The difference between IQ Option and Plus500
You already have an idea of what online trading is, and now you want to make money investing from your home using only your computer?
That is why you are in this post: because now you want to search and know which is the best broker to start your journey as a trader.
IQ Option and Plus500 are two of the most popular brokers in the world of online investments. Their popularity is due to the fact that they are the most reliable on the market in recent years.
Both are regulated by the main financial institutions and you can find good opinions of each one on the net.
However, the most likely thing is that you still have certain doubts. Which one is the best for you? With which one can you generate more money? What is the best choice for traders?
I have tried and used these two platforms to trade with them, and therefore, so that you can make a better decision before investing your money, here I am going to make a comparison between IQ Option and Plus 500.
I’m going to show you:
- Each important aspect of these brokers;
- The advantages and disadvantages of each one;
- All the information about deposits and e.t.c.
That way, you can be the one to decide which is the best for you. Prepared? Go for it!
One of the things that can worry you the most when choosing a broker is knowing what their minimum deposit is to start operating in it; After all, it is not the same as asking you for $ 100 to start rather than $ 500.
And this is where the first big difference between these two platforms is:
- Plus500 asks for $ 100 to start trading;
- On IQ Option the minimum deposit is only $ 10.
It’s quite a difference, especially when you’re just starting out in this world.
Why is the minimum deposit so important?
The minimum deposit you make to the broker will be used to experiment with the service it offers with your real money and to be able to decide if it is worth making larger investments.
Online trading involves high-risk operations, so you should not invest large sums of money if you are just learning. The money that you invest at the beginning should be an amount with which you can face the loss without problems.
In this sense, IQ Option turns out to be much more convenient by giving you the ability to make your first trades with only $ 10.
It is true that Plus 500 asks for $ 100, which is not much if you compare it with other brokers who usually ask for $ 250 as a minimum. But it is much better to start with only $ 10 on IQ Option and, once you have more knowledge, move to larger amounts.
IQ Option vs Plus 500. The ways to work with money
Through what means can this minimum deposit be made? Each broker has its own means of payment.
Plus500 accepts deposits through:
- Credit / debit cards both Visa and Mastercard;
- Bank transfer;
An IQ Option accepts deposits by:
- Credit or debit card Visa, Mastercard or Maestro;
- Bank transfer.
Another very important point that you should always look for in a good broker is that they have a demo (or demo) account so that you can practice before risking your real money, and thus know which strategies work for you and which do not.
Both IQ Option and Plus500 have a totally free demo account, so in that these two brokers are the same.
Using this account will help you put your knowledge into practice and see if you can really make a profit from online trading.
However, although the two platforms have this type of account, there are differences between them that you should know and that I am going to explain to you here.
Plus500 gives you a demo account with virtual $ 20,000 that you can use to practice. But the downside is that once you lose that virtual money, you can no longer recharge the demo account.
IQ Option also offers a free demo account option, which includes a virtual $ 10,000 to invest in.
But here, the advantage of IQ Option is that once that $ 10,000 is used up, you can reload your account with $ 10,000 more as many times as you want.
Why are these Profiles so important?
This demo account helps you practice without any fear and improve your skills as a trader.
What I recommend is to always start with the demo account and practice a lot. When you see that you manage to obtain profitability and you already have a defined trading strategy, it is time to operate with real money and start generating profits.
Many people make the mistake of starting by investing their real money without having knowledge of anything. But most of the people I know who do that lose their money and think they’ve been scammed.
That is why my advice is to practice for a few days with the demo account before making your first deposit and trade with real money.
IQ Option and Plus500 commissions
Commissions are also important when it comes to choosing a good broker. Some do not charge a commission and others may charge commissions for anything.
And these types of payments that you will have to make in the end will affect your earnings.
Imagine that you have a successful operation in which you have won $ 273, but the broker in which you are investing charges you a $ 20 commission for making the investment, and $ 65 for withdrawing your money.
In the end, of those $ 273 you will only receive $ 190 because they have taken $ 85 in commissions that you could have saved with another platform.
Plus500 does not charge commissions when making a deposit or when withdrawing money: if you deposit $ 100, you will have $ 100 available in your account to operate.
But there are additional and hidden commissions that will apply to you. Unfortunately for me, I did not know this at first, and when I saw it, I was shocked.
In terms of profitable situations
For example, if you open an operation that is making you profit, and you have set it to stop within 1 hour, so that investment does not stop and continues to generate profits, you will have to pay an extra.
If you do not pay that extra, the operation will be closed automatically, and you will no longer get more profit with that same operation.
They also have other types of commissions and fees: if you don’t use your account for three months, they’ll charge you an additional $ 10 every so often.
That is to say:
- If in 3 months you do not use your account, they charge you $ 10;
- If you do not use your account in 6 months, they will charge you $ 20;
- If you don’t use your account in 1 year, they will charge you $ 40.
Plus500 also charges for its services on spreads. Spreads are the difference between the purchase price and the sale price of an asset. Plus500 establishes a spread on each asset that the user pays at the time of trading.
It is like a hidden commission because it is already built into the quote. Another possible commission would be when establishing a stop order, that is, when a position is requested to close at a certain price in order to minimize losses.
