable:
- 180 Stocks with spreads from 0.02%.
- 35 New Forex pairs with typical spreads from 0.6 EUR/USD.
- 25 Typical Forex pairs with typical spreads that start from 0.005% EUR/USD.
- 35 Cryptocurrencies with spreads from 0.3% on Bitcoin/BTC.
- 4 Commodities with spreads from 0.05%.
|💱 Spread fee:||from 0,02 %|
|📊 Swap fee:||0.01% – 0.5%|
Forex trading fees on IQ Option
When it comes to forex trading on IQ Option, it is a competitive broker which is offering tight fees. There a no additional commissions, and the swap overnight fee starts from 0.01%. See the most popular currency pairs and their spreads below:
|EUR/USD||From 1.0 pips|
|USD/JPY||From 1.4 pips|
Which trading fees can occur on IQ Option?
The few main types of fees that IQ Option charges you are:
1. Currency conversion fees
IQ Option feels very proud to announce that it has no fees for depositing money to its service. Currency conversion fees can apply. IQ Option offers a wide range of currencies for account balances but when you deposit in a currency that is not popular, there are some currency conversion fees (0-1% – 0-5%).
2. Only a few withdrawal fees
The first withdrawal of a calendar month is free of cost, i.e., lacking a good commission. On the other hand, other withdrawals cost up to a fixed 2% fee. The amount differs from country to country, but here is a quick chart to help you out:
In the event of a deposit, only less than 20% of it is usable for trading. This may give IQ Option a reason to stop your money from being withdrawn. You can withdraw money after submitting an application for the same. This takes approximately 3 business days to process, after which money is added to the account or system used to deposit the initial money.
The amount of the withdrawal cannot be greater than the first deposit. In the case of detection of fraud, money laundering, or any violation of the company’s general fees policy, will decline the withdrawal request.
3. Commission fee/swap fee
The cost of holding your open position increases with time. In general, keeping trading options open prevents other people from trading using that position, and it will cost you since it costs the broker to stay open. The swap fees are negligible for the benefits they bring you.
For most trading options, the cost of keeping your position open overnight varies from 0.01 to 0.5% (even 1.7% in some cases) of the face value and is three times the normal rate on Friday to account for the weekend. Fees for holding open positions for cryptocurrencies are different and set for a more extended period.
They are as follows:
- 03 months 0.25%
- 06 months 0.50%
- 09 months 0.75%
- 12 months 1.00%
- 13 months 1.25%
- 14 months 1.50%
- 15 months 1.75%
- 16 months 2.00%
- 17 months 2.25%
- 18 months and more than 2.50%
4. Dormant account fees
On 90 days of inactivity in the trading account, a dormant fee, generally 10 euros for most trade options, is deducted as an administrative fee. Accounts are dormant if no trading activity in the form of deposits or withdrawals has occurred in the account for a period of 90 days. This fee is not levied from all accounts, especially not from those who withdraw and deposit at a greater frequency.
If you do not tend to access your account a lot and don’t trade large volumes or even on a semi-frequent basis, be prepared to shell out a minimum of 10 euros towards the maintenance of your account. Failure to pay dormant account fees results in the immediate termination of your trading account.
The company will inform the user beforehand of the charge, and also, in the event of the balance of the account being lower than the dormant fee, a lower amount is charged, and the account is still closed.
5. Underage account closure fees
If it identifies that a person does not fulfill the age maturity criteria for trading in their respective countries, a one-time fee of 20 USD is charged to the person for closing their account permanently. The deduction takes place from the account on the 8th day of not fulfilling the agreement with the company IQ option. It is noted that different countries have different legislation regarding age, which is appropriate for indulging in the stock market and other options like trading.
Hence this fee might not apply to you in most cases, and thus it is safer to check your country of residence’s law before setting up an account. You stand to lose 20 USD if you happen to do so.
Trading offers and different fees:
Now, let us delve into the specific charges on the different CFD or short-term trades offered for your easy perusal. IQ Option charges the following fees to earn money from clients:
#1 Forex trading fees:
Forex trading involves bidding and selling derivatives based on the direction of the value of a specific currency. For example, the USD/CAD trade means you are trading over the value of USD in CAD. The fees associated with forex fall into the same categories.
The difference between buying and selling prices. In the event of your sell price being lower than the buy price, a fee has to be footed by the trader or user to settle their trade and close their option.
The cost of keeping options open.
Inactivity/Dormant account fees
Comes into play after 90 days of inactivity and no trading.
