IC Markets Raw Spread Vs Standard Account

IC Markets offers the choice between Standard, MetaTrader and cTrader RAW spread and Islamic accounts with the standard account having higher spreads but no commissions and RAW spreads offering $3.50 per $100k commission and ECN pricing for spreads.

View the account comparison below or view the full review of IC Markets.

By Justin Grossbard / Updated: Wednesday, January 08th, 2020

ic markets raw spread vs standard account

Our Rating

The overall rating is based on review by our experts

8.00
Spreads
10 / 10
Leverage
10 / 10
Trading Platform
9 / 10
Risk Management
5 / 10
Range of Markets
6 / 10
Customer Service
8 / 10


IC Markets raw spread accounts vs standard account comparison

The team at Compare Forex Brokers understand that it can be difficult to understand the differences between accounts forex brokers offer. This week we take a look at the four account types Sydney founded Australian broker IC Markets offer and explain the features of each account and explain why you should choose one account over another.

IC Markets offer three kinds of accounts for the majority of clients. These accounts are the RAW spreads (MetaTrader and cTrader) and Standard account. In addition to these accounts, an Islamic account is also available but only for clients who can prove they are of the Muslim faith. To help you decide which account suits your needs we compare the two accounts.

IC Markets Raw Spread vs Standard Trading AccountAll accounts have the following common features:

  • Minimum deposit requirement of $200 to start trading
  • Leverage of 500:1
  • Flexible lots – Micro Lots (ie. 0.01), Mini Lots (0.10) and standard lots (1)
  • 64 Currency Pairs
  • Stop-loss level of 50%
  • Range of trading styles allowed (ie. scalping, hedging, trading automation (expert advisors)
  • Range of CFD leveraged products (cryptocurrencies, indices, shares CFD, commodities, precious metals)
  • 24/7 Customer Service
  • Extra features such MetaTrader Enhancements (advanced trading tools), MAM/PAMM, ZuluTrade, MyFxBook’s Autotrade
  • Fast execution

All these features form a major part of your consideration when selecting IC Markets as your broker. Where things get trickier is understanding what is different between each account.  The differences between each account essentially come down to two main features.

  • The technology used for trading
  • The costs incurred when trading

Open a demo account >>Visit IC Markets >>

IC Markets RAW spreads

Details of IC Markets Accounts

IC Markets RAW Spreads account

  • Narrow spreads with ECN (RAW) pricing
    • Spreads from 0.0 pips
  • Commission of AUD / USD$3.5 side-way, AUD / USD$7.00 round-turn
  • MetaTrader 4, MetaTrader 5, MetaTrader WebTrader (for browsers), MetaTrader  Android, MetaTrader MAC trading platforms
  • Perfect for scalpers
  • Level II pricing – Market depth
  • Fast trading execution
  • MetaTrader 5 for Shares CFD trading
  • Best for: Traders who want low pricing and MetaTrader platforms

 

IC Markets – cTrader RAW Spreads account

  • Narrow spreads with ECN (RAW) pricing
    • Spreads from 0.0 pips
  • Commission
  • cTrader
  • Perfect for scalpers
  • Level II pricing – Market depth
  • Best for: cTrader trading platform is for those who need superior charting options

 

 

 

IC Markets Islamic Account

IC Markets Islamic account

  • Narrow spreads with ECN (RAW) pricing
  • Spreads from 0.0 pips
  • Commission of AUD / USD$3.5 side-way, AUD / USD$7.00 round-turn
  • Swap-free account –  no overnight financing charges or rolling fees
    • In place of swap-fee, the following fees are applied
      • Major currency pairs such as AUDUSD, EURUSD are 100% commission based
      • Minor forex pairs and exotics will incur charge ranging from $5 to $40 per lot
  • MetaTrader or cTrader trading platforms
  • Level II pricing – Market depth
  • Best for: Only for those of Muslim faith (proof will be required)

 

