IC Markets vs FXTM

IC Markets vs FXTM Spreads

In the current review, we have decided to present a head-to-head comparison of the minimum spreads that both brokers offer on their ECN account types and the standard account.

Standard Account Spreads

Spreads offered across IC Markets’ product list remain quite competitive, being as low as 1.0 pip on pairs such as EUR/USD or USD/JPY. By comparison, the FXTM standard account boasts spreads that start from 1.3 pips on major Forex pairs. At the same time, the FXTM Cent account boasts higher spreads that start from 1.5 pips on major Forex pairs.

ECN Account Spreads

Since IC Markets utilizes a pool of 25 top-tier liquidity providers, it is able to offer the lowest possible spreads, starting from 0.0 pips on all Forex pairs. Furthermore, in an attempt to respond to competition from other top Forex brokers such as Pepperstone, IC Markets keeps the average spread offered on EUR/USD at 0.1 pips 24/5 (one of the best worldwide).

The average spreads on major currency pairs are:

• EUR/USD – 0.1 pips at IC Markets, 0.3 pips at FXTM
• GBP/USD – 0.4 pips at IC Markets, 0.8 pips at FXTM
• USD/JPY – 0.2 pips at IC Markets, 0.4 pips at FXTM
• USD/CAD – 0.5 pips at IC Markets, 1.8 pips at FXTM
• AUD/USD – 0.2 pips at IC Markets, 0.9 pips at FXTM

In exchange for raw pricing and ultra-fast order execution, which would best suit trading styles such as scalping as well as automated trading, the STP broker will charge a commission of $7.0 per round turn for 1 Standard Lot traded.

On the cTrader platform, spreads start from 0.0 pips on all Forex pairs thanks to the broker’s deep liquidity pool. In exchange for ECN trading conditions, IC Markets will charge a commission of $6.0 per round turn for every 1 Standard Lot traded.

Meanwhile, FXTM’s ECN spreads come in different sizes, depending on your account type:

• ECN Account – Spreads start from 0.1 pips on major Forex pairs and there will be a commission of $4.00 per round turn for 1 Standard Lot traded.
• ECN Zero Account – The specific moment here is that there will be no trading commission charged, but clients will have to pay a higher minimum spread (starting from 1.5 pips on major currency pairs).

We should note that FXTM offers Forex spreads starting from 0.0 pips on its Pro Account only if clients maintain a minimum account balance of $25,000/EUR 25,000/GBP 25,000 all the time.

CFD Spreads

The minimum spreads on spot metals:

• Spot Gold (XAU/USD) – 0.0 pips at IC Markets, 5.0 pips at FXTM
• Spot Silver (XAG/USD) – 0.0 pips at IC Markets, 0.4 pips at FXTM
• Gold vs Euro (XAU/EUR) – 0.0 pips at IC Markets, 30.0 pips at FXTM
• Silver vs Euro (XAG/EUR) – 0.0 pips at IC Markets, 7.0 pips at FXTM

Note that even the average spreads offered by IC Markets on Spot Metals (1.0 pip on XAU/USD, 0.2 pips on XAG/USD, 1.5 pips on XAU/EUR and 0.3 pips on XAG/EUR) remain lower than the minimum spreads offered by FXTM.

Spread Comparison Verdict

Clearly, IC Markets’ deep interbank liquidity allows the broker to keep spreads across its entire Forex product list very tight. IC Markets spreads can save you up to 200% as you’ll have fewer trading costs. Our IC Markets vs FXTM comparison found IC Markets were the clear winnerin this category.

View IC Markets Review >>Visit IC Markets >>

What Leverage Is Available?

The maximum leverage allowed for trading CFDs and on forex markets varies depending on the regulation jurisdiction. In the European Economic Area, under ESMA/CySEC rules, the maximum leverage ratios both IC Markets and FXTM offer retail clients are the following:

• 1:30 on major currency pairs
• 1:20 on minor and exotic currency pairs, Gold and Major Stock Indices
• 1:10 on Commodities (when not Gold) and minor Stock Indices
• 1:5 on Stock CFDs
• 1:2 on Crypto CFDs

At the same time, in the United Kingdom, where IC Markets is not regulated under ESMA/FCA rules, the maximum leverage ratios FXTM offers retail clients are on par with the CySEC leverage restrictions.

