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FP Markets and IC Markets distinguish their Raw account by several means, including minimum deposit requirement, trading fees, execution speeds, and leverages.
FP Markets and IC Markets are both equally famous Australian-based forex brokers, offering nearly identical services under a no-dealing desk framework. Both also offer their own brand of Raw accounts, which are often sought after by traders. As such, potential traders may wonder, how is the comparison between FP Markets vs IC Markets Raw account?
When you trade using a Raw account, you have access to the real market price of the instrument. The spread between the bid and ask price of the instrument is in accordance with the price given by liquidity providers (usually starts at 0.0 pips), and the broker will not apply any markups in its role as intermediary. In exchange, you have to pay a certain commission fee to the broker for each lot traded.
Forex brokers usually distinguish their Raw accounts by several means, including minimum deposit requirements, trading fees, execution speeds, trading platforms, and leverages. They may also try to expand the variety of instruments available, as well as their number of liquidity providers.
So, how do FP Markets and IC Markets compare in this matter? The article will sum them up for you.
FP Markets' Raw Account Details
- 💰Minimum deposit requirement: AUD$100 or currency equivalent
- 💸Commission fees: USD$6.00 per round lot (USD$3.00 per side)
- ⚡Average execution speeds: around 80 ms
- 🖥Server location: New York
- 💻Trading platforms: Metatrader4 and Metatrader5
- ⚖Maximum leverages: up to 1:30 for Regular Account, or up to 1:500 on FP Markets Pro Account
- Range of markets: 60+ FX pairs, metals, indices, commodities, and individual stocks CFDs
FP Markets (also known as First Prudential Markets) was founded by Matthew Murphie in Sydney, Australia in 2005. Since then, the company has expanded their worldwide operation with licenses from the Australian Securities and Investments Commission (ASIC) and the Cyprus Securities and Exchange Commission (CySEC).
FP Markets provides Raw account with comparatively cheaper fees and a more affordable minimum deposit requirement. But it comes with a smaller range of markets, relatively slower execution speeds, and just two types of trading platform options.
Keeping positions open overnight won't result in the overnight/rollover fee reducing your earnings, so you don't have to worry about it. FP Markets offers the most competitive swap rates in the industry by introducing Swaps Points in the form of a live swap rates list on the MT4 and MT5 platforms. Here are some examples:
- ACWI: -5.00 for long positions and -2.50 for short positions.
- ADAUSD: -20.00 for long positions and -20.00 for short positions.
- AGG: -5.00 for long positions and -2.50 for short positions.
IC Markets' Raw Account Details
- 💰Minimum deposit requirement: $200
- 💸Commission fees: $7.00 per round lot for Metatrader, or $6.00 per round lot for cTrader
- ⚡Average execution speeds: around 40 ms
- 🖥Server location: New York for Metatrader, London for cTrader
- 💻Trading platforms: Metatrader4, Metatrader5, and cTrader
- ⚖Maximum leverages: up to 1:500
- Range of markets: 60+ FX pairs, metals, indices, commodities, cryptos, as well as individual stocks CFDs across the ASX, NYSE, and NASDAQ
IC Markets was established by Andrew Budzinski in Sydney, Australia, in 2007. The company grew rapidly with the help of deep and diverse liquidity, which made it superior to its competitors. IC Markets is also a multi-license holder, with a complete collection of licenses from Tier 1–3 regulators (ASIC, CySEC, and Seychelles) under their belt.
IC Markets offers Raw account with a higher minimum deposit requirement. But it comes with a wider range of markets, relatively faster execution speeds, more trading platform options, and deeper liquidity. At one time, IC Markets claimed to have access to up to 50 different liquidity providers that enable them to provide tighter spreads.
See Also:
Conclusion
IC Markets' Raw account wins overall. However, FP Markets' Raw account has its own advantage. Whichever you choose, you will be able to take advantage of tight institutional-grade spreads and Depth of Market (DOM) functionality.
