IqOption – Protecting Traders Assets

Compensation funds

To begin with, IQ Option broker is a member of the Investor Compensation Fund, that has been specially developed to maintain protection clients’ claims in case when brokers aren’t able to accomplish their financial obligations. 

Segregation of funds

For the purpose of safely storing customers’ funds, IQ Option stores customers’ funds in separate accounts, separately from the company’s bank accounts.

Investor Compensation Fund

IQ Option Europe ltd  is a member of the Investor Compensation Fund. The aim of the Fund is to protect the claims of covered clients against members of the Fund. Therefore, in case the broker fails to accomplish its obligations, it must pay a compensation to a client.

Covered Services

Covered Services are the investment and secondary services that the company provides in accordance with the license (247/14) issued by the CySEC.

Investment services that the company provides are execution of orders on behalf of clients, dealing on own account, portfolio management and others.

Moreover, the broker provides secondary services such as safekeeping and administration of nancial instruments, including custodianship and related services and others.

Covered Clients

Covered clients are customers who aren’t included in the following investor categories :

Institutional and professional investors, like banks, insurance companies, investment companies. Also states and supranational organizations, central, federal, confederate, regional and local administrative authorities are not covered clients. Managerial, administrative staff of the Company and shareholders of the Company are not covered clients too. There are as well many more categories of investors who are not covered clients.

Aim of the Fund

The objective of the Fund is to protect claims of covered clients against the broker. Thus, if the broker fails to fulfill its obligations, it has to provide compensation for their claims, emerging from covered services.

Procedure for Initiating the Compensation Payment

There are several cases in which the fund will provide a compensation payment. One of them is in case the Cyprus Securities and Exchange Commission has identified that the Company is not capable of fulfilling its obligations emerging from its investors-clients’ claims, in connection with the covered services it has provided, so long as such failure is directly connected to the Company’s financial position that has no realistic perspective of enhancement in the near future.

Amount of Payable Compensation

The amount of compensation payable is calculated for every customer according to the contractual and legal terms managing the relation of the covered customer and the Company, in accordance with the set used to calculate claims between the covered customer and the Company. At the present time, any claimant may receive up to €20,000 as a compensation.