Looking for the right broker for your day trading needs? This article compares two popular options, FP Markets and IC Markets, to help you make an informed decision
As a trader, it is imperative that you strive to attain maximum trading results and profits from every position you take. One of the most popular trading strategies to achieve this goal is day trading, where positions are opened and closed within the same day. Day trading offers traders the opportunity to avoid the risks associated with longer periods of holding positions, thereby enabling them to receive trading results in a shorter period of time. However, to execute day trading successfully, certain important factors must be taken into consideration.
One of the critical factors is the right forex broker. The importance of choosing the right forex broker cannot be overstated because they act as a bridge between traders and the forex market. Opting for the appropriate forex broker can significantly help traders achieve their trading objectives more efficiently and expeditiously. Conversely, choosing the wrong broker can impede trading effectiveness and yield suboptimal results.
FP Markets and IC Markets are two popular options for day trading. Both brokers offer excellent trading conditions that could assist traders in achieving their trading goals, but this article will take a more in-depth look at the two brokers, comparing their key differences to enable you to decide which one would be a better fit for your day trading needs.
Introduction to FP Markets
FP Markets is a well-respected and established CFD and forex broker that has been operating in the industry since 2005. The broker has a strong presence in the market with headquarters in three countries - Australia, Cyprus, and South Africa. Over the years, FP Markets has built a reputation for providing high-quality trading services to more than 4 million traders globally.
One of the key factors that set FP Markets apart from other brokers is its regulatory compliance. The broker is regulated by ASIC with license number 286354, CySEC with license number 371/18, and FSCA (South Africa) with license number 50926. This ensures that the broker adheres to strict industry standards and offers a safe and secure trading environment for its clients.
FP Markets offers an extensive range of trading products, including more than 10,000 CFD products, with raw spreads starting at 0.0 pips. The broker sources its raw pricing directly from top-tier liquidity providers which allow clients to access a large liquidity pool of regulated financial institutions. The broker offers a diverse mix of liquidity and aggressively competitive pricing, making it an attractive choice for traders of all levels.
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.
Introduction to IC Markets
IC Markets is an established broker that has been providing forex and CFD trading services to over 4 million clients since 2007. The broker has headquarters in several countries worldwide, including Australia, Cyprus, Bahamas, China, Hong Kong, India, Indonesia, Russian Federation, Spain, Thailand, Turkey, United Arab Emirates, and the United Kingdom. With such a global presence, IC Markets can provide its services to traders from different parts of the world.
IC Markets is a licensed and regulated broker, and its compliance is evident through the licenses it holds. The broker is regulated by ASIC ACN 123 289 109, CySEC 362/18, SCB SIA-F214, and The Financial Commission 25.11.2021. These regulatory bodies ensure that the broker adheres to strict industry standards and provides a secure and transparent trading environment.
For algorithmic traders or scalpers, IC Markets is an excellent choice as it offers low trading costs, high leverage, low latency connectivity, and superior liquidity. The broker also provides three copy trading services that facilitate social trading, while beginner traders benefit from a high-quality educational platform and 24/7 customer support.
IC Markets is an online forex broker operating under the company of International Capital Markets Pty Ltd. Traders under the Australian jurisdiction are provided with the trading service of IC Markets AU that is headquartered in Australia and licensed by the Australian Securities and Investments Commission (ASIC).
On the other hand, non-Australian traders who open an account in this broker are registered under IC Markets SEY that is based in Seychelles, and regulated under the Seychelles Financial Services Authority (SFSA). The dual operation is a result of the relatively new rules from ASIC that prohibit their regulated broker to offer trading services outside Australia.
Classified as an ECN broker, IC Markets provide clients with MetaTrader 4, MetaTrader 5, cTrader as platform trading options. This broker also follows market trends to include Cryptocurrencies as one of its products, enriching its already wide selection of trading assets that include Currencies, Indices, Metals, Energies, Softs, Stocks, as well as Bonds.
The minimum deposit in IC Markets is in the middle range compared to other ASIC-regulated brokers, as it reaches $200 for every client. Market analysis materials are also prepared regularly for trading insights on IC Markets's official website, proving their competence to serve their traders with important contents created by market experts that work specifically for them.
For payment methods, IC Markets allows funding and withdrawal via wire transfer, credit card, PayPal, Skrill, Neteller, FasaPay, UnionPay, as well as Bitcoin via BitPay. The more interesting aspect from this broker is its multi-base currencies that include USD, AUD, EUR, GBP, SGD, NZD, JPY, CHF, HKD, and CAD.
