IQ Option tutorial for beginners – How to use IQ Option


Binary options have become an exotic trading instrument where people trade their money for a lucrative payout. Among the other trading platforms available, binary options have caught the attention of many traders with their high returns.

However, one thing that traders tend to forget is that as profitable as binary options trading is, this market also carries an equal level of risk. How, you may ask? You will lose all your traded amounts if you speculate incorrectly on the market. You must learn to use your broker correctly to be a successful trader.

The broker IQ Option offers great trading opportunities to traders. Traders who learn how to use IQ Option can tap these opportunities. They can trade with the knowledge and experience that helps make money in trading. 

Whether you are a newbie or an experienced trader, this article will act like an IQ Option trading guide for you. Let’s learn how traders can use IQ Option to trade different assets

iq option
The IQ Option trading platform
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What is IQ Option? IQ Option trading explained

Founded in 2013, IQ Option is one of the trusted trading platforms helping traders invest their money in the highly volatile binary options market. This trustworthy platform is registered and regulated by a reliable organization.

IQ Option is designed to make it easy for people to trade their money in binary options by limiting the risk. This platform has made trading assets available for traders, like IQ Option forex, stocks, commodities, and indices. Majorly, this platform is one of the best for trading CFDs. 

This platform is based in Cyprus and has developed its range of trading instruments. IQ Option is a comparatively new platform, but it has developed a good reputation among traders for offering reliable services. 

The user-friendly interface of IQ Option makes it easy for traders to use it on mobile phones and desktops. The trading tools offered by this platform include economic calendars, historical quotes, multi-chart layouts, stock screeners, technical analysis, market updates, and volatility alerts.

One thing that has made IQ Option so popular among traders is its friendly customer service. This platform offers services in around 13 languages to simplify the trading process.

IQ Option accepts traders from around 213 countries. Not to mention that around 1 million transactions take places on this platform every day. So, if you are impressed with IQ Options’ features, register yourself today.

The platform can be used via a desktop version and is also available as an app for iOS, Android, and Windows.

Pros
  • This trading platform charges a minimum deposit fee of $10
  • After registering yourself with the IQ Option, you also get a free demo account
  • You can start trading with as minimum as $1 
  • It is one of the best platforms in the market
  • Different trading strategies can be used on this platform
  • Lastly, it offers free training programs
Cons
  • As compared to other trading platforms, IQ Option offers limited assets
  • Bank transfer has around 50 USD fees 
  • Binary options contracts to trade are limited

As you can see, there are way more pros than cons. IQ Option is a binary options broker we can recommend.

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(Risk warning: Trading involves risks)

How to start trading with IQ Option?

iq option demo account
Charting on IQ Option

If you want to start a trade with IQ Option, you first need to create your account. To do this, you are required to visit the main page of IQ Option’s website. After that, you must fill in the necessary information. Once you are done, you can use this platform. 

Before starting the trade, IQ Options requires every trader to make a small IQ Option minimum deposit of $10. This deposit amount is one of the lowest amounts charged by any broker. After depositing the required amount, you can also access an IQ Option demo account to practice using dummy money.

Not only the deposit amount is cheaper, but depositing the money is also elementary. You can quickly deposit using a debit or credit card, Neteller, Skrill, and other e-wallets. 

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Assets offered to trade with IQ Option

IQ Option has a wide range of tradable assets. Traders can pick the underlying assets they wish to trade on this platform.

The top tradable assets on IQ Option include the following. 

Options

Options on IQ Option
Options on IQ Option

These financial derivatives give traders the right to buy/sell the underlying asset. However, traders holding these financial instruments are not obligated to transact these assets. 

Traders can access a wide range of options on IQ Option. IQ Options supports binary options, digital options, and forex options trading. Traders can choose high-performing options and place their bets while trading on this platform. 

CFDs on stocks

IQ Option - Stocks
Stocks on IQ Option

CFDs on stocks are easily tradable on IQ Option. Traders can trade stocks with CFDs without choosing the expiration time. In addition, the broker allows traders to trade them without picking a strike price. 

Traders only need to pick a stock to trade with CFDs. Once the price of such investment hikes, a trader can make money. 

