IC Markets offers a Raw Spread forex trading accounts with ECN pricing. 65 currency pairs are available with spreads starting from 0.0 pips for the EUR/USD fx pair. Trading platforms include MetaTrader 4, MT5 and cTrader and the choice of 232 trading instruments.
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Our IC Markets calculator uses commissions that are pegged to the base currency a trader chooses and the average IC Markets spreads published by IC Markets and competitors each month. Calculating these two variables with live crosses (or the last cross at the close of business on Friday) allowed this calculation.
Pepperstone has the lowest non-commission account. When we compared in June 2021 forex accounts that don’t charge commission our spreads comparison found IC Markets was competitive but Pepperstone was consistently better. Pepperstone also has superior forex trading platforms, customer service and regulation. You can read more in our Pepperstone Review.
Data taken from broker website. Accurate as at 04/06/2021
FP markets has the lowest raw trading account spreads. Our June 2021 Raw spread comparison found the IC markets raw account had some competitive spreads only on some major pairings while FP was consistently better. FP Markets also has similar regulation to IC Markets and the same forex trading platforms. View our review of FP markets to learn more.
We have broken up the other fees and transaction costs a trader is likely to encounter with IC Markets and explained what these fees entail.
When you buy forex, shares CFD, bonds, indices etc. you will encounter 3 types of costs. These are
Given the fact that IC Markets is governed by strict regulatory authorities, clients are protected from spread manipulation and other abusive practices. IC Markets abides by the rules and standards imposed by the Australian Securities and Investments Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC) and the Financial Services Authority (FSA) of Seychelles.
The overall rating is based on review by our experts
You will find IC Markets charge lower fees than traditional brokers. IC Markets uses ECN (electronic communication) and STP (straight-through processing) style trading. ”ECN’ and/or ‘STP’ style trading saves you on costs as no dealing desk is involved in the trading process.
IC Markets ensure pricing integrity by using over 25 liquidity providers. Use of liquidity pool ensures you are paying rates that are a true reflection of market prices and you’re offered with tight spreads 24/5.
The brokerage fees you pay will be determined by the type of IC Markets account you are using. The following live accounts are available:
You can view our Standard vs Raw account comparison to understand the differences between the two accounts.
The IC Markets standard account is a great account for beginner traders as there are no commissions. With the Standard account, you will get ECN style spreads (which IC Markets call RAW spreads) with a flat 1 pip added to the spread.
IC Market add 1 pip to the spread. They do this by subtracting -0.5 pips from the bid and adding 0.5 pips to the Ask price.
As an example, if the spread for an ECN style account is 0.80000/0.80001 then the spread will be revised to become 0.79995/0.80006. This gives a spread of 0.80006 – 0.79995 = 0.00011 pipettes or 1.1 pips.
To calculate your spread cost apply the following formula
Total cost = (Spread) x (Pip Cost) x (Number of Lots Traded)
To trade in your base currency then apply the following pip cost:
Should your account not be the base currency then you will need to convert the currency, then the formula is
Pip value in quote currency (ask) = (1 pip/exchange rate) x lot size (the bid quote or base currency) or
Pip value per lot (1 pip) which is 0.0001 / exchange rare or current price of the pair x lot size (in base currency)
(not JPY is calculated differently)
This account is likely to be for you if you want the lowest possible spreads. The Raw spread account is compatible with scalpers and day traders. By using Electonic Communication Networks style conditions for trading, spreads can be kept very narrow.
The Raw spreads account charges a commission rather than a wider spread. Your commission cost for RAW spreads will be the following
If you open (called go ‘long’) your 5 standard lots (i.e. 500,000 units) then the commission will be USD$17.50 (5 x USD$3.50) side trip.
When you close your position (go ‘short’) for the 5 standard lots your commission will also be USD$17.50.
This means your commission will total USD$35.
cTrader Raw spreads account is the same as IC Markets Raw spreads account except you are using the cTrader platform rather than the MetaTrader platform. The commission is based on units sold rather than lots.
IC Markets fees for RAW Spread account which uses ECN Style trading compares much the same as Pepperstone. Both online forex brokers use similar trading policies which is why the average spreads are much the same. ECN Style spreads offer some of the lowest spreads on the market, which are good for scalping. This can be demonstrated by the fact IC Markets spreads are superior to Plus500 and PLUS500 spreads who are market makers and use a dealing desk with requotes.
While it is true IC Market RAW spreads have the cost of commission and IG Markets and Plus500 do not, the ECN style spreads or narrow spreads IC Markets offers mean lower cost.
Total cost = (Spread) x (Pip Cost) x (Number of Lots Traded).
IC Markets RAW spreads account cost = EUR/USD 0.1 (spread) x $10 x 1 lot = $1 + commission of $3.50 (Sideways) results in a cost of $4.
IG / Plus500 cost = EUR/USD 0.6 (spread) x $10 (pip cost) x 1 lot = $6
If your base currency is EUR then you will need to convert the pip cost to EUR.
IC Markets cTrader commission = USD$3 per USD$100,000 bought and USD$3 per USD$100,000 sold.
