If you are reading this article, you are likely having trouble deciding whether Plus500 or IQ Option is the better trading platform for you. While both platforms generally provide positive user experiences, there are some essential differences to note.
In this Plus500 vs IQ Option comparison, we outline the highlights of each trading platform to help you make a more informed decision. We evaluate:
- Features and Platforms
- Available Markets
- Typical Spreads and Fees
- Security and Trust
- Plus500 vs IQ Option - Verdict
Headquarters Regulators Tier 1 Regulator(s)? Owned by Public Company? Year Established Execution Type(s) Minimum Deposit Negative Balance Protection Trading Platform(s) Average Trading Cost EUR/USD Average Trading Cost GBP/USD Average Trading Cost WTI Crude Oil Average Trading Cost Gold Retail Loss Rate Minimum Raw Spreads Minimum Standard Spreads Minimum Commission for Forex Islamic Account Signals US Persons Accepted? Managed AccountsIsrael Cyprus ASIC, CySEC, FCA, FMA, FSCA, MAS N/A 2008 2013 Market Maker Market Maker $100 $10 N/A Proprietary platform, Web-based Proprietary platform 1.3 pips 1.2 pips ($12.00) 1.7 pips 1.8 pips ($18.00) $0.04 $0.06 $0.34 $0.79 80.00% N/A Not applicable N/A Not applicable N/A Commission-free N/A Get Started Get Started
Features and Platforms
MT4 MT5 MT4/MT5 Add-Ons cTrader Proprietary Platform Automated Trading Social/Copy Trading DOM? Guaranteed Stop Loss Scalping Hedging One-Click Trading OCO Orders Interest on MarginN/A N/A Get Started Get Started
Plus500 and IQ Option both cater to retail traders from their proprietary trading platforms, available as web traders without support for automated trading solutions. While the former introduces platform features, the latter fails to mention anything about its trading platform, a significant oversight by the management team. IQ Option used to be a binary options brokers, the now-defunct industry mired in frauds and scams. While it continues to offer binary options, it added CFDs to its product portfolio. It does provide a growing list of educational and research videos, appealing to new retail traders who prefer to watch short videos, while Plus500 does not maintain a research department.
Available Markets
Currency Pairs Cryptocurrencies Commodities Crude Oil Gold Metals Equity Indices Stocks Stocks (non-CFDs) Bonds ETFs Options Futures SyntheticsN/A N/A N/A Get Started Get Started
More than 2,000 assets give traders at Plus500 an above-average selection. This broker is one of a handful of online brokers that offers options trading and has also expanded into cryptocurrencies. The bulk of assets consists of equity CFDs, but Forex traders have 70 currency pairs to trade. IQ Option maintains significantly fewer assets with only 41 currency pairs and 181 equity CFDs. It does offer 53 binary options, together with just four commodity CFDs, 24 ETFs, but it added 26 cryptocurrencies in an attempt to capture the popularity of this emerging sector. Plus500 offers more trading opportunities from a more competitive trading environment.
Typical Spreads and Fees
Average Trading Cost EUR/USD Average Trading Cost GBP/USD Average Trading Cost WTI Crude Oil Average Trading Cost Gold Average Trading Cost Bitcoin Minimum Raw Spreads Minimum Standard Spreads Minimum Commission for Forex Deposit Fee Withdrawal Fee Inactivity Fee1.3 pips 1.2 pips ($12.00) 1.7 pips 1.8 pips ($18.00) $0.04 $0.06 $0.34 $0.79 $78 $117.47 Not applicable N/A Not applicable N/A Commission-free N/A N/A N/A $10 monthly after 3 months N/A Get Started Get Started
Both brokers offer commission-free CFD trading. Plus500 maintains dynamic spreads dependent on market conditions, granting Forex traders a minor advantage on an individual trade basis, which stacks up over the long-term, adding to a notable boost in profitability. Plus500 and IQ Option levy a $10 inactivity fee, and swap rates apply on leveraged overnight positions. IQ Option charges a fixed 2.00% withdrawal fee, but predefined maximum costs exist. Despite this charge, overall spreads remain lower at IQ Option, making it more profitable for traders, especially high-frequency and high-volume ones.
