IC Markets Review 2024

Trust

IC Markets Regulations

In our reviews, we examine the licenses and regulations of each entity operated by a broker, allowing us to compare their different levels of protection. We rank licenses by various regulatory bodies on a three-tier system, where Tier-1 licensing indicates the highest level of regulation.

This is what I discovered about the three entities operating under the IC Markets trade name:

• Raw Trading Ltd is licensed and regulated by the Financial Services Authority (FSA) of the Seychelles under license number SD018. We rate the FSA as a Tier-3 regulator.
• IC Markets (EU) Ltd is licensed and regulated by the Cyprus Securities and Exchange Commission (CySEC) under license number 362/18. We rate CySEC as a Tier-1 regulator.
• International Capital Markets Pty Ltd is licensed and regulated by the Australian Securities and Investments Commission (ASIC) under license number 335692. We rate ASIC as a Tier-1 regulator.

Why is it Important to Know Where Your Broker’s Subsidiaries are Regulated?

Brokers operate multiple entities to serve clients worldwide. However, licenses obtained from regulators in different jurisdictions do not always entail the same degree of protection.

Some regulators mandate compliance with the strictest financial frameworks, while others are less rigid. That is why traders must familiarize themselves with the safety mechanisms ensured by the entity they want to open an account.

Here is what you need to be looking for in a broker in terms of safety mechanisms:

• Segregation of client funds. Keeping client funds in segregated bank accounts from the ones used for the broker’s corporate capital negates the risk of accounting errors. All IC Markets entities ensure the segregation of client funds.
• Negative balance protection. This safety mechanism removes the risk of trading losses exceeding the account balance. In other words, the losses you incur from trading are capped at the amount you have put in your trading account. Raw Trading Ltd entity is the only one that does not guarantee negative balance protection.
• Compensation scheme. A compensation scheme protects traders against the broker’s liabilities if the company becomes insolvent. Clients of IC Markets (EU) Ltd are protected by up to EUR 20,000 under the Investor Compensation Scheme (ICF). Clients of Raw Trading Ltd are protected by up to $1 million under private indemnity insurance.
• Maximum leverage. Capping the maximum leverage restricts the extent of market exposure to retail traders. The higher the leverage, the higher the potential profits and potential losses. The maximum leverage with IC Markets is 1:500, available with Raw Trading Ltd.

Stability and Transparency

In our Trust category assessments, we evaluate factors tied to stability and transparency, including the broker’s longevity, company size, and information transparency.

I concluded that IC Markets is a fairly transparent broker. Reviewing its legal documents, I discovered that everything was in order. All important information is readily available and easy to understand.

The broker has issued a ‘best execution policy’, which means that it is required to take all necessary steps to provide its clients with the best possible quotes under prevailing market conditions.

IC Markets has also issued private indemnity insurance for its offshore entity, demonstrating its commitment to providing its clients with optimal protection.

Is IC Markets Safe to Trade With?

I concluded that IC Markets can be considered very safe to trade with due to the following factors:

• Authorized by three regulators
• Has a ‘best execution policy’
• Provide transparent legal documents
• Has issued a ‘private indemnity insurance’

Fees

IC Markets Trading Fees

IC Markets Spreads

I tested IC Markets’ spreads on 8 July 2024 during the London and the New York open. The results are shown in the table below:

Broken down by asset class and compared to the industry average, IC Markets offers low spreads on currency pairs, share CFDs, indices, and cryptocurrencies, and low-to-average spreads on commodities.

IC Markets Swaps

A swap fee is a trader’s cost for holding an open position overnight because of changing interest rates. Swap long refers to the charge deductible or credit receivable for holding a buy position open overnight. In turn, swap short relates to the charges/credits deductible or receivable for holding a selling position open overnight.

The values listed below are for one full base currency contract (100,000 units).

My tests indicate that IC Markets charges low-to-average overnight charges compared to the industry benchmark. This is suitable for implementing longer-term trading strategies, such as swing trading.

IC Markets Non-Trading Fees

IC Markets does not have any non-trading fees. Deposits and withdrawals are free of charge, though third-party processing fees may apply. The broker also does not have an inactivity fee for dormant accounts.

Accounts Comparison

I have compiled the table below to help you better understand the difference between the trading fees of IC Markets’ three retail account types and the industry average. It illustrates the spreads and commissions I have recorded for the EUR/USD pair and compares them against the typical costs for ECN and STP accounts in the industry at large.

The table demonstrates how much you would have to pay to trade 1 full lot (100,000 units) in EUR/USD with a pip value of $10 for each account.

To calculate the cost of such a full-sized trade, I used this formula: Spread x pip value+commission

According to my findings, IC Markets’ combination of spreads and commissions is generally lower than the industry average. It is suitable for day trading, swing trading, and even position trading. For scalping, this is only true for the Raw accounts.

Are IC Markets’ Fees Competitive?

IC Markets offers very favorable prices. Its spreads are better than the industry average across almost all major instruments, and its commissions meet the benchmark. The broker also has no handling fees, maintenance fees, or inactivity fees.

