IC Markets vs City Index: Which One Is Best?

2. IC Markets: Better Trading Platform

If you’re trading with either online broker, you can choose from a number of trading platforms. IC Markets provides access to the three most popular mainstream trading platforms, MetaTrader 4, MetaTrader 5 and cTrader.

As a City Index trader, you can place orders via MetaTrader 4, the broker’s HTML5 web trader platform or the AT Pro desktop trading platform.

IC Markets Trading Platform and Tools

Regardless of the trading platform you choose, IC Markets clients can access tight spreads, excellent trading tools, and a range of financial markets.

The following features are available on MetaTrader 4 (MT4), MetaTrader 5 and cTrader to help you develop sophisticated trading strategies:

• Each platform offers automated trading via algorithmic trading robots (Expert Advisors on MT4 and MT5 and cBots on cTrader).
• Advanced charting packages are built into the platforms, enabling you to conduct advanced technical analysis
• Risk management tools, including price alerts and order types can be used to reduce the high risk of trading, i.e. stop loss, trailing stops
• Social trading features can also be used to automate trading, such as ZuluTrade and Myfxbook
• All platforms permit hedging, day trading and scalping trading strategies

MT4, MT5 and cTrader are available as desktop trading platforms, web trader platforms or mobile trading apps for Android and iOS devices.

City Index Trading Platforms and Tools

Likewise to IC Markets, City Index traders can utilise a range of trading tools, yet each platform is suited to different levels of trading experience and styles.

• MetaTrader 4 is available as mobile apps, desktop, and webtrader platforms are ideal for automated trading with Expert Advisors, as well as scalping and day trading strategies.
• The broker’s proprietary web trader platform and trading apps are aimed at beginners.
• AT Pro is a desktop platform designed for advanced traders requiring comprehensive analysis tools.

Verdict

IC and City Index each offer three different trading platforms to choose from. As IC Markets provides access to the three best retail trading platforms worldwide (MetaTrader 4, MetaTrader 5 and cTrader), they offer the best trading platforms overall.

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3. IC Markets: Superior Accounts And Features

As a market maker, City Index only offers commission-free forex trading, where compensation for their brokerage services is built into the spread. As a market maker broker, City Index uses its own internal liquidity to fill orders. The broker sets their own bid-ask spreads; therefore, there is no choice of account types or pricing structures.

On the other hand, IC Markets follows an ECN pricing structure with straight-through processing (STP) and no dealing desk execution. With 25 different sources of external liquidity to determine spreads and fill your orders, IC Markets can offer two different pricing structures and account types (Raw and Standard), both with tight spreads.

CFD and Forex Trading Account Types

As an IC Markets forex trader, you can choose between a Raw Spread Account or a Standard Account type. Raw Spread Accounts provide access to tight forex spreads starting from 0.0 pips plus commission fees that vary depending on the trading platform you have chosen. MetaTrader users pay $3.50 per side per 100k traded, while cTrader users will pay $3 per side per 100k traded. Classic Accounts are great for beginners thanks to a simple pricing structure, with commission-free spreads starting from 1.0 pip.

• IC Markets Raw Account: Low spreads from 0.0 pips + a commission fee
• IC Markets Standard Account: No commission spreads from 1.0 pip
• City Index Trading Account: No commission spreads from 0.8 pips

City Index offers one retail investor account for CFD and forex trading. Average spreads start from 0.8 pips, and forex traders are provided with the option of trading both fixed and variable spreads for certain currency pairs.

Islamic Account Types

For those following Islamic finance practises, IC Markets offers an Islamic account where forex traders where traders do not pay interest-based swap rates. Aka overnight financing fees, swap rates are paid or received when forex traders keep a position open for longer than one day. Instead of paying the interest-based payment, Islamic Account holders pay a flat-rate administration fee. City Index does not offer an Islamic Account option.

