IC Markets Review Of 2022

IC Markets Spread Comparison

Compare Forex Brokers compares the average spreads of the top forex brokers MetaTrader 4 ECN accounts. The MT4 Raw Spread account has consistently had competitive spreads but not the lowest in 2022 which was shared by FP markets and Pepperstone.

IC Markets Raw Account Spreads	EUR/USD AUD/USD EUR/GBP GBP/USD USD/SGD AUD/JPY EUR/JPY USD/JPY USD/CAD	EUR/USD AUD/USD EUR/GBP GBP/USD USD/SGD AUD/JPY EUR/JPY USD/JPY USD/CAD	EUR/USD AUD/USD EUR/GBP GBP/USD USD/SGD AUD/JPY EUR/JPY USD/JPY USD/CAD	EUR/USD AUD/USD EUR/GBP GBP/USD USD/SGD AUD/JPY EUR/JPY USD/JPY USD/CAD	EUR/USD AUD/USD EUR/GBP GBP/USD USD/SGD AUD/JPY EUR/JPY USD/JPY USD/CAD
	0.02	0.17	0.27	0.23	0.85
	0.17	0.24	0.40	0.59	1.38
	0.20	0.30	0.40	0.40	1.30
	0.20	0.20	0.40	0.50	1.50
	0.44	0.42	0.40	0.85	1.30
	0.17	0.30	0.54	0.59	N/A
	0.20	0.40	0.50	0.60	10.00
	0.10	0.50	0.60	0.60	1.30
	n/a	0.50	0.60	0.20	3.10
	0.35	1.13	0.98	0.85	1.97

Data taken from broker website. Accurate as at 01/08/2022

You can view all spreads and use our calculator on the 2022 forex broker spread comparison page. Key factors that help IC Markets achieve competitive spreads include:

• Direct access to liquidity including 50+ banks and dark pool providers
• No dealing desk execution with no spread markups on trades
• Leading-edge Electronic Communication Network (ECN) technology setup
• High trading volume (USD $646 Billion in August 2022)

IC Markets Commission

IC Markets offer 10 base currencies including the AUD, USD, EUR, GBP, SGD, JPY, CHF, NZD, CAD to HKD. The base currency a trader chooses when opening an account will determine the commission rate you pay. Below shows the commission for the MetaTrader 4 Raw account.

The commissions charged are generally similar to their main competitors as shown below with the exception of FP markets which have lower commissions. This is why when you combine spreads and commissions we found FP Markets to have the lowest fees of any forex broker. The graph below shows an example comparing the commissions of the main forex brokers with AUD as the base currency.

You learn more about IC Markets fees in our comprehensive 2022 spread and commission comparison article.

Verdict On Spreads And Fees

IC Markets has two main accounts. The standard account (non-commission) account spreads are relatively high. The raw spread account on the other hand is strongly recommended and has the lowest spreads on the most traded forex pairs combined and a competitive commission rate. Traders looking for an ECN-style trading environment and fees should choose IC Markets.

Broker Spreads Comparison >>Visit IC Markets >>

IC Markets Trading Platform

IC Markets offer the three most popular forex trading platforms worldwide. The MetaTrader 4 (MT4), MetaTrader 5 (MT5) and cTrader forex platforms offer the best desktop trading platforms and mobile trading app options. This includes all mobile devices, i.e. iPhone, iPad (IOS) and Android applications, with both demos and live accounts available.

MetaTrader 4

• Predominantly a forex trading platform (other CFDs are available although not stock CFDs).
• The world’s most popular trading platform for beginner and intermediate forex traders, as well as those executing scalping trading strategies.
• The interface is easy to use with prompt order management functionality and risk management tools.
• Expert Advisors can be used for algorithmic trading. You can download EAs from the MetaTrader Marketplace online or write your own using the MQL4 programming language.

MetaTrader 5

• 

  A multi-asset trading platform with share CFD trading is permitted.