Platforms and Tools

The Desktop Version of IC Markets’ MT5 Platform

In this review, I tested the MetaTrader 5 platform, which features multiple essential tools, such as one-click trading, an alarm setting option, and a market depth tool. These allow traders to examine various market developments from different angles and to exploit the underlying trading opportunities in multiple ways.

MT5 is arguably best suited for automated trading via its Expert Advisors (EAs) feature. The platform also has an intuitive strategy tester, allowing experienced algo traders to tweak the parameters of their strategies so that they can be used under different market conditions.

IC Markets also offers the Advanced Trading plugin, offering access to 20 exclusive tools for advanced trade execution and management, as well as advanced market data, alarm setting, and more.

Those interested in copy trading can choose cTrader, a platform with an integrated interface that connects strategy followers and strategy providers. For social trading, IC Markets incorporates the seamless TradingView, the biggest and arguably the best platform for social trading.

Additionally, MetaTrader 5 has an intuitive mobile app, which helps traders stay connected to the global capital markets even on the go.

General Ease of Use

MT5’s layout is pretty straightforward. Account info is displayed at the bottom of the screen. Charts occupy the middle portion of the window; a screen with a watch list of selected instruments and tools is positioned on the left side of the window. A panel with various settings and configurations can be found at the top of the window.

Charts

I consider the charts screen a platform’s most important feature. It facilitates technical analysis by providing an overview of price action behavior. Chart artists use many analytical tools and chart configuration possibilities to examine it from multiple angles. In my experience, the really important aspect of a chart is how easy it is to scale price action up and down.

As shown above, the problem with MetaTrader is that the charts can be crowded quite easily, even when we add no more than 2 indicators. This obscures price action behavior and makes it more difficult to conduct probing technical analysis.

I have broken down the available analytical tools and chart configurations below:

• 38 technical indicators. The platform supports trend-based, volume-based indicators, oscillators, and more. These can be applied to study price action behavior and determine the underlying market sentiment. In general, technical indicators are used to gauge where the market is likely to head next.
• 24 drawing tools. Drawing tools, such as Fibonacci retracement levels and Elliott waves, are used to study repeatable price patterns. Additionally, they can be applied to determine key support and resistance levels and potential breakout or breakdown levels. Despite the rather big collection of drawing tools, the ruggedness of MT5 makes it difficult to discern price action behavior.
• 21 timeframes. One of the standout features of MetaTrader 5 is its vast array of timeframes. MT5 allows multi-timeframe analysis of price action behavior. The greater the number of timeframes, the more intricate examinations that can be carried out across the short-term and long-term.
• 3 chart types. Price action can be represented as a line, bars, or candlesticks. This diversity allows traders to examine potential trading opportunities from different angles.

Orders

I have broken down the available order types on the MetaTrader 5 platform below:

• Market orders. Market orders are used for immediate entry at the best possible price. If triggered, they guarantee volume filling, though there could be a discrepancy between the requested price and the price where the order gets filled.
• Limit orders. Unlike market orders, limit orders guarantee exact price execution. However, a limit order will not be filled if the price action does not reach the pre-determined execution price.
• Stop orders. They are used to support open positions by limiting the maximum loss that can be incurred if the market turns in the opposite direction. A stop-loss order is placed at a fixed price below or above the spot price. If the market does indeed turn and triggers the stop-loss, it will transform into a market order and get filled at the best possible price.

My Key Takeaways After Testing the MetaTrader 5 Platform

In my opinion, MT5 is a good option for fast and simple order execution. On the other hand, its dated and rugged design falls short compared to newer, sleeker platforms. As a trader who prioritizes flexible chart scaling, I find MT5’s charting capability too rigid and less effective.

IC Markets’ MT5 Mobile App

The mobile app version of MT5 affords quick and easy access to the market on the go. It is very useful for opening, terminating, and adjusting open positions.

The market is continually evolving, marked by periodic surges and declines in volatility. For this reason, staying on top of the latest market developments is crucial, a task made simpler through the mobile app version of MT5.

You can also use the app to place market, limit, and stop orders, as well as to adjust the exposure of your open trades.

My Key Takeaways After Testing MT5’s Mobile App

MT5’s mobile app suffers from the same underlying problem inherent to other mobile apps. Analyzing price action behavior on low-resolution devices is extremely difficult. That is why I recommend using the mobile app only to monitor the development of your open positions and make changes if needed.

Order Execution Model

IC Markets operates as an Electronic Communications Network (ECN) broker. It obtains its liquidity from external providers and does not have a dealing desk. ECN brokers’ advantage is that they match buyers and sellers electronically, which typically results in lower spreads.

IC Markets achieves an average execution speed of around 40 milliseconds, which is faster than the industry average. I consider this performance enough to decrease the risk of negative slippage.

Furthermore, IC Markets offers free VPS hosting, which can be used to decrease the average execution speed to below 5 milliseconds.

Tradable Instruments

Compared to the broader industry, IC Markets offers an average amount of currency pairs and a high amount of commodities, share CFDs, indices, and cryptocurrencies.