IC Markets Standard Account

IC Markets Standard account

  • Spreads from 1.0 pips
  • No commission
  • MetaTrader 4, MetaTrader 5, MetaTrader WebTrader (for browsers), MetaTrader  Android (for mobile trading), MetaTrader MAC trading platforms
  • Level II pricing – Market depth
  • Best for: Traders with  low trading experience

 

 

Understanding IC Markets technology for ECN pricing trading model

IC Markets are the issuer of the products they provide. This means they use an Electronic Communication Network (known as ECN for short) trade execution to connect their deep pool of external liquidity providers to source prices. IC Markets pass these prices to you without any requotes or dealing desk intervention. To ensure you receive the best possible price, IC Markets do not hedge any positions with the liquidity providers. For this reason, while not completely a true ECN broker, IC Markets can offer what they call an ECN pricing model.

This kind of trading model is why IC Markets are known as an ‘A’ book broker.  This is different from a market maker which is a ‘B’ book broker, these type of forex brokers will trade against you as they are your counterparty for each trade.

ECN pricing – what it means for you

As IC Markets have no dealing desk, no requotes and do not hedge your position, the spreads passed onto you are ‘raw’. In other words, IC Markets are providing you with the very best spreads liquidity providers are willing to offer, which mean low spreads. IC Markets charge a commission for each trade you do rather widen the spread.

  • Narrowest spreads
  • No price manipulation
  • Commission (in place of wider spreads)

Spreads for accounts with ECN pricing (in pips)

  • EUR USD – Minimum spread  0.0  Average spread 0.1
  • AUD USD – Min 0.0 AVG 0.2
  • GBP USD – Min 0.0 AVG 0.4
  • USD JPY – Min  0.0 AVG 0.2
  • USD CHF – Min 0.0 AVG 0.5
  • USD SGD – Min 0.0 AVG 0.3
  • NZD AUD –  Min 0.0 AVG 0.8
  • USD HKD – Min 0.0 AVG 0.7

Accounts that use ECN pricing

  • IC Markets RAW spreads account
  • IC Markets cTrader account
  • IC Markets Islamic account

Understanding IC Markets technology for the standard account

IC Markets standard account works a similar way to the ECN trading accounts however there is a requote. Prices will be the same as with ECN trading conditions but with 1 pip added to the spread.  This 1 Pip is IC Markets charge for providing the service and is equal to USD$10 for each standard lot.

Spreads for accounts with standard pricing (in pips)

  • EUR USD – Minimum spread  1.0  Average spread 1.1
  • AUD USD – Min 1.0 AVG 1.2
  • GBP USD – Min 1.0 AVG 1.4
  • USD JPY – Min  1.0 AVG 1.2
  • USD CHF – Min 1.0 AVG 1.5
  • USD SGD – Min 1.0 AVG 1.3
  • NZD AUD –  Min 1.0 AVG 1.8
  • USD HKD – Min 1.0 AVG 1.7

IC Markets Standard vs ECN Spreads

Spread charges for IC Markets accounts

IC Markets RAW accounts charges

To keep spreads as low as possible, IC charge a commission for their IC Markets ECN pricing accounts. Commission for IC Markets RAW account with MetaTrader trading platform depends on the number of lots you trade while the cTrader platform depends on the spot rate of the currency pairing when you go short or long.

In our examples below we using AUD USD currency pairing, this means AUD is the quote and USD is the base. USD is your account currency. This means no currency conversion it needed.

MT4 commission for RAW accounts (MetaTrader)

IC Markets charge the following commission for RAW accounts for MetaTrader

  • 0.01 micro-lots (1000 units) then you will be charged USD $0.035 one way and $0.07 round trip.
  • 0.10 mini lots (10,000 units) then USD $0.35 one way and $0.70 round trip.
  • 1 Standard lot (100,000 units) then USD $3.50 one way and $7 round trip.