• CFD and forex trading can be automated using EAs and the MQL5 programming language, with a built-in Market of trading robots for easy algorithmic trading and automation.
• Includes the Virtual Hosting service (Forex VPS) for ultra-fast execution speeds.
• Access to the MQL5 community, including free trading robots.

cTrader Platform

• A forex trading platform that provides an institutional-style trading environment.
• The interface can be personalised with detachable charting options and iPhone and Android apps.
• Direct access setup to liquidity pools designed for algorithmic forex trading using cBots.
• cTrader platform back-testing facilities based on past market data.

MetaTrader 4 Advanced Trading Tools

There are 20 additional tools and technical indicators the CFD broker integrates into the MetaTrader platforms. These add-on tools give traders an edge in most CFD and forex trading conditions. Examples of trading tool apps include:

1. Alarm Manager
   The trading assistant notifies the trader via SMS, email or SMS of market changes and events on the account. This assistant can also take automatic actions.
2. Correlation Matrix
   Helps a trader identify the symbols with strong or weak correlations. This occurs on different time scales to enable superior decision-making.
3. Correlation Trader
   Highlights the correlation over a configurable time frame between two symbols. This allows trading on the emerging differences).
4. Trade Terminal
   Trade execution tool with in-depth features to analyse the markets. This tool consists of a market watch, account summary or order list.
5. Market Manager
   This tool provides a ‘watch list’ and allows the opening and closing of positions, provides headline information such as equity, lists tickets and positions and provides a summary of price activity.
6. Sentiment Trader
   Illustrates the sentiment based on current positions whether long or short when it comes to open positions. These are calculated based on real-money accounts.
7. Session Map
   Provides forex traders with a market overview via a map using local time. It also provides markers for future news events and price activity during each session.
8. Smart Lines
   This tool uses line objects as the stop-loss or take-profit for positions. Features include a trend-line stop-loss, multiple partial stops and time-based stops.
9. Stealth Orders
   This tool hides forex traders’ entry and exit levels from the market. This feature buys or sells at the current market price when the price level is reached.
10. Tick Chart Trader
    This shows tick charts in a variety of styles. It allows forex traders faster trades using a mouse or keyboard.

Add-on technical indicators can greatly enhance your technical analysis when using MT4, these range from Keltner to pivot and gravity indicators.

Forex Platform Execution Speeds

IC Markets forex trading platforms use Equinix servers that allow for fast order execution speeds, with cTrader utilising the LD5 server in London and MT4 and MT5 the NY4 in New York.

The broker also has direct access to inter-bank price feeds from over 50 banks and institutional liquidity providers, allowing for ultra-tight spreads and minimal slippage when forex trading. This is perfect for scalpers and traders who enjoy hedging the forex market.

Verdict On IC Markets Platform Options

IC Markets forex platform is the leader of the Australian forex brokers based on three factors:

1. Choice of MT4, MT5 or cTrader (the three most popular platforms)
2. Over 20 advanced features to boost MetaTrader platforms
3. Fast servers and infrastructure to minimise latency times

Minimum Deposit Requirements

IC Markets requires you to make an initial minimum deposit of USD $200 (or equivalents) when opening a trading account. There are 19 funding methods (most fee-free) to deposit funds, including:

• Credit Cards and Debit Cards
• Wire Transfer and Bpay (Australia Only)
• Neteller and FasaPay (US only)
• Skrill and Union Pay (China only)

IC Markets Withdrawals

As with deposits, making an IC Markets withdrawal incurs no fees, although certain banks may charge $20 AUD for international bank transfers. Within the secure client, area withdrawals can be requested with the daily cut-off time at 12:00 AEST. The time it takes to receive the withdrawn amount depends on the method used including:

• Paypal/Neteller/Skrill = Instant
• Domestic Wire Transfer = 1 working day
• Credit Cards and Debit Cards = 3 – 5 working days

It should be noted that the withdrawal method needs to be the same as the deposit method chosen. As an example, if you use a debit card to make a deposit, then the same card needs to be used for the withdrawal. Webmoney also used to be offered but is no longer available.

