IC Markets — review of the ECN raw-spread broker for scalpers

IC Markets is a name that keeps coming up in conversations among scalpers and people running automated strategies on the currency market. Founded in 2007 in Sydney, the broker built its brand on one promised strength: a tight, raw spread and fast execution in an ECN model. It sounds attractive, but behind the marketing phrase “raw spread” sits a specific legal structure, a cost model, and an audience for whom it makes sense — plus a sizeable group for whom it does not. Let us break it down the way I break down every broker before I say anything to a client.

Who IC Markets is and where it comes from

IC Markets stands for International Capital Markets. The firm was founded in 2007 in Sydney and from the start positioned itself for the demanding, active trader rather than the occasional weekend dabbler. The ECN (Electronic Communication Network) positioning means, in short, that the broker advertises passing orders through to external liquidity providers instead of quoting its own price as a market maker. That distinction has real consequences for how cost is charged and how execution behaves — and it is worth understanding the difference between an ECN model and a market maker before you trust the label itself. In practice no retail broker is “purely” one or the other, and the word “ECN” gets overused in marketing across the whole industry.

Regulation and safety of funds

This is where the most important part of any broker review begins, because it is not the spread that decides whether you get your money back if things go wrong. IC Markets is not a single company but a group of entities under different licences. International Capital Markets Pty Ltd operates under Australia’s ASIC. IC Markets (EU) Ltd holds a licence from the Cyprus regulator CySEC, number 362/18, which can be checked in the public register of investment firms. Raw Trading Ltd is registered in the Seychelles and holds a licence from the local Financial Services Authority, number SD018. There is also a Bahamas entity supervised by the local securities commission (SCB).

For a European retail client the practical takeaway is this: you will end up either under the Cypriot entity inside the European Union, or under one of the offshore entities. That is not a detail. An account with the EU company means investor protection and the ESMA 1:30 retail leverage cap, a compensation scheme, and a clear complaints path. An account with the Seychelles or Bahamas company may tempt you with higher leverage, but protection is weaker and pursuing a claim is harder. Before you deposit a single euro, read which company is named on your agreement and verify its licence with the relevant regulator.

“Between 74% and 89% of retail investor accounts typically lose money on their investments, with average losses per client ranging from €1,600 to €29,000.” — European Securities and Markets Authority (ESMA), product intervention notice, 2018

Costs: spread, commission and swap

IC Markets offers two main ways of charging cost. The Raw Spread account shows a tight, raw market spread and the broker adds a separate volume-based commission — the classic ECN arrangement. The Standard account has no separate commission, but the spread is wider because the cost is built into it. The broker itself advertises an average EUR/USD spread of roughly 0.1 pips on the Raw Spread account, but treat any such figure as variable over time and check the current pricing page on the broker’s own site rather than taking it on faith.

The most common mistake when comparing brokers is looking at the spread in isolation from the commission. What matters is the full round-turn cost — spread plus commission both ways — calculated for your real trading style. The maths looks one way for a scalper placing dozens of trades a day and quite another for someone who opens one position a week. I break the mechanics of that down separately in the piece on the difference between spread and commission, and separately for scalping itself, where every fraction of a pip really does matter. On top of cost, add the swap points for holding a position overnight — with position strategies they can grow into a meaningful amount.

Platforms and instruments

IC Markets offers three well-known platforms: MetaTrader 4, MetaTrader 5 and cTrader, plus web and mobile versions. MT4 remains the choice for people who have ready-made automated strategies written in the MQL4 language and do not want to rewrite them. MT5 adds more timeframes, more instrument classes and a newer programming language. cTrader appeals to traders who value visible market depth and a transparent order-routing model. If you are torn between the two most popular options for advanced users, a dedicated comparison of cTrader and MT5 helps, because they differ in order-handling philosophy, not just in looks.

The instrument range covers currency pairs, indices, commodities, bonds, and share and crypto CFDs — but the set of available markets depends on the entity and the jurisdiction in which you open the account. That is another reason to check the details for your specific company rather than for the global brochure.

Who IC Markets suits, and who it does not

IC Markets is at its strongest in the hands of an active, informed trader. A scalper catching a few pips and placing many trades a day genuinely benefits from a tight spread and a predictable commission. An algorithmic trader values stable execution and access to platforms that will run their bot. Someone trading on cTrader with market depth gets a tool tailored to that style.

Who is IC Markets less likely to serve? Above all the beginner who is still learning what spread and commission even are. Support is in English, there is no Polish interface or local phone line, and the raw-plus-commission model can confuse you at the start. If you value local-language support and a simpler single-number cost, a domestic broker is a better first choice. IC Markets is worth considering later, once you have a tested, costed style of your own and understand exactly what you are paying for.

Deposits, withdrawals and customer service

IC Markets supports the usual set of payment methods: bank transfer, cards and popular e-wallets, with processing times depending on the method and the entity. Customer service runs around the clock on business days, but in English — and that is a real limitation for someone who prefers to discuss their money in their own language. As with any broker, before your first deposit it is worth going through identity verification (KYC) on a small amount and seeing what a withdrawal actually looks like, before you trust the broker with larger capital.

What to do if you are weighing IC Markets

1. Establish which company you will get. Check the agreement for whether it is the Cypriot CySEC entity or an offshore one — and verify the licence in the appropriate regulator’s register. Your level of protection depends on that, not on the advertising. The broader broker-selection walk-through on forexmechanics.com — choosing a broker is a useful starting point.
2. Calculate the full round-turn cost for your style. Take your real number of trades per month and add spread plus commission together on the Raw Spread account, then compare it with the Standard account. The spread alone is not enough to judge which is cheaper.
3. Pick the platform to match how you trade. An MQL4 bot pulls you towards MT4; a need for market depth, towards cTrader. Style first, tool second.
4. Test a withdrawal on a small amount. Open the account, complete KYC, deposit little and make one withdrawal before deciding on a larger deposit. It is the cheapest credibility test a broker can pass.