IQ Option

Last updated
IQ Option
Founded2013
FounderDmitry Zaretsky
Headquarters
Limassol
,
Cyprus
Number of employees
200 (2023)
Websiteiqoption.com

IQ Option is primarily known as a binary options trading broker, also offering services in Forex, stocks, and cryptocurrencies. The company was founded in 2013. In 2017, IQ Option shifted its focus to CFDs and cryptocurrencies, though binary options remain a significant part of its operations in certain markets, particularly where regulations are less stringent.

Contents

The company claims to operate in over 200 countries and have more than 48 mln clients. IQ Option is regulated by ASIC, CySEC, and Securities Commission of the Bahamas (SCB).

Operating in various jurisdictions without proper authorization or licensing, IQ Option has faced fines, lawsuits, and bans. Regulatory authorities in countries like India, Australia, Cyprus, Brazil, and Indonesia have flagged the company's activities, ranging from non-compliance with financial regulations to alleged fraudulent practices.

Profile

As of 2023, the company is headquartered in Cyprus and employs around 200 people across offices in Dubai, London, Gibraltar, the USA, Australia, Eastern Europe, and Malaysia. [1] The company offers over 250 financial instruments, including Forex, stocks, cryptocurrencies (26 listed), commodities, and ETFs. [2] IQ Option claims 48 million customers in more than 200 countries, but those numbers are difficult to verify given regulatory issues in various jurisdictions. [3] [4]

History

IQ Option was founded by Dmitry Zaretsky, a Russian entrepreneur who grew up in Saint Petersburg and graduated from the Saint Petersburg State University Mathematics and Mechanics Faculty. [5] The company was registered in Cyprus under the name IQ Option Europe LTD on 12 December 2013. [6] , and acquired a license from CySEC in 2014. [2] Already in 2016, its trading platform had grown popular. [7] The company had invested heavily into development of its trading tools and instruments. [8] [2]

In 2017, IQ Option shifted its focus from binary options to CFDs and cryptocurrencies. [9] It launched dedicated trading apps for iOS and Android, [9] introduced the "Open Trading Network" blockchain-based platform, [10] and joined the Serenity Financial blockchain-based settlement system. [11] During this period, IQ Option claimed to employed over 550 specialists in offices in Saint Petersburg and Limassol, while its monthly trading volume reportedly exceeded $11 million. [11] The company also revealed plans for an ICO. [12]

In 2021, IQ Option established a subsidiary, Quadcode Markets, which focuses on trading foreign exchange, commodities, stock indices, and cryptocurrencies through CFDs. [13] [14] In 2024, Quadcode launched a SaaS white-label platform. [13] [15] Additionally, Quad Code AU Ltd operates in Australia and is licensed by ASIC. [13]

Since November 2022, IQ Option has been the official sponsor of the Davis Cup. [16]

In early 2023, IQ Option announced a partnership with compliance solutions expert Rightlander Ltd. and launched SabioTrade, a proprietary trading firm. [3] [17] The company also introduced Islamic accounts for Android users, promoting no-swap trading and offering over 21 halal shares to cater to a specific market segment. [18]

Despite these developments, in September 2023, CySEC removed IQ Option Europe LTD from the Register of Crypto Asset Service Providers (CASPs), citing the company's failure to provide crypto-asset services for a continuous period of six months. [19] [20] Additionally, in late 2023, Quadcode Markets acquired a trading license in the Bahamas, expanding its reach into yet another jurisdiction. [13]

Controversy

In Cyprus, IQ Option has faced repeated fines and scrutiny from the Cyprus Securities and Exchange Commission (CySEC). In 2016, CySEC imposed a fine of €180,000 for multiple violations, including misleading marketing materials, unsafe outsourcing practices, inadequate approval of liquidity providers, and failing to act in clients' best interests during order execution. [21] [22] The fine was later reduced to €20,000 after the company submitted additional documents. [23] [24] In 2019, IQ Option agreed to a €450,000 settlement with CySEC for failing to implement effective safeguards against conflicts of interest and rigorous due diligence procedures, as well as for insecure transaction processes. [25]

In Australia, IQ Option operated without a license until 2016, only addressing regulatory shortcomings after receiving a formal warning from the Australian Securities and Investments Commission (ASIC). [26]

In Singapore, since July 2017, IQ Option has been listed on the Monetary Authority of Singapore (MAS) Investor Alert List. [27]

In India, as of June 2017, IQ Option was included in the Reserve Bank of India's (RBI) alert list. The RBI warned that residents conducting forex transactions with the company could face legal actions under the Foreign Exchange Management Act (FEMA), 1999. [28] In 2021, the company faced a class-action lawsuit in India alleging fraud through a cryptocurrency investment scheme. Victims claimed IQ Option promised returns of up to 900% but blocked withdrawals under the guise of technical errors. The lawsuit seeks a permanent ban on the company's operations in India. [29]

In Indonesia, binary options, including those offered by IQ Option, are classified as a form of online gambling. Since 2 February 2022, the company has been banned along with over 92 similar operators, further limiting its ability to operate in Southeast Asia. [30] [31] [32]

In April 2023, Brazil's securities commission (CVM) ordered IQ Option to stop acquiring clients. Despite this, the company continued operating through affiliate marketing and ads on platforms like Google.[ citation needed ]