IC Markets Commissions

cTrader commission for ECN Account

cTrader, unlike MT4, is based on a charge of USD $3 per USD$100,000 traded one way ($6 round trip) rather than lots. The commission needs to be converted to the base currency at the spot rate. i.e.
$100,000 x 1.4000 = USD $140,000 x (3 / 100,000) one way = $4.2

$100,000 x 1.4100 (example spot rate) = USD $130,000 x (3 / 100,000) return = $4.23

Standard account Charges

In place of commission, IC Markets widen their spreads with 1 additional pip.  Pips costs are the following:

  • 1 standard lot = US$10
  • 1 mini lot = US$0.10
  • 1 micro lot = US$0.01

Calculating the costs for each account type

In our example, we are using AUS USD where AUS is the quoted rate and USD is the base. IC Markets adds a flat 1 pip to the spreads on the Standard account (1.4 pips). RAW spreads account (MetaTrader, cTrader) does not have any pips added so this example will use 0.4 pips.

CIC Markets cTrader Commissionalculating commission with MT4 micro lots (1000 units) IC Markets Standard vs RAW (AUS USD)

  • Standard – ($0.10 per lot with pip of 1.40)
    $0.10 x $1.40 = $0.140
  • RAW (MetaTrader) ($0.10 per lot with pip of 0.40)
    $0.10 x 0.40 = $0.040 + $0.07 = $0.11

Thus we can conclude you will save 0.03c with RAW account when trading with micro lots.

Calculating commission with mini lots (10,000 units) IC Markets Standard vs RAW (AUS USD)

  • Standard ($1 per lot with pip of 1.40)
    $1 x 1.40 = $1.40
  • RAW (MetaTrader( ($1 per lot with pip of 0.40)
    $1 x 1.40 = $0.40 + $0.70 = $1.10

Thus we can conclude you will save 0.30c with the RAW account when trading with mini lots.

Calculating costs with standard lots (100,000 units) IC Markets Standard vs RAW (AUS USD)

  • Standard ($10 per lot with pip of 1.40)
    $10 x 1.40 = $14
  • RAW (MetaTrader) ($10 per lot with pip of 0.40)
    $10 x 0.40 = $4.0 + $7 = $11

Thus we can conclude you will save $3 with RAW account when trading with standard lots.

IC Markets other features

Contracts for Difference (CFDs)

IC Markets offers a wide range of instruments for trading. These instruments include

  • 19 Commodities spot and futures CFDs (including soft and precious metals)
  • 17 Indices CFDs with leverage of 200:1 and no commission
  • 10 Cryptocurrencies CFDs with leverage of 5:1 with no commission
    • Bitcoin, Ethereum, Dash, Litecoin, Ripple, EOS, Emercoin, NameCoin and PeerCoin.
  • 6 Bond CFDs with leverage of 200:1 and no commissions
  • Futures CFDs
  • 120+ Shares CFD stocks on ASX, NASDAQ and NYSE. (must use MT5).

Trading Platforms

IC Markets offer you a choice of three platforms for trading. These are MetaTrader 4, MetaTrader 5 and cTrader.

MetaTrader 4 (MT4)

MT4 is a safe choice when choosing a platform. It is the platform offered by more brokers and used by more traders than any other platform.  MT4 offers the following key features

  • 3 execution modes – Instant execution, execution on request, execution by market
  • 2 market orders
  • 4 pending orders (buy limit, buy stop, sell limit, sell stop)
  • 2 stop orders – (stop loss, take profit)
  • Trailing stop
  • One-click trading directly in charts
  • Tick chart to define entry and exit points
  • Low memory space
  • Large support community
  • Hedging and LIFO
  • Expert advisors

MetaTrader 5 (MT5)

MT5 is an upgrade on MT4 however it takeup by brokers and traders has been slow. This is because MT5 when first released did not allow the ability to hedge as this is not permitted in US markets. This feature is now available meaning MT5 now offers everything MT4 offers and more.

