IQ Option Vs FXTM 2022: Which One Is The Better Choice?

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By: Michael Restiano
Updated On: May 22, 2022
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IQ Option Vs FXTM? Which is better? As the popularity of Forex trading is constantly growing, there are more and more brokers. Some traders choose to work with several brokers at once, while others focus on one particular broker.

Each trader has their own reasons for choosing a certain broker. One of the most important things when selecting a broker is to compare their terms and conditions against another broker.

About FXTM:

FXTМ is a leading brokerage company providing services for Forex and CFD trading since 2007. The company provides access to financial markets, as well as personal accounts manager options. They cover more than 85 currency pairs, with the fast and reliable withdrawal of funds.

About FXTM

FXTM is a regulated broker with headquarters in Cyprus and a presence on an international level – currently, FXTM enjoys more than 10,000 active clients worldwide.

How To Open An FXTM Account?

  1. Visit the FXTM homepage;
  2. Create an account by filling in your personal data;
  3. Choose a password and tick the conditions for receiving communications from FXTM. Click on the 'I accept button to open an account.

What Are The Advantages Of FXTM?

  1. Customer support: FXTM offers customers reliable customer support round the clock, seven days a week. You can speak with one of their advisors via telephone or contact them via email or live chat;
  2. Free demo account: You can practice trading and test the platform before you deposit any money;
  3. Great Educational Tools: FXTM provides traders with useful educational tools and webinars to help them develop their skills;
  4. Best trading conditions: FXTM offers its clients the best possible conditions for conducting online forex, CFD, and binary options trades.
  5. MT 4/5 Platform: You can trade online with FXTM via the MT 4/5 platform.

What Are The Disadvantages Of FXTM?

  1. Limited Commodities: At the moment, FXTM is offering only 4 commodities (oil, gold, silver, and grains);
  2. Limited account types: Instead of providing its clients with several account types, FXTM has just one – a Real account.
  3. No crypto trading: At the moment, FXTM does not provide its clients with a facility to trade in cryptos via CFDs.
  4. Limited currencies: As mentioned before, only four currency pairs are available for trading at this broker.

How Safe And Secure Is FXTM?

FXTM operates under the strict regulations of CySEC (Cyprus Securities & Exchange Commission) and FSA (Financial Services Authority - UK); The company complies with all international anti-money laundering laws; FXTM uses 128-bit encryption to keep clients' personal and financial information secure.

How Good Is The Customer Service Of FXTM?

Since FXTM has multiple offices around the world, there will always be someone to answer your calls or reply to your emails; However, as far as availability goes, it may take some time for you to receive a reply; As for other ways to communicate with the broker, there is no live chat option and no form on the website.

How To Withdraw Money From FXTM?

  1. Log into your account;
  2. Click on Funds in the top menu bar, then select Withdrawal;
  3. Fill out the necessary form, upload the required documents and finally click the Request withdrawal button. The cash will be transferred to your bank account within 2 working days.

How To Deposit Funds In FXTM?

In order to deposit money in your FXTM account, you will need to log into your account and choose a payment system from those listed above in the Wallet section. Afterward, you will need to choose the amount and the payment system where the money will be coming from.

About IQ Option:

IQ Option is a leading options broker that was founded in 2013 and is part of the Olymptrade Group (Olymp Trade). Olymptrade provides access to the world's financial markets, with professional support and low spreads on major currency pairs.

About IQ Option

They offer all of their customers a $10 000 demo account, which is perfect for newbies who want to try out Forex trading without any risk factors. Let's compare one of the world's largest brokers.

How To Open An IQ Option Account?

  1. Click the "Join IQ Option" button;
  2. Provide your full name and email address;
  3. Choose a username and password;
  4. Accept the Terms & Conditions, Privacy Policy, Risks Disclosure by ticking the 'I have read and accept...' checkbox. Click on the SIGN UP NOW button to open an account.

What Are The Advantages Of The IQ Option?

  1. Easy to open an account: It only takes a few minutes to open an account with IQ Option;
  2. Low deposit: You can deposit as little as $10 and start trading;
  3. User-friendly platform: IQ Options has developed an easy-to-use, intuitive platform that allows customers to trade conveniently on the go;
  4. Languages supported by the mobile app: IQ Option's mobile app is available in 9 different languages;
  5. Free demo account: You can practice trading and test the platform before you deposit any money;
  6. 24/5 customer service: IQ Option provides assistance 7 days a week to all its clients and responds quickly and efficiently via email, live chat, and telephone (in selected countries);
  7. IQ Option pays much more than most binary options brokers do - up to 92% per winning trade.

What Are The Disadvantages Of The IQ Option?

