Introduction
If you are looking for a reliable and trustworthy broker with competitive spreads, then IC Markets is an option worth considering. Founded in 2007, the Australian-based broker has quickly become one of the leading players in the online trading industry, offering a wide range of financial instruments and services to traders from around the world. In this article, we will take a closer look at IC Markets spreads and how they compare to other brokers in the market.
What are Spreads?
Before we dive into IC Markets spreads, let’s first define what spreads are. In simple terms, a spread is the difference between the bid price and the ask price of a financial instrument. For example, if the bid price for EUR/USD is 1.2000 and the ask price is 1.2005, the spread is 0.0005 or 5 pips. Brokers make money by marking up the spreads and charging their clients a small commission or fee for each trade.
IC Markets Raw Spread Account
IC Markets offers a Raw Spread Account, which is designed for traders who want the tightest spreads possible. The Raw Spread Account charges a commission of $7 per lot round turn and offers spreads as low as 0.0 pips on major currency pairs. This account type is ideal for scalpers and day traders who make multiple trades per day and want to minimize their trading costs.
IC Markets Standard Account
For traders who prefer a commission-free trading model, IC Markets also offers a Standard Account. The Standard Account has higher spreads compared to the Raw Spread Account, but there are no commissions charged on trades. The spreads on the Standard Account start from 1.0 pips on major currency pairs and vary depending on market conditions and liquidity.
IC Markets cTrader Account
In addition to the Raw Spread and Standard Accounts, IC Markets also offers a cTrader Account, which is designed for traders who prefer the cTrader platform. The cTrader Account charges a commission of $6 per lot round turn and offers spreads as low as 0.0 pips on major currency pairs. This account type also has a $3.00 per side commission on all other CFDs.
How do IC Markets Spreads Compare?
When it comes to spreads, IC Markets is known for offering some of the tightest in the industry. In fact, the broker has won numerous awards for its low spreads, including the Best Forex Broker in Europe and the Best Forex Broker in Australia. However, it’s important to note that spreads can vary depending on market conditions, volatility, and liquidity. Therefore, it’s always a good idea to check the current spreads before placing a trade.
Factors that Affect Spreads
There are several factors that can affect spreads, including the type of financial instrument, the time of day, and market volatility. For example, during times of high volatility, spreads tend to widen as liquidity decreases and market makers adjust their prices accordingly. Similarly, exotic currency pairs and less liquid instruments tend to have higher spreads compared to major currency pairs and popular CFDs.
Conclusion
Overall, IC Markets is a reputable broker that offers competitive spreads and a wide range of trading instruments and platforms. Whether you are a beginner or an experienced trader, IC Markets has something to offer. However, it’s important to do your own research and compare different brokers before making a decision. Always remember to consider factors such as regulation, customer support, and trading conditions before opening an account with any broker.
