In this article, we will compare various brokers and find out where IQ Option’s services stand against the other popular services available to South African traders. Many popular binary options brokers have managed to make quite a name for themselves among traders, in and outside South Africa.
South African traders who want to compare brokers and find the one that is most suitable for them must definitely consider using IQ Option. This reference or guide will help in investigating whether or not IQ Option is right for you.
IQ option compared to other brokers
- Min. Deposit
- Min. Investment
- Max. Returns up to
- Mobile APP
- Customer Support
- Phone Support
- Email Support
- IQ Option
- 24 Option
- Daweda Exchange
In this article, we will compare various brokers and find out where IQ Option’s services stand against the other popular services available to South African traders. Many popular binary options brokers have managed to make quite a name for themselves among traders, in and outside South Africa.
When you compare brokers, start with evaluating their reputations. IQ Option has been in the business of binary operations for nearly four years now.
Take a look at the numbers posted on the company’s website. These numbers offer a starting point to compare brokers that the South African traders can use. The numbers are given below:
- More than 14 million trading accounts signed up in 2016. Going by the numbers, it has been a huge leap from the 950,000 accounts that were created in 2014.
- Over 3 million deals are carried out on the portals daily.
- IQ Option paid out over USD 5 million to their traders every month in 2016.
- They have streamlined the processing of withdrawal requests from four business days (2014) to one business day.
IQ Option has built up an image as a simple yet sophisticated and speedy binary options broker among South African traders. The company often partners with some of the fastest cars in the world, like the Aston Martin. If you compare brokers, you’re likely to find only few other low-deposit binary trading brokers who can offer the kind of in-house analytics tools that IQ Option offers.
Another area to compare brokers is their popularity. The awards that IQ Option has won in the few years of its existence speak volumes for its trading platform. These awards include:
- Best Technology Application Award: awarded by the Web Marketing Association in 2016 for the IQ Option mobile app.
- Best binary Options Broker and Trading Application at the IAIR Awards.
- Most Innovative binary Option Broker: awarded at the Show FX World conference in Moscow.
- Most Reliable binary Options Broker: awarded by MasterForex-V.
- Best Trading Platform: won at the 2014 Forex Awards.
But there is a lot more to consider when a South African trader is choosing a broker to trust their money with. How does IQ Option fare against the competitors like Stockpair, 24option, Daweda Exchange, BetonFinance and others? Let’s find out.
But first, it is important to know how to compare brokers and what to look for in a broker?
When you compare brokers, the general criteria you’re going to look at are probably the following:
- minimum deposits
- assets offered
- types of options
- minimum and maximum trades allowed
- payout percentage
- withdrawal and deposit times
- availability of demo accounts
- quality of customer service
On all these counts, IQ Option offers features that are very attractive to traders.
A higher minimum deposit is not a sign of a fraudulent broker. It’s only a sign that the broker wants to deal only with traders who are willing to play big. The majority of reputed brokers serving South African traders require minimum deposits in the range of $200. Unfortunately, you cannot test these brokers unless you’re willing to pay up such a large sum.
On the other hand, IQ Option tries to be more inclusive. Here, the minimum deposit for trading accounts begins at only $10. All you need to do to begin trading binary options with this broker is to deposit $10 (or â‚¬10). You can then go ahead and start buying options for as low as $1.
It’s probably because the company is so inclusive and offers everyone the chance to participate in the exciting world of binary options trading that it has been so disruptive for the industry. Add a simple yet powerful trading platform and financial analysis tools into the mix, and it is obvious to create a formidable broking service.
According to Dmitriy Zaretskiy, GM of IQ Option Europe Ltd., the company decided on the $10 minimum deposit because it didn’t want to pressure its users. In his words, other brokers are fleecing the traders at registration itself while IQ Option is not.
With the low deposit accounts, South African traders can play around with low deposits and test the financial tools available. They can compare the features of IQ Option with some of the higher deposit brokers out there. Overall, there are few brokers who are quite as transparent to their traders.