Security and Trust
Country of the Regulator Name of the Regulator Regulatory License Number Regulatory TierUnited Arab Emirates, Australia, Cyprus, Estonia, Israel, New Zealand, Seychelles, Singapore, United Kingdom, South Africa Cyprus ASIC, CySEC, FCA, FMA, FSCA, MAS N/A 509909, 250/14, 417727, 486026, 47546, SD039, 100648-1, NOT AVAILABLE, 4.1-1/18, F005651 247/14 N/A 1 Get Started Get Started
IQ Option claims over 40,000,000 clients, which would make it the online broker with the highest client count operational today. Two items for traders to consider is that this broker was one of the market-leaders in the binary options industry, which no longer exists after global regulators clamped down on it amid widespread fraud and scams. While IQ Option made the transition, it remains an opaque and unregulated entity operating out of Saint Vincent and the Grenadines. Plus500 had its issues with the UK regulator in 2012 and with investors in 2017, but maintains oversight from seven global regulators and is a publicly listed company in the UK. Therefore, both from a security and trust perspective, it remains well-ahead of IQ Option.All client funds deposited with Plus500’s Cyprus subsidiary are held in segregated client bank accounts in accordance with the Cyprus Security and Exchange Commission’s (CySEC) client funds rules. Plus500AU Pty Ltd holds client money in a segregated trust account, in accordance with the Australian legal requirements.
Plus500 vs IQ Option – Verdict
Traders seeking a reliable and trustworthy broker will find a more suitable choice at Plus500 over IQ Option. While neither supports automated trading or the MT4 trading platform, the former offers significantly more trading opportunities due to a broader selection of assets. IQ Option does produce a quick analysis on its website, where its strengths, weaknesses, opportunities, and threats (SWOT) analysis offers traders a fundamental insight. It also maintains a research division, missing at Plus500, and an educational video section. From a cost perspective, IQ Option outranks Plus500. Therefore, new traders must decide between a well-regulated broker in Plus500 versus an unregulated one with IQ Option. While several benefits at the latter are notable, the overall trading environment remains better at the former. Applying the SWOT analysis IQ Option uses for equities, Plus500 offers committed traders more assets, better security, and a more stable broker. IQ Option continues to transition from its binary option past, but the lack of transparency about the company, which led to the downfall of binary options brokers, persists.
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Read full Plus500 Review
Read full IQ Option Review
IQ Option has a pricing advantage over Plus500, with the minimum spread at 0.6 pips versus 0.8 pips, respectively. Commission-free CFD trading at both brokers carries above-average mark-ups, placing IQ Option and Plus500 in the same category. Overall, IQ Option manages to offer traders a minor edge, which accumulates over time and trading frequency.
London Stock Exchange publicly listed Plus500 maintains a more secure and trustworthy environment. IQ Option, one of a handful of former binary options brokers making the transition to CFDs, remains opaque and unregulated. Clients will trade with a more secure broker in Plus500.
Plus500 and IQ Option only offer their respective proprietary webtrader trading platform, fail to support automated trading, and lack core functions. While Plus500 presents its trading platform, IQ Option fails to do so, and manual traders may have more trading tools, limited as they are, at Plus500.
Plus500 presents traders with notably more assets, transparency, and security than IQ Option, which maintains opaque elements from its binary option past. It may appeal to traders due to a growing and active trading community and tournaments. The overall trading environment for committed traders remains ahead at Plus500 as compared to IQ Option.
IQ Option provides better educational tools versus Plus500, but neither broker presents a competitive service for new retail traders. The former offers more quantity over the latter. When it comes to quality, both remain below average, with Plus500 ahead between the two. New retail traders must source quality education elsewhere and use either broker for trade execution only.
Neither broker offers any of the MetaTrader trading platforms, ignoring a significant client-bass. Plus500 and IQ Option only provide their proprietary alternatives, which are sub-standard and lack core trading functions like automated trading. The former does not support copy trading, while the latter deploys a feature labeled Community Live Deals that allows traders to follow each other's transactions.