As the trading technology in IC Markets is highly equipped with co-located servers and extremely low latency (especially on cTrader), the broker is widely known for its capability in hosting traders with the special needs for high-frequency trading as well as scalping.
To sum up, IC Markets is a fitting destination for active traders looking for a well-regulated broker. IC Markets is also flexible in terms of base currency and payment methods, signaling their commitment to welcome traders beyond their home country. As of late 2019, IC Markets provided their website in 18 international languages including English, Korean, Indonesian, French, Spanish, Italian, Malay, German, and Chinese.
6 Aspects to Choose Brokers for Day Trading
Both FP Markets and IC Markets are reputable brokers and offer good trading conditions for day trading. However, when it comes to choosing between the two, there are certain factors that need to be considered.
Spread
When choosing a broker for day trading, one of the factors to consider is the offered spread conditions. In simpler terms, spread refers to the difference between the buying and selling prices of a currency pair, and it is an important consideration for day traders as it can impact trading costs and profits significantly.
Given the importance of spreads in day trading, it is essential to find a broker that offers low spreads. Lower spreads can help day traders reduce their trading costs, which in turn can lead to increased profits. It is noteworthy that IC Markets stands out in this regard because it offers lower spreads compared to its counterparts. For instance, the average spread on the EUR/USD for IC Markets' standard account is around 0.62 pips while FP Markets' is around 1.2 pips.
Commission
Trading commission refers to the cost that a trader incurs every time they open or close a trading position, and it is an essential consideration because it can significantly impact a day trader's profitability. Therefore, it is essential to find a broker that charges lower trading commission fees to maximize profits.
Each broker has its own policies when it comes to setting trading commission fees, which can vary based on factors such as the type of trading account, the type of market traded, or even the specific financial instruments traded. It is crucial to understand these policies thoroughly to make an informed decision when choosing a broker.
In terms of trading commission, both FP Markets and IC Markets offer commission-free cost structures, but these structures can still be expensive, with a minimum mark-up of 1 pips or $10 per 1 standard lot. Alternatively, both brokers also offer a commission-based alternative, with FP Markets having an edge over IC Markets in this regard.
While the minimum spread is 0.0 pips at both brokers, FP Markets charges a commission of $6.00 per round lot compared to $7.00 at IC Markets. It is also worth noting that swap rates on leveraged overnight positions and third-party payment processor costs apply at both brokers, and they forward all corporate actions to their clients.
Minimum Deposit
For day traders, it is important to pay attention to the minimum deposit requirement because it can significantly impact their ability to start trading with small capital and take advantage of market opportunities effectively. Day traders often operate in short time frames, and they require flexible and adjustable capital according to their trading needs.
In light of this, FP Markets is a preferred choice for traders with small capital as it offers a lower minimum deposit of $100. This feature allows traders to start trading effectively without having to commit a large amount of capital upfront. Conversely, IC Markets requires a minimum deposit of $200, which may limit access for traders with smaller capital.
Leverage
Leverage is an essential tool that allows traders to control a larger position with a smaller amount of capital, amplifying potential profits. It is expressed in the form of a ratio, such as 1:10, 1:50, 1:100, 1:500, and so on. The first number in the ratio shows the amount that can be traded using the initial capital, while the second number indicates the amount of leverage provided by the broker.
In this aspect, FP Markets and IC Markets are two brokers that stand out as they offer high leverage ratios of up to 1:500, providing traders with significant buying and selling power. With this high leverage ratio, day traders with small capital can potentially earn greater profits.
Trading Platform
In trading activities, the trading platform plays a very important role in the success of traders. A reliable and efficient trading platform can help traders analyze the market with ease, place orders accurately, and monitor open positions. Therefore, it is vital for forex brokers to offer a well-designed and user-friendly trading platform to their clients.
FP Markets and IC Markets, both renowned multi-asset brokers based in Australia, recognize the importance of a robust trading platform. They provide upgraded versions of the popular MT4/MT5 platforms to their clients, which are widely used by traders worldwide.
In addition to MT4/MT5, FP Markets has its proprietary trading platform, IRESS, which offers advanced trading tools and features for traders. IC Markets, on the other hand, offers the ECN trading platform, cTrader, which provides lightning-fast execution speeds and a variety of advanced trading tools.
Both brokers also offer MAM/PAMM accounts that support retail account management, and VPS hosting services for automated traders. All these features make FP Markets and IC Markets attractive options for traders looking for a robust and user-friendly trading platform.
Trading Instruments
Day traders need to consider the variety of trading instruments when choosing the best broker because the more trading instruments a broker provides, the more opportunities they have to identify and capitalize on profitable trades.
