IC Markets and Pepperstone are Australian brokers, but they have a few key differences, especially in the spread they offer. Let's check the spread comparison between IC Markets and Pepperstone.

Both IC Markets and Pepperstone are considered to be two of the most trustworthy forex brokers in the business. Both of these companies offer a variety of trading services to traders all over the world. Both of these brokers are well-known for having low spreads, which makes them an appealing choice for traders who are interested in minimizing the costs associated with their trading. As a direct consequence of this, a significant number of traders find it difficult to consider one broker over the other. In this piece, we will examine the spreads provided by both brokers in great detail and then compare those spreads across a number of other asset classes.

ic markets spread


Forex Trading Spreads

IC Markets and Pepperstone are well-known for offering low-cost trading options, especially in terms of spreads. Both brokers provide a raw spread account with commission-based pricing, which means traders are charged a commission on each trade in addition to the raw spread of the currency pair they are trading. This pricing model offers traders transparency and allows them to see exactly what they are paying for each trade, making it easier to manage their trading costs.

When it comes to forex spreads, IC Markets has some of the lowest spreads in the market. The minimum spread for major currency pairs is 0 pips, and the average spread for EUR/USD is 0.02 pips. The minimum spread for major currency pairs at Pepperstone is also 0 pips, but the average spread for EUR/USD is 0.16 pips. It is worth noting that both brokers have extremely tight spreads, allowing traders to execute trades at a lower cost.

However, in terms of the average spread for EUR/USD, IC Markets has a slight advantage over Pepperstone, which may be an important factor for traders who frequently trade this currency pair.


Commodity Trading Spreads

Commodities are available for trading at IC Markets and Pepperstone, and both brokers offer minimal spreads on these securities. In terms of Brent crude oil futures, IC Markets has a relatively competitive minimum spread of 0.02 pips. At IC Markets, the average spread for Brent crude oil futures is 0.028 pips, which is smaller than the industry average. Nevertheless, for Brent crude oil futures, Pepperstone has a minimum spread of 0.03 pips and an average spread of 0.034 pips. Although Pepperstone's average spread is slightly greater than IC Markets', it is still a highly competitive product.

IC Markets has a modest advantage over Pepperstone in terms of other commodity futures contracts, with somewhat lower spreads for cocoa, soybeans, and wheat. As a result, IC Markets is a superior option for traders searching for cheaper trading expenses on these assets.

Overall, both IC Markets and Pepperstone provide traders with a diverse range of commodities and highly competitive spreads. While IC Markets has a tiny advantage in terms of lower spreads on particular commodities, both brokers offer highly competitive pricing on all commodities. Traders wishing to trade commodities with a low-cost broker will find IC Markets or Pepperstone appealing.


Index Trading Spreads

In addition to forex and commodity trading, both IC Markets and Pepperstone also offer trading in major indices. With the popularity of index trading increasing over the years, it is important for brokers to provide clients with competitive spreads. Both brokers offer tight spreads on index trading, but there are slight differences in the spreads offered.

IC Markets' minimum spread for the US Wall Street 30 index is 1.0 pips, which is the same as Pepperstone's minimum spread. However, IC Markets' average spread for the US Wall Street 30 index is 1.411 pips, which is slightly lower than Pepperstone's average spread of 1.49 pips. This indicates that IC Markets may be a slightly better option for traders who frequently trade the US Wall Street 30 index.

For other major indices such as the Germany 40 index and the US SPX 500 index, IC Markets once again has slightly lower average spreads than Pepperstone. IC Markets' average spread for the Germany 40 index is 0.9 pips, while Pepperstone's average spread is 1.0 pips. Similarly, IC Markets' average spread for the US SPX 500 index is 0.3 pips, while Pepperstone's average spread is 0.4 pips. These small differences in average spreads may not make a significant impact on a trader's bottom line, but it is worth noting that IC Markets' spreads are slightly more competitive for index trading.

It's important to keep in mind that spreads can change depending on market conditions. During periods of high volatility, spreads can widen significantly. It's important for traders to keep track of market conditions and adjust their trading strategies accordingly. Both IC Markets and Pepperstone offer traders economic calendars and other tools to stay updated with the latest market news and events.


Precious Metals Trading Spreads

Both IC Markets and Pepperstone provide low precious metal spreads, which is especially appealing to traders who like to invest in safe-haven assets such as gold and the US dollar. The minimal spread for gold vs the US dollar at IC Markets is 0 pips, which implies that traders may execute transactions without incurring any additional costs owing to spreads. The average spread for gold at IC Markets is 1.083 pips, which is somewhat lower than the average spread at Pepperstone, which is 1.3 pips.

Spreads for other precious metals, such as silver and platinum, are likewise quite competitive in IC Markets. Silver's minimum spread vs the US dollar is 0 pips, with an average spread of 0.101 pips. The smallest spread for platinum is 0 pips, with an average spread of 4.836 pips. In comparison, the minimum spread for silver at Pepperstone is 0.2 pips, with an average spread of 0.204 pips. The lowest spread for platinum at Pepperstone is 5.0 pips, with an average spread of 5.177 pips. As a result, IC Markets has an advantage over Pepperstone in terms of offering cheaper spreads for precious metal trading.

Overall, both brokers provide narrow spreads and reasonable pricing across a wide range of asset classes, making them both appealing to traders. Traders looking for low spreads might look into IC Markets, which has slightly lower spreads in most asset classes. However, before choosing a broker, traders should evaluate other variables such as trading platforms, regulations, and customer service.


Overall Comparison

Both IC Markets and Pepperstone offer very competitive spreads across various asset classes. IC Markets has a slight edge in terms of average spreads for major forex pairs, as well as for some commodities, indices, and precious metals. However, traders should also consider other factors such as trading platforms, regulatory oversight, and customer support when choosing a broker.

IC Markets offers traders access to a wide range of trading platforms, including the popular MetaTrader 4 and 5 platforms, as well as cTrader. The broker is also regulated by the Australian Securities and Investments Commission (ASIC), the Financial Services Authority (FSA) of Seychelles, and the Cyprus Securities and Exchange Commission (CySEC). Customer support is available 24/7, with a dedicated team of professionals available to answer any questions or concerns.

Pepperstone also offers a wide range of trading platforms, including MetaTrader 4, MetaTrader 5, and cTrader. The broker is regulated by the Australian Securities and Investments Commission (ASIC) and the Financial Conduct.

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As Australian brokers, which is better, IC Markets or Pepperstone? Find the answer in the article IC Markets Vs Pepperstone, Which is the Better Australian Broker?