There are many types of Forex Brokers. They all have different rules and regulations prescribed by a financial authority in charge of the broker’s jurisdiction. In this piece of content, we will focus on IC markets, what type of forex broker it is, the services and tools it provides to give clients the best services, does ic markets accept us clients & which clients IC market is allowed to service.
does ic markets accept us clients
Due to CFTC( Commodity Futures Trading Commission) regulation, IC Markets does not accept US clients. The CFTC act was established in 1974. It is an independent federal agency that regulates derivatives markets, including futures contracts, swaps and options in the united states. Its primary objective is to promote competitive and efficient markets and protect investors against market manipulation and financial malpractices.
It is not only clients from the US that IC markets cannot service; potential clients out of the US, specifically from Japan, cannot be accepted due to the JFSA(Japanese Financial Services Agency)regulation.
Even though the answer of “does ic markets accept us clients” is big NO. But, investors can follow specific protocols to surpass regulation and be accepted as clients by IC markets. However, it is not always advisable. For example, registering an offshore investment company is one of the procedures followed by investors who want access to financial services that cannot be accessed from their home countries.
What is IC Markets
IC Markets is a True ECN broker. Its’s mission is to create the best retail trading experience for retail and institutional clients alike, allowing forex traders to focus more on their trading.
To get into the detail of how an ECN(Electronic Communications Networks) broker operates, these types of brokers are forex experts that directly link Buyers and Sellers in the Market, using computer-based programs, they connect retail forex investors with major brokerages to create a seamless environment for forex transactions to take place.
ECN brokers are the best brokers for forex traders who are looking to make the most out of their trading experience because they do not have any conflict of interest against their clients, unlike Dealing Desk brokers, who are ultimately the opposite of ECN brokers.
Advantages and disadvantages of ic markets
|Advantages of IC markets||Disadvantages of IC markets|
|Low bid and ask spreads||Does not accept US Clients|
|Flexibility/longer trading hours||High minimum deposits|
|Speed/fast transactions||There are many interactive brokers. Unfortunately, our study doesn’t find ic markets in that list.|
|Flat commission rates/lower cost to trade|
|24/7 customer support|
|Retail investor accounts are safe on ic markets|
IC markets review
The Minimum deposit For the IC market starts at as low as $200, which is higher than other brokers. On the positive side, a good tool for beginners is the Demo Account facility which allows beginners to start forex trading without depositing any money and gather the experience without spending a cent out of their pocket. Ic markets provide unlimited time duration for practising on ic markets demo account. You can practice trading numerous currency pairs with ic markets MetaTrader until you get confident.Many local and exotic currency pair is also available on ic markets.
IC markets Account type
There are three types of forex trading accounts currently on offer for IC market clients: The cTrader account, the Raw Spread trading account, and the standard account. Moreover, there’s an added option of a Shariah-compliant Islamic feature on any of the three aforementioned accounts.
Do I get educational support as a beginner on IC markets?
There are educational tools that can be used by beginner traders for insight and also other trading tools for investors who have a passive approach to trading. Tools such as Sentiment maps, Web TV, and video tutorials provided by the broker ensure user education and provideprovide a basic platform for beginners in their trading career.
IC market offers a wide variety of support to its clients to ensure that clients get world-class service, and is with that, there is no doubt that it is one of the leading brokers in the world for all types of investors.
Other types of Forex Brokers
DD& NDD Brokers
Dealing desk brokers are also known as market makers. This is because the dealing desk literally creates a market for clients, meaning they often take the other side of a client’s trade. While you may think that this might come as a conflict of interest, that’s not entirely true because market makers provide both buy and sell quotes which means they are filling both buy and sell orders of their clients; they are indifferent to the decisions made by individual investors.
Since market makers control the prices at which orders are filled, it also follows that there is very little risk for them to set fixed spreads.
Also, clients of dealing desk brokers do not see the real interbank market rates; however, this doesn’t make a huge difference because of regulations and competition among brokers, so the rates offered by dealing desks are close if not the same as interbank rates.
ECN Brokers are the example of a No dealing desk because they do not take the other side of their clients trade but rather they link buyers and sellers, and they get compensated through small trading fees.
|Dealing desk(Market Maker)||No Dealing Desk(ECN)|
|Fixed spread||Variable spreads or commission fees|
|Take the opposite side of your trade||A bridge between clients, liquidity providers and other participants|
|Artificial quotes||Price comes from liquidity providers, interbank and other ECN participants|
|Brokers fill orders on a discretionary basis||Automatic/quick filled orders and no requotes|
|Display the depth of Market or liquidity information|
does ic markets accept us clients? if not, then what’s the solution?
So If you are an American citizen, then many brokers like Saxo bank, FP markets, ic markets is not for you. So instead, go for TD Ameritrade. It would be the best choice as TD Ameritrade accepts us, clients. And they have many active us clients.
Investment is a broad endeavour and requires a lot of research and development. It is important to know what type of broker you are dealing with as an investor to ensure that you are getting the best services aligned with your interest. Furthermore, it is crucial to make sure that your broker is regulated so that you do not run the risk of forex trading with a broker that might be putting its interests before yours and leaving you exposed to adverse risk.
I will leave you with six factors to consider when choosing a broker: Security, Transaction costs, Deposit and withdrawal rules, Trading platform, Trade execution speed and Customer service. As a forex trader, you consider all those six factors and compare ic markets with other brokers; then, you will vote IC markets as one of the best forex brokers.