Look over their respective demo accounts to examine their features further. It's also crucial to take into account additional aspects before making a choice, including customer support and the overall reputation of the broker.
16 Comments
Jerry
Jan 31 2023
What is the difference between 0.0 pip and 0 pip, standard account also offers zero spread and i think there is no difference but what confuses me is why commission in RAW spreads seems very expensive. I mean commission on FP Market is calculated at $6 per round and IC Market is at $7 per round. Every turn in this term is an exchange, isn't it. If I open 2 trading positions, will I be charged $12? What is this rose for? I mean regular commissions are calculated in batches, right?
If so, is the RAW account suitable for a beginner like me?
George
Jan 31 2023
Jerry: Let me answer, man. The difference between 0.0 pip and 0 pip is 0.0 pip more, much cheaper. Example:
which one is the cheapest? 0.01 point or 0.1 point?
0.01 of course, right? So RAW account can be defined by 0.0 pip and it is very different from 0 pip. Before discussing commissions on RAW accounts, you should know that all accounts except RAW accounts use spreads marked by brokers. SO, between one broker and another, the spread fees will be different. This is because brokers send your order to secondary liquidity provider and you as a trader will not get any DoM (Depth of Market).
Whereas in the RAW account, it allows you to view the DOMs including the actual spread, the pure extent. So of course the spread you get will be 0.0. And because the broker cannot make enough profit from this spread, he will charge you a higher commission instead
Gudjensen
Jan 31 2023
Jerry: About which account is suitable for beginners? Of course, micro account or cent account if broker; FP and IC both have. Or Standard account with 0.01 lots to trade. While the other standard accounts have higher spreads, they at least offer non-technical trading. I mean no DOM, no variety of runtimes and all that specialized stuff that used by pro and forex expert.
In standard accounts, only basic trades such as basic order matching and indicator tools. With this kind of conditions, believe me, trading will become more comfortable than trading on RAW account and besides, you will avoid higher commissions having specifications like spreads.
Hashem Ailan
Apr 12 2023
@Jerry: The difference between 0.0 pip and 0 pip is that 0.0 pip represents a spread that can fluctuate between 0 and a small fraction of a pip, while 0 pip represents a fixed spread that remains constant at 0. In general, both options offer tight spreads, but a 0.0 pip spread may be more suitable for traders who require more precision in their pricing, while a 0 pip spread may be more suitable for traders who prefer a consistent and predictable spread.
Regarding the standard account offering zero spreads, it's important to note that these types of accounts often have higher commissions or markups built into the pricing structure. This is because the broker needs to make money somehow, and if they're not making money from the spread, they need to make it from other fees or charges.
Regarding the commission structure for RAW spreads, it's important to note that the commission is typically charged per lot, not per trade. So if you open two trading positions of one lot each, you will be charged the commission twice (i.e. $14 in total for IC Markets). The commission structure for RAW spreads can seem expensive compared to other types of accounts, but it's important to consider the overall pricing structure and the quality of the execution.
As for whether the RAW account is suitable for a beginner, it really depends on your trading style and preferences. RAW accounts typically offer tighter spreads and faster execution, but they also require a higher minimum deposit and may have higher trading costs due to the commission structure. It's important to consider your trading goals, risk tolerance, and overall experience level when choosing an account type. It may be helpful to speak with a broker representative or financial advisor to help you make an informed decision.
Keita
Jan 31 2023
Listen, I'm very interested in the RAW account offered by FP and IC Market. Looks very cheap and suitable for scalpers because the spreads are very low. And after all, I think all trading styles will suit this type of account, right?
And after reading the 0.0 spread, I was curious about how a broker can offer a RAW account. Can you explain to me how the broker can offer very low spreads. And what are the advantages of using a RAW account other than low spreads?
Gudjensen
Jan 31 2023
Keita: RAW accounts are offered by ECN brokers (Although there are brokers that are not ECN brokers). (Read here : What are ECN Brokers)
So what is ECN Broker? It is a secondary forex liquidator with access to many of the primary forex liquidators.
