IC Markets is a forex ECN broker located in Australia. This firm is regulated by ASIC and gives customers the chance to choose between two forex trading platforms: cTrader and MetaTrader 4/5. IC Markets offers 500:1 leverage and has a commendable customer service. True to ECN, this forex broker is seen to have low commissions and spreads based on our review.
IC Markets’ Spreads and Fees
For this company, MetaTrader 4 & 5 is the most popular platform for forex traders. It offers two major trading accounts:
1) Standard Account
For this account, IC Markets offers no commissions. However, there are large spreads. The standard account is tailored towards the needs of beginner forex traders. It makes it easier for these traders to calculate the costs incurred in foreign exchange brokerage.
The standard account provides spreads such as:
- GBP USD = 1.4 pips
- EUR USD = 1.1 pips
- AUD USD = 1.2 pips
- EUR AUD = 1.5 pips
2) True ECN Account
ECN refer to an Electronic Communication Network. IC Markets offers his product to expert traders, allowing them to engage liquidity provider directly. The True ECN account employs the Financial Information Exchange Protocol to match and complete currency orders with more than 50 liquidity providers. Market conditions dictate the spreads, while IC Markets obtains brokerage fees through the commissions charged. The True ECN account charges $3.50 in commissions per lot. The average spreads are:
- GBP USD = 0.4 pips
- EUR USD = 0.1 pips
- EUR AUD = 0.5 pips
- AUD USD = 0.2 pips
3) cTrader ECN Trading Account
The cTrader ECN account and the True ECN account are almost identical. However, the former provides the cTrader platform for forex trade. Equinix servers are London is used for server location as it is suitable for cTrader currency trading. For the ECN account, the spreading trades vary from a single micro lot to 250 lots with more than 50 separate liquidity providers.
The cTrader has several advantages:
- $3.0 commissions per lot
- Automated trading enabled by the C# Programming Language
- Enhanced charting
This account has the same average spread as the standard True ECN Account.
IC Markets Review of Spreads and Commissions: Summary
In regards to Australia’s lowest spreads and commissions, fore traders are likely to compare IC Markets to Pepperstone and AxiTrader. This is because, the ECN trading accounts provide by these brokers have near identical infrastructure, spreads and fees. Expert traders who seek a low-cost trader would be satisfied with any of the three forex brokers. Accounts like easyMarkets have no commissions and offer larger wider spreads. They also provide additional risk management features that make them suitable for beginner traders
How IC Markets Technology Offers Traders the Edge
Execution Speeds at an Average 40ms
IC Markets utilises the best technology, giving the clients the maximum possible execution speeds. For example, there is a dedicated fibre optic cable that connects the traders to Australia’s liquidity providers. The company also uses the fastest serves situated close to the major trading centres. This helps lower latency. The fast servers are the product of Equinix and have recorded exchange latency as low as 1 milli-second.
The locations for the two Equinix server are:
- New York (NY4) – for holders of the MetaTrader forex trading account.
- London (NY5)- for holders of the Trader forex trading account
Enhanced Trading Tools
IC Markets, in collaboration with technology providers, provides improved trading tools such as:
- Ladder trading
- Depth of Market
- Automated close of trades
- Inbuilt spread monitoring
The following sections explore some of IC Markets’ advanced trading tools that enhance its forex trading platforms.
IC Markets Review of Technology: Summary
Skilled traders are aware of the loss caused by slow forex brokers. They, therefore, acknowledge that these companies require the best possible infrastructure. IC Markets have collaborated with premium technology providers with the aim of maximizing execution speeds and providing improved features for navigating currency markets. For this reason, the fx broker received an award for best forex broker.
What is The Maximum Leverage Available?
On matters leverage, the best forex broker to deal with is IC Markets. Various forex broker comparison tables have shown that the 500:1 leverage is only provided by a handful of the best forex brokers in Australia.
However, the 500:1 leverage is only suitable for experienced traders. This is because; it can yield considerable gains with the correct prediction of currency pairing or lead to immense losses. Additionally, brokers such as IC Markets have no trading desks; hence, they do not provide guaranteed stops. There are chances that the losses may be higher than the amount deposited in cases of extreme volatility. Therefore, beginners should avoid this high leverage. For guaranteed stops check our review on IC Markets vs. easyMarkets.
The 500:1 leverage means that for every dollar deposited an individual can trade up to $500 in the market. For a $250 deposit, one can trade up to $125k. This high leverage level indicates that any relatively small market shift can cause considerable losses or gains. Take for example the previous example of $250 deposit. If the currency pairing changes by 0.1%, the trader can get a $125 gain or loss, accounting for 50% of the deposit. Whereas leverage is important for any forex trader in Australia, traders should select forex brokers that match their experience.
IC Markets Review of Promotional Offers
Currently, traders do not receive promotional bonus from IC Markets. However, we have seen promos issued by Forex companies and will update data accordingly in our review of IC Markets. We will also add information in the comparison tables when the company begins to offer incentives.
IC Markets was established in 2007 by Australia expert traders who sought to create an excellent trading experience for retailers. They wanted to create a professional platform with state-of-the-art systems similar to those used in banks and other financial institutions. Our review of IC Markets review highlights what makes the International Capital Markets Pty a very popular locally regulated company.
On completion of our review of IC Markets on 17/07/2018, International Capital Markets Pty emerged as the best forex broker in Australia based on their trading speed and high leverage. The company also has low spreads and fees, and is governed by Australia’s regulations. International Capital Markets Pty makes all crucial information easily accessible on their website. Moreover, we did not experience any unpleasant surprises during our analysis of the company. The firm offers all the services that traders would expect from modern forex traders. Their offices are located in Sydney. Recently, the company initiated Forex education and training programs to promote trader development. This forex broker also boasts of expert trading tools, no dealing desk, and a fantastic demo account.