FP Markets provides 60 currency pairs, five cryptocurrency pairs, and ten commodities for trading. MT4/MT5 traders can access 54 equity CFDs and 15 index CFDs, while clients with an IRESS account can trade more than 10,000 equities.
On the other hand, IC Markets offers 61 currency pairs, ten cryptocurrency pairs, and 22 commodities, along with four futures contracts. Equity traders at IC Markets have access to 730+ instruments and 25 index CFDs. Additionally, IC Markets provides 11 bond CFDs.
While FP Markets offers clients more equities, IC Markets offers an overall more balanced mix of trading instruments to all traders, regardless of their location.
So, FP Markets or IC Markets?
| Features | ||
| 🔢Spreads | 1.2 pips | 0.62 pips |
| 💸Commissions | $6.00 per round lot | $7.00 per round lot |
| 💰Minimum deposit | $100 | $200 |
| ⚖Leverage | Max 1:500 | Max 1:500 |
| 💻Trading Platform | MT4, MT5, IRESS | MT4, MT5, cTrader |
| Trading Instrument | 60 currency pairs, 5 cryptocurrency pairs, 10 commodities | 61 currency pairs, 10 cryptocurrency pairs, 22 commodities, 4 futures |
In light of the aforementioned details, one may infer that FP Markets and IC Markets have distinctive benefits that cater to the needs of day traders. Taking into account the overall assessment, both brokers can prove to be an appropriate option for traders who aim to implement day trading strategies.
It is evident that FP Markets surpasses IC Markets in two key aspects: minimum deposit requirement and lower commissions. The minimum deposit starting from $100 offered by FP Markets makes it an apt choice for traders with limited capital. Moreover, the commission charged per round lot of $6 is more competitive than IC Markets. These features can significantly benefit day traders who want to minimize their trading expenses and optimize their trading results.
On the other hand, IC Markets holds an advantage in terms of tighter spreads and a wider ion of trading instruments. With 61 currency pairs, 10 cryptocurrency pairs, 22 commodities, and 730+ equity CFDs, IC Markets provides a comprehensive mix of trading assets that can increase the potential for traders to identify profitable entry and exit points in various markets. Furthermore, IC Markets' smaller spreads can help traders reduce their transaction costs and maximize their profit margins.
IC Markets and FP Markets are not only comparable for their day trading conditions but also for the way they present mobile trading apps. How so? Check it out in IC Markets or FP Markets App, Which One to Choose?
13 Comments
May 22 2023
Hey there! I've been involved in the forex market for years, and I'm currently in a dilemma choosing between FP Markets and IC Markets. Both brokers are based in Australia, boasting over 4 million clients each, and have established themselves since 2010, operating for a considerable amount of time. Interestingly, I've had the opportunity to try out both brokers and found that there isn't much of a noticeable difference between them.
In my quest for more information, I came across this article that delves into the comparison between the two brokers. As a day trader, it's crucial for me to find a broker that aligns well with my trading style. While reading the article, one aspect caught my attention: algorithmic trade. Despite my years of experience in forex, I must admit that I'm not familiar with this type of trading. I'm curious to learn more about algorithmic trade itself and understand why it necessitates high-speed execution and lower spreads. It would be fantastic if someone could provide insights and shed light on algorithmic trade. Thank you in advance for any guidance you can offer!
May 24 2023
@Brian Joshua: Algorithmic trading, also known as algo trading or automated trading, involves using computer algorithms to execute trades in financial markets. T
Now, let's talk about why high-speed execution and lower spreads are crucial for algorithmic trading. In this type of trading, algorithms are designed to capitalize on small price discrepancies and fleeting market opportunities. These opportunities can arise and vanish within a matter of seconds or even milliseconds.
To take advantage of these fleeting opportunities, algorithmic traders require high-speed execution. They need their trades to be executed swiftly to ensure they can enter and exit positions at the desired price levels. Even a slight in execution can result in missed opportunities or less favorable trade outcomes.
Additionally, lower spreads are essential because they directly impact the profitability of algorithmic trading strategies. Tighter spreads mean lower transaction costs for traders, allowing them to maximize their profit potential.
For algorithmic traders who frequently execute a large number of trades, even a small difference in spreads can have a significant impact on their overall profitability. Lower spreads enable them to capture smaller price movements and generate profits more consistently execution speeds, and the ability to utilize high leverage allows algorithmic traders to optimize their strategies and potentially achieve better results.
Algorithmic trading, also known as algo trading or automated trading, involves using computer algorithms to execute trades in financial markets. T
Now, let's talk about why high-speed execution and lower spreads are crucial for algorithmic trading. In this type of trading, algorithms are designed to capitalize on small price discrepancies and fleeting market opportunities. These opportunities can arise and vanish within a matter of seconds or even milliseconds.
