Today’s broker comparison is between FXTM and IC Markets. Briefly, FXTM, headquartered in Cyprus and a member of the Mauritius-based Exinity Group, is home to over 3 million clients from 180 countries; it is regulated in Africa, Asia, Europe, and Latin America. In operation since 2011, it established itself as a brokerage which caters primarily to emerging markets. FXTM squares up against Australian broker IC Markets, which has catered to traders since 2007, and enjoys a leadership position in automated trading strategies. Algorithmic trading accounts for over 60% of all trades, supported by raw spread accounts. Both brokers are fully compliant with their regulators and offer a safe and secure trading environment.
This comparison will focus on the following four aspects plus an ultimate verdict:
- Features and Platforms
- Available Markets
- Typical Spreads and Fees
- Security and Trust
- FXTM vs. IC Markets - Verdict
Mauritius Australia CMA, FCA, FSC Mauritius, FSCA ASIC, CySEC, FSA N/A 2011 2010 ECN/STP, Market Maker ECN/STP $200 $200 MetaTrader 4, MetaTrader 5, Proprietary platform MetaTrader 4, MetaTrader 5, cTrader 0.1 pips 0.0 pips ($0.00) 0.2 pips 0.0 pips ($0.00) $0.09 $0.03 $0.18 $0.05 77.00% N/A 0.0 Pips N/A 1.5 pips N/A $0.80 - $4.00 per round lot N/A Visit Website Visit Website
Features and Platforms
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FXTM
Traders may choose between the full suite of MT4 and MT5 trading platforms, as a desktop client, webtrader, or mobile version. A proprietary trading platform, FXTM Traders, is available for mobile phones only. FXTM provides six MT4 plugins; however, third-party upgrades needed to unlock full functionality are not available. Free VPS hosting enhances automated trading, while manual traders may use the in-house developed FXTM Pivot Points Strategy, which is an automated research tool.
New traders have access to a well-thought-through educational section that consists of videos, articles, eBooks, webinars, and seminars. The section confirms FXTM's desire to assist its clients in becoming better traders and is a must-read for new ones. FXTM provides market analysis videos and brief written content as part of its research. The FXTM Loyalty program is a withdrawable cashback program, rewarding high-frequency traders.
The FXTM Loyalty Program complements the competitive trading environment.
IC Markets
IC Markets maintains the desktop client, webtrader, and mobile versions of the MT4, MT5, and cTrader trading platforms. The Advanced Trading Tools suite adds 20 custom plugins to upgrade the MT4 into a powerful terminal, while cAlgo supports the development of trading solutions on cTrader. With an average execution speed of 40 milliseconds and three VPS providers, IC Markets earned the trust of high-frequency and algorithmic traders, which account for over 60% of over 500,000 executed daily orders.
Since 2012, IC Markets has supported portfolio managers via the multi-account manager (MAM), allowing asset management firms to benefit from the excellent trading environment. Social trading, via partnerships with ZuluTrade and Myfxbook Autotrade, is also available. The market analysis blog offers manual traders fresh ideas, while an outstanding educational category, including a 10-lesson course, increases the knowledge-base of new traders.
Available Markets
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Forex traders at FXTM have access to 63 currency pairs, but only eight commodities and four cryptocurrencies. Equity traders enjoy 178 US equity and eleven index CFDs, while 347 US stocks (not CFDs) are additionally available. IC Markets offers 60 currency pairs, 19 commodities, and ten cryptocurrencies. With 153 equity and 23 index CFDs, together with 26 bonds and four futures contracts, IC Markets offers a comparatively better cross-asset diversification opportunity for traders.
Typical Spreads and Fees
0.1 pips 0.0 pips ($0.00) 0.2 pips 0.0 pips ($0.00) $0.09 $0.03 $0.18 $0.05 N/A $12.47 0.0 Pips N/A 1.5 pips N/A $0.80 - $4.00 per round lot N/A N/A N/A $5 monthly after 6 months N/A Visit Website Visit Website
FXTM levies minimum spreads of 1.5 pips in the ECN Zero Account, which is reduced to 1.3 pips in the Standard account. Portfolios above $25,000 (or a currency equivalent) may request a Pro account with spreads as low as 0.0 pips. The ECN MT4 account offers a competitive starting spread of 0.1 pips, but a commission between $4 and $20 will apply. Commission-free CFD trading is available in an unleveraged account. IC Markets grants traders a superior choice, with the Standard account starting with a 1.0 pip spread, and raw spreads in the MT4 and cTrader trading platform with spreads from 0.0 pips and a commission of $7 and $6, respectively. With IC Markets, short-sellers could face a fee if the hedge counterparty charges one.
Swap rates on overnight leveraged positions apply. Corporate actions such as dividends and mergers impact equity and index positions, which both brokers forward to traders. Third-party costs related to withdrawals exist, depending on the payment processor. The overall pricing environment is significantly superior at IC Markets, adding to its dominance in the high-frequency trading space. Through the FXTM loyalty program, traders may lower the final total trading costs.
Security and Trust
Cyprus, Kenya, Mauritius, United Kingdom, South Africa Australia, The Bahamas, Cyprus, Seychelles CMA, FCA, FSC Mauritius, FSCA ASIC, CySEC, FSA 185/12, 777911, C113012295, 135, 46614 335692, SD018, SIA-F214, 362/18 N/A 1, 4, 4, 1 Visit Website Visit Website
FXTM owner Exinity Limited, which also owns Alpari, is regulated by the Financial Services Commission (FSC) of the Republic of Mauritius, from where all international clients trade. Exinity is a member of the Hong-Kong-based Financial Commission, where protection of up to €20,000 per trader is available. Additionally, ForexTime Limited and ForexTime UK Limited operate under the oversight of the Cyprus Securities and Exchange Commission (CySEC) and the Financial Conduct Authority (FCA), respectively. The CySEC entity grants protection under the Cypriot Investor Compensation Fund (CIF) up to €20,00, while the Financial Services Compensation Scheme (FSCS), provides coverage up to £85,000 for UK clients.
The Australian Securities and Investment Commission (ASIC) and the Seychelles Financial Services Authority (FSA), together with the significantly less favorable CySEC jurisdiction, provide the regulatory framework for IC Markets. Adding a deeper layer of security is the professional Indemnity Insurance with Lloyd’s of London and H Savy Insurance in Seychelles. Client deposits are fully segregated at National Australia Bank and Westpac Banking Corporation, while IC Markets is a member of the Australian Financial Complaints Authority (AFCA).
Both brokers offer negative balance protection, are audited by independent external auditors, and are fully compliant with their regulators.
FXTM Vs. IC Markets – Verdict
FXTM and IC Markets both offer a secure and trustworthy trading environment. Both brokers are fully compliant with their regulators and feature an excellent educational section for new traders. The former grants higher leverage, while the latter provides traders with a superior cross-asset selection. A superior upgrade to the MT4 trading platform places IC Markets ahead of FTXM. From a cost perspective, FXTM is significantly more expensive, while IC Markets deploys a very competitive structure. FXTM remains an acceptable choice, with a focus on emerging markets and new retail traders with small deposits. IC Markets offers an overall superior service and is a leader in automated and high-frequency trading. Full support for asset management firms and social traders extend the attractiveness over FXTM further..
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