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Forex

Forex trading on IQ Option
Forex pairs on IQ Option

IQ Option is great for helping traders make a portfolio for their investment. Traders can also choose forex for a more diversified portfolio when trading with this broker. IQ Option supports and allows traders to trade all the major international currencies. 

Cryptocurrency

Cryptocurrencies on IQ Option
Cryptocurrencies on IQ Option

Cryptocurrency has been traders’ popular trading choice in recent times. IQ Option keeps itself updated in its investment offering. It supports cryptocurrency trading. All major crypto, including Bitcoin, Litecoin, etc., are easily available for trading on IQ Option. 

CFDs on ETFs, Commodities, and Indices 

IQ Option - Commodities
IQ Option – Commodities

Traders have a choice to trade ETFs and commodities on IQ Option. They can choose all the leading commodities, such as gold or petroleum, to trade online. It also offers indices trading for traders. 

Traders can widen their trading portfolio by adding these instruments to their trading list. IQ Option supports CFD trading on these instruments to trade. 

How to trade CFDs on IQ Option?

To trade CFDs or any other asset on IQ Option, traders must have an account. IQ Option has a simple sign-up process. Traders can sign up signup by logging in to the website and submitting the details for signing up. 

IQ Option will then give traders login credentials which they can use to enter their trading account. 

If traders want to trade CFDs on IQ Option, they can follow a hassle-free process. 

Step #1 Click the ‘New Asset’ button

IQ Option - add new asset
CFD trading on IQ Option

To begin CFD trading, traders must select an asset to trade. Traders can use the friendly-used IQ Option platform to trade CFDs on stocks, ETFs, commodities, and indices. Clicking on ‘new asset’ will open a list of options for traders. 

For instance, if a trader selects ‘stocks,’ this list will open all the companies whose stocks you can trade with CFDs. 

Step #2 Set the amount

IQ Option - set the amount

After choosing the stock, traders can set the amount for trading. While setting an amount for IQ Option CFD trading, traders must remember to choose an amount they can afford to lose. 

IQ Option might not allow traders to allocate all the capital on a single CFD on an underlying asset. The broker promotes risk management to help traders avoid losing all their funds in a single CFD trade. 

Step #3 Choose a multiplier

IQ Option - choose a multiplier

Now, traders can choose the multiplier. IQ Option supports auto closing. So, if a trader wishes to close his deal automatically, he can choose this option. 

Choosing the multiplier on IQ Option will enhance a trader’s profit-earning possibility. However, the multiplier might increase the risk of loss as much as it might increase the profit potential. 

So, a trader must choose the auto-closing option only if he trusts his prediction. An auto-closing trade will close on its own whether a trader makes a profit or a loss. 

Step #4 Take action

IQ Option - trading chart

Traders must have to make an accurate analysis to make money through CFD trading. CFD trading will make you lose your investment if your prediction is inaccurate. 

After choosing a multiplier, traders can choose the buy/sell option. When the right trading conditions persist, you can place your trade. Traders can close their trades when the opening and closing difference of the CFD trade goes high. The higher the difference for traders, the greater their profit-earning potential. 

So, trading CFDs on IQ Option is possible with these 4 simple steps. Traders can trade CFDs on any underlying asset with this broker without hassle. In addition, beginner traders can join an IQ Option demo account to trade CFDs without making a real investment. 

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How to trade binary options on IQ Option?

Besides CFD trading, traders can enjoy binary options trading on IQ Option. Traders can sign up on IQ Option to begin binary options trading. The trading process differs slightly from CFD trading, as traders have to choose the strike price and expiration time. 

IQ Option offers great trading conditions to traders trading binary options. They can access a wide range of assets that they can trade in binary options. 

Here is how traders can enjoy binary options trading on IQ Option after creating and funding their trading accounts. 

Step #1 Select an asset

IQ Options - Assets - Tesla

Traders can begin by selecting an asset they wish to trade. IQ Option allows traders to trade the leading assets of companies such as Google or Tesla with binary options. 

The broker also supports trading binary options on stocks, commodities, and forex. To choose an asset, 

  • Traders can click on the ‘asset’ list. 
  • Traders can filter assets by category, such as stocks, forex, cryptocurrencies, etc.
  • Click on the asset to trade to open the trading window.

