Understanding IC Markets Commission Fees
When trading forex, understanding the costs involved is paramount. For traders looking at IC Markets, a key consideration is their commission fees. This page delves into the specifics of IC Markets commission fees, helping you make an informed decision about where to trade.
What are Commission Fees in Forex Trading?
In forex trading, a commission is a fee charged by a broker for executing a trade on your behalf. While some brokers offer commission-free accounts (often compensated through wider spreads), others, particularly those providing ECN (Electronic Communication Network) or STP (Straight Through Processing) access, charge a commission. This commission is typically a fixed amount per lot traded.
IC Markets Commission Structure: Raw Spread Accounts
IC Markets is renowned for its Raw Spread accounts, which offer some of the tightest spreads in the industry. To provide these low spreads, a commission is charged.
* Standard MAMM Account: This account typically has a commission of $3.50 per lot per side, translating to $7.00 round turn. This means you pay $3.50 to open the trade and $3.50 to close it.
* Cent Account: Similar to the Standard account, the Cent account also has a commission of $3.50 per lot per side ($7.00 round turn). The primary difference is that trades are executed in cents rather than standard lots.
These commissions are charged in the base currency of your trading account. For example, if you have a USD-based account and trade 1 standard lot of EUR/USD, the commission will be calculated in USD.
IC Markets vs. Other Brokers: Commission Comparisons
When comparing IC Markets commission fees to other brokers, it's essential to look at the total cost of trading, which includes both spreads and commissions.
| Broker | Account Type | Avg. Spread (EUR/USD) | Commission (Round Turn) | Total Cost (EUR/USD) |
| :----------- | :------------------ | :-------------------- | :---------------------- | :------------------- |
| IC Markets | Raw Spread (Standard) | 0.1 pips | $7.00 | $8.00 |
| Broker B | ECN Account | 0.0 pips | $8.00 | $8.00 |
| Broker C | Commission-Free | 1.0 pips | $0.00 | $10.00 |
*Note: Spreads are indicative and can vary based on market conditions. Commission costs are per standard lot.*
As seen above, while IC Markets charges a commission, their extremely tight spreads often result in a lower *total* cost of trading compared to brokers with wider spreads or higher commissions.
Which IC Markets Account Suits You?
* Raw Spread Accounts (Standard & Cent): Ideal for active traders who prioritise low spreads and are comfortable with a transparent commission structure. The Cent account is excellent for beginners or those testing strategies with smaller position sizes.
* Standard Accounts (Commission-Free): These accounts offer commission-free trading but with wider spreads. They might be suitable for scalpers or traders who prefer not to see explicit commission charges, though the overall cost may be higher.
Why Choose Vantage FX?
For traders seeking the absolute lowest costs and superior execution, Vantage stands out. As the #1 broker for UK forex traders, Vantage offers:
* Raw Spreads from 0.0 pips: Experience true ECN pricing.
* Leverage up to 1:30 (FCA retail cap) (FCA cap): Enhance your trading potential.
* True ECN Execution: Benefit from deep liquidity and fast order fills.
* MT4/MT5/cTrader platforms: Trade on the platforms you know and love.
Discover a superior trading environment with Vantage. Learn more and review an spreads today: Vantage.
Frequently Asked Questions (FAQs)
Q1: When are IC Markets commissions charged?
A: IC Markets commissions are typically charged at the time a trade is opened. The total commission (round turn) is debited from your account when the trade is closed.
Q2: Are IC Markets commission fees different for different currency pairs?
A: The commission is generally a fixed amount per lot for most major currency pairs. However, for exotic pairs or CFDs on indices, commodities, or cryptocurrencies, the commission structure might differ. It's always best to check the specific contract specifications for each instrument.
Q3: Can I trade without paying commissions on IC Markets?
A: Yes, IC Markets offers Standard Accounts that are commission-free. However, these accounts typically have wider spreads compared to the Raw Spread accounts, meaning the cost is embedded in the spread rather than charged as a separate commission.
Conclusion
Understanding IC Markets commission fees is crucial for transparent and cost-effective trading. Their Raw Spread accounts offer competitive pricing for active traders, balancing tight spreads with a clear commission charge. For those prioritising the absolute lowest spreads and ECN execution, exploring alternatives like Vantage is highly recommended. Choose the broker and account type that best aligns with your trading strategy and cost management approach.