Getting started with Forex trading can be daunting for a new trader. There are so many platforms out there now that finding the right one for you has become much more difficult than it once was. IC Markets is a global Forex and CFD broker based in Cyprus that has been in operation since 2007 and is one of the best Forex brokers for beginners. Here’s why.
Pros And Cons
Pros
Cons
IC Markets Overview
Question | Answer |
|---|---|
Country of regulation | Australia |
Trading fees class | Low |
Inactivity fee charged | No |
Withdrawal fee amount | $0 |
Minimum deposit | $200 |
Time to open an account | 1 day |
Deposit with credit/debit card | Available |
Depositing with electronic wallet | Available |
Number of base currencies supported | 10 |
Demo account provided | Yes |
Products offered | Forex, CFD, Crypto |
74-89% of retail CFD accounts lose money
Fees
Assets | Fee Level | Fee Terms |
|---|---|---|
EURUSD | Low | MetaTrader 4 Raw account pricing: $3.5 per lot |
GBPUSD | Low | MetaTrader 4 Raw account pricing: $3.5 per lot |
S&P 500 CFD | Low | The fees are built into spread, 0.6 is the average spread cost. |
Inactivity fee | Low | No inactivity fee |
In terms of the fees that you have to pay, IC Markets is one of the better trading platforms out there. Both the trading and non-trading fees are low and there are no inactivity penalties or withdrawal fees for you to worry about, which already puts IC Markets ahead of many of its competitors.
The only real negative to the fee structure at IC Markets is that the financing rate for CFDs is quite high.
There are multiple different types of accounts available and each one has its own cost structure. Comparing the fees of different brokers directly can be difficult, so we have calculated the fees for a typical trade using the most popular instruments in each asset class to compare different Forex brokers.
For the purposes of our comparison, a “typical trade” is one where the trader purchases a leveraged product and holds on to it for one week before selling it. In terms of volume, we opted for a $20,000 position on the Forex and a $2,000 position for the stock index. The leverage for the Forex was 30:1 and for the stock index CFDs, it was 20:1.
By repeating this across several different trading platforms, we were able to ascertain that IC Markets fee structure makes it a highly competitive Forex broker with a fee structure that is in line with most of its competitors. The only drawback to IC Markets’ fees is that the financing rates are high in comparison to its main competitors. The non-trading fees are also comparatively low and there are no fees associated with account inactivity or withdrawals.
Deposits And Withdrawals
IC Markets’ minimum deposit of $200 is one of the lowest available; most of their competitors will require a deposit of at least $2,000. This is the same across all of the three different account types that IC Markets offers.
Header | True ECN with cTrader | True ECN with MetaTrader | Standard |
|---|---|---|---|
Commission per lot (round turn*) | $7.83 | $7.00 | No commission |
Spread | Low spreads | Low spreads | High spreads |
Trading platform | cTrader | MetaTrader 4 and MetaTrader 5 | MetaTrader 4 and MetaTrader 5 |
Available accounts by ownership | Individual, joint, corporate | Individual, joint, corporate | Individual, joint, corporate |
Islamic account available** | yes | yes | yes |
IC Markets offers a number of feeless deposition and withdrawal options for users, making it easy for anybody to move money on and off the platform. There are 10 base currencies supported by IC Markets - EUR, USD, GBP, AUD, CHF, NZD, JPY, SGD, CAD, HKD. Trading in a currency that is the same as your bank account means that you can avoid having to pay any conversion fees or other charges for converting currency.
There are now several services like TransferWise and Revolut that enable you to set up bank accounts in multiple currencies and take advantage of the best exchange rates available. These services also make it possible to transfer money internationally for free or at a much lower rate than usual. It only takes a couple of minutes to set up a new international account, and you can do it straight from your phone.
74-89% of retail CFD accounts lose money
Markets And Products
The range of assets available from IC Markets is relatively narrow. As well as being able to trade Forex, you can also trade some CFDs, in addition to a moderate range of crypto products. There is nothing else available to trade.
Header | IC Markets |
|---|---|
Currency pairs (#) | 65 |
Stock index CFDs (#) | 16 |
Stock CFDs (#) | 100 |
Commodity CFDs (#) | 19 |
Bond CFDs (#) | 6 |
Futures CFDs (#) | 4 |
Cryptos (#) | 10 |
The primary focus of IC Markets is as a Forex broker. However, it is also one of the better options for trading CFDs. CFDs are relatively complicated trading instruments. They are not for the inexperienced, and the risk of losing substantial amounts of money in a short space of time is relatively high. Make sure that you understand exactly what CFDs are and how they work before you approach trading them.
The crypto trading options from IC Markets are also considerably better than most of their competitors. Crypto trading is becoming more common but still lags behind other asset classes in terms of uptake; we are impressed by the range of options that IC Markets has in this area. Its crypto CFDs are also excellent.
Unfortunately, the range of supported Forex products is smaller and lags behind many of its competitors.
Another excellent feature that we really like is the ability to change the default leverage size of products when you are trading. This enables you to lower the risk of your trade and therefore minimize your financial exposure.
Overall, IC Markets is an excellent Forex broker, whether you are just starting out or you are an experienced trader. Low fees and a streamlined account creation process both make getting started on IC Markets a breeze. Newer traders will also appreciate the education section on their website that provides useful guidance. Despite a few shortcomings, IC Market is an overall solid Forex broker. You can create a free account to check the platform out for yourself.
74-89% of retail CFD accounts lose money