To take advantage of these fleeting opportunities, algorithmic traders require high-speed execution. They need their trades to be executed swiftly to ensure they can enter and exit positions at the desired price levels. Even a slight in execution can result in missed opportunities or less favorable trade outcomes.
Additionally, lower spreads are essential because they directly impact the profitability of algorithmic trading strategies. Tighter spreads mean lower transaction costs for traders, allowing them to maximize their profit potential.
For algorithmic traders who frequently execute a large number of trades, even a small difference in spreads can have a significant impact on their overall profitability. Lower spreads enable them to capture smaller price movements and generate profits more consistently execution speeds, and the ability to utilize high leverage allows algorithmic traders to optimize their strategies and potentially achieve better results.
That's why, IC Market can be used by them!
May 26 2023
When it comes to IC Markets, I find myself particularly intrigued because I recently came across their IRESS platform, which seems to offer unique features. On the other hand, FP Markets offers cTrader, which differs from other trading platforms like MetaTrader. However, I wish I had known about cTrader earlier. Now, I'm curious to learn more about the benefits of using IC Markets' IRESS platform. Could you please explain what advantages one can gain from using IRESS that may not be available on other trading platforms? I'm eager to understand the distinctive qualities of IRESS and how they contribute to a more advantageous trading experience
Jun 1 2023
@Yosua: Hey there! Let me break it down for you.
First off, IRESS offers direct market access (DMA), which means you can connect straight to the market. That means real-time prices, depth of market (DOM) data, and placing orders directly with liquidity providers. It's like cutting out the middleman and getting your trades executed faster with potentially tighter spreads. How good is that?
But wait, there's more! IRESS has some killer charting features. You get a bunch of charting tools, indicators, and drawing tools to do your technical analysis like a pro. Customize your charts, apply different strategies, and spot those trading opportunities with ease. It's like having your own charting playground, mate!
And here's the kicker - IRESS gives you a range of order types to play with. Market orders, limit orders, stop orders, you name it. It's all about having more control over your trades and executing your strategies like a boss. Whether you're into quick scalping or long-term investing, IRESS has got your back.
And let's not forget about the user-friendly interface. It's smooth sailing, mate! Easy to use, navigate, and manage your positions. You can keep an eye on the market, track your orders, and make moves without any hassle. It's like riding a wave with style. (you can read about IRESS in here : What is IRESS)
Jun 16 2023
When it comes to trading, what are the key differences and advantages between using a mobile device and a desktop computer? In terms of convenience and accessibility, how does trading on a mobile platform compare to using a desktop platform? Are there any limitations or potential challenges that traders may face when using a mobile trading app? On the other hand, how does trading on a desktop platform offer unique benefits and features that may enhance a trader's experience? In the case of FP Markets and IC Markets, what specific trading platforms do they offer, and what are the notable features and tools that set them apart from other brokers?
Jun 19 2023
@Arhan: Trading on a mobile platform is super convenient, man. You can make trades and monitor the markets on the go, whether you're chilling at a café or taking a break from surfing. It's all right there in your pocket!
But, bro, keep in mind that trading on a mobile app does have its limitations. The smaller screen size might make it a bit tricky to analyze complex charts and indicators, and some features available on desktop platforms might be scaled down or not available at all. So, if you're all about in-depth analysis and using advanced trading tools, a desktop computer might be more up your alley.
Trading on a desktop platform offers some rad benefits, man. With a bigger screen and more computing power, you can have multiple charts open, use complex indicators, and run advanced trading strategies. FP Markets and IC Markets offer desktop platforms like MetaTrader 4 (MT4) and MetaTrader 5 (MT5), which are industry-leading platforms known for their robust features and customization options. These platforms allow you to delve deep into market analysis, automate your trades, and even use expert advisors.
About FP Markets, their IRESS platform is another noteworthy option, especially for traders who want direct market access and advanced order types. It's designed for professional traders looking for a comprehensive trading experience.
As for IC Markets, they offer cTrader, a platform known for its lightning-fast execution and advanced charting capabilities. It's a favorite among traders who value speed and precision in their trades.
So, bro, it ultimately boils down to your trading style and preferences.
