IC Markets Review – The Complete Lowdown for Forex Traders

Regulation & Safety

IC Markets is an online forex and CFD broker founded in 2007 in Sydney, Australia. The company has grown to become a well-respected provider of financial products and services. They prioritize client security by adhering to regulations from two top-tier jurisdictions: the Australian Securities & Investments Commission (ASIC) and the Cyprus Securities and Exchange Commission (CySEC) under the European Union’s MiFID passporting system. This double regulatory framework ensures a safe and secure trading environment. No red flags here!

Negative balance protection

Negative balance protection is an important risk management feature offered by some brokers like IC Markets. Here’s an explanation of how it works:

With negative balance protection, your losses as a trader will never exceed your account balance. This prevents you from going into negative equity, even in highly volatile market conditions.

For example, let’s say you have $1,000 in your IC Markets trading account. You open a CFD position on the EUR/USD with maximum leverage of 1:500 as allowed by ESMA rules.

The EUR/USD suddenly gaps sharply due to a news event, triggering your stop loss. This causes a loss larger than your account balance.

Without negative balance protection, you would owe the broker the losses beyond your $1,000 account balance. You could end up in deep negative equity.

However, with IC Markets’ negative balance protection, your loss is instead capped at your $1,000 account balance in this scenario. The broker absorbs the excess loss beyond your funds. You will not owe them anything extra.

This prevents spiraling into debt and gives peace of mind that sudden volatility won’t cost more than your trading account value. It’s an important risk management feature for high leverage trades.

Negative balance protection is standard on IC Markets’ Standard account and optional for Raw Account and True ECN accounts. This gives you flexibility based on your risk tolerance and strategy.

Overall, negative balance protection provides an added layer of security at IC Markets. While not required by all regulators, it demonstrates their commitment to ethical and fair trading.

Security

As an ASIC regulated broker, IC Markets keeps client funds in segregated accounts at top tier banks, protected from company creditors. Standard account allows negative balance protection.

Encryption technology secures data and money transfers. No cybersecurity breaches have been reported.

Given their strong regulatory compliance and absence of scandals, we deem IC Markets a safe and reliable broker.

Account Types and Accessibility

IC Markets caters to diverse trading styles with three primary account types:

• Standard Account: Ideal for beginners, this account offers commission-free trading with floating spreads.
• Raw Spread Account: Experienced traders seeking razor-thin spreads will find this account ideal, although commissions apply per trade.
• Islamic Account: For traders adhering to Sharia law, IC Markets provides swap-free accounts, eliminating overnight interest fees.

The “best” account depends on your goals. Beginners might favor the simplicity of the Standard Account, while seasoned traders might gravitate towards the tighter spreads of the Raw Spread Account, embracing the associated commission costs.

Trading Platforms

IC Markets empowers you with a variety of industry-standard trading platforms:

• MetaTrader 4 (MT4): A widely popular platform, MT4 offers a user-friendly interface, advanced charting capabilities, and a vast library of automated trading tools (Expert Advisors or EAs). Ideal for those who want to leverage algorithmic trading.
• MetaTrader 5 (MT5): The successor to MT4, MT5 boasts enhanced features like hedging capabilities and a wider range of order types.
• cTrader: Renowned for its intuitive interface, order scalability, and advanced charting functionalities, cTrader is a great choice for those who value a sleek and efficient platform.
• TradingView: Integrating seamlessly with IC Markets, TradingView offers advanced charting tools, social trading features, and a user-friendly layout, ideal for those who want to learn from others.

The choice hinges on your individual needs. MT4 remains popular for its familiarity and vast ecosystem of EAs. However, cTrader’s sleek interface and order scalability might appeal to some traders, while TradingView’s social features could benefit those seeking to learn from others.

Asset Classes and Instruments

IC Markets provides a compelling selection of tradable instruments:

• Forex: Spot and forward across majors, minors, and exotics with leverage up to 1:500 (depending on regulations)
• Indices: Major global indices like S&P500, FTSE100, and Nikkei225
• Commodities: Diverse CFDs on metals, energies, and softs
• Bonds: 10-Year government bonds of top nations
• Stocks: CFDs on leading company shares
• Cryptocurrencies: Bitcoin, Ethereum, Litecoin, and others against the USD

This broad selection ensures you’ll find the markets you want to trade.

Spreads, Fees and Commissions

Understanding a broker’s fee structure is crucial. IC Markets primarily generates revenue through spreads and commissions (on Raw Spread Accounts). Spreads typically vary depending on the underlying asset and market conditions. Generally, IC Markets boasts competitive spreads, often ranking among the lowest in the industry. Here’s a breakdown:

• Raw Spread Account: This account offers exceptionally low spreads, averaging around 0.0 pips on the EUR/USD pair under normal market conditions. However, spreads can widen during periods of high volatility or news releases. Industry standard, not unique to IC Markets.
• Commission per trade: Only applicable on Raw Spread Accounts. These commissions are typically a flat fee per lot traded.
• Swap Rates: Swap rates, also known as rollover fees, are charged for holding positions overnight. IC Markets offers swap-free accounts adhering to Islamic principles.

Overall trading costs are low, especially for high-volume traders using Raw ECN or cTrader Raw. Active traders also benefit from discounts.

Leverage & Margin

Leverage allows traders to control a larger position size than their account balance would typically permit. IC Markets offers competitive leverage options, though regulations and account types can influence the maximum leverage available. For instance, European regulations might cap leverage on certain instruments, while other regions might offer higher leverage limits. It’s crucial to understand the inherent risks associated with leverage and employ it cautiously.