To calculate the USD commission, you need to convert the base currency.
If you are trading with AUD/USD then the following calculation will apply:
Opening Price: AUD$100,000 x 1.300 = USD$100,000 x (3/100,000). This results in a commission of USD$3.90 for each lot.
Closing Price: $100,000 x 1.310 = USD$100,000 x (3/100,000) = This results in a commission of USD$3.93 for each lot
Total commission on trade = USD$3.90 + USD$3.83 = USD$7.83
If your base currency is AUD then you will need to convert this to AUD.
All brokers charge an overnight holding fee which IC Markets apply at 00:00 MetaTrader server time each night.
IC Markets will provide the long and short swap points in their trading platforms for all the currency pairs they offer. Depending on the interest rates you will either incur a rolling fee or receive interest credit for the fee.
The main takeaways for fees with IC Markets are the following:
With IC Markets Shares CFD you can trade some of the largest and popular companies in the world through the Australian and New York stock exchanges. There are some 100+ stocks available across ASX, NASDAQ and NYSE. One of the key features with IC Markets is that you can earn dividends for the stock CFDs you own.
To trade shares CFD, you must be using the MetaTrader 5 platform.
IF you want to buy 1000 ANZ Bank shares and are quoted AUD$28.50 / AUD$28.60 (Buy/Ask) on the exchange.
Cost to open your position = AUD$28.60 (1000 x 28.60 x 0.10%)
Later ANZ Bank prices rise to AUD$32.00 / AUD$32.10
Cost to close your position = AUD$32.00 (1000 x 32.00 x 0.10%)
Trading cost = AUD$28.60 + AUD$32.00 = AUD$60.60
If the finance charge is 8% p.a. and the closing price of the ANZ share is AUD$29.00 making your shares valued at AUD$29,000.
Then the overnight interest you will pay is AUD$29,000 x 8%/360 which comes to $6.44.
Risk Warning: If you hold it for more than one day then you will need to recalculate the finance charge for each day. Finance charges for Fridays are triple.
IC Market offers some ten different Cryptocurrencies. You can go long or short without actually holding the Cryptocurrency which means you can get exposure without the security risks of storing the asset. You can trade with leverage of up to 1:5.
There are 19 commodities available with IC Markets covering energies, precious metals and agriculture. Supply and demand can change dramatically giving you good opportunities for good returns.
When trading commodities, you can trade on both spot prices and futures with leverage of up to 1:500.
Fees with IC Markets
IC Markets offer 16 indices which cover a wide range of large-cap blue-chip stocks and generally move in line with the market. With IC Markets you can use MetaTrader 4, 5 and cTrader platforms. Leverage of 1:200 is available.
Index CFD is a spread only product this means there is no commission charge.
IC Markets offer a selection of 6 highly-rated government issues debt securities from a range of governments around the world. Available on the MetaTrader 4 and 5 platforms (not cTrader) you can trade 24/5 and use a leverage of up to 1:200.
With IC Markets Bonds, you will incur the following costs:
IC Markets minimum deposit requirement is $200. In addition, they don’t have any funding or non-trading fees including:
One of the great features of trading with IC Markets is that they do not have non-trading fees.
According to general banking practices, all international bank wire transfer may incur intermediary bank fees. Clients should expect an AUD 20 processing fee for wire transfers, which IC Markets is kind enough to deduct from your withdrawal amount.
This means IC Markets compares well with other brokers as shown in the table below.
When it comes to funding IC Markets offers a choice of 15 funding options with a choice of 10 different base currencies. Many of these options have instant deposits. Deposits are accepted in 10 different currencies including USD, AUD, EUR, GBP, SGD, NZD, JPY, CHF, HKD, CAD. While IC Markets has a global client base, residents from the United States, Canada, Israel, New Zealand, Japan and Islamic Iran can’t open a live trading account.
Note: while IC Markets do not charge fees for funding, some international banking merchants may charge fees from their end.
IC Markets have a range of features you may opt to take advantage of to enhance your trading experience.
IC Markets demo account is free for all the IC Markets trading account types and both MetaTrader and cTrader platforms. There is no limit on the time you have access to the demo account. IC Markets’ demo account can also be accessed on your phone via mobile apps – Android and iOS compatible.
IC Markets offer 20 additional trading tools that do not come with MetaTrader 4. The app offers institutional level trading features that help you make better trading decisions and superior execution and more advanced account management tools.
IC Markets have Myfxbook and ZuluTrade are social copying or mirroring tools that integrate with your trading platform. Social trading is great for traders that wish to learn from experienced traders by seeing how they trade.
To use these trading tools you must be using IC Markets standard account.
With IC Markets social copy tools, you will incur the following costs:
Justin Grossbard has been investing for the past 20 years and writing for the past 10. He co-founded Compare Forex Brokers in 2014 after working with the foreign exchange trading industry for several years. He also founded a number of FinTech and digital startups including Innovate Online and SMS Comparison. Justin holds a Masters Degree and an Honours in Commerce from Monash University. He and his wife Paula live in Melbourne, Australia with his son and Siberian cat. In his spare time, he watches Australian Rules Football and invests on global markets.