If traders in South Africa like what they see after testing the broker’s offerings, they can go ahead and make a $3,000 deposit and enjoy the VIP status with their own personal account manager and other privileges.
When you compare brokers, you’ll want to know what financial assets are offered to traders. Not all brokers offer the same sets of tradable assets. Tradable assets usually include the following:
- commodities like cotton, gold and wheat
- stocks like Google Inc., Apple Inc., etc.
- indices like the DOW Jones or FTSE-100
- currency pairs like the EUR-USD, USD-JPY etc.
A question you have to ask yourself when you compare brokers is, which broker offers the assets you want to trade? Not all brokers will offer all assets. You can look through the Asset Index on the brokers’ websites to find out which assets are listed.
At IQ Option, traders have access to over 70 different assets. These include currency pairs â€“ majors like the EUR-USD, the USD-CAD, the NZD-USD and cross pairs like the AUD-JPY, EUR-AUD, CAD-CHF and many others.
They also offer stocks like BMW, Lufthansa Airlines, Alibaba, Daimler AG, Twitter INC, Google, Facebook, Amazon, Tesla etc. You can even trade commodities like gold and silver, the major indices like the Dow Jones 30, the Nikkei 225, the NASDAQ 100, SSE Index and even the Bitcoin Index.
How can traders choose which of these assets is good for trading? Naturally, you will be more successful trading in assets that you know something about, or have some prior experience in trading with them before. South African traders who are new to binary options trading should keep learning about individual assets. There are some other factors that should also be considered when you make your decision.
How to Choose Assets to Trade using IQ Option?
At IQ Option, traders from South Africa have access to a range of commodities, stocks, indices and currency pairs. When you compare brokers, no matter which broker you choose on the basis of their asset index, you will need to keep the following things in mind:
The time zone of the asset: Not all assets should be traded at all times. Depending on the type of asset, you’ll need to know the best local South Africa time for trading. You can only invest in stocks when the home market is open. This is because many stocks are only traded in the home market, and there are no price movements when the market is closed. If you’re a South African trader trading some of the American stocks that are listed on IQ Option, you’ll have to factor in the time difference between South Africa and the US when you trade.
- On the other hand, you can trade currencies any time from Monday to Friday, since currencies are traded on every major market around the world. The same applies to trading in indices and commodities.
- Low volume or high volume trading periods: Do you want to trade during high volume or low volume trading periods? High volume trading periods are when there are maximum number of traders in the market. This is particularly relevant in the case of currencies, which see high volume trading during the day time when the stock markets are open. Low volume trading periods are the off-peak periods when there won’t be as much movement. But South African traders can still use a different method to trade successfully.
Some brokers in South Africa limit the number of hours that commodities and currencies can be traded to at most 20 hours in a day.
Commodities work in slightly different ways. Since they are traded in home markets, they don’t show the patterns that currencies do. Opening and closing times are influential and day traders have an effect on the market.
If South African traders already have a trading method for either a commodity and currency style market or one that is more suited to stocks, they may want to choose an asset that suits their trading method and a broker which offers that asset.
- What do you know about the asset? Your knowledge about an asset can be invaluable when you’re trading. At the same time, for some traders it can be a drawback. For example, a trader in South Africa may not know as much about the Bank of America equity. One group of traders will advise the South African trader not to trade in an asset they know nothing about. Another group will tell him to go ahead because successful trading is about data analysis and not what you know about an asset.
This is where the IQ Option demo account comes in. Not only can traders in South Africa test their own methods on familiar and unfamiliar assets, they have plenty of tools and graphs at their disposal for making more well-informed predictions.
Choosing assets to trade is as important as choosing a broker. What also sets IQ Option apart from its competition is its constant innovation. One of the latest innovations is a new product called the Classic Options.