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References

  1. ↑ "Broking, Fintech, and Doomsday Clocks - Interview with Quadcode Markets' Evgeny Tychenko". Finance Magnates. 2023-06-16. Retrieved 2025-01-23.
  2. 1 2 3 "Everything You Need to Know About IQ Option's Platform Offering". Finance Magnates. 2020-06-29. Retrieved 2025-01-23.
  3. 1 2 "IQ Option Joins Forces with Rightlander Ltd for Enhanced Compliance". Finance Feeds. 2023-10-08. Retrieved 2025-01-23.
  4. ↑ "IQ Option Named Best Crypto and Forex Broker in Thailand by FX Awards". TMCNet News. 2024-07-23. Retrieved 2025-01-23.
  5. ↑ Morozova, Ksenia (2020-10-22). "На Восстания открылся особняк Мясникова — там уже проходят концерты и лекции, а скоро появится кластер авторских ресторанов. О планах рассказывает владелец здания" (in Russian). Sobaka.ru. Retrieved 2025-01-23.
  6. ↑ "IQOPTION EUROPE LTD". Cyprus Registry. Retrieved 2025-01-23.
  7. ↑ Golovtchenko, Victor (2016-04-20). "Industry Insight: CySEC Binary Options Regulations Get Positive Feedback". Finance Magnates. Retrieved 2025-01-23.
  8. ↑ "Use your IQ by choosing a robot to manage your trading". The Independent. 2016-11-21. Retrieved 2025-01-23.
  9. 1 2 Golovtchenko, Victor (2017-08-14). "Exclusive: IQ Option Smoothly Transitions into FX and CFDs". Finance Magnates. Retrieved 2025-01-25.
  10. ↑ Golovtchenko, Victor (2017-10-11). "Exclusive: IQ Option Announces Blockchain-Based 'Open Trading Network'". Finance Magnates. Retrieved 2025-01-23.
  11. 1 2 "IQ Option joins Serenity Financial blockchain settlement system". Forex Brokers. 2017-11-20. Retrieved 2025-01-23.
  12. ↑ Golovtchenko, Victor (2017-08-31). "IQ Option Teases Upcoming ICO with Limited Tokens". Finance Magnates. Retrieved 2025-01-25.
  13. 1 2 3 4 Chmiel, Damian (2023-12-11). "IQ Option's Quadcode Secures FX/CFD Trading License in Bahamas". Finance Magnates. Retrieved 2025-01-23.
  14. ↑ Steves, Rick (2023-12-11). "Quadcode Markets: IQ Option-sister FX broker secures license in Bahamas". Finance Feeds. Retrieved 2025-01-23.
  15. ↑ "Quadcode SaaS launches white label brokerage platform". Finance Feeds. 2024-04-18. Retrieved 2025-01-23.
  16. ↑ "IQ Option Collaborates With Davis Cup". Finance Feeds. 2022-11-21. Retrieved 2025-01-23.
  17. ↑ "IQ Option launched a prop firm". Trade Informer. 2024-10-29. Retrieved 2025-01-23.
  18. ↑ "IQ Option's Islamic Account is Out on Android". Media Indonesia. 2023-04-15. Retrieved 2025-01-23.
  19. ↑ Nikolova, Maria (2023-09-13). "CySEC deletes IQOPTION EUROPE from Register of Crypto Asset Service Providers". FX News Group. Retrieved 2025-01-25.
  20. ↑ "CySEC Decision for the deletion of the CASP IQOPTION EUROPE LTD from the CASP register". CySEC. 2023-09-13. Retrieved 2025-01-25.
  21. ↑ Abdel-Qader, Aziz (2016-09-30). "IQ Option Fined €180.000 By CySEC for Outsourcing Operations". Finance Magnates. Retrieved 2025-01-25.
  22. ↑ Fox, Mike (2016-10-01). "CySEC issues 6 figure fines to binary option brokers IQ Option and OptionRally". LeapRate. Retrieved 2025-01-25.
  23. ↑ Golovtchenko, Victor (2017-08-31). "Exclusive: CySEC Rolls Back Best Execution Fine for IQ Option". Finance Magnates. Retrieved 2025-01-25.
  24. ↑ "CySec announced revocation of decision regarding IQ Option Europe". One Stop Brokers. 2017-01-16. Retrieved 2025-01-25.
  25. ↑ "IQ Option settles with CySEC". KNews. 2019-05-22. Retrieved 2025-01-25.
  26. ↑ "ASIC crackdown on unlicensed retail OTC derivative providers". ASIC Gov. 2016-07-06. Retrieved 2025-01-23.
  27. ↑ "Investor Alert List". Monetary Authority of Singapore. Retrieved 2025-01-23.
  28. ↑ Kulkarni, Sneha (2023-06-08). "RBI issues fresh list of unauthorised forex trading platforms; How to check authorised". The Economic Times India. Retrieved 2025-01-23.
  29. ↑ Shome, Arnab (2021-01-13). "IQ Option Faces Lawsuit in India over Crypto Fraud Allegations". Finance Magnates. Retrieved 2025-01-23.
  30. ↑ "Indonesian regulators block illegal trading websites following complaints on social media". KrASIA. 2022-02-04. Retrieved 2022-02-07.
  31. ↑ Dirgantara, Hikma (2022-02-03). "Bappebti Blokir 92 Entitas Binary Option di 2021, Termasuk Binomo, IQ Option". Kontan.co.id (in Indonesian). Retrieved 2022-02-07.
  32. ↑ Tee, Kenneth (2020-07-16). "Bukit Aman cripples 'i-Rakyat Trade' investment scam which targeted Malaysians during MCO". MalayMail. Retrieved 2025-01-23.
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