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They are only a contract agreement between the trader and the broker.
In order to protect invested funds, when selecting a company for a long-term partnership a professional trader should consider not only a company's specific trading conditions but also, most importantly, the existence of documents confirming that the company's operations comply with the relevant countries' legal requirements and that the company complies with internationally recognized financial standards.
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CySEC monitors the activities of companies rendering financial services to ensure their compliance with the laws and regulations of the Republic of Cyprus and the European Union.
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IQ Option services comply with the basic financial directives of the European Union (MiFID) and are licensed and regulated by the Cyprus Securities and Exchange Commission (CySEC, License No. 247/14)
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IQ Option participates in the Investor Compensation Fund (ICF, Cyprus)
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The clearing is done inside our system and we get our commission out of the trading volume.
In cases where there are differences between the buyers and the sellers we pass this risk to the market maker which covers the risk.