Once the trading window appears, traders can proceed with other steps to trade binary options on IQ Option. 

Step #2 Choose the expiry time

IQ Option - expiry time

After choosing the binary options pair they wish to trade, they can place a trade. Choosing the expiry time involves the following steps.

  • In the trading window, traders can see the expiry time dropdown menu above the asset chart.
  • Click on the dropdown menu. By doing so, traders can see the available expiry times for the selected asset.
  • The available expiry times will depend on the asset traders select. This expiry time can range from as short as 1 minute to as long as several months.

Traders can select an expiry time that suits their trading strategy. Finally, they can click on it to select it.

Step #3 Predict the price movement

IQ Option - price

After choosing the expiry time, traders must predict whether the binary options price will rise during the chosen time duration. 

Traders can trade the amount when trading binary options on IQ Option. They can select “up” or “down,” depending on the asset’s price movement prediction.

  • If traders believe the asset’s price will increase by expiry, select “up” or “call.” Otherwise, they can select “down” or “put.”
  • Traders can also use technical analysis tools and indicators available on the IQ Option platform. It will help traders make a more informed prediction. For example, using chart patterns, moving averages, oscillators to identify trends, etc., can help traders make an accurate prediction. 

Step #4 Choose the trade amount

IQ Option - auto close

Now, traders must determine the amount they are willing to invest. IQ Option sets a minimum and maximum trade amount for each asset. Mostly, traders can begin trading binary options with IQ Option for only $1.

Step #5 Place your trade

Traders trading binary options with IQ Option can do it easily. After choosing the trade amount, traders can make the buy/sell decision. Clicking on the option will allow you to place the trade. 

After placing the trade, traders must watch their trades closely. Traders can also set stop loss and take profit orders to manage risk and potential profit. Once the trade expires, traders can make and withdraw their profit. IQ Option offers a payout ranging between 60%-90%

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(Risk warning: Trading involves risks)

Difference between binary options and CFD trading on IQ Option

Binary options and CFDs are two financial instruments traders can trade on the IQ Option platform. 

The difference between the two instruments is as follows:

FeatureBinary options trading on IQ OptionCFD trading on IQ option
DefinitionPredicting price direction with fixed payout and riskSpeculating on the price movement of an underlying asset without owning it
Trading StrategyPredicting price direction onlyGoing long or short with leverage
Risk and RewardFixed potential profit and riskVariable potential profit and risk
Expiry TimeFixed expiry timeNo fixed expiry time
Trading AssetsLimited assets Wide range of assets

Binary options are financial options where traders get a fixed amount of money or nothing at all. The trader needs to determine the price of the underlying asset. They should predict whether the price will be higher or lower than the strike price at expiration. 

CFDs allow traders to speculate on an underlying asset’s price movement. Traders need not own the asset.

In binary options trading, traders only predict the direction of the price movement. In CFD trading, traders can speculate on the price movement in either direction on IQ Option.

IQ Option allows traders to go long or short. Additionally, with CFD trading, traders can use the leverage of up to 1:300 to magnify their profits and losses. Traders might not be able to use leverage on binary options on IQ Option.

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Risk and reward

IQ Option - Awards

In binary options trading, the potential profit and risk are fixed from the beginning of the trade. If the trade expires in the money, the trader earns a fixed payout on IQ Option. The payout is typically between 60-90% of the trade amount. If the binary options trade expires out of the money, the trader the whole amount. 

In CFD trading, the potential profit and risk are variable and depend on the price movement of the chosen asset. The trader can earn a profit or suffer a loss depending on the difference between the opening and closing price of the CFD.

Expiry Time

Binary options trading on IQ Option has a fixed expiry time. In CFD trading with the broker, there is no fixed expiry time. IQ Option allows traders to close the trade at any time.

Trading Assets

IQ Option - Protecting your assets

Binary options are available on a limited number of assets on IQ Option. CFD trading on IQ Option lets traders speculate on the price movement of stocks, indices, commodities, currencies, and cryptocurrencies.

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(Risk warning: Trading involves risks)

Fees and costs charged by IQ Option – What you should know

Traders trading on IQ Option must pay fees and commissions that the broker charges. IQ Option offers traders the benefit of getting the best services. Besides, the fees and commissions traders must pay the broker are very low. 

