IC Markets Vs CMC Markets

Category: Broker Guides | Author: Trading Brokers | Date: July 19, 2023

If you are looking for a forex and CFD broker, you might have come across IC Markets and CMC Markets. These are two of the most popular and reputable brokers in the industry, but they have different features, fees, and platforms that might suit different types of traders. In this article, we will compare IC Markets and CMC Markets based on various criteria, such as regulation, trading conditions, platforms, research and education, customer service, and more. By the end of this article, you should have a better idea of which broker is the best for you.

IC Markets Overview

IC Markets

IC Markets

IC Markets is a reputable brokerage firm that has been serving traders since its establishment in 2007. Headquartered in Sydney, Australia, the company is regulated by two respected financial authorities, namely the Australian Securities and Investments Commission (ASIC) and the Seychelles Financial Services Authority (FSA). IC Markets specializes in providing access to CFD and forex markets, catering to the needs of retail investors. The broker offers three distinct account types, including the Standard Account, Raw Spread Account, and cTrader Account, each with its own fee structure.

Traders can benefit from competitive trading conditions, with tight spreads starting from 0.0 pips and fast execution speeds. To support traders’ research and education, IC Markets provides a range of tools and resources, including Autochartist, Trading Central, and Free VPS Hosting services. Additionally, the broker offers various channels for customer support, ensuring accessibility through phone, email, live chat, and popular social media platforms. With its robust regulatory oversight, comprehensive trading features, favorable trading conditions, and extensive customer support, IC Markets aims to deliver a reliable and user-friendly trading experience for its clients.

Pros and Cons of IC Markets:

Pros:

  • IC Markets has low trading fees, with spreads from 0.0 pips
  • IC Markets offers social trading features, such as ZuluTrade, Myfxbook, and cTrader Copy, which allow you to follow and copy other traders.
  • IC Markets supports algorithmic trading, with various tools and resources for developing and testing your own trading strategies.

Cons:

  • IC Markets does not offer its own proprietary trading platform, but relies on third-party platforms that may have outdated interfaces or limited functionality.
  • IC Markets does not offer any investor protection for non-EU clients, which means that your funds are not covered by any compensation scheme in case of broker insolvency
  • IC Markets does not have a strong educational section on its website but rather directs you to external sources for learning materials.
IC Markets Logo

IC Markets is the world’s largest true ECN trading broker offering over 2,000 trading instruments across multiple markets on the most popular trading platforms. They are a multi-regulated broker with deep liquidity pools that can provide you with rapid trade execution speeds, low spreads, low commission fees, various funding options and 24/7 support.

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.

CMC Markets Overview

CMC Markets 

CMC Markets

CMC Markets is a well-established brokerage firm headquartered in London, UK. With its founding in 1989 and listing on the London Stock Exchange, CMC Markets has gained a strong foothold in the financial industry. The broker is regulated by reputable authorities such as the Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC), and Monetary Authority of Singapore (MAS), ensuring compliance with stringent regulatory standards. CMC Markets offers a diverse range of trading instruments, including forex, commodities, cryptocurrencies, stocks, indices, bonds, futures, options, and ETFs, catering to the needs of various traders.

Traders can choose between two account types, Standard and Professional, with competitive spreads starting from 0.7 pips for forex trading. The broker provides favorable trading conditions, including high leverage options of up to 1:500 and fast execution speeds without requotes or price manipulation. CMC Markets also offers comprehensive research tools, educational resources, and multilingual customer support available 24/5 through phone, email, and live chat. With its commitment to regulatory compliance, diverse trading opportunities, and robust support services, CMC Markets aims to provide a reliable and user-friendly trading experience for its clients.

Pros and Cons of CMC Markets:

Pros

  • CMC Markets has low forex and index CFD fees, with spreads from 0.7 pips.
  • CMC Markets has a comprehensive and high-quality research section on its website, with various tools and resources such as market analysis, trading ideas, webinars, podcasts, and third-party content.
  • CMC Markets is regulated by several reputable authorities, such as the FCA in the UK, ASIC in Australia and MAS in Singapore.
  • CMC Markets does not support any third-party trading platforms, such as MT4 or cTrader.
  • CMC Markets does not offer any social trading features, such as copy trading or signal providers.

Cons

  • CMC Markets has high stock CFD fees, with spreads from 0.09% and commissions on its Professional account.
  • CMC Markets does not offer any bonuses or promotions for new or existing clients.
  • CMC Markets charges an inactivity fee of £10 per month after one year of no trading activity.
CMC Markets Logo

Established in 1989, CMC Markets offers a great selection of over 10,000 trading instruments on sophisticated and versatile trading platforms. They also provide comprehensive analysis, trading tools and educational materials.

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.

Comparison Between IC Markets and CMC Markets

When it comes to selecting between IC Markets and CMC Markets, several key factors should be carefully considered.they include:

Regulation and Trustworthiness:

When comparing IC Markets and CMC Markets in terms of regulation, both brokers demonstrate a commitment to strong oversight. IC Markets is regulated by ASIC, CySEC, and FSA Seychelles, while CMC Markets adheres to regulations by FCA, ASIC, IIROC, MAS, FSCA, BaFin, FMA, and FSC. These multiple top-tier authorities provide traders with a sense of security and trustworthiness when choosing either of these brokers for their trading activities.