  1. No MT4/5 platforms: IQ Option does not have an MT4/5 platform, so clients cannot trade using this type of platform.
  2. Limited payment options: Currently, it is only possible to withdraw funds from the account through a bank transfer or by returning the amount back to your debit card.
  3. No fixed spread: At the moment, IQ Option is the only broker that does not provide its clients with fixed spreads;
  4. No US traders: If you reside in the United States or any other country that has banned binary options trading, then IQ Option is not the broker for you.

Is IQ Option Safe And Secure?

In terms of security, IQ Option is a completely safe choice. The company has been in business for many years and has never had any complaints from its customers or other third parties.

The website works on HTTPS protocol, which means that all information transmitted between your computer and the broker's servers is encrypted. This makes it impossible to intercept and use such information for malicious purposes;

All the personal data you provide to IQ Option is stored on a secure server and processed in accordance with European Union regulations on the protection of personal data.

How is the customer service of IQ Option?

IQ Option provides its customers with a number of channels to contact them via, which is great as it allows clients from all around the world to contact the broker whenever they have an issue or a question;

The website has a phone number and an email address, but you can also use live chat or fill out a form on the Contact Us page; The team is available for assistance 24/7.

How To Withdraw Money From IQ Option?

  1. Clients need to apply for withdrawal by filling out the necessary form;
  2. The company performs a number of security checks, after which you will receive an email containing your withdrawal confirmation link;
  3. Once you click on this link, you will be able to withdraw your funds.

How To Deposit Funds In IQ Option?

In order to deposit funds in IQ Option, clients will need to log in to their accounts and click on the section called Wallet. Afterward, they should choose a payment method and type in the amount of money they wish to transfer;

The company makes use of banking systems that have been approved by leading financial institutions worldwide. This ensures that all transactions are as secure as possible;

Depending on the payment method chosen, the funds will be transferred to your account instantly or within a few business days.

IQ Option Vs FXTM

Bonus:

IQ Option does not provide any bonuses. FXTM offers its clients up to 30% of the deposit bonus, with a maximum amount of $100 for the 1st deposit. This is the largest bonus that can be obtained from this broker!

Minimum Deposit:

Generally, there are two types of deposit – the minimal and the maximal. A minimal deposit is required to open an account with a broker. It can be $1, but usually, it's more (around $200). However, some brokers do not require any initial deposit at all!

The maximal deposit, on the other hand, is the maximum amount that can be deposited at one time. It is usually $5,000-$10,000, and most brokers provide this option.

IQ Option requires a $10 initial deposit, which is great for those who want to try out the broker before actually making a real deposit! FXTM requires a minimum of $50 for opening an account.

Leverage:

FXTM provides up to 1:500 leverage, which means that for every $1 traded, traders can borrow up to $1000. IQ Option offers its clients 50 times margin (which stands for borrowing). The maximum leverage amount offered by this broker is 1:50. What does it mean when a broker provides high leverage?

Let's assume that you are trading with 1:100 leverage, which means that for every $1 traded, you borrow another dollar. This is the maximum amount allowed by law. As soon as your account balance becomes equal to -or less than- the amount borrowed ($2 in our example), all your trades will be automatically closed.

Platform:

IQ Option and FXTM offer several different platforms – MT4, 3commas, and WebTrader. Here is a quick overview: IQ Option offers different trading platforms – for example, MetaTrader 4 (MT4), which is one of the most popular platforms in the world. MT4 is available for Android, iOS, and Windows devices, which makes it possible to trade Forex on any device you like!

FXTM offers its clients 2 types of platforms (both are proprietary). They are 3commas and WebTrader. The WebTrader platform is designed not only to work with Mac OSX and Windows operating systems but also with Android and iOS devices.

Education:

FXTM provides its clients with a variety of educational resources such as videos and webinars to increase their knowledge about trading.

IQ Option offers special educational programs for those interested in learning more about financial markets – including courses on topics such as basics of trading, advanced topics, and webinars.

Accounts:

FXTM offers 2 types of accounts to all of its clients – a demo and a real account. They both include an individual manager who provides direct support throughout the whole process.

IQ Option offers 3 different types of accounts – Basic, Standard, and VIP. They give traders a possibility to choose what kind of account they want – from the most basic option, which is suitable for beginners who trade with small accounts - to very professional and customizable options.

Customer Support:

IQ Option provides different kinds of support – Live Chat, Email, and Phone customer support 24/5. FXTM provides its clients with a variety of support – for example, Phone and Email support 24/5. The company also offers Live Chat support!

Deposit & Withdrawal:

IQ Option does not provide any deposit bonuses. This is one of the most important factors to consider when choosing a broker, as it directly influences the overall trading experience.

FXTM offers a variety of deposit and withdrawal options, including credit cards (Visa and MasterCard) as well as e-wallets such as Skrill, NETELLER, Sofort, and others. The company offers its clients full coverage in terms of payment methods.