ASCI Leverage Restrictions

Meanwhile, in Australia, where FXTM is not regulated under ASIC rules, the maximum leverage ratios for Forex and CFD trading offered by IC Markets are as follows:

• 1:500 on all types of Forex pairs, Spot Metals and Energies
• 1:200 on Stock Index CFDs, Bond CFDs and Futures CFDs
• 1:100 on Soft Commodity CFDs
• 1:20 on Shares CFDs
• 1:5 on Cryptocurrencies

Global Leverage Restrictions

And, in South Africa, where IC Markets is not regulated, there are no known leverage caps for retail Forex traders. In that jurisdiction, the maximum leverage ratios FXTM allows depend on the live trading account type. They can be presented as follows:

• 1:2000 on FXTM’s Standard account, Cent account, ECN account and ECN Zero account
• 1:200 on FXTM’s Pro Account
• 1:10 on FXTM’s Stock CFDs account

At IC Markets, global clients can access the same leverage limits as adopted by Australia’s ASIC.

Leverage Verdict

Overall, both brokers are compliant with the leverage restrictions imposed by the regulatory agencies. However, FXTM offers a higher leverage ratio of up to 1:2000 to clients from outside of tier-one jurisdictions.

View FXTM Review >>Visit FXTM >>

What Forex Trading Platforms Do The Brokers Offer?

Both IC Markets and FXTM have ensured to offer their clients a range of trading platforms, equipped with additional tools. MetaTrader 4 and MetaTrader 5 trading platforms are shared between the two forex brokers, while the cTrader platform is available exclusively to IC Markets’ clients.

FXTM vs IC Markets MetaTrader 4 Platform Comparison

We consider IC Markets’ MT4 software as one of the best solutions for both novice and sophisticated Forex traders. As a leading Forex broker, FXTM also puts a lot of emphasis on its MetaTrader 4 platform.

The MetaTrader 4 platform allows access to a sound environment for the development and testing of Expert Advisors (EAs). IC Markets has an advantage over FXTM due to Low latency and ultra-fast order execution. The average order execution speed is 36.5 ms, while the broker’s MT4 server is located in the Equinix NY4 data centre.

IC Markets and FXTM’s MT4 platforms have Windows and Mac OSX compatibility with good mobile trading capability – apps for iOS and Android devices. While the MT4 WebTrader is compatible with six browsers (Internet Explorer, Microsoft Edge, Mozilla Firefox, Google Chrome, Safari, Opera).

FXTM vs IC Markets MetaTrader 5 Platform Comparison

Both brokerages grant access to MT4’s even more powerful successor, the MetaTrader 5 platform. We can summarize its key features and benefits as follows:

1. At IC Markets:

• Raw pricing and deep interbank liquidity
• Low latency and ultra-fast order execution (MT5 servers located in the Equinix NY4 data centre)
• Level II pricing – discloses the entire range of available prices that come directly from IC Markets’ 25 liquidity providers
• A wider range of asset classes available to trade – 232 trading instruments across six asset classes
• Access to advanced MQL5 environment to develop and backtest EAs;
• Position hedging
• No restrictions on limit orders and no limits on trade sizes
• Built-in Economic Calendar

2. At FXTM:

• A wider range of technical indicators, analytical objects and timeframes compared to MT4
• More types of pending orders compared to MT4
• Richer interface customizability options compared to MT4
• Unlimited number of charts
• Depth of Market
• Access to a wider range of tradable assets, including CFDs, Stocks and Futures
• Access to advanced MQL5 environment
• Netting and hedging position accounting system

Additional Trading Platforms

Along with the MetaTrader package, both IC Markets and FXTM offer one additional trading software option.

Similar to other leading brokerages such as Pepperstone, IC Markets has included the cTrader software in its trading platform list. It allows for even superior chart and layout customization options, advanced analytics, full depth of market and also grants access to cAlgo and Smart Stop Out features.

FXTM, on the other hand, offers the FXTM Trader mobile app – its proprietary software that features state-of-the-art charting tools, one-click trading option and also allows for trading across more than one device. A VPS is offered by the online broker to trade forex at faster execution speeds.

Copy Trading Features

At IC Markets, clients can access copy trading features such as ZuluTrade, Myfxbook AutoTrade and MQL5. At the same time, FXTM grants access to its in-house copy trading platform FXTM Trading Signals. This social trading network combines popular technical indicators and presents different scenarios, four Take-Profit levels, Stop Loss recommendations as well as daily updates prior to the start of EU and US trading sessions.

Trading Platform Verdict

For trading platforms, IC Markets offers a better experience as it offers an additional option (cTrader) as compared to FXTM. FXTM only stands out with their proprietary trading app and in-house social trading network. However, IC Markets tops FXTM as it grants its clients access to more third-party copy trading platforms.

View IC Markets Review >>Visit IC Markets >>

What Forex Pairs And CFDs Can You Trade?