View our detailed IC deposit page for more details on deposit methods, requirements and fees.

Forex Pairs & CFDs

IC Markets offer a number of CFD trading services with no dealing desk execution, consisting of:

1. Forex
   60+ major, minor and currency pairs with tight spreads as low as 0.0 pips plus commission or 1.0 pip commission-free.
2. Indices
   Gain exposure to 23 of the largest indices around the world. You can trade index CFDs on all three trader platforms with no commission fees.
3. Commodities
   Trade CFDs across agriculture, metals and energy predicting the USD against various commodities.  Over 19 commodities can be traded as both spot and futures CFDs.
4. Stocks
   You can trade over 120 major stocks as CFDs. This is only available through the MetaTrader 5 (MT5) trading platform. The shares available are across the NYSE, Nasdaq and the Australian Stock Exchange.
5. Bonds
   You can speculate on 9+ bonds including the UK, Japan, USA and Europe. IC charges no commission fees when you are trading CFDs derived from bonds.
6. Cryptocurrency*
   CFD traders can speculate whether 18 different cryptocurrency CFDs on Bitcoin, Ethereum, Litecoin to Ripple will go up or down.  (if you are looking to trade crypto, consider Eightcap which has 250 cryptos).
7. Futures
   You can trade 4+ global futures CFDs with no commission fees. This includes both the ICE Dollar Index and the CBOE VIX Index. You must have the MT4 platform to trade futures with the CFD broker.

Disclaimer*: Although it may not apply to IC Markets, new guidelines under FCA Regulations have deemed that UK retail traders are no longer able to trade cryptocurrencies.

IC Markets Regulated Authorities

There are three main regulators that IC Markets have a licence with. You will receive different levels of investor protection depending on where you live and the subsidiary you sign up for.

ASIC (Australia)

In Australia, IC Markets is regulated by the Australian Securities and Investments Commission (ASIC) and holds an Australian Financial Services License (AFSL no. 335692) under the company name International Capital Markets Pty. ASIC has several safeguards to protect forex traders, including the requirement for brokers to hold funds in a segregated bank account, negative balance protection, and closeout margins. Additionally, leverage caps are enforced for each asset class and type of CFD.

IC Markets uses are the National Australia Bank (NAB) and Westpac Banking Corporation (Westpac). View our ASIC regulated forex broker section to compare IC Markets to other Australian forex brokers.

CySEC (Cyprus)

IC Markets European branch is regulated by the Cyprus Securities and Exchange Commission (CySEC). Brokers in this region follow forex trading rules determined by the European Securities and Markets Authority (ESMA).  CySEC and the ESMA have strict rules covering several areas including:

• Reduced leverage (discussed in the next section)
• Restrictions on bonuses and promotions
• Negative balance protection

We have compiled a list of the best CySEC Forex Brokers if you are looking for other options

Seychelles

For traders outside of Australia and the EU, IC Markets has a subsidiary under the name Raw Trading Ltd, registered in Seychelles (Africa). The company number is 8419879-2 and the dealer licence number is SD018. The Financial Services Authority of Seychelles (FSC) is an offshore financial authority that enforces fewer investor protections than CySEC or ASIC. This region is used for surrounding African countries which is common among the best forex brokers in Nigeria.

Overall, IC Market is regulated in two ‘tier-1’ and one ‘tier-3’ (offshore) region which will give traders peace of mind. Brokers that may seem similar to IC Market such as Hugo’s Way do not have regulation in any ‘tier 1’ region and should be avoided.

