IQ Option vs FOREX.com - 2024 Comparison | FX Scouts Tanzania
AuthorAuthor: Björn MichelsUpdated: Oct 12, 2023

Last Updated On Oct 12, 2023

Björn Michels

Trading with a reputable online broker is a crucial factor for success in the international markets. At FX Scouts Tanzania, we help you find the broker that suits your trading needs.

Each year we spend thousands of hours testing brokers by opening accounts, testing their platforms, and rating them according to a set of over 200 metrics. We deposit real money with the brokers to ensure that the products and user experience they advertise are consistent with reality.

We have found that the best way for traders to choose a broker is to compare brokers side-by-side. The comparison tool below allows you to compare two brokers based on their ratings and features.

Select brokers to compare

Select brokers to compare

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Broker Score
Min. Deposit
Regulation
Trading Desk Type
Trading Instruments
Forex Pairs
Crypto Pairs
Pros
Cons
Regulation
Trading Conditions
Trading Platforms
Deposit & Withdrawal
Education & Research
Assets Available
Customer Service
% Lose with this broker
Leverage
Spread
Hedging
Scalping
Account Types
Islamic Account
Trading Platforms
Funding Methods
Trading Commission
110.5002.68/ 5 USD 10Market MakerCommodities, Cryptocurrencies, Stock CFDs, ETFs, Forex3312
  • Low minimum deposit
  • Tight spreads starting at 0.8 pips (EUR/USD)
  • Unpublished spreads
  • Expensive withdrawals on most options
  • Limited education
Read Review 000000/ 5 111003/ 5 111104/ 5 100001/ 5 1110.503.5/ 5 111104/ 5 11110.54.5/ 5 85%1000:10.80 pips Live Account IQ optionBank Transfer, Visa, Mastercard, advcash, Neteller, PerfectMoney, Skrill, WebMoney, BitcoinFees Included in Spread
11110.54.62/ 5 USD 100FCA Regulated BrokersASIC Regulated Forex BrokersMonetary Authority of SingaporeCySEC Regulated BrokersCayman Islands Monetary AuthorityMarket MakerCommodities, Cryptocurrencies, Stock CFDs, Forex, Indices, Metals918
  • Well regulated
  • Wide range of assets
  • Excellent education
  • High inactivity fees
  • Limited demo account
Read Review 111115/ 5 111115/ 5 11110.54.5/ 5 11110.54.5/ 5 111115/ 5 111104/ 5 111104/ 5 68%200:10.70 pips Commission, DMA Account, MT4, MT5, Standard MT4, MT5, FOREX.com Web Trader, TradingViewBank Transfer, Visa, Mastercard, Maestro, Skrill, Neteller, PaypalFees Included in Spread

How do FOREX.com and IQ Option stack up against each other?

The Radar Chart below highlights how the brokers stack up against each other across various metrics. The highest score a broker can receive in each area is 5.

FOREX.com

IQ Option

At FX Scouts Tanzania, we help traders find the broker that suits their trading needs. In many cases, the best way to achieve this is to compare brokers side-by-side.

To compare FOREX.com and IQ Option, we used the same factors we use when reviewing brokers: The trust and regulation of the broker, the trading platform, the costs and trading conditions, and the level of education and market analysis available at the broker.

Does FOREX.com or IQ Option have a better trust and regulation rating?

Trust and regulation are some of the most important factors to consider when choosing a Forex broker. Trust in the Forex trading business is almost entirely founded upon regulation. We spend many hours evaluating the safety of each broker by delving into their fine print and confirming each one of their regulatory licences on the online registers. The more top-tier authorities a broker is regulated by, the higher its trust rating.

In our comparison, we found that FOREX.com holds four Tier 1 and no Tier 2 licences, and IQ Option holds no Tier 1 and no Tier 2 licences.

 

Is FOREX.com financially regulated?

Yes FOREX.com was founded in 2001 and is regulated by ASIC, CIMA, CySEC, FCA and MAS.

 

Is IQ Option financially regulated?

No IQ Option is not adequately regulated.

 

Based on these findings, FOREX.com earned a higher trust rating than IQ Option.

Does FOREX.com or IQ Option have lower costs?

Another important aspect we consider when comparing brokers is the cost of trading. When evaluating trading costs, we always consider the minimum deposit required to open an account and the ongoing trading costs, including the spreads and commissions. When calculating trading costs, we measure the cost to trade one lot of EUR/USD using the broker’s account with the lowest minimum deposit. The cost includes both the spread and any commission charged. 

Not all brokers publish their trading costs, so we often open accounts and trade on their platforms to verify the spreads and commissions. Based on our reviews, we found that FOREX.com has overall lower trading costs than IQ Option. 