IQ Option’s New Innovation: Classic Options
IQ Option has introduced a new product, which is also available in South Africa, called Classic Options. With Classic Options, you can choose from the best performing 500 US companies on the S&P 500 index. These companies include Disney, EA Sports, HP, IBM, Citibank, GM, Amex, General Electric, Coca Cola and some others.
Classic Options work almost in the same way as binary options. South African traders can put or call based on the rising or falling movements of an asset. But your profits can be unlimited (while profits are usually restricted in binary options trading to a percentage) and have a longer expiry period too.
This new and innovative feature from IQ Option will appeal to many traders who want to take up the challenge of relatively long-term trading, in which preterm selling is the most popular way of trading. It is possible to minimize losses by preterm selling.
No hidden charges
Compare brokers and look for hidden charges. Most other Stock Option brokers have hidden charges, but IQ Option is known to offer the best prices from 13 exchanges.
A clear and simple platform
IQ Option has taken special pains to design their website to be uncomplicated and quick to navigate. This is despite the fact that they offer the traders sophisticated and complex tools for analysis.
Classic Options need a different kind of analysis, which involves the monitoring of market news. Keeping an eye out for financial reports and statements, government decisions, political events, new products etc. will help traders make better decision regarding Classic Options. IQ Option flashes news from investing.com and other authentic sources directly on its well-designed dashboard.
Given all that complexity and data volume, IQ Option makes it extremely simple to sign up, make a deposit, start on the demo or begin trading with real money. Its website is incredibly user-friendly and intuitive; so even a savvy seven year old could navigate it.
Traders can trade as low as one option
With stock options, trading typically starts at 100 options. But with the new Classic Options product, South African traders are allowed to start trade starting with just one option.
No commissions for three months
Stock options usually involve heavy commissions. IQ Option doesn’t take any commissions for the first three months. This gives traders in South Africa plenty of time to test the system and make up their minds about it.
Brokers have often been looked at with awe and incredulity for what even IQ Option’s Dmitriy Zaretskiy acknowledges is an “unbelievable product”. According to Zaretskiy, when the company made its foray into the binary options trading market, binary trading had been around for at least five years. But there wasn’t a lot of development in the binary options market as there had been in the forex market. This offered IQ Option the opportunity to be a major innovator, and they picked up the best features from the forex market, such as a minimum deposit account and a demo account, and began to develop a platform that was convenient and used analytics.
Another feature that traders from South Africa should look at when they compare brokers, is the type of instruments that are offered. Trading instruments refer to the call and put options. Most binary brokers offer this standard set of instruments, and so does IQ Option.
Some other brokers may offer additional options like Boundary, Tunnel, Double No Touch and One Touch or Pair Options. IQ Option keeps it simple with binary, Turbo and Classic instruments.
Like many other brokers, IQ Option also offers 60 second, 15 minute, 1 hour, End of the Day, End of the Week and End of the Month expiration periods. Turbo options have expiration times of less than five minutes, while binary options have expiration times that start from fifteen minutes. Classic Options can only be traded when the US markets are open, i.e. between 14.30 and 21.30 UTC (4.30 pm to 11.30 pm in South Africa) from Monday to Friday.
These expiration times are the standards offered by most other brokers. Choosing which expiration time to trade with depends on experience. South African traders who are new to binary options trading will be better off trading between thirty minute to one hour trades, or trades with even longer expiration times. More experienced traders can enjoy the thrill of the 60 seconds trading option.
When traders compare brokers, one of the features they look for is trading signals. Many fraudulent binary options brokers will send deceptive signals via email or on the telephone. These types of trading signals are not reliable. Most systems generate random numbers and will probably include a disclaimer at the bottom because they are forced to by authorities. The disclaimer is to inform traders that the results are simulated and may not bring market success. Therefore, it’s important to rely only on trading signals by reputed signal providers.
IQ Option has built good reputation through its trading platform, and when using it, traders will find that it is a good place to test out trading signals too. At the same time, we highly recommend developing your own system and not to rely entirely on these signals, no matter who the provider is.
