Is IFC Markets Regulated? Is it safe? - TU Expert review
License is the most important document you have to consider when choosing a broker. Many traders, who would like to start working with IFC Markets try to check whether it is regulated. Traders Union experts have already done that. In this article, you will learn whether IFC Markets is regulated, what regulatory authorities supervise the broker and whether it is safe to work with the company in general.
Short summary about the broker IFC Markets
IFC Markets was established in 2006. The company is owned by IFCM Group, a financial corporation that turned the services of providing access to international asset markets into a separate business. The broker focuses on two areas – classical trading services and synthetic instrument trading services. The broker is regulated by BVI FSC SIBA/L/14/1073 (British Virgin Islands). Deposits of the traders are insured at AIG Europe Limited.
| 💰 Account currency: | EUR, USD, and JPY |
|---|---|
| 🚀 Minimum deposit: | From $1 and from $1,000 depending on the account type |
| ⚖️ Leverage: | Up to 1:400 |
| 💱 Spread: | from 1.8 pips (МТ4, NetTradex), from 0.4 pips (МТ5) |
| 🔧 Instruments: | Currencies, assets of stock and commodity markets, synthetic instruments, Cryptocurrency CFDs |
| 💹 Margin Call / Stop Out: | Stop out - 10% |
Pros and cons of IFC Markets
👍 Advantages of trading with IFC Markets:
•Unique instruments for trading: portfolio quoting, continuous stock indices and derivatives, and a proprietary trading platform.
•Insurance against risks of professional liability.
•Over 600 trading assets of different classes, including synthetic instruments.
👎 Disadvantages of IFC Markets:
•Relatively high spread – from 1.8 pips.
•Complex verification. Certification of the documents by a notary public and their translation into English may be required.
•Offshore regulation, which is unlikely to help a trader in any way.
•The broker’s proprietary platform does not envisage the use of an advisor and indicators on MQL. Translation into the platform’s language is performed at the trader’s expense.
•There are no passive income programs.
Why is it important to work with a regulated broker?
License is a document that certifies that a broker operates legally and guarantees fulfillment of its obligations to the traders. A financial license is issued by a financial regulatory authority of a country (the National Bank) or a specialized authority (for example, Securities Commission, Futures Trading Commission, etc.). It is important to choose licensed brokers for the following reasons:
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A license guarantees that the broker operates in compliance with the rules of the financial regulator that issued the document.
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In order to obtain the license, a broker must comply with certain requirements, for example, the size of the authorized capital or personnel qualification. It is simply not lucrative for scammers to comply with such requirements.
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A broker’s license provides access to real markets, and you can be sure that the quotes are real and up-to-date.
The best option is to work with a broker that holds the license of the jurisdiction, where the trader resides. You can also choose a company with a financial license of another reliable jurisdiction, for example, the U.S. or the European Union.
Is IFC Markets Regulated? Broker’s license
Security (Protection for Investors)
IFC Markets holds the licenses by two regulators: BVI FSC (British Virgin Islands) and LFSA (Labuan, Malaysia). The broker holds Professional Indemnity for Financial Institutions in AIG Europe Limited.
👍 Advantages
- The operation of the broker is controlled by two financial regulators
👎 Disadvantages
- An individual trader is not protected against possible issues
Brokerage fees
Broker’s regulation is the most important choice criterion. However, before you start working with the broker, it is also important to analyze its commissions and fees. TU analysts have studied the commissions and fees charged by IFC Markets, which you can see below.
Traders Union analysts have examined the trading conditions of IFC Markets to uncover any hidden commissions or pitfalls. The broker’s trading conditions are transparent and there are no hidden commissions. In terms of additional fixed fees, there is a commission per each open trade in Stock CFD trading. The commission is charged in the amount of 0.01% of the position volume or $0.02 per share.
| Account type | Spread (minimum value) | Withdrawal commission |
| All accounts on NetTradex and МТ4 | from $18 | No |
| All accounts on МТ5 | from $4 | No |
Brokers that are similar to IFC Markets
Many brokers operate legally, obtaining relevant licenses and permissions. However, when choosing a broker, it is important to compare their trading conditions. TU experts have prepared a comparative analysis of IFC Markets conditions with its closest competitors.
Comparison of IFC Markets with other Brokers
| IFC Markets | RoboForex | Pocket Option | Exness | Forex4you | Deriv | |
|---|---|---|---|---|---|---|
Trading platform |
MT4, MT5, NetTradeX |
MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader |
Pocket Option, MT5, MT4 |
Exness Trade App (mobile), Exness Terminal (web), MetaTrader5, MetaTrader4 |
MT4, MobileTrading, MT5 |
Deriv bot, Deriv MT5, Derivix, Deriv Trader, SmartTrader |
Min deposit |
$1 |
$10 |
$5 |
$10 |
No |
$5 |
Leverage |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:10 |
From 1:1 |
Trust management |
No |
No |
No |
No |
No |
No |
Accrual of % on the balance |
No |
No |
No |
No |
No |
1.00%% |
Spread |
From 0.4 points |
From 0 points |
From 1.2 point |
From 1 point |
From 0.1 points |
From 0 points |
Level of margin call / stop out |
No |
No |
No |
No |
No |
No |
Execution of orders |
Market Execution, Instant Execution |
Market Execution, Instant Execution |
Market Execution |
Market Execution, Instant Execution |
Market Execution, Instant Execution |
Market Execution |
No deposit bonus |
No |
No |
No |
No |
No |
No |
Cent accounts |
Yes |
Yes |
No |
No |
Yes |
No |
IFC Markets is a mid-level broker with interesting innovative developments. The broker will be of interest to those seeking new trading products and original solutions.
The minimum deposit in RoboForex is $10. Leverage up to 1:2000. Traders choose RoboForex for reliability, favorable trading conditions, minimum spreads, and commission fees. The company is recommended for beginner traders and experienced investors.
Pocket Option offers a wide range of trading instruments and copy trading services. It constantly improves its service quality and expands the list of assets and trading platforms. The broker is suitable even for novice traders without significant capital due to the low initial deposit. Experienced traders who work with CFDs and binary options can also use Pocket Option’s services.
Exness broker is a trusted broker partner that is compliant with all relevant terms. Exness complies with all payment obligations and pays money earned.
Forex4you is an all-in-one broker for active and passive trading, rates well for both novice traders and professional level traders.
Deriv is a broker for beginners and professional traders who prefer to make trades on their own, as well as use auxiliary programs for more efficient trading.
Conclusions
IFC Markets cannot be considered absolutely reliable. The broker operates on a license of an offshore regulator. This creates certain risks regarding security of your funds. The broker has a good reputation. However, you can work with companies with an offshore regulation only at your own risk.
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FAQ
How difficult is it to obtain a brokerage license?
The procedure for obtaining a license differs depending on the jurisdiction, but it is very difficult and expensive to get the document in a reliable jurisdiction. This is why only reliable brokers obtain licenses.
Why is it not recommended to work with offshore brokers?
Offshore brokers have to meet minimum requirements for obtaining a license and reporting, which is why often scammers get such licenses.
Can an offshore broker be reliable?
Yes, although there are not many of such brokers. There are brokers with a good reputation, but with an offshore license. You still need to be very cautious when working with such companies.
How do I check a broker’s reputation?
In order to check a broker’s reputation, you need to read user reviews. However, it is recommended to only use independent websites for that.
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.