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Broker
Trading Conditions
Base Currencies
EURUSD (Standard)
Trading Cost (Standard)
EURUSD (Best)
GBPUSD (Best)
USDJPY (Best)
Commission
IQ Option
111003/ 5
EUR, GBP, USD
0.80 pips
USD 8
0.80 pips
1.30 pips
0.90 pips
USD 0
Forex.com
111115/ 5
USD, EUR, CAD, JPY, CHF, AUD, GBP
0.70 pips
USD 7
0.70 pips
1.10 pips
1.40 pips
USD 0

 

Does FOREX.com or IQ Option offer a better choice of trading platforms?

Traders want Forex brokers to offer them a choice of trading platforms, so we give brokers who offer multiple platforms higher ratings. Trading platforms we consider include MetaTrader4, MetaTrader5, cTrader and proprietary mobile and web-based platforms. 

In this case, FOREX.com offers support for and IQ Option offers support for . 

Do the brokers offer copy trading?

Copy trading is a great option for beginner traders who can’t trade full-time or lack experience with Forex trading. In this case both FOREX.com and IQ Option offer copy trading.

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Broker
Platform Choice
Copy Trading
Platforms
IQ Option
111104/ 5
IQ option
Forex.com
11110.54.5/ 5
FOREX.com Web Trader
TradingView

 

Which broker offers a better choice of trading instruments?

A variety of CFD instruments – and a large range of CFDs for each instrument category allow traders more opportunities for profitable trading. The best brokers will have thousands of CFDs to trade, covering all these instrument categories. We found that FOREX.com offers a greater range and depth of instruments to trade than IQ Option. FOREX.com offers 91 Forex pairs to trade and IQ Option offers 33 Forex pairs to trade.

Toplist Forex Pairs

And what about Cryptocurrencies?

In this case, IQ Option offers 12 cryptocurrencies while FOREX.com offers 8 cryptocurrencies. So if you want to trade cryptocurrencies, we advise trading with IQ Option.

Which broker offers better deposit and withdrawal processes?

Although brokers may have reasonable trading fees, many traders are caught out by the high non-trading fees charged by some brokers, including deposits and withdrawals. Traders want to be able to deposit and withdraw funds quickly and cheaply. Most brokers have multiple funding methods with zero fees for making deposits, but some brokers make it more expensive and take longer to process withdrawals. 

We rate brokers more highly that process withdrawals within 24 hours by multiple withdrawal methods and without charging processing fees. We found that FOREX.com charges a withdrawal fee and IQ Option does not. Overall, FOREX.com has better deposit and withdrawal processes than IQ Option. 

Which broker offers better educational support?

We often find that brokers offer very little in the way of educational materials, forcing traders to use other third-party sites or self-educate elsewhere. Beginner traders need well-structured, well-presented materials in multiple formats to get a good start at trading. More experienced traders also benefit from webinars led by experts in the field and advanced trading strategy sections with new trading ideas. 

FOREX.com has better educational support than IQ Option. Both FOREX.com and IQ Option offer educational support for more experienced traders.

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Broker
Beginner Course
Advanced Course
Well Structured Education
Education Quality
Webinars
IQ Option
Medium
Forex.com
High

 

Which broker offers better market analysis materials?

To successfully predict the price movements of an instrument, traders will need access to frequent market research and analysis. We find that research and market analysis are always better when they are produced in-house and updated frequently. Third-party resources don’t show the same expertise in trading ideas, so we place a strong emphasis on frequent in-house updates. Some brokers also often offer interactive webinars where traders can learn from experts in the field. 

We found that 0 offers better research analysis than 0 and that both FOREX.com and IQ Option offer frequent webinars.

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Broker
Economic Calendar
Autochartist
Trading Central
Trading View
Free VPS
IQ Option
Forex.com

 

Our overall Verdict on FOREX.com

Forex.com was founded in 2001 and is part of the NYSE-listed GAIN Capital Group. Trading conditions are competitive with other large market makers and regulation is excellent, as you would expect from a publicly listed company.

A huge range of assets is available to trade, including 80+ Forex pairs and 5 cryptocurrencies. Platform choice is good, with Forex.com’s proprietary platform offered alongside MT4 and MT5. For beginners, education and market analysis are best in class, though the demo account does expire after 30 days of use.

Our overall Verdict on IQ Option

FxScouts does NOT recommend IQ Option due to insufficient regulation.

IQ Option appeals to beginners with its unique social trading platform, low minimum deposits, and low trading costs. However, IQ option's non-trading fees are high, and its global entity is unregulated. 

IQ Option offers one live commission-free account with competitive spreads (starting at 0.80 pips on the EUR/USD) and a minimum deposit of only 10 USD.  However, while deposits are free, IQ Option charges unreasonably high withdrawal fees and an inactivity fee of 10 EUR (or equivalent) per month after 90 days of inactivity.  

IQ Option’s global entity is registered in Antigua and Barbuda. IQ Option provides traders with negative balance protection.

IQ Option provides little in the way of market research or educational materials, forcing beginners to self-educate elsewhere.  

Which broker has the highest overall rating?

FOREX.com has an overall rating of 4.62 and IQ Option has an overall rating of 2.68. For more detail please read our reviews of FOREX.com and IQ Option.

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