Trading Platforms:

IC Markets and CMC Markets offer a range of robust trading platforms to cater to traders’ needs. IC Markets provides MetaTrader 4 (MT4), MetaTrader 5 (MT5), and cTrader platforms, known for their user-friendly interfaces and advanced charting capabilities. CMC Markets offers its proprietary Next Generation platform, designed with powerful tools and customizable options. Traders can choose the platform that best suits their preferences, whether they prefer the familiarity of MetaTrader platforms or the enhanced features of Next Generation. Both brokers aim to provide a seamless and intuitive trading experience with their diverse platform offerings.

Pricing and Fees:

Both IC Markets and CMC Markets offer competitive pricing with tight spreads and transparent fee structures. IC Markets provides spreads starting from 0.0 pips and charges a commission for its Raw Spread account type. CMC Markets offers competitive spreads starting from 0.0 pips without any commission charges for its Standard account type. Traders should consider their trading style and frequency when choosing the fee structure that aligns best with their strategy and profitability goals.

Broker Type:

IC Markets operates as an ECN (Electronic Communication Network) broker, which means that it provides direct market access to its clients and offers competitive pricing. As an ECN broker, IC Markets connects traders directly to liquidity providers, resulting in potentially lower spreads and faster execution speeds. CMC Markets, on the other hand, is a Market Maker broker, which means that it creates a market for its clients’ trades. Market Maker brokers can provide additional services such as risk management and guaranteed order execution. Both broker types have their advantages and considerations, and traders should choose based on their trading preferences and objectives.

Leverage:

IC Markets and CMC Markets offer high-leverage options for forex trading, allowing traders to amplify their trading positions. Leverage is a tool that enables traders to control larger positions with a smaller amount of capital. IC Markets offers leverage up to 1:500, which means that traders can trade up to 500 times the amount of their account balance. Similarly, CMC Markets provides leverage up to 1:500 as well. While leverage can enhance potential profits, it also increases the risk of significant losses, so traders should exercise caution and implement risk management strategies.

Asset Selection:

CMC Markets offers a wide range of trading instruments, including forex, commodities, cryptocurrencies, stocks, indices, bonds, futures, options, and ETFs. On the other hand, IC Markets offers a more limited range of trading instruments, including forex, commodities, cryptocurrencies, stocks, and indices.

CMC Markets presents traders with a wide selection of 158 currency pairs, including popular options like EUR/USD, surpassing IC Markets’ offering of 61 pairs. Beyond forex pairs, CMC Markets takes the lead by providing access to a staggering 12,377 CFDs, a significant contrast to IC Markets’ 3,583 available CFDs, marking a notable difference of 8,794 options. While IC Markets may have a narrower selection compared to CMC Markets, it still provides access to the most popular and widely traded assets.

Social Trading:

IC Markets offers integration with third-party social trading platforms like ZuluTrade, Myfxbook, and cTrader Copy. In contrast, CMC Markets provides its proprietary social trading service called CMC Next Generation, featuring live market sentiment data and a forum for interaction among traders. While IC Markets requires linking an account and potential subscription fees for third-party providers, CMC Markets’ Next Generation features are available without any extra charges.

Minimum Deposit:

IC Markets requires a minimum deposit of $200, ensuring accessibility for traders with different account sizes. The minimum deposit requirement allows traders to start trading with a relatively small amount of capital. On the other hand, CMC Markets does not have a minimum deposit requirement, offering flexibility for traders to start with their preferred initial investment. The absence of a minimum deposit requirement may be advantageous for traders who want the freedom to deposit any amount according to their financial capabilities. Traders should consider their available capital and risk tolerance when choosing a broker based on the minimum deposit requirement.

Withdrawal and Deposit Methods:

Both IC Markets and CMC Markets offer a variety of convenient withdrawal and deposit methods, providing flexibility and convenience for traders. Traders can choose from options such as bank transfers, credit/debit cards, e-wallets like Neteller and Skrill, and even cryptocurrencies like Bitcoin and Ethereum. The availability of multiple payment methods allows traders to select the most suitable option for their specific needs, ensuring secure and efficient transactions. Traders should consider factors such as transaction fees, processing times, and availability of preferred payment methods when evaluating the withdrawal and deposit options offered by each broker.

Which Should You Choose: IC Markets or CMC Markets?

The best broker for you depends on your personal preferences, trading style, and goals. If you are looking for a low-cost ECN broker with tight spreads and fast execution, you may prefer IC Markets. IC Markets also offers a wide range of trading platforms, including MT4, MT5, and cTrader, as well as integration with third-party social trading providers. If you are looking for a market maker broker with a user-friendly and customizable proprietary platform, you may prefer CMC Markets. CMC Markets also offers a large selection of instruments, including forex, indices, commodities, shares, ETFs, bonds, and cryptocurrencies, as well as its own social trading service.

Conclusion

In conclusion, when deciding between IC Markets and CMC Markets, it is crucial to assess your individual trading preferences and needs. Consider factors such as the trading platforms offered, available trading instruments, pricing and fees, regulatory oversight, and customer support. IC Markets offers a diverse range of trading platforms, tight spreads, and strong regulatory oversight. On the other hand, CMC Markets provides a proprietary trading platform, a wide range of trading instruments, and extensive educational resources. By thoroughly evaluating these factors and aligning them with your trading requirements, you can make an informed decision on whether IC Markets or CMC Markets is the better choice for your trading journey.


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