For options trading, IQ Option charges a commission based on the trade’s value. The broker deducts this commission from the trade amount when the trade is opened. 

The fees and commissions of IQ Option are as follows:

TypeFees
💱 SpreadsStarting from 0.005%
💵 CommissionsDepend on asset and account type
💰 Deposit and withdrawalDeposits are free, but withdrawals cost 2% of the total amount withdrawn
💵 Inactivity feeEUR 10 (if the account stayed inactive for 90 consecutive days)
⌛️ Overnight fee0.01%-0.5%

When you are trading with IQ Option, you are also required to pay a withdrawal amount. Now, the withdrawal amount is not set by the broker. Instead, it depends on the method you use to withdraw your money. 

No matter what withdrawal method you select, you cannot withdraw money less than $3 because IQ Option cannot process that withdrawal amount. 

Talking about the trading and IQ Option fees, it does not charge any transaction fees. But this platform charges inactivity fees if your account is not used for 90 days or more. 

Another highlight of using IQ Option is that it does not charge maintenance or any other minor fees. 

Most traders registering with IQ Option get access to the standard trading account. But once the total deposit in any account goes beyond $3000, this platform upgrades the trading account of that trader to a VIP account. 

A VIP account’s benefits include a chance to trade in a high-yield asset that can make around 91% profit. 

Is trading on IQ Option profitable?

iq option profit

IQ Option is a profitable platform that can take you one step closer to getting financial independence. But it’s possible only when you have a detailed trading strategy. You will lose much money if you don’t have a winning trading strategy.

Another thing that can help you reduce the odds of losing is knowing the asset you are trading. If you know your asset, i.e., if you are familiar with its movement, nature, and volatility, you can easily predict its price movement. And just like that, you can make a winning trade. 

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(Risk warning: Trading involves risks)

Alternatives to IQ Option

If you are not impressed by the services of IQ Option or simply searching for a different trading platform, here are a few alternatives for you to decide. 

#1 365Trading

If you don’t want to risk your money by trading with a non-registered platform, 365Trading should be your choice. This platform is based in Cyprus and registered with CySEC. It was founded in 2012, and it happily accepts the traders of the EU. 

However, if you are a resident of the US, this trading platform is not for you. One interesting thing about this trading platform is that it uses in-house software that keeps up the privacy and safety of registered traders. 

#2 Ayrex

Another popular binary options trading platform that you can choose is the Ayrex. This platform is based in the UK and has its application pending with CySEC. It offers around 70 assets for trading, but it does not accept the traders of the U.S.

To start trading with Ayrex, you must make a small deposit of $25. One thing that makes this trading platform better than the rest is its instant withdrawal option. Also, this platform is mostly used by short-term traders. 

#3 Binary.com

Another trading platform that you can trust without any second thought is Binary.com. This trading platform is regulated in the British Isles, Ireland, UK, and Malta. To start trading with this platform, you need to make a minimum deposit of $5. 

Binary.com offers support in 12 languages. Also, it offers a virtual money account to traders. Lastly, this platform supports different tools and indicators that you can use to increase your chances of winning. 

#4 BinaryMate

The last alternative to IQ Option is BinaryMate. This platform is UK-registered and follows strict financial regulations. You can expect a payout of around 90% when trading binary options using this account. 

While BinaryMate is an excellent trading platform, its only downside is high deposit money. To start trading with this platform, you need to deposit $250. 

Why should you trade binary options on IQ Option?

Binary options trading on IQ Option

Given the risk involved in binary options, you might ask why you should trade in such a volatile market? Well, the answer to this question is simple. Despite the risk, people like to trade binary options because the chances of winning a large payout are high.

If you know this market inside out, you understand the price movement of the asset, and if you can read the chart, you are likely to make an accurate prediction. And with a correct prediction, you can win around 70% to 95% of the payout on your traded amount.

One of the big advantages of binary options over other such trading platforms is that you get a payout even if the asset price moves 0.001 in the direction you predicted. This makes it easy for traders to make much money from this market when different markets move in different directions.

If you are still unsure about trading binary options, here are a few points that will change your mind.

