IC Markets Vs FXCM

Category: Broker Guides | Author: Trading Brokers | Date: April 7, 2024

Selecting the right broker is crucial for traders to navigate the financial markets effectively. In this article, we will examine and compare two prominent brokers, IC Markets and FXCM, to help traders make informed decisions. IC Markets is a well-established online broker known for its diverse range of trading instruments and strong regulatory oversight. On the other hand, FXCM is a renowned brokerage firm with a long-standing presence in the industry, offering a wide array of trading features and services. The purpose of this article is to provide a comprehensive analysis of IC Markets and FXCM, evaluating factors such as regulation, trading platforms, pricing, trading conditions, research resources, and customer support. By understanding the strengths and weaknesses of each broker, traders can determine which one aligns best with their trading goals and preferences, ultimately making an informed choice.

IC Markets Overview

IC Markets

IC Markets

IC Markets is an established brokerage firm that was founded in 2007 and is headquartered in Sydney, Australia. The company operates under the regulatory oversight of the Australian Securities and Investments Commission (ASIC) and the Seychelles Financial Services Authority (FSA), ensuring compliance with stringent regulatory standards. IC Markets offers a range of trading features and instruments, primarily focusing on CFD and forex markets for retail investors. Traders have access to various account types, including the Standard Account, Raw Spread Account, and cTrader Account, each with its own commission structure.


The broker emphasizes competitive pricing with tight spreads starting from 0.0 pips and fast execution speeds, providing traders with favorable trading conditions. Additionally, IC Markets provides research tools, educational resources, and extensive customer support channels, demonstrating its commitment to delivering a comprehensive trading experience for its clients. With its strong regulatory oversight, diverse account options, and customer-centric approach, IC Markets is a trusted choice for traders seeking reliable and transparent brokerage services.

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:

  • Limited asset selection compared to some other brokers
  • 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 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.

FXCM Overview

FXCM

FXCM

FXCM, also known as Forex Capital Markets Limited, is a well-established forex and CFDs trading and spread betting broker headquartered in the UK. Founded in 1999, FXCM is regulated in multiple jurisdictions, including the United Kingdom, Australia, France, Germany, and Italy. The broker offers a wide range of trading opportunities, including major forex pairs, indices, commodities, single-share CFDs, and cryptocurrencies. With a straightforward account opening process and access to advanced technical research tools, FXCM aims to provide a seamless trading experience for its clients. Traders can benefit from tight spreads, fast execution speeds, and a variety of educational resources offered by FXCM. The broker also offers comprehensive customer support through various channels, ensuring accessibility and assistance for traders.

Pros and Cons of FXCM

 Pros:

  • Established and regulated broker with a strong reputation in the industry.
  • Wide range of trading opportunities including major forex pairs, indices, commodities, single share CFDs, and cryptocurrencies.
  • Straightforward account opening process and access to advanced technical research tools.
  • Competitive trading conditions with tight spreads starting from 0.0 pips and fast execution speeds.
  • High-quality educational content to support traders’ learning and development.

Cons:

  • Limited availability of regulatory oversight compared to some other brokers.
  • Some traders may prefer a broader range of account types and fee structures.
  • The absence of social trading platforms may be a drawback for those interested in copy trading and social interactions.
FXCM Logo

FXCM is an established and well-regulated online broker with an excellent range of powerful trading platforms that are loaded with tools and market insights to help you discover trades and make informed decisions.

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

Comparison of IC Markets and FXCM

Let’s examine the key aspects and differences between  IC Markets and FXCM  to understand what sets these brokers apart.

Regulation and Trustworthiness:

IC Markets is highly regulated by the Australian Securities and Investments Commission (ASIC) and the Seychelles Financial Services Authority (FSA), two reputable regulatory bodies. These regulatory licenses ensure that IC Markets adheres to strict financial and operational standards, providing traders with a higher level of trust and security. On the other hand, FXCM is regulated in multiple jurisdictions, including the Financial Conduct Authority (FCA) in the UK, the Australian Securities and Investments Commission (ASIC), the Autorité des Marchés Financiers (AMF) in France, the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) in Germany, and the Commissione Nazionale per le Società e la Borsa (CONSOB) in Italy. This wide range of regulatory oversight demonstrates FXCM’s commitment to maintaining a transparent and trustworthy trading environment.

Trading Platforms:

IC Markets offers traders a choice of trading platforms, including MetaTrader 4 (MT4), MetaTrader 5 (MT5), and cTrader. These platforms are well-established in the industry and are known for their user-friendly interfaces, advanced charting capabilities, and extensive technical analysis tools. FXCM, on the other hand, provides traders with multiple platforms such as Trading Station, MetaTrader 4 (MT4), NinjaTrader, and ZuluTrade. Each platform has its own unique features and advantages, allowing traders to select the one that best suits their trading style and preferences. Traders should consider factors such as platform functionality, ease of use, availability of trading tools, and compatibility with their devices when choosing between IC Markets and FXCM.