The trading signals are built-in into the beautifully designed left navigation panel of the IQ Option traderoom dashboard. At the first glance, you can see indicators like the Traders’ Mood, in the form of a real-time visualized indicator that tells you what percentage of other traders have gone for put and call at this moment.
Right below this indicator, traders can find a little panel with four icons. The lower most icon offers a series of indicators. These indicators were added to the system when IQ Option overhauled its platform design in 2016. The indicators include Moving Average, Bollinger Bands, Alligator, Relative Strength Index, Moving Average Convergence Divergence (MACD), Parabolic SAR, Stochastic Oscillator, Awesome Oscillator, Average True Range (ATR), Average Directional Movement Index (ADX), Fractal and Commodity Channel Index (CCI).
All of these indicators offer traders very sophisticated signals for making decisions. Many other brokers offer suggestions of when to buy or sell a put or call option on a particular trade. VIP traders who have their own personal account manager, may be able to seek more advice from their greater position of privilege. But in general, traders should always develop their own methods and ways of using indicators.
Most reputed brokers offer indicators for traders to base their Call and Put decisions on. Typically, tools offered by most popular brokers include live currency, stocks, indices and commodities data. Many brokers also offer economic calendars that help you make better decisions.
IQ Option offers both the above and more. The tools that IQ Option offers include:
- a database of quotes collected and graphed from over two years ago.
- an additional extension of a month for a candlestick analysis.
- new traders bar charts showing you the minimum and maximum price levels reached in the period
opening and closing prices.
- Parabolic SAR, Awesome Oscillator, MACD, Stochastic Oscillator will further help you make better trading decisions.
When you are trading, you need to make both fundamental data analysis as well as technical analysis. Economic calendars offer South African traders with the tools to better understand the foreign markets they are dealing with. The calendar at IQ Option is generally very intuitive. Traders have access to trends going back two years. These trends, along with the market news that can also be accessed from the navigation panel on the left, gives traders a good idea of possible ups and downs, weaknesses and growths etc.
Further, the IQ Option traderoom is designed in such a way that you can very flexibly arrange and rearrange the page to track one or more assets, some of which may be related.
For example, the Norwegian Krone is a commodity currency that is closely dependent on the movements of Brent Crude Oil. If you are interested in tracking the movements of binary options pairs like the USD-NOK, you will be able to easily and intuitively split the screen into two sections, one showing the movements of USD-NOK and the other showing movements of Brent Crude Oil.
Technical analysis is possible because of the highly sophisticated chart types and graphical tools that IQ Option offers. Let us take a look at the technical indicators offered by IQ Option.
Moving Average (MA)
The MA is a group of indicators that are commonly used to determine current trends. Commonly used averages include the EMA (Exponential), the Simple Moving Average (SMA), the Smoothed Simple Moving Average (SSMA) and the Weighted Average (WMA). Moving averages are also used in indicators like Alligator, MACD and Bollinger Bands.
Bollinger Bands are used to indicate trends. They generally reflect the range of price movements. Many traders use Bollinger Bands to determine the relative price positions within a selected time interval. The bands are also used to identify possible entry points in the market. Traders can also identify correctional wave levels when the price rebounds.
Alligator is an indicator that traders in South Africa can use to assess which way the market is going to move. They can also filter out no-trend periods. It’s a very useful indicator that has cross-functional purposes. It can be applied to all time intervals.
Note that IQ Option lets you zoom in and out of the live graph you’re looking at in different time intervals. The intervals include 2 minutes, 5 minutes, 15 minutes, 30 minutes, 3 hours, 1 day and 30 days.
Relative Strength Index (RSI)
The Relative Strength Index is an indicator that is used to determine how strong the current trend is. It also helps traders find out any potential points of reversal. The RSI compares the absolute asset price growth in a time span with the asset’s total price reduction in that time span.