What Are CFDs?

Contracts for difference (CFDs) are derivatives used to speculate on the underlying asset’s price without physical delivery.

For example, a long position on gold would generate profit as the price rises or incur a loss as it falls, all without the need to purchase actual gold bars.

One of the biggest advantages of trading CFDs is that traders can get in and out of the market almost instantaneously, thereby catching even minute changes in the price of the derivative.

What Can You Trade With IC Markets?

My Key Takeaways After Exploring IC Markets’ Instruments Offering

The bulk of IC Markets’ instruments are comprised of share CFDs, which offer stock traders the opportunity to diversify their positions. I appreciated the variety of lower-risk securities, such as bonds, and higher-yield/risk assets, such as cryptocurrencies. Overall, I found IC Markets’ offering quite diverse and well-balanced.

Customer Support

Customer Support Channels

Customer Support Test

When we test a broker’s customer support, we evaluate the agent’s knowledge of their own website, how long it takes them to respond to questions, and how detailed their answers are.

I conducted my test on 22 July 2024 via live chat at around 16:44 p.m. CET. Before connecting to an agent, I had to navigate an automated bot that was programmed to respond to more general queries.

After I requested to speak to an agent, they connected within a few seconds. I inquired into IC Markets’ execution model and research content. The agent’s answers were quick and informative.

Deposit and Withdrawal

IC Markets Deposit Methods

IC Markets Withdrawal Methods

Account Types and Terms

IC Markets Account Opening Process

To create an account with IC Markets, follow these easy steps:

• Step 1. Click ‘Create an Account’ from the bottom-right of the main page.
• Step 2. Fill in your name, email, and phone number.
• Step 3. State your DOB, address, and nationality.
• Step 4. Select an account type and a trading platform.
• Step 5. Submit a security question and a declaration form.
• Step 6. Confirm your email address.
• Step 7. Choose a password.
• Step 8. Provide additional information related to your employment and trading history.
• Step 9. Verify your account by uploading proof of address and ID.

IC Markets Account Types

IC Markets’ accounts are generally affordable and cater to the needs of different types of traders. The broker has set its margin call at 100% and stop out at 50%, which combination is better for less experienced traders.

Another great aspect is that IC Markets has no minimum distance requirements for stop orders. This means traders can place their stop-loss orders immediately next to their order entry prices, which in practice means the possibility of exercising tighter risk management.

Demo Accounts

IC Markets offers a demo account that introduces traders to the broker’s services and allows them to tweak their strategies in a risk-free environment. The market is continually evolving and never static, so it is important to hone your skills in a safe environment. You can set up a demo account along with a live CFD account.

Islamic Account

IC Markets offers Islamic accounts for swap-free trading that comply with Shariah law.

What is CFD Leverage?

Leverage determines a trader’s overall market exposure. When trading Contracts for Difference (CFDs), positions can be opened for a fraction of their value because of leverage. Essentially, the broker lends the trader money so that the latter can open bigger positions. Leverage multiplies the profits a trader generates from winning positions but also the losses incurred from failed trades.

Maximum Leverage By Asset Class

In the table below, I have listed the maximum retail leverage available with IC Markets for instruments from different asset classes:

IC Markets Restricted Countries

IC Markets does not accept clients from the United States of America, Canada, Brazil, Israel, New Zealand, Iran, and North Korea.

Research

The bulk of IC Markets’ research content is available from its comprehensive blog section, where traders can read about a variety of trading and economic topics. They can also use Autochartist and Trading Central plugins to gain actionable trading signals. Market sentiment data is compiled continually, and each piece contains a detailed technical breakdown.

Market reviews are also published on IC Markets’ YouTube channel for traders’ convenience. Furthermore, the broker offers an intuitive news screener powered by Myfxbook. It is updated continually, and traders can stay on top of the latest market developments.

My Key Takeaways After Exploring IC Markets’ Research Content

I appreciated IC Markets’ diverse research content. It is heavily reliant on technical analysis, which allows the reader to appreciate the underlying trading opportunity in detail. I assess that the offering is geared towards day and swing traders’ needs.

Education

The 250+ webinars are available in English (50+), Arabic, Chinese, and Thai. They cover a wide spectrum of topics, including technical analysis, fundamental analysis, and the psychology of trading. I appreciated this diversity, as it affords traders a broad and multifaceted overview of essential trading concepts.

IC Markets’ podcast is another great tool in a trader’s arsenal because it offers a hands-off approach to learning. Traders can listen to episodes while doing other activities, such as driving and learn on the go. The podcast offers a broader perspective on the world of trading.

The Bottom Line

Founded in 2007 and headquartered in Australia, IC Markets is a global forex and CFD broker that offers over 2,200 tradable instruments across different asset classes.

IC Markets stands out for its extremely favorable fees, probing research materials, and highly insightful educational content. Its clients can trade on several different platforms with advanced functionality.

I concluded that IC Markets is suitable for day trading, swing trading, and copy trading.

At the same time, it offers excellent conditions for casual trading and caters to the needs of inexperienced traders.

FAQ