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IQ Option regulation: what happens if the firm fails

The licence is what decides where your money sits and who is obliged to do something about it. Here is who licenses IQ Option and what the protections are.

Facts last checked . Read the full IQ Option review.

Regulation and safety

Regulated by
International entity: registered in Antigua and Barbuda, not regulated by a major financial-services regulator; EEA entity: CySEC (247/14)
Regulator tier
Tier 1 through EEA entity; Unregulated internationally
Register entry
CySEC CIF Register, licence 247/14
Client money segregated
Yes
Held at
Regulated banking institutions
Negative balance protection
Yes
Compensation scheme
ICF up to €20,000 for eligible EEA clients; none for international clients
Audited by
Independent external auditors
Not available to
United States, Canada, EU/EEA, United Kingdom, Australia, plus additional restricted jurisdictions

Check the licence yourself: the CySEC register of investment firms.

What this means

The licence is what decides where your money sits and who is obliged to do something about it.

IQ Option holds a tier-one authorisation from CySEC. That matters more than any headline spread: it determines your leverage cap, whether losses can exceed your deposit, and what happens to your money if the firm fails.

CySEC licences passport across the EU and follow the 1:30 retail leverage cap, with the Investor Compensation Fund covering eligible claims.

Client money is held separately from the firm's own money, at Regulated banking institutions. That separation is what makes your balance recoverable if the company fails, rather than part of the pool its creditors divide up.

Negative balance protection applies, so a losing position cannot take the account below zero and leave you owing the broker money.

Covered by ICF up to €20,000 for eligible EEA clients; none for international clients, which pays eligible clients up to its limit if the firm fails owing client money.

Questions about IQ Option regulation

Is client money segregated at IQ Option?

Yes. IQ Option holds client money separately from its own funds, at Regulated banking institutions.

Does IQ Option offer negative balance protection?

Yes. IQ Option offers negative balance protection, so a losing position cannot leave you owing the broker more than your account held.

Is there a compensation scheme at IQ Option?

IQ Option's compensation scheme is recorded as: ICF up to €20,000 for eligible EEA clients; none for international clients. A scheme covers the broker failing, not losses on your trades.

Regulation at brokers under the same regulator

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