  • More CFDs (compared to MT4) with IC Markets this means Shares CFD
  • More chart time frames (including M1/M2, MI3, MI Ghost Protocol, MI: Rogue Nation
  • 11 Minute Charts, 7 hourly charts, daily/weekly/yearly time frames
  • Integrated economic calendar
  • 22 Technical indicators
  • 46 graphical objects
  • Improved Strategy Tester for Expert Advisors.
  • Depth of market
  • Hedging and LIFO options (IC Markets don’t accept American clients)
  • Expert Advisors

cTrader

This platform is a popular alternative to MetaTrader. Its strength is in its advanced charting tools. Compared to MetaTrader, cTrader has a cleaner and more user-friendly design which leads to better navigation while MetaTrader has a more professional look. cTrader tends to be more specialised in forex so if you are looking to trade a variety of CFDs then MT5 may be your best options.

  • 70 indicators for technical analysis
  • Single click trading with QuickTrade throughout the platform
  • Advanced order types – Market/limit/stop/stop-limit orders, take profit, stop loss. Market orders have market range feature to manage slippage
  • 50 templates
  • 3 chart modes – multi-chart, single-chart, free-chart) and 6 chart types
  • 28 timeframes and 6 zoom levels)
  • Depth of market – (standard, price, VWAP)
  • cAlgo
  • Mirror trading with cMirror

Customer Support

IC Markets provide 24/7 customer support with dedicated customer service teams in Sydney, Australia and Limassol, Cyprus. You can contact IC Markets via live chat through their website, via phone or email.

Funding Methods

IC Markets offer one of the widest choices for funding of all forex brokers and they do not charge any fees for deposits and withdrawals.

With IC markets you can use the following methods to fund your accounts and the transfer will almost always be instant.

  • Debit cards / Credit cards
    • Visa, MasterCard
      • Currencies accepted: AUD, USD. JPY, EUR, NZD, SGD, GBP and even the Canada CAD
    • Electronic methods
      • Bank Transfer
      • Wire transfer
      • Broker to Broker
    • Digital Wallets / eWallet
        • PayPal
        • Neteller / VIP
        • Skrill
        • FasaPay (USD only)
      • Region-specific
        • Union Pay China (RMB only)
        • Bpay and POLi Australia (AUD only)
        • RapidPay
      • Europe
        • Klarna
      • Cryptocurrency
          • Bitcoin Wallet
          • Bitcoin (BTC) only

Regulation and security of funds

As IC Markets are regulated in Australia by the Australian Securities and Investment Commission (ASIC). Regardless if you are an Australian client or international client, IC Markets will apply policies consistent with ASIC regulation to protect your account.

ASIC regulation:

  • Funds kept in a segregated Tier-1 Australian bank account away from IC Markets own funds
  • Product Disclosure Statement (PDS) so you know the broker’s policies with their products
  • Established complaints process
  • Financial compliance to meet ASIC requirements including minimum solvency

IC Markets Australian financial service number – AFSL 335 692

IC Markets corporate account balance well exceeds those required by ASIC so in the unlikely event of insolvency IC Markets can pay clients net credit balance from their funds.

IC Markets RAW spread accounts vs Standard account conclusion

In our examples above we have shown that ECN pricing accounts will be cheaper. The standard account adds a flat 1 pip to your spread compared to the ECN pricing account. With this, we can conclude

  • Standard account 1 pip = $10 vs
  • Commission = $7

So one can quickly see that cheaper ECN pricing account will be cheaper because of the narrower spreads

As a rule of thumb, the more you trade, the more your expenses will be, thus day traders and those using EAs (Expert Advisors) in particular will benefit from ECN.

The only other reason one might prefer IC Markets Standard account is if you are a beginner trader and do not want the expense and hassle of having to calculate your commissions or if IC Markets ever offer narrower spreads for the Standard Account. We recommend joining an IC Markets demo account and trading with micro lots until you are comfortable trading with fx.

Regardless of which type of trading account you select, it is important to remember that forex markets are very volatile so you will want to ensure you fully understand the risks involved with forex trading and CFD trading. You will also want to be aware that you are dealing with leverage tools so it is wise to ensure you understand the risks involved with margin trading and use risk management tools where available.

Open a demo account >>Visit IC Markets >>

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