IC Markets provides traders with 8 different financial markets compared to FXTM’s 5 asset classes. A similarity that both brokers bear is their focus on Forex trading. While clients can choose from 61 major, minor and exotic currency pairs accessed through MetaTrader 4, MetaTrader 5 and cTrader platforms at IC Markets, FXTM offers a total of 57 Forex pairs accessed via its MetaTrader 4 and MetaTrader 5 software.

CFD Instruments

Along with Forex pairs, both brokerages offer a set of CFDs.

Disclaimer: Trading CFDs on retail investor accounts comes with a high risk of capital losses due to the use of leverage. Retail clients need to make sure they fully understand how these derivative instruments work before they start trading.

To be more specific, the CFD range at both brokers includes:

• Stock Index CFDs – 23 contracts at IC Markets vs. 11 contracts at FXTM
• Crypto CFDs – Only at IC Markets offers 18+ Cryptocurrencies (Bitcoin, Ethereum, Litecoin, Ripple, etc.)*
• Commodity CFDs – 19 Spot Metals, Spot Energies and Soft Commodities available on IC Markets’ MetaTrader 4 and MetaTrader 5 platforms vs. 8 Spot Metals and Spot Energies available at FXTM
• Stock and ETF CFDs – 44 ASX Stock CFDs, 106 NASDAQ Stock CFDs and 156 NYSE Stock and ETF CFDs available to trade on IC Markets’ MetaTrader 5. In comparison, FXTM offers 141 US Stock CFDs and 50 European Stock CFDs, which can be accessed via its MT5 platform
• Bond CFDs – Only at IC Markets, 11+ contracts accessed via its MT4 and MT5 software
• Futures CFDs – Only at IC Markets, 4 contracts accessed via its MT4 and MT5 software

*NOTE: Under new FCA guidelines, retail traders in the UK are no longer able to trade cryptocurrencies.

Forex Pairs And CFD Range Verdict

Overall, between IC Markets and FXTM, IC Markets offers more financial instruments and subsequently more trading opportunities. Additional CFDs like cryptocurrencies, bonds and futures are exclusively offered only at IC Markets. Click the button below to explore a wide range of global CFDs.

View IC Markets Review >>Visit IC Markets >>

Broker Customer Support And Services

Professional customer support service is another essential aspect, which we took into consideration in our review. We were left with a rather positive impression after contacting the support team at both IC Markets and FXTM, especially via their live chat options. At both brokerages, we were treated in a respectful manner and all of our inquiries received immediate, plain and relevant answers.

Along with the live chat, other chat options at FXTM include WhatsApp, Viber, Telegram and Facebook Messenger.

Additionally, both brokers can also be contacted via email and over the phone (+61 (0)2 8014 4280 – IC Markets), (+357 25 55 87 77 – FXTM). IC Markets has also provided several toll-free numbers to contact its support team.

However, we should note that only IC Markets offers 24/7 customer support service, while the latter is available only on business days at FXTM.

Learning and Research Centre

Our review has found that both brokers offer impressive Forex education content on their websites.

Along with an extensive glossary of Forex terms, IC Markets has provided education content structured in sections, each focusing on a particular topic such as Forex Trading, Technical Analysis, Fundamental Analysis, Risk Management, Trading Psychology and Trading Plan. At FXTM, traders can find a selection of eBooks free of charge, covering different educational content.

 In addition, the Australian Forex broker has included a set educational content that comes in video format, including:

1. Video lessons covering a variety of topics such as downloading the MT4 platform, placing different order types, using the MT4 trade terminal, logging in to cTrader and so on.
2. IC Markets’ WebTV – daily market commentary in a short video format, which is presented in association with Trading Central.

Meanwhile, FXTM also provides short Forex trading videos, grouped into categories such as Forex Basics, Trading Basics, and Technical Analysis among others. More, the brokerage trading firm also conducts free Forex webinars regularly.

Last but not least, IC Markets provides insight into global markets in a set of daily publications in its Market Analysis blog. At the same time, FXTM doesn’t offer daily market analysis however, the research team will conduct monthly currency outlook webinars with market insights.

Customer Service Verdict

In conclusion, FXTM tops IC Markets by offering more methods of communication via several social media channels. However, IC Markets tops FXTM by offering a diverse and all-in inclusive trading education and research section.

View FXTM Review >>Visit FXTM >>

Minimum Deposit Comparison

IC Market’s minimum deposit is $200 across all 3 account types. By comparison, at FXTM, the minimum deposit required of clients depends on the trading account type they select.