Even if you have never traded binary options, you don’t have to worry about learning the concepts because you can easily understand everything. Some traders might say learning binary options is difficult, but that’s not true

You can easily understand how different binary options trading charts work. Besides this, you can also figure out how trading indicators work. And lastly, by enrolling yourself in a good course, you can learn about the basics of binary options. 

With this information, you can quickly make an accurate prediction. And then, you can decrease the possibility of losing a trade.

You can earn a profit in no time

One interesting thing about binary options trading is that you don’t have to wait for a long time to earn a huge payout. On the basis of selected assets and considering your trading strategy, you can select an expiry time. 

Different trading brokers allow different kinds of expiry times, but most of them start with 1 minute and go up to a year.

So, for any given trade, if you select the expiry time of 1 minute, that means you can earn profit in less than a minute.

This market does not require higher investment

For trading binary options, you don’t need a huge amount of money.

That’s because you can operate most trades at as little as $1. Even at this much-traded amount, you can expect a payout of around $0.90. 

Returns are fixed

iq option dashboard

Another interesting thing about trading binary options is that returns are fixed. That means, for any amount you are trading, you can expect a payout of around 70% to 95%. 

The percentage of payout that you get generally depends on the volatility of the assets you are trading. If the volatility is high, you can expect a high return. Otherwise, you will win an average payout. 

Besides volatility, the percentage of payout also depends on the movement of an asset’s price. The more the price moves in the predicted direction, the better payout trader can expect. 

The maximum you can lose is how much you have invested

If your speculations are not correct, you will lose the money. But the amount that you will lose will not be more than the amount that you have traded. That means, along with returns, your losses are also fixed. 

It is generally advised to trade around 1% to 2% of the amount in the bank account. That’s because this way, traders can experience the world of binary options without putting their financial freedom at risk. 

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(Risk warning: Trading involves risks)

A wide range of strategies

Binary options are one of the few trading markets that involve different kinds of trading strategies. As a result, you can do quick research to understand trading techniques. And based on the techniques, you can develop strategies.

Conclusion – Pick a strategy and trade on IQ Option!

Binary options is a legal and trusted market where several traders invest their money. With accurate market information, one can quickly make a winning trade. But if the predictions are not correct, you can easily lose all the traded amount.

iq option trade

Among the available binary options trading platforms, IQ Options is trusted by many. The platform is used from traders worldwide who live in countries such as India, South Africa, and Nigeria but not the USA.

That’s because this platform has a low deposit fee, which is affordable. Besides this, the platform also offers different tools that make trading easy. 

While trading with IQ Option, you can expect a payout of around 95%. Also, you can start the trade with as little as $1. Not to mention, this platform offers different features and tools like candlesticks, charts, lines, and historic analysis. If you want to learn more about IQ Option, read our guide with tips and tricks.

Now, you know how to use IQ Option. Pick a binary options trading strategy and become a successful trader!

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(Risk warning: Trading involves risks)

Frequently asked questions (FAQ) about how to use IQ Option:

Can traders trade binary options and CFDs on IQ Option?

IQ Option offers traders the opportunity to trade binary options and CFDs. Traders have access to a wide range of platform trading instruments.

What is the minimum deposit requirement to open an account on IQ Option? 

A trader’s minimum deposit requirement to open an IQ Option account is $10. However, the minimum trade amount for some financial instruments may be higher.

What fees does IQ Option charge for trading binary options and CFDs?

IQ Option charges fees for binary options and CFD trading in different ways depending on the type of financial instrument and the trading platform used. The fees may include spreads, overnight fees, inactivity fees, deposit and withdrawal fees, and commissions.

Is IQ Option a regulated broker for binary options and CFD trading?

Yes, IQ Option is a regulated broker that operates following the regulations of various commissions. So, traders can trade binary options and CFDs on this platform.

Is it safe to use IQ Option?

Fortunately, this platform is safe to use. We are saying this because this broker offers its trading services in around 213 countries. That means IQ Options has around 40 million clients. 

About the author

Percival Knight
Percival Knight is an experienced Binary Options trader for more than ten years. Mainly, he trades 60-second trades at a very high hit rate. My favorite strategies is by using candlesticks and fake-breakouts

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