IC Markets standard account vs raw spread (2024)

IC Markets is a highly reputable and well-established Australian forex and CFD broker. With over a decade of experience in the financial markets, the company has gained prominence as a trusted provider of trading solutions. IC Markets offers a comprehensive range of products and services tailored to the needs of both novice and experienced traders. One of the key differentiators of IC Markets lies in its multiple account types, catering to diverse trading preferences and strategies.

In this article, we will delve into the intricacies of IC Markets' Standard Account and Raw Spread Account, comparing their key features, advantages, and disadvantages to empower traders in making informed decisions. Whether you are new to forex trading or an experienced trader looking for a reliable broker, understanding the differences between these two account types can help you choose the one that best suits your trading needs.

Understanding Standard Accounts

Standard Accounts, as the name suggests, are a common account type offered by many forex brokers. They adhere to a traditional pricing model that includes a spread, which is the difference between the bid and ask prices. The spread compensates the broker for its services in facilitating trades. Standard Accounts are renowned for their simplicity and ease of use, making them suitable for individuals new to forex trading.

Key Features of Standard Accounts

• Simplicity: Standard Accounts are straightforward and easy to understand, eliminating the complexities associated with other account types.
• Wider Spreads: Compared to Raw Spread Accounts, Standard Accounts generally have wider spreads. This means that the difference between the bid and ask prices is higher, resulting in higher trading costs for the trader.

Pros and Cons of IC Markets Standard Account

Pros:

• Easy to understand and use, making it suitable for beginners.
• Lower minimum deposit requirement compared to Raw Spread Accounts.
• No commission fees, as the broker's compensation is included in the spread.
• Offers a wide range of trading instruments, including forex, indices, commodities, and cryptocurrencies.

Cons:

• Wider spreads can result in higher trading costs.
• Limited customization options for advanced traders.
• Slippage may occur during high volatility periods.

Exploring Raw Spread Accounts

Raw Spread Accounts, also known as ECN (Electronic Communication Network) Accounts, are a popular choice among experienced traders. Unlike Standard Accounts, Raw Spread Accounts have no mark-up on the spread. Instead, traders pay a commission fee for each trade. This pricing model is often preferred by professional traders as it offers tighter spreads and lower trading costs.

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Key Features of Raw Spread Accounts

• Tighter Spreads: Raw Spread Accounts offer direct access to the interbank market, resulting in tighter spreads compared to Standard Accounts.
• Lower Trading Costs: With no mark-up on the spread, traders only pay a commission fee for each trade, resulting in lower overall trading costs.
• Customization Options: Raw Spread Accounts offer more customization options, such as the ability to set your own bid and ask prices, making it suitable for advanced traders.

Pros and Cons of IC Markets Raw Spread Account

Pros:

• Tighter spreads and lower trading costs.
• More customization options for advanced traders.
• No conflict of interest between the broker and trader, as the broker's compensation comes from the commission fees.
• Offers a transparent pricing model, with real-time market data.

Cons:

• Higher minimum deposit requirement compared to Standard Accounts.
• Commission fees can add up, especially for high-frequency traders.
• Requires a certain level of trading experience and knowledge.

Key Differences Between Standard and Raw Spread Accounts

To summarize, the key differences between Standard and Raw Spread Accounts are:

Standard AccountsRaw Spread AccountsAdheres to traditional pricing modelUses ECN pricing modelWider spreadsTighter spreadsNo commission feesCommission fees applySuitable for beginnersSuitable for advanced tradersLimited customization optionsMore customization options

Choosing the Right Account for Your Trading Needs

When it comes to choosing between Standard and Raw Spread Accounts, there is no one-size-fits-all solution. The right account type for you will depend on your trading style, experience, and preferences. Here are some factors to consider when deciding between the two:

• Trading Strategy: If you are a beginner or prefer a simpler trading approach, Standard Accounts may be more suitable. However, if you have a specific trading strategy that requires tighter spreads, then Raw Spread Accounts may be a better option.
• Trading Frequency: If you are a high-frequency trader, the commission fees associated with Raw Spread Accounts may add up quickly. In this case, Standard Accounts with wider spreads may be a more cost-effective choice.
• Trading Experience: Raw Spread Accounts offer more customization options, making them ideal for experienced traders who want more control over their trades. On the other hand, beginners may find Standard Accounts easier to navigate.
• Market Conditions: During periods of high volatility, such as major news releases or economic events, slippage may occur in Standard Accounts due to wider spreads. Raw Spread Accounts, with their tighter spreads, may be more resilient during these times.

Tips for Maximizing Profits with IC Markets Accounts

Regardless of which account type you choose, here are some tips to help you maximize your profits with IC Markets:

• Take advantage of the educational resources offered by IC Markets, such as webinars, tutorials, and market analysis, to improve your trading skills and knowledge.
• Use risk management tools, such as stop-loss orders, to minimize potential losses.
• Regularly review and adjust your trading strategy to adapt to changing market conditions.
• Keep an eye on economic events and news releases that may impact the markets and adjust your trading accordingly.
• Consider using a combination of both Standard and Raw Spread Accounts to diversify your trading portfolio.

Conclusion: Making an Informed Decision

In conclusion, IC Markets offers two main account types - Standard and Raw Spread Accounts - each with its own unique features and advantages. While Standard Accounts are suitable for beginners and offer simplicity and ease of use, Raw Spread Accounts are preferred by experienced traders for their tighter spreads and lower trading costs.

When deciding between the two, it is essential to consider your trading style, experience, and preferences. By understanding the key differences between Standard and Raw Spread Accounts and considering the factors mentioned above, you can make an informed decision that best suits your trading needs. Remember to also take advantage of the educational resources and risk management tools offered by IC Markets to maximize your profits and minimize potential losses.

Risk disclosure: Information on the Page is for informational purposes only and does not constitute any motive or suggestion to visitors to invest money. Moreover, we hereby warn you that trading on the Forex and CFD markets is always a high risk. According to the statistics, 75-89% of customers lose the funds invested and only 11-25% of traders earn a profit.

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