Olymp Trade and IQ Option are some of the largest brokerage firms available to retail investors. Both players specialize in financial derivatives. Both platforms have many satisfied clients and have been operating in the market for years. Their popularity is uneven in different regions of the world. Olymp Trade is more popular in South Asia and has many users in Turkey. IQ Option has gained a large number of supporters in South America, mainly in Brazil. Both online brokers have a similar offer for traders. We will discuss the similarities and differences in this article to make it easier for you to choose a broker that meets your expectations.
IQ Option has been in existence since 2013 and is based in Cyprus, where it is regulated by the Cyprus Securities and Exchange Commission (CySEC). Olymp Trade was established one year later in 2014. The company is registered in Saint Vincent and the Grenadines and supervised by the Financial Commission. Olymp Trade regularly obtains the VerifyMyTrade Execution Certificate as a result of examining the execution of orders by the regulator.
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Comparison of the trading interface of both platforms
At first glance, the platforms look similar and CFDs and financial derivatives trading are similar. The IQ Option platform looks more modern. However, it has its price, because it takes more computer resources and with weaker hardware configuration sometimes you can see clear delays in rendering charts. In the worst scenario, this can cause problems with the immediate execution of orders.
What looks attractive like menu animations, transparency of some elements is not reflected in the analytical capabilities of the IQ Option platform. For a trader, what should matter is a transparent trading interface and the speed of the platform’s operation. The Olymp Trade platform performs much better here.
If we compare the availability of analytical tools such as technical indicators and drawing tools, IQ Option wins with more built-in indicators. Once again, the question arises whether this is really a good thing. Of course, if you support an innovative technical indicator such as Gopalakrishnan Range Index, it is hard to find it on the Olymp Trade platform. However, for most professional traders, basic indicators such as moving averages or basic oscillators are enough to perform a proper market analysis. Many new traders use too many tools, which doesn’t help the decision-making process. As a rule, it is quite the opposite and an excess of indicators can be harmful.
Price Data feed on different markets
It is known that prices may vary slightly for different markets. The price of EURUSD can be lower by 1-2 pips in Broker A than in Broker B at the same time. This is due to the different quote providers that the brokers use to show us the current prices. Currency pair quotes on Olymp Trade are expressed in 1/10 pips, whereas on IQ Option the precision reaches 1/100 pips. IQ Option supporters will tell you that Olymp Trade can then manipulate the price by rounding it up or down to complete your trade at a loss. On the other hand, we can say that this “inaccuracy” allows you to close a financial derivative at 0 when the same transaction at IQ Option could result in a loss if the same broker manipulated the price at 0.000001 to your disadvantage when the derivative expires. It is known that there are different situations and you should monitor the execution of each transaction. In case of ambiguity contact the broker immediately for clarification.
In the case of less popular currency pairs, it may sometimes seem that IQ Option creates prices itself and the chart looks unnatural. You should stay away from this type of asset.
Additionally, IQ Option allows you to trade some instruments on weekends when these markets are not working. How is the price generated? IQ Option in the description of its assets officially states that these prices are generated algorithmically, i.e. they have no real relation to the demand and supply on a given market. The price chart is drawn by an algorithm. We advise you not to trade on such instruments.
Rate of return for financial derivatives trading
Payouts for financial derivatives are different and depend on the asset, volatility, time of day, and type of account. At Olymp Trade, when the strike price is the current market price, you can get between 68 and 90 percent. At IQ Option rates of returns are between 65 and 95 percent.
Methods of depositing into an account
Both brokers provide a range of methods for depositing into your account. Olymp trade offers 12 payment methods and IQ Option over 20. And in both cases, you can be sure that you will find a payment method convenient for you because in both cases you can deposit by credit or debit card, moreover, the platforms also support the popular worldwide electronic payment systems such as Skrill, Neteller or WebMoney. In both cases, the minimum deposit and withdrawal amount are the equivalents of $10.
Summary of our comparison of IQ Option and Olymp Trade platforms
Both brokers are the leaders in derivative trading. They are both regulated and have a fairly good reputation among traders. There is no problem with withdrawals and deposits are made quickly and efficiently. What we like about Olymp Trade is the simplicity of use, simple and well-explained CFDs and derivatives. IQ Options on some assets have slightly higher payouts.
Both brokers offer great technical support and a lot of educational material. Each of them offers VIP accounts and contests for traders. Choosing a broker is often a choice according to your individual needs. Test Olymp Trade today by opening a demo account.
We wish you successful transactions!