Orders Execution Model

IC Markets operates as an ECN (Electronic Communication Network) broker. ECN brokers connect traders directly with other market participants, promoting greater transparency and potentially tighter spreads.

Slippage

Slippage can occur when the execution price differs from the requested price, This phenomenon is more prevalent during times of high volatility or low liquidity. While IC Markets strives to minimize slippage, it’s an inherent risk of trading in fast-moving markets.

Deposits and Withdrawals

IC Markets facilitates a range of convenient deposit and withdrawal options, including:

• Credit/Debit Cards: A widely accepted and familiar method for many traders.
• Bank Transfers: For larger deposits or withdrawals, bank transfers offer a secure option.
• E-wallets: Popular e-wallets like Skrill and Neteller provide fast and convenient deposit and withdrawal options.

Processing times can vary depending on the chosen method, but IC Markets generally strives for swift processing. It’s advisable to consult IC Markets’ website for the latest information on processing times and any associated fees.

Initial Minimum Deposit

The minimum deposit requirement varies depending on your chosen account type and base currency. Generally, the minimum deposit is relatively low, making IC Markets accessible to a broad range of traders.

Customer Support

A reliable and responsive customer support team is invaluable. IC Markets offers 24/5 multilingual customer support via various channels, including live chat, email, and phone. During my experience, the customer support team was knowledgeable and prompt in addressing inquiries.

Education and Research

IC Markets provides a broad education suite for traders:

• Daily market news and analysis
• 40+ trading strategy guides
• Glossary of key terms
• 20+ hours of educational videos
• Free trading webinars
• Events and seminars
• eBooks and tutorials
• Online courses

This covers everything from trading basics to advanced price action strategies. Excellent resources for newbies and veterans alike.

Bonus Offers

IC Markets may occasionally run promotions and bonus offers. These bonuses can be attractive, but it’s crucial to understand the terms and conditions associated with them before claiming any offer. Here are some common T&Cs to watch out for:

• Minimum deposit requirement: There might be a minimum deposit required to claim the bonus.
• Trading volume requirement: Some bonuses may require you to trade a certain volume before you can withdraw the bonus funds or any profits earned using them.
• Time limits: Bonuses might have expiration dates, so you’ll need to meet the requirements within a specific timeframe.
• Restrictions: The bonus might only be applicable to certain account types or trading instruments.

IC Markets vs Top Alternatives

Here’s a table comparing IC Markets, XM, and FxPro across key factors to help you choose the best broker for your needs:

Pros & Cons

Cons

While IC Markets offers a compelling platform for forex and CFD traders, it’s not without limitations. Here are some aspects to consider:

• Limited Asset Selection: Compared to some competitors, IC Markets offers a somewhat limited selection of tradable assets.
• No Traditional Rebate Programs: If you’re seeking rebate programs to offset trading costs, IC Markets might not be the ideal choice.

Pros

Despite the aforementioned limitations, IC Markets boasts several advantages:

• Competitive Spreads: IC Markets is renowned for its industry-leading tight spreads, particularly on the Raw Spread Account.
• ECN Execution: The ECN execution model promotes transparency and potentially tighter spreads.
• Multiple Trading Platforms: IC Markets caters to diverse preferences by offering a variety of industry-standard trading platforms.
• Negative Balance Protection: This feature offers peace of mind, especially for new traders.
• Excellent Customer Support: The multilingual customer support team is readily available to address your inquiries.

The Final Verdict

IC Markets emerges as a compelling choice for forex and CFD traders, particularly those seeking a platform with razor-thin spreads, ECN execution, and a variety of trading platforms. The educational resources and excellent customer support further enhance the overall trading experience. While the asset selection might be somewhat limited, and there’s an absence of traditional rebate programs, IC Markets’ strengths outweigh these drawbacks for many traders.

FAQs

Which account type would be best for a beginner with a limited budget?

For a beginner with a limited budget, the Standard Account offered by IC Markets might be the most suitable option. Here’s why:

• Commission-free trading: Standard accounts don’t have trading commissions, which can be helpful for beginners who are still learning.
• Floating spreads: While spreads can fluctuate, they tend to be wider on Standard Accounts compared to Raw Spread Accounts. However, for beginners starting with a smaller account, the wider spreads might be offset by the lack of commissions.
• Lower minimum deposit: Standard Accounts often have lower minimum deposit requirements compared to other account types. This allows beginners to start trading with a smaller initial investment.

Does IC Markets charge any inactivity fees?

No, IC Markets does not charge inactivity fees. This can be a great advantage for traders who may not place trades frequently or take breaks from the market.

What are the criteria for receiving discounts for active traders offered by IC Markets?

The specific criteria for receiving discounts for active traders at IC Markets can vary depending on the program or promotion. Here are some general possibilities:

• Minimum trading volume: Reaching a certain level of trading volume per month might qualify you for discounts on spreads or commissions.
• Account type: Active traders using Raw Spread Accounts (which have commissions) might be eligible for volume-based discounts that effectively reduce their trading costs.
• Loyalty programs: IC Markets might have loyalty programs that reward active traders with benefits like lower spreads or exclusive access to resources.

Are there any fees associated with the Swap Free accounts?

Yes, there might be. IC Markets offers swap-free accounts, catering to traders who follow Sharia law. These accounts eliminate swap fees (overnight interest charges), but there could be alternative fees involved. It’s important to consult IC Markets directly to understand any specific fees that might apply to their swap-free accounts.

Does IC Markets offer two-factor authentication (2FA) for added security?

No. It’s recommended to check directly with IC Markets or explore their security features on their website to confirm if they offer 2FA for account logins. 2FA adds an extra layer of security by requiring a temporary code from your phone or another device in addition to your password when logging in.