By comparing average spreads, trading platforms and conditions we used data points to compare the non-dealing desk IC Markets vs City Index which is a market maker. The winner overall was IC Markets which is explained in the versus table and 2023 write-up.
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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 use 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.
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.
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.
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.
As an FCA regulated broker, City Index is permitted to provide spread betting services to those based in the UK and Ireland. Trading CFDs work 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.
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.
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.
While City Index is a market maker and offers both fixed and variable spreads, IC Markets is an NDD broker where forex traders can trade variable spreads through two account types.
As IC Markets is an NDD broker and City Index a market maker, many forex traders may prefer the transparent pricing IC Markets offer.
The table below compares the average spreads (no-commission) for IC Markets and City Index alongside other top forex brokers.
Each broker has a strength with specific major currency pairs:
|
No Commission Spreads
|
|||||
|---|---|---|---|---|---|
|
0.85 | 0.83 | 1.27 | 1.50 | 0.77 |
|
1.60 | 1.10 | 1.10 | 2.20 | 2.20 |
|
1.50 | 1.40 | 1.40 | 1.60 | 1.20 |
|
1.73 | 1.70 | 1.37 | 3.19 | 1.95 |
|
1.32 | 1.30 | 0.86 | 1.80 | 1.64 |
|
2.30 | 1.90 | 1.90 | 2.80 | 1.80 |
|
2.60 | 1.60 | 1.50 | 2.30 | 1.40 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 01/09/2023
Although City Index does not offer a commission account type, the table below shows how IC Markets Raw spreads compare to other top forex brokers.
|
ECN Commission Spreads
|
|||||
|---|---|---|---|---|---|
|
|
0.02 | 0.17 | 0.50 | 0.14 | 0.23 |
|
|
0.12 | 0.22 | 0.55 | 0.47 | 0.69 |
|
0.44 | 0.42 | 0.50 | 0.20 | 0.85 |
|
n/a | 0.50 | 0.70 | n/a | 0.20 |
|
0.20 | 0.40 | 0.60 | 0.30 | 0.60 |
|
0.50 | 0.70 | 1.70 | 0.50 | 0.50 |
|
0.44 | 1.23 | 1.17 | 0.77 | 1.08 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 01/09/2023
IC Markets Raw spreads are some of the lowest available to retail investor accounts. For the EUR/USD, AUD/USD, AUD/JPY and GBP/USD the broker offers the tightest average spreads compared to brokers like Pepperstone and Tradersway. For the USD/JPY, Pepperstone beats IC Markets by a fraction, yet IC’s spreads of 0.20 pips are still ultra-competitive.
If you are wanting to trade no commission spreads, either broker is a good option and competitive compared to other top brokers. But, if you want an institutional-grade trading experience, IC Markets Raw spreads are some of the lowest spreads available worldwide.
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 being 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.
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:
MT4, MT5 and cTrader are available as desktop trading platforms, web trader platforms or mobile trading apps for Android and iOS devices.
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.
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.
A major benefit to trading CFDs rather than physical assets is the ability to use leverage to increase exposure. Leverage is essentially borrowing money from your broker to allow you to enter larger positions than you would be able to otherwise.
While using leverage can magnify profits, it also greatly increases the high risk of CFD and forex trading by also magnifying losses. Depending on where you live and the subsidiaries’ regulator, there will be maximum leverage you are allowed to use.
As well as your country of residence and the local financial authority, the type of asset also determines the leverage you can use. For instance, in Australia, you can use up to 500:1 leverage if you are a professional trader but only 30:1 if you’re a retail trader.
When trading major currency pairs with City Index and IC Markets, the brokers will offer the following leverage, depending on where you live and the local regulation.
Both brokers offer varying leverage depending on the subsidiary you are trading with. As they each offer a range of options with different maximum leverage limits, IC Markets and City Index tie this round.
City Index ReviewVisit City Index
*Your capital is at risk ‘71% of retail CFD accounts lose money’
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.
| CFDs | IC Markets | City Index |
|---|---|---|
| Forex Pairs | 60+ | 80+ |
| Indices | 23 | 21 |
| Commodities | 19+ | 24 |
| Stocks | 120+ | 4,500 |
| Bonds | 10 | 4 |
| Cryptocurrency | 10 | 6 |
| Futures | 4 | 0 |
| Interest Rates | 0 | 3 |
| Options | 0 | 4 |
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.
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.
City Index ReviewVisit City Index
*Your capital is at risk ‘71% of retail CFD accounts lose money’
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.
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.
While this category was the closes 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.
View IC Markets ReviewVisit IC Markets
IC Markets requires you to make a minimum deposit of $200 before you can start trading. When setting up your account, you can choose from over 10 different base currencies:
You can choose from 15 fee-free deposit and withdrawal methods, depending on the base currency of your trading account.
To open a City Index trading account, you are required to make an initial minimum deposit of $150. Although a low minimum deposit is enforced, the broker recommends depositing at least $2,000 if you are planning on trading currency pairs and indices, and $2,500 if you are trading shares, commodities and other financial markets.
You can establish a City Index CFD trading account with one of the following base currencies:
When managing your trading account, you can deposit and withdraw funds using a limited range of payment options:
All funding methods are fee-free as a City Index forex trader, yet the online broker requires you to withdraw at least $150 at a time.
Although both brokers require small minimum deposits and charge no deposit and withdrawal fees, City Index’s range of payment methods is very narrow compared to IC Markets. While IC Markets offer 15 fee-free funding methods, City Index only provides 5 options.
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 is an Australian broker that is regulated by multiple top-tier financial authorities.
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.
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:
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.
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.
While both brokers are well-respected and offer tight spreads, IC Markets is the overall winner for the following reasons:
IC Markets is also the more popular broker which shows traders agree that it’s superior to City Index.
View IC Markets ReviewVisit IC Markets
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