So it's basically like I have a connection with the department that has access to the president. So if you want to meet the president, you have to find me first! and you can also meet the president. Meanwhile, the usual broker has a condition like:
If you want to meet the president, you have to find someone who has a relationship with you, all messages from that person will be delivered by this person and forwarded to you, you to the ministry and the ministry to the president.
And we changed the word "president" to the word "Forex". If another broker passes your message through a broker, that broker will forward the message to the ECN broker and the ECN will forward it to the liquidity provider with access into Forex.
Haider Ali
Apr 12 2023
@Keita:Sure, I can help answer your questions about RAW accounts and how brokers are able to offer very low spreads.
Firstly, RAW accounts are offered by brokers who use an ECN (Electronic Communication Network) or STP (Straight Through Processing) model. This means that orders are executed directly in the interbank market without any intervention from the broker. As a result, traders are able to access the raw pricing from liquidity providers and enjoy tighter spreads.
In terms of advantages, RAW accounts offer several benefits to traders. Apart from the low spreads, RAW accounts often come with low commission fees per trade, which can be beneficial for high volume traders. Furthermore, since the orders are executed directly in the interbank market, traders can experience faster trade execution, higher liquidity, and less price manipulation.
However, it's important to note that RAW accounts may not be suitable for all traders, particularly beginners. Since the spreads are variable and may widen during periods of low liquidity or high volatility, traders need to have a good understanding of market conditions and how to manage their trades effectively. Additionally, RAW accounts may require a higher minimum deposit and have stricter margin requirements compared to other account types.
In conclusion, RAW accounts can offer several benefits to experienced traders, particularly those who focus on scalping and high-volume trading. However, beginners should carefully consider their trading goals and experience level before choosing a RAW account, and should always practice proper risk management to minimize potential losses.
Di Maria
Feb 9 2023
Hey there! I've got a question that might pique your interest. So, I was checking out IC Markets' server locations, and guess what? They've got New York for Metatrader and London for cTrader. Now, I can't help but wonder which one is the ultimate champ in terms of being the best and fastest. Is it the New York server for Metatrader, or does the London server for cTrader take the crown? I mean, we all know speed is crucial when it comes to trading, right? So, I'm curious to hear your thoughts. Have you noticed any significant differences in speed and performance between the two server locations? I'm itching to know which one comes out on top and why. Let's dive into the world of server locations and find out!
Darwin
Oct 30 2023
@Di Maria: Hey! In straightforward terms, your server choice boils down to your trading habits and platform preferences. If you find yourself predominantly trading within the United States or favor the Metatrader platform, then the New York server stands as your prime selection for faster trading execution. On the other hand, if your trading focus leans more towards European markets or if you have a particular affinity for cTrader, then the London server is the optimal option to ensure superior performance. Your decision should be guided by your primary trading region and the platform you feel most comfortable using. These servers are strategically positioned to cater to distinct market zones, making it possible for you to swiftly execute trades within your favored trading environment.
bush
Apr 27 2023
I just read that FP Markets has licenses from both ASIC and CySEC. I'm curious about the differences in their trading terms. ASIC is an Australian regulatory body while CySEC is based in Cyprus, right? That's pretty interesting! Anyway, could you explain how the trading terms differ between the two licenses? For example, are there any specific regulations or restrictions that are unique to each license? It would be great to know more about the benefits and drawbacks of each license when it comes to trading with FP Markets. Thanks!
Lidya
Apr 27 2023
@bush: FP Markets is an Australian-based broker that holds licenses from the Australian Securities and Investments Commission (ASIC) and the Cyprus Securities and Exchange Commission (CySEC). The main difference between the two licenses is the level of regulation and protection they offer to traders.