Moving Average Convergence or Divergence (MACD) is one of the most popular analysis tools for binary options traders. It helps to visualize the ratio of two exponential moving averages. In other words, it tells you how strong a trend is and in which direction it is moving. The MA line is also used to indicate the simple moving average of the MACD values.
The Parabolic SAR is another popular indicator that is founded on the price chart. It is visualized as small dots that tells traders whether the trend is bullish or bearish.
This indicator tells traders the current position of the price as a percentage of the extrema within a selected time period. It helps traders identify the points where the market is likely to reverse.
The Awesome Oscillator is a visualized ratio of a fast and a slow simple moving average line. It is a bar chart that tells you where a trend completes and a new trend develops.
The Average True Range (ATR) tells traders how volatile the asset is within the selected time period. It also tells traders the rate of the quote change.
Average Directional Movement Index (ADX) tells traders how strong the trend is before the price movement begins. Traders use the ADX to identify any potential changes in volatility in the market.
A fractal is a series of five or more bars (Japanese candlesticks) used to display the local minima and maxima of the price curve.
The Commodity Channel Index (CCI) measures the speed of the price movement. It can be used to determine the market reversals approaching.
While moving average indicators and MACD indicators are commonly offered by many brokers and used by many traders. Not a lot of traders have heard of using Fibonacci Lines as a very useful tool in binary options trading.
IQ Option offers a beautifully designed Fibonacci line tool, which you can access from the left navigation panel. It uses retracements to help traders identify trends. Retracements are common in trading, and they take place all the time. IQ Option offers traders the opportunity to use retracements to their advantage.
All of these tools will help traders from South Africa get a better idea of the asset that they are trading in.
Most brokers have a minimum trade value starting from $5, usually for 60 second trades. The minimum values can go up to $25 for standard trades. IQ Option stands out out of the competition with its $1 minimum trade value. You can start trading with $1 (or â‚¬1) and buy as many options as you want. The only limit on how much you can invest in an asset is the margin. For example, if other traders have already invested a large sum in the direction of your choice, there will be a limit on how much you can invest on the asset in your chosen direction.
binary options trading is very profitable. It can be highly profitable when traders find a broker that offers high payouts and returns. When you compare brokers, you will find that a majority of them have payouts between 60 percent and 80 percent. IQ Option is a broker with a low deposit, high return trading model. It offers returns between 80 percent and 90 percent.
You can see how much profit you can expect to make per trade in the form of a percentage value just above the call and put buttons in the IQ Option Traderoom.
Note that it’s not only the rate of return that you should look at when you compare brokers. Always consider other factors like ease of use, withdrawal and deposits and support etc.
When you’re spending money, you’ll want to make sure that there is a team of knowledgeable and competent staff members around whenever you need them. The best brokers are aware that customer service is an area where they absolutely must pay a lot of attention. IQ Option offers its traders several ways to get in touch, including via phone, email and in the case of real account holders, live chat.
The brokers also offer 24/7 customer service phone numbers for 14 countries including Russia, Singapore, UK, Germany, South Africa, France, India, Austria, Australia and Italy.
VIP members get additional support privileges in the form of a personal account manager. It’s important to look at the level of support when you compare brokers.
Withdrawals of your funds are relatively simpel. You also want to be able to deposit quickly whenever you want to make a trade that can’t wait. You should be able to trade with the peace of mind that your details secured.
Traders in South Africa can enjoy complete security in their transactions on IQ Option. The brokers offer a variety of standard payment gateways, including Visa, Mastercard and Maestro cards.
The brokers also offer support for other payment gateways. You can ensure a greater level of security by signing in to your Skrill, Neteller, Moneybookers, Sofort, Giropay or Webmoney accounts. This financial service portals will further help to keep your financial details private. IQ Option is always adding other ways, in which traders from South Africa and elsewhere can make deposits and withdrawals easily from their accounts.