Regulation:

FXTM is regulated by the Cyprus Securities and Exchange Commission (CySEC) – a top-tier global regulator. IQ Option is authorized by CySEC as well – the company is also regulated by the Financial Conduct Authority (FCA) in Great Britain.

Margin Trading:

FXTM has not enabled margin trading yet. IQ Option offers its clients the opportunity to trade with up to 50 times leverage. The maximum amount of trading funds allowable when trading on margin is 50% of your account balance.

STP Broker:

FXTM is an STP broker. This means that it does not act as an intermediary during trades; all transactions are executed by external liquidity providers (aka "market makers"), which gives the clients an opportunity to get better prices and save on commissions.

IQ Option is not an STP broker because the company is focused on providing its clients with an excellent customer service experience, which enhances their trading experience.

DMA:

FXTM offers DMA (Direct Market Access) accounts which is very important for those who want to trade via liquidity providers and win bigger than normal spreads.

IQ Option does not provide its clients with direct access to liquidity providers because it wants to focus on enhancing their trading experience by providing them with the best customer service!

PAMM Account:

FXTM offers the PAMM (Percentage Allocation Management Module) account, which allows its customers to invest in a multi-manager account and get a part of the profits. IQ Option does not provide this option.

Licenses:

FXTM is regulated by CySEC, a top-tier regulator in Europe and one of the most trusted financial regulators worldwide. IQ Option is registered with the Financial Conduct Authority (FCA) in Great Britain, which also gives it a lot of credibility.

Market Maker:

FXTM is known for having the best market makers. IQ Option does not have its own market makers, but due to being regulated by CySEC, it can access several liquidity providers that are among the best in the industry!

Types of Assets:

FXTM offers CFDs on over 100 different assets, including stocks, indices, forex pairs, commodities, and cryptocurrencies.

IQ Option offers its customers access to over 70 assets, including Forex pairs, Stocks, Commodities, Cryptocurrencies as well as indices.

Social Trading:

We all know that trading is a social activity. Well, FXTM enables its clients to trade alongside other traders and copy their moves; take a look at other peoples' portfolios and mirror them! IQ Option does not provide this option.

Copy Trading:

Why do so many traders choose to copy other people's trades? Well, with this tool at their disposal, any trader can benefit from trading alongside experienced and successful traders and mirror their moves!

FXTM offers its clients the CopyTrader feature that allows them to follow and copy the most successful traders in the network. IQ Option does not provide this option.

Crypto Trading:

FXTM does not provide this option. IQ Option allows its clients to trade cryptos such as Bitcoin, Ethereum, and many more via Cryptocurrency CFDs. The company also launched a crypto wallet that allows clients to conveniently store their cryptos securely right inside the platform!

Binary Options:

Binary options are standard derivative products where the payoff is either a pre-defined fixed amount of money if an option expires in the money or nothing at all. FXTM does not offer binaries. IQ Option offers its clients binary options (all assets, 60 seconds, and One Touch).

Types Of orders:

FXTM does not provide its clients with advanced order types like Trailing Stop. IQ Option allows its traders to set Trailing Stops (manual or pending), Advanced Limit (Good-Till-Canceled, Good-Till-Date), and One Cancels Other (OCO).

Who Offers Better Services?

FXTM has had a number of complaints filed against it for not having operated within the legal boundaries of certain countries, which have forced the company to depart from them.

Several traders have had accounts frozen by FXTM because they have previously resided in one of these countries. As far as IQ Option is concerned, there have been complaints from some traders that their withdrawals have been delayed.

Broker Choosing Guide:

Factors that need to be considered before choosing a broker:

Deposit And Withdrawal Methods:

The most efficient way to make deposits or withdrawals is often through credit cards, debit cards, Skrill, Neteller, Payoneer, bank transfers, etc. Researching whether a broker accepts the deposit/withdrawal method you are interested in will save you time in the long run.

Leverage:

Leverage is the amount of money a broker will allow you to borrow in order to open trades greater than your deposit. This number can be anywhere between 1:100 and 1:500 or even higher, so it is important to do thorough research.

Trading Instruments:

Currencies, Commodities, Indices, and Shares/Stock markets are all instruments that brokers allow traders to trade on. Knowing exactly which instruments you want to trade with before you begin looking for a broker will allow you to narrow down your search.

Regulations:

It is important to choose a broker that is regulated, so do thorough research before choosing one.

Customer Support:

When traders need help in different situations, customer support can be extremely helpful. Knowing which type of customer support is available at different brokers can save you time in the long run.

Desktop/Mobile Trading Platforms:

Different brokers offer different types of trading platforms, so it is important to choose which type of platform would best suit traders' needs.