ASIC is the main regulatory body in Australia and has strict guidelines and standards that brokers must adhere to. This includes mandatory segregation of client funds, regular audits, and protection of client funds in the event of the broker's insolvency. CySEC, on the other hand, is the regulatory body for brokers operating in Cyprus, which is part of the European Union. While it also has regulations in place, they are not as strict as ASIC's, and there have been instances of CySEC-regulated brokers engaging in unethical practices.
As an Australian, it is important to choose a broker that is regulated by ASIC to ensure the highest level of protection for your funds. FP Markets' ASIC license means that they adhere to strict standards and guidelines, giving you peace of mind while trading.
Rayson
Jun 1 2023
Hey there! Could you explain the significance of the commission per round lot? How does it impact the overall cost of trading? By understanding this commission structure, traders can accurately calculate their expenses and assess the profitability of their trades. It allows them to factor in transaction costs when determining their potential gains or losses, giving them a clearer picture of their trading performance.
Furthermore, does the commission per round lot vary across different brokers? If so, how can traders leverage this information to their advantage? Are there specific trading strategies or considerations that traders should keep in mind based on the commission per round lot? For example, does a lower commission per round lot automatically make a broker more favorable, or are there other factors to consider?
In addition, it would be insightful to understand how the commission per round lot relates to the trading volume. Are there any volume-based discounts or incentives that brokers offer? How can traders capitalize on such offers to optimize their trading costs?
Powell
Jun 4 2023
@Rayson: NO need so formal dude, I can help you to explain about commision per lot but in more way informal style, okay? Hope you understand it!
The commission per round lot is a big deal when it comes to trading costs. When you're trading stocks, forex, or commodities, brokers usually charge a commission for each standard-sized trade. This commission directly affects how much trading actually costs you.
Basically, the commission per round lot adds an extra fee on top of other charges like spreads. It can eat into your profits or increase your losses, so it's a big deal. If the commission is high, it can really take a chunk out of what you make, especially if you're doing a lot of trading or dealing with big positions. On the flip side, if the commission is low, your overall trading costs go down, and you get to keep more of your gains.
You gotta think about the commission based on your trading strategy and how much you plan to trade. If you're an active trader or handling a big volume of trades, even a small difference in commission can have a major impact on what you end up paying.
haytam
Nov 24 2023
Hey dude, I want to ask something about the Raw Spread. What I know, the Raw spread, it's like the spread is next to nothing, almost free, and you're mainly dealing with commissions. Cool, right? But then I stumbled upon this article doing a face-off between IC Markets and OANDA, and bam, things seem a bit different.
Now, here's the head-scratcher: why are raw spreads different from one broker to another? What's the deal behind these variations, and should we assume the lower the spread, the better the deal for us traders? It's like a spread mystery I'm trying to crack. Any insights?
Yogie
Mar 31 2024
Hey! Just giving this another shot since there hasn't been any response yet, and I'm feeling curious too. So, hey buddy, I've got a question about Raw Spread. From what I gather, Raw Spread means the spread is crazy tight, almost non-existent, and you're mostly dealing with commissions. Sounds pretty sweet, right? But then I stumbled upon this article comparing IC Markets and OANDA, and whoa, things seem a bit off.
Now, here's what's bugging me: why do raw spreads vary from one broker to another? What's the deal with these differences, and can we assume that the lower the spread, the better the deal for us traders? It's like a spread puzzle I'm trying to solve. Any thoughts on this?
Helga
Apr 5 2024
About your question, the variation in raw spreads between different brokers can be attributed to several factors. Each broker may have different relationships with liquidity providers, which can affect the spreads they offer. Additionally, brokers may have varying cost structures and profit margins, leading to differences in the spreads they provide to traders.
While a lower spread generally indicates a better deal for traders, it's essential to consider other factors as well, such as the quality of execution, trading conditions, and overall reliability of the broker. Sometimes, a broker with slightly higher spreads may offer better overall trading conditions, including faster execution speeds or more reliable customer support. Hope it can help!