Spreads on IC Markets vs XM broker may vary depending on the specific account type and market conditions.
Both IC Markets and XM are some of the most well-known forex brokers in the industry. They welcome traders of various trading styles and backgrounds with speedy execution. However, which has the better spread between IC Markets vs XM?
In general, IC Markets may have the lowest spread, but XM is better when it comes to overall fees (spreads and commissions). Nevertheless, spreads offered by forex brokers may vary depending on the specific account type and market conditions. As we could not monitor global spreads fluctuation in real-time, we can only compare the available rules for spreads on IC Markets vs XM broker. Let's study it thoroughly.
What are the spreads on IC Markets?
IC Markets has long been providing some of the tightest spreads among all forex brokers worldwide through their Raw Spread Account. On the MetaTrader and cTrader platforms, raw spreads begin at 0.0 pips. Their average EUR/USD spread, as low as 0.1 pips, is now one of the tightest in the world.
Minimum spreads on IC Markets:
- Raw Spread account (cTrader): 0.0 pips
- Raw Spread account (Metatrader): 0.0 pips
- Standard account (cTrader): 0.6 pips
How did they do that? IC Markets is able to constantly find the best deal for its clients and maintain narrow spreads by combining quotes from up to 25 different liquidity providers. It greatly benefits traders, particularly during periods of extreme volatility like those following high-impact events.
IC Markets' Depth of Market (DOM) also shows the whole range of executable prices directly from level II liquidity providers. It enables complete transparency of each currency pair by displaying the volumes that are currently available for each price level. Meanwhile, low latency and high liquidity ensure the narrowest spreads feasible 24/5.
All of that doesn't come cheap, however. IC Markets charges a commission fee of $3.0 per USD100,000 in cTrader and $3.5 per USD100,000 in Metatrader. It is not the most expensive in the industry, but it is also not the most affordable.
You can choose their Standard Account instead if you don't want to deal with it. IC Markets' Standard Account charges zero commission per lot per side, but spreads are comparably higher, starting at 0.6 pips.
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.
What are the spreads on XM?
XM broker offers three types of trading accounts for forex traders: Micro, Standard, and Ultra Low. Spreads on XM can be as low as 0.6 pips in their Ultra Low account, or as low as 1 pip in Micro and Standard accounts.
All of them are free of commission fees. As such, you may open an account in XM to enjoy cheaper trading costs.
Minimum spreads on XM:
- Micro account: 1 pip
- Standard account: 1 pip
- XM Ultra Low account: 0.6 pips
- Shares account: as per the underlying exchange
Notwithstanding its affordability, it needs to be noted that XM is not an ECN broker and does not provide DOM. It means that XM's environment may be preferable for beginners who will benefit from simpler trading platforms than for more experienced traders who seek better transparency.
Keep in mind that XM's status as a market maker does not make it uncompetitive. Due to its low minimum deposit requirement and competitive pricing, XM remains a favorite for more than 3.5 million clients in over 200 countries.
XM Group is a group of regulated brokers and it is owned by Trading Point Holdings Ltd. Entities under XM Group have significant experience as financial services providers worldwide.
Trading Point of Financial Instruments Ltd was established in 2009 with headquarters in Limassol, Cyprus, Trading Point of Financial Instruments Pty Ltd was established in 2015 with headquarters in Sydney, Australia, XM Global Limited was established in 2017 with headquarters in Belize and Trading Point MENA Limited was established in 2019 with headquarters in Dubai.
XM Group is regulated by the CySEC (Cyprus Securities and Exchange Commission) - Trading Point of Financial Instruments Ltd, FSC (Financial Services Commission) – XM Global Limited, the ASIC (Australian Securities and Investments Commission) - Trading Point of Financial Instruments Pty Ltd and DFSA (Dubai Financial Services Authority) - Trading Point MENA Limited.
XM is one of the more experienced brokers in the world of online forex trading today. Since its founding, the broker has experienced a lot of changes, including the addition of the Ultra-Low Account and Webinar feature that is accommodated in 19 different languages with 35 native instructors for each language.
In terms of trading instruments, XM is a well-known diverse class assets provider, varying from Forex, Commodities, Equity Indices in CFDs, Precious Metals, Energies, to Shares. XM prides itself to be the ideal broker in trading execution, offering a stat of 99.35% orders to be executed in less than 1 second. Trading in XM would be also provided with a strict no requotes policy, no virtual dealer plug-in, no rejection of orders, real-time market execution, and the choice for traders to place orders online or by phone.
Spreads on all majors can reach as low as 0.6 pips in Ultra-Low Account, while spreads on other accounts usually start from 1 pip.
To protect the client's fund in the event of extreme volatility, XM presents each account type with Negative Balance Protection. The deposit starts from $5 in Micro and Standard Account, while Ultra-Low Account requires a minimum deposit of $5. Traders who open accounts in XM are enabled a condition similar to a Cent Account environment in the Micro Account, in which the Contract Size for every lot is only 1,000 units. If it is applied with the smallest lot size in the MetaTrader platform which amounts to 0.01, it means that traders can go as small as 10 units per trade.
For the deposit, XM applies zero-fee deposits in most of its available payment methods. Traders can choose to fund or withdraw their accounts via wire transfer, credit card, as well as the most favorable e-payment choices like Skrill, Neteller, and FasaPay.
To give their clients the best experiment in trading, XM has given access to both MT4 and MT5 platforms, each is available for more than 6 display formats (PC, Mac, Multiterminal, WebTrader, iPad, iPhone, Android, and Android Tablet).
All in all, there is no doubt that XM has gone global with its deep commitment to providing trading services in more than 15 languages around the world. Aside from easing traders' experience with mainstream trading platforms and high-quality trading execution, XM is open to various types of traders, from small capital traders to the more experienced ones with big deposits at the ready. Traders are even provided with a Cent Trading environment should they choose to register under Micro Account.
For their global approach, XM has ensured that traders from various countries could access their service easily. This results in the provision of different domains specified for traders in certain jurisdictions. For example, traders from Indonesia could access XM via this link.
IC Markets and XM equally apply floating spreads on all account types. However, they implement different pricing structures.
IC Markets has the lowest spread, while XM offers cheaper fees overall. Due to this contrast, traders are recommended to choose the one that is most suitable for their trading styles and available capital.
Look over their respective demo accounts to understand how their spreads work in real market environment. It's also crucial to take into account additional aspects before making a choice, including the trading platforms, customer support, and the overall reputation of the broker.