Spread Betting Accounts

As an FCA-regulated broker, City Index is permitted to provide spread betting services to those based in the UK and Ireland. Trading CFDs works by speculating on future price movements without physically buying or selling the asset. While spread betting is similar because you aren’t buying the physical asset, the key difference between the two trading styles is spread betting’s preferential tax treatment. Forex and CFD trading profits are subject to capital gains tax (CGT) but spread betting profits are CGT exempt, making spread betting more tax-efficient overall.

Demo Accounts

Both IC Markets and City Index offer demo accounts where you test out trading strategies and platforms in a risk-free environment. Demo accounts make are a great risk management tool regardless of whether you are a beginner or an experienced trader.

Verdict

As an NDD broker with ECN pricing and a choice of account types, IC Markets is the clear winner. You can opt to trade ultra-tight commission-free, or ECN spreads while enjoying fast order execution and transparent pricing.

4. IC Markets: Best Trading Experience And Ease

Having delved deep into both IC Markets and City Index, it’s evident that each broker brings its unique strengths to the table. From our own testing and the data gathered, IC Markets stands out for its MT5 platform, being ranked as the best for MT5 users. On the other hand, City Index, with its vast experience, offers a seamless trading journey, especially for those who prefer a market-maker setup.

• IC Markets is recognised as the best for MT5 trading.
• City Index’s platform is intuitive and user-friendly, catering to both beginners and seasoned traders.
• IC Markets also shines with its standard account, offering competitive spreads and a range of instruments.
• City Index, with its long-standing reputation, ensures reliability and trustworthiness in its trading experience.

Verdict

While both brokers offer commendable trading experiences, IC Markets slightly edges out with its superior MT5 platform and standard account offerings, making it the go-to for the best overall trading experience.

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5. Tie: Stronger Trust And Regulation

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Both online brokers are well-respected thanks to following top-tier regulations set by major financial authorities. IC and City Index are each overseen by three top-tier regulators catering to retail investor accounts around the world.

IC Markets

IC Markets is an Australian broker that is regulated by multiple top-tier financial authorities.

• Australia: Regulated by the Australian Securities and Investments Commission (ASIC)
• Europe: Within European Securities and Markets Authority (ESMA) jurisdiction and regulated by the Cyprus Securities and Exchange Commission (CySEC)
• Global: Overseen by the Seychelles Financial Services Authority (FSA)

Depending on where you live and the subsidiary you sign up to, the broker provides differing levels of investor protection. If you trade with the CySEC or ASIC regulated branch, IC Markets provides negative balance protection and insurance of sorts through the ESMA’s investor compensation scheme.

All IC Markets traders are protected by segregated client funds, where your trading account balance is kept in separate bank accounts to the broker’s operational capital.

City Index

Since the brokerage firm was established in 1983, City Index has a long-standing reputation as a top market maker broker. As a listed company on the New York Stock Exchange, the broker’s parent company, GAIN Capital, follows strict disclosure and regulatory requirements.

City Index is regulated in three jurisdictions, including:

• Singapore: Regulated by the Monetary Authority of Singapore (MAS)
• Australia: ASIC regulated
• The UK: Regulated by the Financial Conduct Authority (FCA)

While ASIC, MAS and the FCA all require brokers to segregate client funds, at present, only the FCA enforces negative balance protection and compensation policies.

Verdict

Both online brokers are regulated by three different financial authorities, with each overseen by at least one tier-1 regulator. You will receive varying investor protections depending on the subsidiary you sign up to, which can range from segregated accounts to negative balance protection.

6. Tie: Top Product Range And CFD Markets

Both online brokers offer a great selection of forex and CFD trading products covering multiple asset classes. As shown below, you can trade a diverse range of CFDs with either broker, yet both are competitive in specific asset classes.

IC Markets will suit the majority of traders as the broker provides well-rounded market access with an excellent selection of indices, cryptocurrency and forex pairs.

Major, minor and exotic currency pairs are available to trade, along with popular crypto and indices such as Bitcoin and the FTSE 100 Index.

