IC Markets Review 2026: Raw Spreads Tested

IC Markets was founded in 2007 in Sydney, Australia, and has built a reputation as one of the most transparent low-cost brokers operating globally. The broker holds licenses across multiple jurisdictions, which matters a lot when you're deciding where to park your trading capital.

Who Regulates IC Markets?

The primary entity is regulated by the Australian Securities and Investments Commission (ASIC), one of the world's most respected Tier-1 financial regulators. ASIC-regulated brokers must meet strict capital adequacy requirements, segregate client funds from company funds, and submit to regular audits. For traders in many international markets, IC Markets also operates through an entity regulated by the Financial Services Authority (FSA) of Seychelles. The FSA entity offers higher leverage (up to 1:1000), but comes with fewer investor protections compared to the ASIC entity. This is a meaningful distinction - always check which entity you're opening an account with.

Fund Protection

• Segregated client funds - your money is held separately from IC Markets' operating capital in top-tier Australian banks
• Negative balance protection - you cannot lose more than your deposited amount
• Institutional-grade liquidity - sourced from major banks and non-bank liquidity providers, reducing slippage risk
• No dealing desk (NDD) - IC Markets does not trade against its clients, removing a significant conflict of interest

The broker earns a trust score of 94/99 from independent review platforms, reflecting its long operating history and clean regulatory record. For beginners especially, that track record since 2007 without major regulatory sanctions is genuinely reassuring.

This is the question most beginners don't think to ask until it's too late. So let's address it directly.

Segregated Funds

IC Markets holds all client funds in segregated accounts at top-tier Australian banks, completely separate from the company's own operational funds. This means that even if IC Markets faced financial difficulties, your deposited capital would not be used to pay company creditors. Under ASIC regulation, this is a legal requirement - not a voluntary marketing promise.

Negative Balance Protection

IC Markets provides negative balance protection, which means your account balance cannot drop below zero. If a sudden market move wipes out your equity, the broker absorbs the loss beyond your deposited amount. For beginners using leverage, this is genuinely important protection - leveraged trading can amplify losses quickly, and this feature acts as a financial safety net.

No Dealing Desk (NDD) Model

IC Markets operates as a true ECN/NDD broker, meaning it routes your orders directly to liquidity providers without an internal dealing desk. There's no conflict of interest where the broker profits from your losses. This structural transparency is one reason IC Markets earns high trust scores from independent reviewers.

The Seychelles Entity Caveat

Traders who sign up through the FSA Seychelles entity get access to higher leverage (up to 1:1000) but with a different protection framework. The Seychelles FSA is not a Tier-1 regulator. If maximum protection matters to you - and for most beginners it should - specifically request the ASIC-regulated entity during onboarding. It's a small but important distinction.

There is no government-backed compensation scheme equivalent to the UK's FSCS (which covers up to £85,000 per person) for ASIC-regulated brokers. The protection comes from fund segregation and the broker's financial stability rather than a formal insurance scheme.

Here's the thing most broker review sites gloss over: the advertised spread is not your actual trading cost. For IC Markets' Raw Spread account, you need to add the commission to get the true all-in figure.

Breaking Down the Math

On the Raw Spread account using MT4 or MT5, IC Markets charges approximately $3.50 per side per standard lot (100,000 units). A round-trip trade (open and close) costs $7.00. On EUR/USD with a pip value of roughly $10 per pip on a standard lot, that $7.00 commission equates to 0.7 pips total. Add the raw spread of around 0.1 pips during peak hours, and your all-in cost is approximately 0.8 pips on EUR/USD.

On cTrader, the commission drops to $3.00 per side, making the round-trip $6.00 - equivalent to 0.6 pips. For high-frequency traders placing dozens of trades daily, that 0.2-pip difference adds up meaningfully over time.

How Does This Compare?

The IC Markets Standard account offers spreads from 0.8 pips with zero commission. So the all-in cost is similar to the Raw account during normal market conditions. The Raw account advantage becomes clearer during high-liquidity periods when raw spreads compress toward 0.0 pips - your all-in cost then drops to just the commission equivalent.

• Scalpers benefit most from the Raw cTrader account during peak London/New York session overlap
• Day traders placing 5-15 trades daily will see meaningful savings over brokers charging 1.2-1.5 pips all-in
• Swing traders holding positions for days or weeks will find the Standard account equally cost-effective, since the spread difference is minimal over longer holding periods

What About Overnight Costs?

Swap fees (overnight financing charges) apply when you hold positions past the daily rollover time. These are standard across the industry and IC Markets applies market-rate swaps. If you're a swing trader holding EUR/USD long positions, the swap cost can quickly outweigh any spread savings - factor this into your overall cost calculation. Islamic swap-free accounts are available for traders who cannot pay or receive interest.

The IC Markets fees review wouldn't be complete without putting the numbers in context. How does IC Markets actually stack up against the alternatives beginners and active traders commonly consider?

IC Markets vs XM Group

XM Group's Ultra Low account offers EUR/USD spreads from 0.6 pips with no commission. That's an all-in cost of 0.6 pips - comparable to IC Markets' cTrader Raw account but without the per-trade commission calculation. XM Group also accepts a minimum deposit of just $5, making it more accessible for absolute beginners. That said, IC Markets' execution speed and liquidity depth generally outperform XM Group for high-frequency strategies.

IC Markets vs FxPro

FxPro offers ECN-style accounts with competitive spreads, but its all-in costs on major pairs tend to run slightly higher than IC Markets during peak hours. FxPro's platform selection is strong, but IC Markets' four-platform lineup (MT4, MT5, cTrader, TradingView) offers more flexibility.

IC Markets vs IG Markets

IG Markets is a premium broker with excellent research and education - areas where IC Markets is admittedly weaker. IG's spreads on forex start from around 0.6 pips on EUR/USD with no commission on its standard account. For pure cost efficiency on high-volume forex trading, IC Markets edges ahead. For a more rounded experience with better educational support, IG Markets is genuinely worth considering, especially for beginners who prioritize learning.

IC Markets vs Admirals

Admirals (formerly Admiral Markets) offers a Zero account with spreads from 0.0 pips and commissions of around $3 per side per lot - very similar to IC Markets' structure. Both are strong choices for cost-conscious traders. Admirals has a slight edge in educational content; IC Markets has a slight edge in execution infrastructure.

The honest verdict on IC Markets vs competitors cost: for raw forex trading costs during major session hours, IC Markets is genuinely at the top of the retail broker market. The gap narrows for swing traders and widens significantly for scalpers placing 50+ trades per day.