Account Base Currencies

When it comes to supported base account currencies, clients clearly have a richer choice with IC Markets, since the Australian brokerage allows deposits made in 10 different currencies, including AUD, USD, JPY, EUR, NZD, SGD, GBP, CAD, CHF and HKD. In comparison, FXTM allows deposits in 7 different base account currencies, including USD, EUR, GBP, PLN, CZK, INR and NGN.

Payment Methods

Since IC Markets will not charge any extra deposit or withdrawal fees and offers its clients 15 different account funding options, it remains one of the most competitive brokerages on this front, along with Pepperstone. Meanwhile, FXTM will not charge any fees on deposits, but there will be a withdrawal fee depending on the payment method and base currency selected. It offers 7 different account funding options, including:

• Debit or Credit Card by Visa, Maestro or MasterCard
• PayPal
• Neteller
• Skrill
• Western Union Quick Pay
• Dotpay
• Bank transfer

Withdrawing funds via a credit card, via bank wire transfer and via some of the e-wallets will incur certain fees, which can be viewed in the table below.

At the same time, with IC Markets, clients can choose from the following account funding methods:

• Debit or Credit Card by Visa or MasterCard
• PayPal
• Neteller
• Neteller VIP
• Skrill
• UnionPay
• Bank transfer
• Bpay
• FasaPay
• POLi
• Thai Internet Banking
• Broker to Broker
• Rapidpay
• Klarna
• Vietnamese Internet Banking

Fund withdrawals via debit or credit cards are usually processed within 3 to 5 business days, while withdrawals via e-wallets are instant once processed. On the other hand, withdrawals via bank wire transfer will incur a processing fee of AUD 20 (or currency equivalent) by IC Markets’ banking institution and may take up to 14 days to complete.

Minimum Deposit Verdict

The head-to-head comparison shows IC Markets clients have a diverse selection of payment methods and can choose between 10 different currencies. More, IC Markets covers all expenses for deposit and withdrawal with most payment options.

View IC Markets Review >>Visit IC Markets >>

Regulation And Risk Management

Both IC Markets and FXTM are fully compliant with the strict regulatory standards of some of the most notorious Forex regulators worldwide. However, IC Markets tops FXTM because it holds forex licenses in two tier-1 jurisdictions, namely:

• The Australian Securities and Investments Commission (ASIC) with the Australian Financial Services License AFSL No. 335692
• – Tier 1 Regulator
• The Cyprus Securities and Exchange Commission (CySEC) with License No. 362/18 – Tier 1 Regulator
• The Seychelles Financial Services Authority (FSA) – Tier 3 Regulator

By comparison, FXTM is fully licensed by one tier-one regulatory agency, namely the Financial Conduct Authority (FCA) in the United Kingdom, with License No. 777911. Additionally, IC Markets (SC) is a trading name of Raw Trading Ltd, a company that falls under the regulation of the Financial Services Authority of Seychelles with Securities Dealer License No. SD018.

Finally, FXTM’s global operations are authorized and regulated by the Financial Services Commission (FSC) of the Republic of Mauritius (Investment Dealer License number: C113012295). Additional two tier-two jurisdictions (South Africa’s FSCA and Cyprus’ CySEC) complete the list.

Client Fund Segregation And Negative Balance Protection

When it comes to client security, both brokerages assure that their clients’ funds are kept fully segregated from their corporate accounts at top-tier financial institutions. This way the risk of fraudulent behaviour (using client funds for operational purposes, marketing budgets or as reserve capital) is reduced to a minimum.

Additionally, since both brokers have adopted the Secure Socket Layer technology, all electronic payments and communications with clients are secure, with data transmission being encrypted.

Forex Compensation Scheme

Also, as both brokers are members of the Cyprus Investor Compensation Fund (CIFs), retail clients have a guarantee that they will be compensated in case the brokerages are unable to meet their financial obligations.

Negative Balance Protection

Yet, our review has found that only FXTM follows a negative balance protection policy. Under the latter, the losses incurred when trading CFDs on retail investor accounts cannot exceed clients’ initial deposit with the broker. In case of an unexpected occurrence (market gap, for instance) that results in a negative balance, FXTM will not request the respective amount from its clients and will bring their account balance back to zero.

On the other hand, IC Markets does not have such a policy and, therefore, retail clients must employ sound money management to avoid repaying a negative balance.

Regulation Verdict

Both brokers are safe and legitimate companies to provide secure online trading to their customers. Forex is a decentralized market, thus regulation plays a key role in ensuring fair trading operations.

View IC Markets Review >>Visit IC Markets >>