Jun 18 2023
When it comes to day trading, it's important to consider the variety of trading instruments offered by a broker. FP Markets provides a range of currency pairs, cryptocurrencies, commodities, equity CFDs, and index CFDs, while IC Markets offers a diverse ion of currency pairs, cryptocurrencies, commodities, futures contracts, equity instruments, index CFDs, and bond CFDs. In your opinion, why is it crucial for day traders to have access to a wide range of trading instruments? How does the availability of multiple instruments enhance their ability to identify and capitalize on profitable trades? Can you shed some light on the advantages of having a more balanced mix of trading instruments, as provided by IC Markets, compared to a focus on specific instruments, as offered by FP Markets? Thank you for sharing your insights
Jul 14 2023
@Bernard: In my opinion, having access to a wide range of trading instruments is important for day traders because it gives them more opportunities to find profitable trades. Different instruments have different price movements, so having more options allows traders to adapt to changing market conditions. It also helps to spread the risk because if they only focus on a few instruments and those don't perform well, they could miss out on potential profits. With a balanced mix of instruments, traders can take advantage of different trends and strategies across various markets. In comparison, if a broker offers a limited ion of instruments, traders may have fewer options and may miss out on potential trading opportunities. So, having access to a variety of trading instruments gives day traders more flexibility, better risk management, and increased chances of finding profitable trades.
Jul 14 2023
What is the significance of having a wide variety of trading instruments available with brokers like FP Markets and IC Markets? I noticed that both brokers offer an extensive ion of currency pairs, cryptocurrencies, commodities, and other instruments. How does the availability of numerous trading instruments enhance a day trader's ability to identify and capitalize on profitable trades? Are there specific advantages to having access to a larger number of equity CFDs, index CFDs, and other instruments, as provided by these brokers? In other words, why is it beneficial for day traders to have a diverse range of instruments to choose from when ing a broker?
Oct 26 2023
@Justin: Let me put it in simpler terms. Having a wide range of trading instruments available through brokers like FP Markets and IC Markets is incredibly valuable for day traders. Let's delve into why this variety of instruments boosts a day trader's capacity to spot and profit from trades. To start, a greater number of trading instruments equates to more opportunities. Various assets tend to react differently to market conditions and news. Day traders can explore prospects in multiple asset categories like forex, cryptocurrencies, commodities, stocks, and indices. This flexibility allows them to find profitable setups even when one market is slow or unfavorable.
Moreover, this diversity of instruments also enhances risk management. Day traders can distribute their risk across a mix of assets, reducing their vulnerability to sharp fluctuations in a single market. This diversification serves as a safeguard, shielding their capital from substantial losses.
Oct 22 2023
After reading the article I've been drawn to FP Markets, primarily due to its appealing feature of an exceptionally low minimum deposit requirement for trading. This facet provides an attractive prospect for traders operating on a tight budget. I must acknowledge the allure of commencing trading with just a mere $100 at FP Markets.
However, my enthusiasm is somewhat dampened by information I've come across in various articles. These sources have underscored the inherently higher risks associated with day trading in comparison to the more measured approach of swing trading. This newfound knowledge has sparked genuine concerns about the trading strategy I should adopt as a beginner with limited funds.
This juxtaposition of FP Markets and IC Markets' offerings comes into play. FP Markets has a clear advantage with its lower minimum deposit requirements and reduced commissions. The prospect of initiating trading with just $100 at FP Markets is undeniably attractive, particularly given my limited financial resources.
Consequently, I find myself at a crossroads. Should I embrace the enticing yet riskier realm of day trading, capitalizing on FP Markets' accessible entry point? Or should I opt for the less perilous waters of swing trading, as some experts recommend for novice traders, even if it entails a larger initial investment?
Mar 22 2024
The information suggests that IC Markets has a competitive edge due to its narrower spreads and a broader selection of tradable instruments. With 61 currency pairs, 10 cryptocurrency pairs, 22 commodities, and over 730 equity CFDs, IC Markets offers a diverse array of trading assets. This extensive range presents traders with ample opportunities to pinpoint lucrative entry and exit points across different markets.
I'm curious about the benefit of having access to such a vast range of assets offered by this broker. Realistically, it seems daunting to trade such a large number of products. Don't you think?
Mar 24 2024
YES! IC Markets offers a vast selection of trading options, including 61 currency pairs, 10 cryptocurrency pairs, 22 commodities, and over 730 equity CFDs. This variety is great because it gives traders the chance to explore different markets and potentially find profitable opportunities across various asset classes.
But yeah, you're totally right to wonder if it's practical to trade all of these assets. It does sound a bit overwhelming, doesn't it? Most traders actually stick to a handful of assets that match their trading strategy, risk tolerance, and expertise in the market. So, while having access to a wide range of assets is awesome, I think, it's crucial for traders to narrow down their focus to the ones that really fit their trading goals and skills.