IQ Option is a trading platform which allows users to speculate on the prices of stocks, ETFs, commodities, digital options, forex, and cryptocurrency. IQ Option is available on web browsers, desktop, Android, and iOS. The products offered are contracts for difference (CFD) which enable the user to speculate on the price of the asset without actually owning the asset. Traders who participate in CFDs can apply high leverage.
Users can speculate on a large number of cryptocurrencies and short selling is also an option for traders. Short selling allows traders to speculate on the price of an asset going down. Not many services in the cryptocurrency industry offer this type of exposure with most being long-only. Currently, there are 17 cryptocurrency CFDs supported by IQ option which include most of the large-cap cryptocurrencies and popular projects. The cryptocurrency CFDs are available 24/7. The fees are high with 2.9% trading fee along with an overnight fee for held positions. The bid-ask spread varies but is large compared to cryptocurrency exchanges. Spreads in double digits are often seen. Spreads in liquid spot markets such as GDAX are just one cent. The large spread combined with the high fee would make it extremely difficult for traders to be profitable while speculating on IQ Option as once entering a position, they have already paid high fees which puts them in a disadvantageous position.