Pricing and Fees:

Both IC Markets and FXCM offer competitive pricing and fees for forex and CFD trading. IC Markets has two types of accounts: standard and raw spread. The standard account has no commission but higher spreads, while the raw spread account has low spreads but a commission of $3.50 per lot. The average spread for EUR/USD on the standard account is 1.1 pips, while on the raw spread account it is 0.0 pips. FXCM has only one type of account, which has no commission but variable spreads. The average spread for EUR/USD on FXCM is 0.7 pips. Both brokers have low non-trading fees, such as no deposit or withdrawal fees for most methods, except for bank transfers. However, FXCM charges an inactivity fee of $50 after one year of no trading activity, while IC Markets does not.

Broker Type:

Both IC Markets and FXCM are non-dealing desk (NDD) brokers, which means they do not take the opposite side of their clients’ trades or interfere with their execution. Instead, they act as intermediaries between their clients and liquidity providers, such as banks, hedge funds, or other brokers. This ensures that there is no conflict of interest between the broker and the client, and that the client gets access to the best available prices in the market.

IC Markets is also an electronic communication network (ECN) broker, which means it provides direct access to the interbank market, where traders can see the depth of the market and trade with other participants without any intervention from the broker. FXCM is also a straight-through processing (STP) broker, which means it passes all orders directly to its liquidity providers without any re-quotes or delays.


Leverage:

IC Markets offers high leverage options of up to 1:500, allowing traders to amplify their trading positions. FXCM, on the other hand, offers leverage options of up to 1:400. Leverage can significantly increase potential profits, but it also amplifies the risk exposure. Traders should carefully consider their risk tolerance, trading strategy, and the specific requirements of their trading activities when selecting a broker based on leverage options.

Asset Selection:

When comparing IC Markets and FXCM based on asset selection, it is evident that FXCM offers a wider range of instruments with over 440 options, including 41 forex pairs, 13 indices, 12 commodities, 15 stocks, and 7 cryptocurrencies. On the other hand, IC Markets provides around 230 instruments, including 61 forex pairs, 19 indices, 19 commodities, 120 stocks, and 10 cryptocurrencies. Both brokers do not offer trading in bonds, ETFs, or options. FXCM’s asset selection is more extensive, offering traders a broader diversity of trading opportunities. However, the final choice should consider individual trading preferences and requirements.

Social Trading:

Both IC Markets and FXCM offer social trading platforms that allow clients to copy the trades of other traders or signal providers. IC Markets supports ZuluTrade, which is a third-party platform that connects traders with a network of signal providers from around the world. Clients can choose from thousands of strategies based on various criteria, such as performance, risk level, trading style, etc. FXCM also supports ZuluTrade, as well as Trading Station Signals, which is an integrated platform that allows clients to access signals from FXCM’s proprietary algorithmic trading strategies.

Minimum Deposit:

IC Markets requires a minimum deposit of $200, which may be more suitable for traders with a larger trading capital. FXCM, on the other hand, has a lower minimum deposit requirement of $50, making it more accessible for traders with limited funds. Traders should consider their available capital and trading budget when choosing a broker based on the minimum deposit requirement.

Withdrawal and Deposit Methods:

Both IC Markets and FXCM offer a range of deposit and withdrawal methods, including bank transfers, credit/debit cards, PayPal, Skrill, and Neteller. Traders should consider factors such as processing times, fees, and availability when selecting the most convenient and cost-effective methods for their financial transactions.


Which Should You Choose: IC Markets Vs FXCM?

Based on the comparison of IC Markets and FXCM, each broker offers unique features that cater to different types of traders. For active traders who seek advanced trading tools and fast execution speeds, IC Markets may be the preferred choice. With its range of trading platforms, including MetaTrader 4, MetaTrader 5, and cTrader, IC Markets provides a robust trading environment. On the other hand, beginner traders who value user-friendly platforms, educational resources, and a lower minimum deposit requirement may find FXCM more suitable. FXCM offers a straightforward account opening process, technical research tools, and high-quality educational content. Diversification seekers can benefit from FXCM’s wide range of trading opportunities, including forex, indices, commodities, single-share CFDs, and cryptocurrencies. Both brokers also offer social trading features, allowing traders to connect with other traders and learn from their strategies. Ultimately, the choice between IC Markets and FXCM depends on individual trading preferences, goals, and risk tolerance. It is recommended to carefully evaluate these factors to select the broker that best aligns with your specific trading needs.

Conclusion

In conclusion, the choice between IC Markets and FXCM depends on individual traders’ preferences and needs. IC Markets offers competitive pricing, fast execution, and a wide range of trading instruments, making it suitable for active traders. FXCM provides a user-friendly platform, educational resources, and diverse trading opportunities, making it a good fit for beginner traders. Both brokers have strong regulations and offer social trading features. Traders should consider factors such as trading platform preference, pricing, leverage, asset selection, and account requirements when making their decision. By evaluating these factors, traders can choose the broker that best aligns with their trading goals.


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