Cyprus is arguable the centre of the online trading industry, so it’s no surprise that IQ Option was started in the country. In 2013, IQ Option was born to offer clients the option of trading binary options seeing as how this industry was in huge demand. But before IQ Option was launched, Plus500 had already been in operation for over 5 years. Despite this difference, both brokers have millions of clients worldwide, and the choice becomes hard to make between the two.
Security of funds
To know whether your funds are secure or not, you would have to look at the financial regulation around a company. IQ Option demonstrates this through a license granted by CySEC since 2014. This license means that CySEC keeps an eye on IQ Option and clients are eligible for the compensation fund in case of bankruptcy.
Under IQ Option’s regulation, clients outside Europe are not eligible to the same protections, which is why Plus500 acquired additional licenses through multiple subsidiaries. Its UK subsidiary is licensed and regulated by the FCA while its European subsidiary is regulated by CySEC, the Australian subsidiary by ASIC and Asian subsidiary regulated by Singapore’s MAS. These licenses provide further protection to the company’s clients.
Therefore, winner is Plus500 for numerous licenses.
Before trading, IQ Option requires that you deposit at least $10 into your trading account. If you deposit over $1,900, your account is elevated to VIP status and get to enjoy additional advantages such as an account manager to help you make profitable trades. All deposits are free at IQ Option, but withdrawals have a 2% commission after the 3rd withdrawal every month. The good news is that you will not limited in how you can make the withdrawal because the company accepts credit cards, wire transfers and electronic wallets such as Skrill and Neteller.
Plus500 requires a $100 minimum deposit, which is higher than IQ Option’s requirement, but the deposit methods are the same with the addition of PayPal. These deposits are completely free, but withdrawals after the 5th one of each month are charged $10.
Overall, IQ Option wins because you don’t need as much money to start trading.
Both IQ Option and Plus500 are CFD brokers, which means that the assets available are very similar. These assets include CFDs for cryptocurrencies, stocks, Forex pairs, commodities and ETFs. However, Plus500 also offers CFDs for call and put options. On the other hand, IQ Option has digital and binary options on numerous assets.
This leaves the two brokers tied in this category.
To trade on IQ Option, you either have to use the web trader or download proprietary platforms to your desktop or mobile. Plus500 also has proprietary platforms and a web trader but no popular platform.
Comparing the two platforms, the choice will come down to user preference because the two have different advantages and disadvantages.
All things considered, these two brokers seem tied, except for a few advantages enjoyed by Plus500 clients. That makes Plus500 a winner by a very small margin.