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IC Markets EUR/USD spread

Your expert
Adam N.
Fact checked by
Updated
2w ago
Personally tested
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Independent

Is the EUR/USD spread low at IC Markets as of September 2024?

Good news! The EUR/USD spread is low at IC Markets.

The EUR/USD spread is 0.0 at IC Markets while the average spread is 0.6 for the same currency pair at 60 brokers reviewed by BrokerChooser.

My key findings in a nutshell
Adam
Adam Nasli
Forex • Algo Trading • Market Analysis

I've thoroughly tested IC Markets services with our analyst team by opening a real-money account and these are my most important findings:

  • The spread is one of the most important cost factors when trading forex
  • Even if the spread is low/narrow, other costs/fees may be high at a broker
  • Always check whether a broker charges commission on forex trades
  • Keep an eye on financing rates for certain positions that are open for several days

See the table below for forex spreads used by IC Markets for major currency pairs.

Forex spreads for major FX pairs
Currency pair Spread at IC Markets Low / Average / High
EURUSD 0.0 Low
GBPUSD 0.0 Low
AUDUSD 0.0 Low
EURCHF 0.2 Low
EURGBP 0.2 Low

Data updated on September 19, 2024

Overall score
4.5/5
Minimum deposit
$200
FX fee
Low
Index CFD fee
Low
Withdrawal fee
$0
Account opening
1 day
Visit IC Markets

70.64% of retail CFD accounts lose money

Deposit features and brokerage service highlights

As a forex trader, you need a reliable broker with superb services at affordable costs. See the most important features of IC Markets's services in the table below.

Key features of IC Markets services
💰 Deposit fee $0
💰 Withdrawal fee $0
💳 Deposit methods Bank transfer, Credit/debit cards, PayPal, Skrill, Neteller, Visa Direct, SafeCharge, Transact365, eCommPay, CardPay, Bpay, FasaPay, Poli, RapidPay, Klarna
💸 Account base currency EUR, USD, GBP, AUD, SGD, NZD, JPY, CHF, HKD, CAD
💸 Minimum deposit $200
🗺️ Country of regulation Cyprus, Australia, Seychelles
🎮 Demo account provided Yes
📋 Read more Check out the IC Markets review for 2024

Data updated on September 19, 2024

Why are spreads important in forex?

The spread (also called bid-ask spread or buy-sell spread) is a crucial notion in forex trading. The spread marks the difference between the best (highest) purchase and the best (lowest) sell price on the market. Spreads are important when calculating the trading fees of a forex position.

When you open a forex position through your broker, you will have to pay a transaction cost (trading fee) and this is where spreads come into the picture.

Forex brokers make money in one of the following two ways:

  1. They pass on the market spread to their clients and add their own commissions/markups
  2. They provide their own spread, which includes their fees.

Some brokers work with their own spreads and incorporate their fees into them. On the other hand, they usually don't apply commissions. In this model, the spread tends to be higher/wider.

Others use market spreads without incorporating their fees into the spreads or by adding a small markup. In return, they apply commissions. This method typically involves lower/narrower spreads.

Many brokers advertise themselves as 0 spread brokers, however, this can be misleading. While there are indeed service providers out there whose minimum spread is 0 or close to 0, for the vast majority of the trades they charge higher spreads.

The best way to ensure you trade forex at low costs is to check average spreads, because those reflect the true costs charged by the broker.

Is there a commission at IC Markets on forex trades?

Generally speaking, the lower/narrower the spread, the better for forex traders. But as explained above, you also need to consider whether your broker charges a commission. Brokers that charge a commission typically work with lower spreads but the final cost may still be higher. Do the math before making a decision.

Does IC Markets charge a commission?

Yes, IC Markets charges commission on forex transactions as per the following table.

FX commission description FX commission per 1 lot ($100k) Low / Average / High
$3.50 commission per lot per trade $3.50 Low

Why do financing rates matter?

If you trade forex, you need to be familiar with the concept of financing rates. A financing rate (or overnight rate) is a brokerage fee charged when you hold a leveraged position for more than a day.

A leveraged position means you borrow money from the broker to trade. Your broker will charge you an interest on this borrowed money. This interest is called the financing rate.

Forex traders that trade on a very short time horizon (i.e. scalping or intraday trading) pay close attention to spreads but do not need to worry about financing rates. If, with certain forex positions that are open for several days, the financing rate will become a more important cost factor than the spread.

In general, financing rates at IC Markets are Low.

The Fiber: the most traded currency pair in the world

Nicknamed “the Fiber,” the EUR/USD currency pair is generally considered the most traded currency pair in the world as it involves the currencies of two of the world’s largest and most reputable economies.

Due to its popularity, the EUR/USD is characterized by very low spreads, high liquidity and the ability to place large volumes of trade. The pair is a favorite among traders that engage in forex scalping.

Looking for the lowest EUR/USD spread FX brokers?

If you are looking for brokers with the lowest EUR/USD spread and FX fees, check our top list of the lowest EUR/USD spread brokers.

For more details on IC Markets, read our comprehensive IC Markets review for 2024.

Check out this short video for a behind-the-scenes peek into how our experts personally test and evaluate brokers.

Further reading

Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology.

author
Adam Nasli
Author of this article
I bring extensive financial expertise as one of BrokerChooser's earliest team members. Personally, I tested nearly all 100+ brokers on our site, opening real-money accounts, executing trades, assessing customer services, and providing firsthand assessment. My professional background includes roles in the banking sector and a degree from Central European University, where I teach finance. My passions lies in in-depth research of the financial industry, building trading algorithms, and managing long-term investments.
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