There are hundreds of options brokers operating online today. Many aren’t regulated, and an unregulated broker leaves you with little protection when something goes wrong. Below are five tricks dishonest brokers use and how to test any platform for them, including the one you use now. For IQ Option itself, see is IQ Option legit?
Key Takeaways🔑
| →Regulated and transparent brokers are essential for successful options trading. |
| →Test any broker yourself: compare its prices with an independent chart, time its expiries and try a small withdrawal before you deposit more. |
| →Always be vigilant and monitor for any signs of price manipulation, timer tampering, or withdrawal issues. |
Manipulating prices to control trade outcomes
Every trader has their preferred asset and trading style. These have been proven to work on many platforms. However, the broker owns the technology that you’re using to trade. Therefore, they have the power to change prices at will.
Now if you have many winning trades, the broker might decide to use artificial prices to ensure that your trades start losing. This trick usually involves suddenly changing the prices by a single tick just before a trade expires. To identify this trick, you can open a different platform such as MT4 and run it alongside your broker’s platform comparing the price movements in real time.
Manipulating prices to affect trade outcomeManipulate the expiry time of the trade
Options are set to expire within a specific time frame. So when you enter a trade, it’s important that you take a close look at the timer. Does the order get executed at exactly the time you set it to start?
Does the timer count down normally? And finally, does it expire at the intended time? Some brokers will manipulate their timers making their clocks run faster or lag behind to ensure that your trade ends up losing eventually making money for them.
Fishing for large investments placed on single trades
Brokers know that small wins will build your confidence. This tempts you to invest larger amounts in subsequent trades. But once you invest a large amount, the trades usually don’t go your way.
This is a tactic used to ensure that you remain on their platforms as a trader. They will entice you with small winnings creating the illusion that you’re making money trading options. Once you invest a large amount on a single trade, they will move in taking your money to recover your winnings and a good part of your account balance.
Such brokers know that the majority of traders who lose money this way are likely to make another deposit trying to recover their big losses. And the cycle starts all over again.
Fishing for large investments placed on single tradesServer disconnects right before trade expiry
This is a classic way fraudulent brokers use to rob their clients. Once you’ve placed your order, you’ll happily watch the price move as expected.
But just before the trade expires, the broker’s server suddenly becomes disconnected. It could be an internet connection error on your side. But this doesn’t mean that your trade isn’t being executed.
Remember that the markets don’t stop. Once the connection error is resolved (usually within seconds), you’ll find that your trade lost.
Withdrawals mysteriously disappear
Many options and forex brokers will have a specific timeline where withdrawals must be processed and deposited to their client’s accounts. If this timeline expires, you’re expected to ask why you haven’t got your money.
Their support team should help you recover the lost money. Fraudulent brokers usually frustrate their clients by using hard to track support tickets until the client eventually gives up. So every time you make a withdrawal, make sure that a transaction receipt has been generated.
In addition, make sure that the broker you’re dealing with has a mechanism that allows you to keep track of the withdrawals process.
Pros and Cons of IQ Option Trading Platform 😃😐
Pros:
- EU entity licensed by CySEC (licence 247/14)
- User-friendly trading platform
- Wide range of tradable assets
- Responsive customer support
Cons:
- Not available for traders from the United States
- Binary options are offered on the global platform, run by SKY LADDER LLC in Antigua and Barbuda, not by the CySEC-licensed EU entity, so check which company your account is with
- May not have as many educational resources as other platforms
| Tips for Trading Success | How to Implement |
|---|---|
| Develop a trading strategy | Study various strategies, test them on a demo account, and choose the one that works best for you. |
| Manage risk | Determine your risk tolerance, set stop-loss orders, and diversify your investments. |
| Stay informed | Keep up-to-date with market news, trends, and any changes in regulations. |
| Practice patience and discipline | Avoid impulsive decisions and stick to your trading plan, even during difficult times. |
How to test a broker yourself
Ask support for a written answer when something looks wrong- Check the licence: look up the company named in the broker’s terms in the regulator’s own register. IQ Option’s EU company, IQBroker Europe Ltd, holds CySEC licence 247/14.
- Compare prices: run an independent chart next to the platform and note any price spike just before expiry.
- Time the expiry: record your screen while a short trade runs and check that it opens and closes on time.
- Test a small withdrawal: before you deposit more, withdraw a small amount and keep the confirmation email.
We record our own Practice trades for the videos on this site and publish the results. That shows how the platform behaved in our tests; it is not a guarantee about any broker. If you want to try IQ Option, start on the free Practice account and run these checks yourself.
📚 Continue Learning
Q&A: Frequently Asked Questions about IQ Option Trading Platform
- Q: Can I open a demo account with IQ Option?
A: Yes, IQ Option offers a free demo account that you can use to familiarize yourself with the platform and practice your trading strategies. - Q: What types of assets can I trade on IQ Option?
A: IQ Option offers a variety of tradable assets, including stocks, forex, cryptocurrencies, commodities, and indices. - Q: Does IQ Option charge any fees for trading?
A: There is no separate commission per trade. CFDs carry a spread and overnight funding, and options cost you through a payout below 100%. See our IQ Option fees guide. - Q: How can I deposit and withdraw funds on IQ Option?
A: IQ Option offers multiple deposit and withdrawal methods, including credit/debit cards, e-wallets like Skrill and Neteller, and bank transfers. - Q: Is IQ Option suitable for beginners?
A: Yes, IQ Option is suitable for beginners due to its user-friendly interface and the availability of a demo account to practice trading. However, it’s essential to educate yourself and gain experience before investing real money.