Plus500 also charges fees for currency exchange; that is, if you request a payment in your local currency (for example, in pesos), they will charge you a commission for making the change from dollars to the currency of your choice.
So with them in the end the operations are quite expensive because a large part of the profits you get with your investments will go to their commissions.
IQ Option fees
On the other hand, IQ Option does not charge commissions in operations or when depositing money in your account. If you deposit $ 10, you will have $ 10 intact to trade on your account.
Only in the case of operating with cryptocurrencies there is a small percentage of 2.9% that is applied to the purchase price or sale price of the asset.
For example, if you decide to make a $ 30 investment in cryptocurrencies with IQ Option, they will charge you 87 cents of the 2.9% commission. If your investment is $ 20 in Bitcoins, they will charge you 58 cents of commission.
They are quite small amounts compared to the earnings you will get, and with the much higher commissions that Plus500 will charge you for many other things as I explained before.
IQ Option also charges an overnight fee for keeping the trading position open overnight. That rate depends on the asset in which you are going to invest, and you can see it in the “Commissions” section of their website.
They also do not charge anything to withdraw your money through credit or debit card, Skrill, Neteller, or Webmoney. But they do charge a commission of $ 50 for withdrawing your money through bank transfer.
So my recommendation is that if you don’t want to pay that $ 50 commission, withdraw your money on IQ Option by any method other than bank transfer.
The withdrawal of funds is also something that we must be clear about when choosing a broker. Fortunately, Plus500 and IQ Option offer accessible alternatives so that anyone can withdraw their earnings without problem.
At Plus500, you can withdraw your money with;
- Visa credit or debit card;
- Bank transfer;
- Through Skrill or Paypal.
To make a withdrawal, you must be in your account and access the “Funds” option in the side menu. There you will see the available money that you have to withdraw. You select “Withdraw” and choose the withdrawal method.
Once you complete the required fields, click on the “Send” or “Open a withdrawal” button and your request will be made.
Plus500 processes these withdrawal requests within a maximum period of 24 hours on a business day. The time in which the payment appears will depend on the time it takes for the recipient to process it.
Usually, in e-wallets like Skrill and Paypal, the payment appears after being approved by Plus500 within 24 hours of request. For credit cards and bank transfer it may take a little longer depending on the receiving entity.
Likewise, it is a fairly short time compared to other brokers. It can even be less than 24 hours.
But there is something very important that you should know: Plus500 has a somewhat high minimum amount to make withdrawals that varies according to the means of payment.
If you want to collect your money through PayPal, the minimum amount to do so is $ 50. And for bank transfers and credit cards, the minimum amount is $ 100.
If you want to withdraw an amount less than the established minimum, they will charge you a commission of $ 10. You can only withdraw money from your account five times a month, if you incur more withdrawals than allowed, a commission of $ 10 will also be charged.
So as you can see, the means to withdraw your money in Plus500 are quite limited, and if you do not want to have that limitation, you will have to pay to be able to remove them.
IQ Option withdrawal
IQ Option, on the other hand, allows you to withdraw money with a:
- Visa, Mastercard or Maestro debit or credit card;
- By bank transfer;
- Through Webmoney, Skrill and Neteller.
In IQ Option, you just have to access the “Withdraw funds” section, select the method to use for the withdrawal, fill in the required information and confirm the request.
Here’s a small downside: IQ Option takes 24-48 hours to process the withdrawal request. However, in other respects it has many more advantages than Plus500.
At IQ Option you can withdraw your money from just $ 2 without any problems, and there is no limit on withdrawals per day. You can collect your winnings as many times as you want.
For example: if you have $ 40 in your account, on the same day you can make a withdrawal of 35 dollars, and then make another withdrawal of, for example 3 or 4 dollars if you want on the same day.
Of course, keep in mind what I told you before: IQ Option does not charge commissions for withdrawing money through a debit or credit card, Skrill, Neteller or Webmoney, but they will charge you a commission of $ 50 if you do it by bank transfer.
IQ Option vs Plus500: which is better?
The reality is that each one has its advantages and addresses specific needs. Of course, both brokers are completely safe and are regulated by major financial institutions. Both options offer platforms that are easy to use and understand.
However, the issue of the many commissions that Plus500 has, and that its customer service is quite disastrous, makes me prefer to trade with IQ Option.
My recommendation is that, if you are a beginner and you are just getting started in online trading, choose IQ Option as it has the lowest minimum deposit, it is easy to operate, they offer exclusive tutorials and good customer support.
Plus500 is a broker that is not bad, but if you are a beginner and do not have a lot of capital, it will not be so convenient to start investing $ 100 and with little knowledge.
I believe that Plus500 is aimed at more experienced traders willing to invest larger amounts of money. However, for me the main advantage that Plus500 has over IQ Option is that it accepts deposits and withdrawals via PayPal.
IQ Option is definitely geared towards beginner and just starting out traders, as they offer the ability to make a minimum deposit of just $ 10, and you can start trading with just $ 1.
If you want to start investing online, the most important thing is to take action. And I believe that IQ Option gives you the opportunity to experience first hand what it is like to trade with your real money thanks to its very low minimum deposit of $ 10.