Traders should be able to withdraw money from their account with great ease. IQ Option makes this top priority for their traders. They have worked on their withdrawal processing time frames until they are some of the best in the industry.
While many other brokers have withdrawal times of 1-3 or 1-5 days, IQ Option makes sure that traders get their money within 2 business days, if not earlier.
While many brokers charge a commission for withdrawals, IQ Option doesn’t charge anything for most of the modes of payment. Traders are only charged a small commission if a trader wants to withdraw via wire transfer because the bank requires a commission from the broker for sending the transfer.
Trading on the go with IQ Option is great, because of the innovative and award-winning mobile trading app that IQ Option has developed for its traders. The app is available for both, iPhone and Android devices and it allows you to trade on the move.
If traders think they’ll be spending a lot of time trading on the move, look for a binary options broker that has developed an app. Few brokers do. For you information, besides IQ Option, some of the brokers offering their trading app are 24 Option, Anyoption and Optionfair.
For South African traders who want to compare brokers and choose the one that works for them, the points above should be kept in mind. It is also a good idea to look at some of the competition that IQ Option is up against, so that traders can quickly find what they need and what they don’t want to waste time over. So let’s begin to compare brokers one by one:
This broker offers minimum deposit accounts starting from 250 US Dollars or Euros. It offers a demo trading feature, and uses a popular charting platform called the MetaTrader, in its latest MT4 version. One of the things that sets 24Option apart from IQ Option is that it doesn’t have a proprietary platform. 24Option also offers an app for mobile traders.
Compare brokers Anyoption and IQ Option with each other to find out, which is right for you. Though both are headquartered in Cyprus, Anyoption has a much higher minimum deposit ($200) and a lower payout percentage (81%) when compared with IQ Option. On the flip side, it offers a wider range of assets to trade than IQ Option does.
Daweda Exchange is yet another Cyprus based platform, which is slightly different from IQ Option. It is not a binary options broker. Rather, it calls itself an exchange platform where traders profit from trading contracts directly with other traders. The “exchange” also offers its own auto-trading system tools.
The Cyprus-based Opteck offers deposit accounts for a minimum of $250 and offer over 1,000 assets to the traders. South African traders with accounts worth more than $10,000 can enjoy pip spreads of 1 to 3 points. Opteck offers a demo account, but only after the trader deposits money into her/his real account.
Like IQ Option, BetonFinance offers $10 minimum deposit accounts. But the broker service is closely based on the traditional horse betting systems. This Malta-based broker was launched by a group of Danish gaming professionals and the creators of the video game franchise Hitman.
Finpari offers deposit accounts for very high minimum deposit ($250). It also uses a third-party trading platform, the popular SpotOption platform, that is quite intelligent, intuitive and also available for mobile devices. Compare brokers and their platforms by testing out their demo accounts and see which one works best for you. Finpari is located in Seychelles and has 24/7 support and this support in more languages than IQ Option, but it has a lower payout percentage comparatively.
IQ Option and Stockpair run neck on neck in terms of their customer experience scores by online financial services like financesonline.com. But their main difference lies in their minimum deposits Stockpair requires $200 of minimum deposits. Like IQ Option, it also has its own proprietary trading platform. Stockpair also has a minimum trading amounts starting at $20 which is quite high compared to $1 of IQ Option.
When you compare brokers, don’t always limit yourself to brokers with the lowest deposit amounts. A feature South African traders can look for is a platform that runs smoothly on all browsers and doesn’t need to be downloaded. Compare brokers and find one that also runs on mobile devices. Traders in South Africa can run IQ Options on most major browsers and enjoy a seamless experience. Also read the user reviews when you compare brokers.
Overall, IQ Option doesn’t offer South African traders a huge selection of assets. But it does have a simple layout, an excellent unlimited demo, sophisticated analytics tools, low deposit requirement, great customer service and a good reputation in the market. With all the above info, we hope that we have been able to convince you to try IQ Option. We are sure that once you try it, you will always stick to it.