City Index’s strength lies in share CFDs, with thousands of stocks to choose from. Both brokers offer a good range of commodities, along with unique selections of bonds, futures, interest rates and options.

Neither broker offers ETFs.

Verdict

Depending on the asset classes you want to focus on, IC Markets or City Index will be better suited. If you want to trade shares, City Index offers thousands of CFDs, but for those wanting to develop forex or crypto trading strategies, IC Markets is one of the best brokers with 10 cryptocurrency CFDs.

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*Your capital is at risk ‘71% of retail CFD accounts lose money’

7. IC Markets: Superior Educational Resources

When it comes to educational resources, both IC Markets and City Index have made significant efforts to equip their traders with knowledge. Here’s a side-by-side comparison:

• Both brokers offer webinars, tutorials, videos, demo accounts, articles, and seminars to their users.
• IC Markets stands out by providing E-books and courses, which are notably absent from City Index’s offerings.
• While City Index has a commendable range of materials, they don’t offer E-books or courses.
• Both platforms are keen on ensuring their traders have hands-on experience, as evident from their demo accounts.
• Seminars are available on both platforms, allowing traders to gain insights from industry experts.
• It’s worth noting that IC Markets seems to have a slightly broader spectrum of resources, as highlighted in their additional notes.

Verdict

Based on the variety and depth of educational resources, IC Markets takes the lead in offering a more comprehensive educational experience for traders.

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8. IC Markets: Superior Customer Service

IC Markets customer support is some of the best available, with a 24/7 customer service team you can contact via phone, live chat or email.

City Index does not provide the same level of customer service as IC. You can only contact customer representatives 24 hours a day 5 days a week, by phone, email or live chat.

Educational Resources

Both brokers offer a range of educational materials to help you expand your forex trading knowledge.

City Index provides free access to a trading academy, where you can work through courses covering topics like technical and fundamental analysis.

IC Markets also provide free educational resources in the form of trading tutorials and videos. There is also a large selection of past webinars and an information hub covering topics like risk management, technical analysis, MetaTrader 4 and trading psychology.

Verdict

While this category was the closest in our  IC Markets vs City Index comparison, the 24/7 service and plethora of contact options (eg Live Chat) gave IC Markets the edge.

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9. IC Markets: Better Funding Options

When it comes to funding options, both IC Markets and City Index offer a variety of methods to cater to the diverse needs of their clients. IC Markets, being a globally recognised broker, provides a plethora of choices ranging from bank transfers to e-wallets. City Index, on the other hand, while having a strong presence in the UK, also ensures that its clients have multiple avenues to fund their accounts, be it through credit cards or online banking.

The table below provides a comprehensive comparison of the funding options available with both brokers:

Verdict

Based on the available funding options, IC Markets offers a more diverse range of methods compared to City Index.

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10. City Index: Lower Minimum Deposit

City Index has a lower minimum deposit of $0 compared to IC Markets, which has a $200 requirement. While City Index doesn’t require you to use your own funds to open an account, you may have to deposit at least $50 when you use cards or PayPal.

The table below shows City Index’s minimum deposit by region and payment method.

IC Markets’ minimum amounts are higher yet consistent across the following as shown in the table below

In summary, here are both brokers’ deposit requirements and recommendations:

Verdict

With a $0 minimum deposit, City Index offers you a more accessible entry point, compared to IC Markets’ $200. That said, the minimum deposit amount is just one of the several factors to consider in choosing the right broker for your needs.

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So Is City Index or IC Markets The Best Broker?

IC Markets is the winner because it outperforms City Index in most of the key areas we evaluated. The table below summarises the key information leading to this verdict:

IC Markets: Best For Beginner Traders

IC Markets is the ideal choice for beginner traders due to its comprehensive educational resources and user-friendly platform.

IC Markets: Best For Experienced Traders

IC Markets stands out as the preferred broker for experienced traders, offering advanced tools and a wide range of funding options.