IC Markets Leverage Spread Comparison

IC Markets offer the highest leverage level of up to 500:1 from its offshore FSA regulatory division in Seychelles. This leverage varies across the broker’s 65 currency pairs and other CFDs (such as cryptocurrencies). The broker offshore branch offers the following leverage:

• Forex, gold and commodities 500:1
• Indices, futures and bonds 200:1
• Shares 20:1
• Cryptocurrency 5:1

If you sign up to the brokers’ Australian branch regulated by ASIC,  or trade through the CySEC branch, the maximum leverage is significantly lower:

• Major forex pairs 30:1
• Minor forex pairs 20:1
• Gold and major indices = 20:1
• Other commodities, futures and minor indices = 10:1
• Shares (stocks) and bonds 5:1
• Cryptocurrencies = 2:1

So What Is Leverage?

Leverage is effectively the amount a forex broker allows a trader to borrow when trading CFDs and forex. It’s a multiple of the deposit so for the maximum of 500:1 leverage this means you can trade up to 500 times the initial capital. For example, a $200 deposit can lead to $100,000 worth of currency being traded on currency markets.

Forex Trading Leverage Example:

• A trader has a $100 deposit and selects a leverage of 100:1 for the AUD/USD pair.
• The markets move in the trader’s favour by 0.4% and the position is closed
• The trader will make $100 * 100 * 0.004
• The total profit is $400 (or 40%)

Why Is High Leverage Important?

Currency markets normally have relatively small movements each day compared to other financial products. If you use a conventional forex exchange service (eg purchasing USD currency) the returns would be normally very modest. To amplify these movements, leverage is offered to retail traders to make it easy to make a profit (or loss) from smaller price movements.

High leverage is particularly suited for forex traders who have a high-risk tolerance when scalping or using expert advisors or trading currency pairings with low volatility (or during a low volatility period). The high risk of losing funds means that lower leverage may be more suited to certain traders like beginners.

Risk Management Tools

As IC Markets provide the highest leverage of 500:1 offshore, it is important to manage the high risk of forex trading. High leverage is ideal for retail traders with a high-risk appetite or those using third-party tools such as expert advisors, while beginners should be cautious.

While high leverage can magnify returns, all levels of trading experience can utilise the IC Markets risk management tools to reduce the high risk of losing money.

1) Guaranteed Stop-Loss Orders

A guaranteed stop-loss order such as that offered by XTB and City Index is when you can pre-set the maximum amount you’re willing to lose on an individual trade. Regardless of market conditions, this predetermined entry or exit price selected is guaranteed with no chance of slippage.

This differs from the icmarkets.com stop-loss order facility, which allows a trader to set the maximum loss. But in high volatility environments, losses may exceed this amount.

2) Negative Balance Protection

IC Markets provide an advanced margin call facility that detects when a trader is approaching a $0 balance and exits the trader automatically. The key issue is that in extreme market events (i.e. the floating of the Swiss Franc) this software may not have the ability to exit the market fast. This can lead to losses exceeding deposits, and the Australian forex broker may request for the outstanding debt to be paid.

Overall, IC is an ECN-style broker which means faster execution speeds and lower spreads, yet does not offer the extensive risk management features that market maker brokers offer. You can view our comparison with easyMarkets to compare an ECN broker vs a market maker broker.

Customer Support Levels

IC offers 24/7 customer support via a range of contact methods. Local customer support is available from their Sydney office at Level 6 309 Kent Street Sydney, NSW 2000. CFD traders can reach them through different channels like email, Skype or phone. Their Sydney response time is within 15 minutes based on our enquiries with the most complex issues solved within a day.

Live chat customer service is also offered by the CFD provider. The company is dedicated to providing a high-quality educational centre (video journals and articles) that is great for those who have no previous knowledge of trading forex and CFDs. Pepperstone is one of the few fx brokers that has won more awards for customer support than IC Markets.

Research

IC offers various research tools and support when forex trading, including:

• A blog offering fundamental and technical analysis
• Content from 3rd parties including Trading Central
• An economic calendar
• Myfxbook news headlines
• ZuluTrade social copy trading
• FX Blue LLP Advanced Trading Tools

Outside of these features, our IC Markets review found the forex broker doesn’t offer advanced research features such as new headlines and pattern-recognition tools.