Web-Based Platforms:

Not all traders like to use desktop or mobile trading platforms, which is why it is important to know whether a broker offers web-based platforms as well.

Education:

Before signing up with any broker, make sure they offer an extensive educational center that includes explanations about the basics of trading and maybe even tutorials on how to use their platform. Also, keep in mind whether traders are required to pay for the educational center or not.

Ease of Use:

Different brokers offer different types of platforms, so it is important to look at what type of platform each broker offers before choosing one. Some are less complicated than others, so traders should consider which one would work best for them.

Charting Tools:

Knowing what type of charting tools are available at different brokers can help traders choose one that they will be content with.

Copy Trading:

Some brokers offer copy trading, which allows traders to follow certain traders and automatically open trades with the same parameters as the people they are following. This is an efficient way to trade since it can help to diversify one's portfolio.

Now that we have learned about IQ Option and FXTM, let us understand some basics:

Who Is A broker?

A broker is essentially a third party that executes trades on behalf of the trader. They handle all the details such as opening and closing of trades, deposits, withdrawals, etc.

How Does A Broker Work?

A trader makes an order by opening a trade, with the broker either accepting or denying it. If the broker accepts it, he will then go on to ‘locate’ where the price should be in order for him to fill this particular trade.

The final price is known as the “execution price,” and it is different than the “indicative price,” which is simply an estimate of where the price will be at.

Once the broker has found and filled the trade, he then closes it by either buying or selling, depending on whether it is a call or put option.

What Does A Broker Do?

Brokers handle all transactions such as deposits and withdrawals, the opening of trades, and the execution of trades. They also assist traders by providing advice through educational centers, webinars, and live trading rooms.

What Are The Benefits Of Brokers?

A huge benefit of using brokers is that they allow traders to trade on different platforms. For example, if a trader only has an Android, he would not be able to use an iPhone platform.

Using brokers allows you to avoid this hassle and, essentially, gives you the freedom to trade on any platform that fits your needs.

Most importantly, though, brokers allow traders to diversify their portfolios. This means that they can trade on different assets, which adds stability to their overall portfolio.

Educational centers are extremely helpful for new traders since they provide explanations about the basics of trading and how to use the platform. They also offer tutorials on what steps should be followed when trading.

There is also 24/7 customer support, which can be extremely helpful for those who need assistance at odd hours of the day.

What Are The Downsides Of Brokers?

While brokers are certainly extremely beneficial, there are also some downsides. For example, they may place their own interests above that of the traders, which can be seen through higher spreads and commissions.

What Are Some Competitors Of IQ Option And FXTM?

1. eToro:

eToro is a social trading network that allows investors to follow and copy the trades of those they invest in. This provides stability for traders who are new to the market since they can diversify their portfolios by following other successful traders.

eToro is a social trading network. This means that you can copy other traders' portfolios and strategies to help you make your own investments more profitable.

etoro

All of the people whose portfolios you choose to follow will be notified by eToro that you have copied them so that they know their trades are being watched by someone else. You will also receive a copy of the other person's portfolio and trading activity.

There are no hidden fees or minimum trade amounts. Since eToro offers social trading, it is free to use for both copy trading and investing. It will not cost you any commissions to place trades on the eToro platform.

2. AvaTrade:

AvaTrade was founded in 2006, and it's based in Ireland. AvaTrade also has offices in Australia, France, and South Africa. AvaTrade is operated by Safecap Investments Ltd., which is licensed by the Central Bank of Ireland.

AvaTrade deposits and withdrawals are free once you have verified your account. AvaTrade's process for verifying your account is fast, but it can take up to two business days before the withdrawal will be processed.

AvaTrade

AvaTrade has a fixed platform fee. When you place a trade, you won't pay any commissions or fees, which is a huge benefit for traders. AvaTrade also has 24/7 customer support as well as educational material about trading and brokers to help guide you along the way.

3. XTB:

XTB is a brokerage company that offers CFDs on lots of different commodities. When using XTB, you will have access to a platform with a lot of features that offer multiple languages.

You can also open an account in London or Poland in order to avoid certain taxes. The company also offers a demo account and has a variety of tools available for additional assistance.

xtb trade

XTB offers a wide range of CFDs across several markets, including currencies, indices, and commodities. Trading is available on more than 1,700 stocks from AIM to Zurich, as well as ETFs and ETNs.

The company's range of CFDs includes everything from oil to silver and gold. Investing in commodities using CFDs allows you to trade without having to take physical delivery, which means that there are no storage costs involved.

Conclusion:

In a nutshell, FXTM is a better choice if you're looking for a broker that offers great trading conditions and provides excellent customer service. IQ Option is perfect if you want to start forex trading with only $10 or if you want to use an intuitive platform.