Please note that opening up binary options (wherein you get a payoff on a correct prediction of the direction of the value) and digital options (wherein you get a payoff dependent on your prediction of the direction of the value and also how close your forecast was) do not incur spread fees or swap fees. Dormancy fees are still applicable.
The trades made on the increase and decrease in values of certain popular blockchain-based currencies like BTC and ETH against any currency. The fees associated with crypto trading also fall into the usual categories.
The difference between buying and selling prices. (View #1 Forex)
The cost of keeping an option open.
Come into play after 90 days of no trading.
These trades are mainly over the value of company shares. The fees associated are similar to Forex and Crypto. These trades are considered somewhat risky for people new to options and CFD trading.
Please note that binary and digital options do not hold spread or swap fees like those of forex binary and digital options.
#4 Exchange Traded Fund (ETF)
Trades are made over the values of funds that invest in and track a certain other commodity or index. The fees associated are similar to Forex, Crypto, and Stocks. These are relatively safer trades for new traders since they function similarly to mutual funds with a stable growth rate. Although please note that you do not invest in an ETF; you trade over the value of an ETF, i.e., you do not possess a CUSIP number and have a NAV value for a certain ETF account.
These trades are mainly over the value of certain commodities such as gold, crude oil, etc. The fees associated are similar, and these are also marginally risky trades; hence market research is paramount before investing.
These trades are mainly over the fall and rise in the indices that track a particular sector of the economy, for example, the NSE index or FTSE index, or even the Dow Jones. These are similar to stocks, but instead of focusing on a single company, you focus on the entire market. The fees associated are, again, similar to the topics mentioned above.
Deposit and withdrawal policy of IQ Option
As stated earlier in the passing, every user is provided with one free withdrawal every calendar month, i.e., without any commission or brokerage. The minimum withdrawal value varies from 10 USD, 10 Euro, and 100 Roubles depending on your region (refer to the table given above in the topic Withdrawal fees).
The different PSPs or payment service providers are set to have different processing times. It would be best if you chose the option which is best suited for your region.
The PSPs IQ option has partnered with are:
- Skrill Ltd United Kingdom
- Neteller Isle of Man
- ECommPay Limited United Kingdom
- Webmoney (Paymaster24 Ltd)
- CardPay Malaysia
- Accentpay (G-Services Ltd) Russia
- Cubits United Kingdom
- QIWI United Arab Emirates
Note: The payment services have transaction limits, restrictions, and requirements that must be adhered to. Please note that IQ Option does not take responsibility for third-party payment issues. In withdrawing directly to a card, a 21-business-day wait time is the norm. Complete verification may take up to 3 business days to process, and you cannot withdraw any money.
Withdrawals to bank cards take utmost priority but on the condition that the value is not greater than the most significant sum of money deposited in the last 90 days.
IQ option also reserves the right to deny withdrawal of money in the event of detection of their platform being used for fraudulent behavior, money laundering, unfair usage, and illegal activities. They can block your account and ask for documents in the case of a dispute.
Conclusion: IQ Option is a cheap trading platform with low costs
Fees and commissions on the IQ Option platform were the focus of this article. Now that you know what to expect when trading with IQ Option, I hope that you have a better idea of what to expect.
A high commission is not chargeable in the majority of cases. You can avoid all of the ones we’ve discussed so far with relative ease.
In order to be close to its customers, the IQ Option platform makes an effort to be accessible. Computer and mobile devices are supported. If you want to trade from wherever you are, you can download the app for Android or iOS devices.
Frequently asked questions about the IQ Option fees
What are the deposit and withdrawal fees on IQ Option?
There are no deposit fees at IQ Option. Bank transfer withdrawals cost around $31 per withdrawal. With other withdrawal methods, such as WebMoney, Sofort, PayPal, Skrill, or Neteller, there are no withdrawal fees.
Are there overnight fees on IQ Option?
Yes, there are swap fees or overnight fees at IQ Option if you hold CFDs overnight. On average, they range between 0.01% – 0.5% of the position value.
Is IQ Option free?
Yes, you have the opportunity to trade with an IQ Option demo account completely free of charge. You don’t have to pay anything at all. If you want to trade with real money, the trading is, of course, no longer free. But there are no hidden fees, and except for the usual trading charges and your capital investment, you do not have to pay any additional costs.
Is there an inactivity fee on IQ Option?
Yes, after not being active for 90 days, you will be charged a $10 monthly fee.