IC Markets crypto Trading
Trading crypto on IC markets is a little different than usual because the platform doesn’t offer direct trading facilities but rather offers CFD trading services. For those of you who aren’t familiar with the concept of CFDs, the term stands for “Contract for Difference” and it basically means a contract that is based on and derives value from an underlying asset, which in the instant case is a cryptocurrency pair. If the pair moves favorably with respect to your forecast, the value of the CFD would replicate the profitable payoff of the underlying pair and vice versa. While this grants high flexibility to traders and investors, it also takes away the core benefits of trading the underlying asset directly.
The application of CFD by IC Markets makes it difficult for a moderately informed user to understand the firm’s offerings, which is why TU has in this review covered all important aspects of crypto trading on IC Markets including available pairs, conditions, leverages, fees, alternatives, and more.
Can you trade crypto at IC Markets?
The answer to this is yes and no. This is because although you can replicate trading crypto on IC Markets using the CFDs they offer, you cannot directly trade crypto on the platform. The following conditions apply to all cryptocurrency pairs that IC Markets offers a CFD on:
A swap rate starting from –10.00% that can change based on the selected pair. This rate is applicable 3x if the position is carried forward from Friday to Monday;
Spreads are variable based on the pair selected (see the table below);
Leverage applicable for all pairs is 1:2;
No upfront margin is required for hedged positions.
Here are the trading conditions applicable to specific currency pairs:
| Crypto | Lot Size | Min volume | Max volume | Margin | Leverage | Min. spread | Avg. spread |
|---|---|---|---|---|---|---|---|
| BTC/USD | 1 BTC |
0.01 |
10 lot |
50% |
1:2 |
8.710 |
42.036 |
| BCH/USD | 1 BCH |
0.01 |
10 lot |
50% |
1:2 |
2.210 |
5.839 |
| ETH/USD | 1 ETH |
0.01 |
10 lot |
50% |
1:2 |
4.560 |
11.605 |
| DSH/USD | 1 DSH |
1 with next step @0.01 |
100 lot |
50% |
1:2 |
0.000 |
1.241 |
| LTC/USD | 1 LTC |
0.01 |
10 lot |
50% |
1:2 |
1.050 |
1.597 |
| XRP/USD | 1 XRP |
1 with next step @0.01 |
100 lot |
50% |
1:2 |
0.008 |
0.020 |
| EOS/USD | 1 EOS |
1 with next step @0.01 |
100 lot |
50% |
1:2 |
0.000 |
0.064 |
| LNK/USD | 1 LNK |
1 with next step @0.01 |
100 lot |
50% |
1:2 |
0.012 |
0.020 |
| DOT//USD | 1 DOT |
1 with next step @0.01 |
100 lot |
50% |
1:2 |
0.011 |
0.013 |
| XLM/USD | 1 XLM |
1 with next step @0.01 |
100 lot |
50% |
1:2 |
0.000 |
0.000 |
| UNI/USD | 1 UNI |
1 with next step @0.01 |
100 lot |
50% |
1:2 |
0.061 |
0.064 |
| BNB/USD | 1 BNB |
0.01 |
10 lot |
50% |
1:2 |
1.266 |
1.415 |
| XTZ/USD | 10 XTZ |
1 with next step @0.01 |
100 lot |
50% |
1:2 |
0.003 |
0.026 |
| ADA/USD | 10 ADA |
1 with next step @0.01 |
100 lot |
50% |
1:2 |
0.001 |
0.003 |
| DOG/USD | 100 DOG |
1 with next step @0.01 |
100 lot |
50% |
1:2 |
0.001 |
0.001 |
IC Markets’ crypto fees
One good thing about crypto trading using IC Markets is that it charges zero commissions on all crypto CFD trades. This means that it only charges fees in the form of spreads (which are mentioned in the table above) and the swap rate. Spreads are simply the difference between the price at which the platform buys from you and the price at which it sells to you, meaning that lower spreads are better from the perspective of an investor. On the other hand, the swap rate is the percentage rate that is debited from your account for each day you hold a long position.
IC Markets Spread and Fees ExplainedCan I deposit and withdraw cryptocurrencies?
As the trades are primarily based on CFDs, an IC Markets account does not require the user to have cryptocurrencies in their account. This also means that the platform does not allow the user to deposit or withdraw cryptocurrencies. The user can, however, deposit or withdraw fiat money, including USD, GBP, JPY, CAD, HKD, and CHF, among others.
IC Markets alternatives
Looking at the pros and cons, it’s quite clear that direct crypto trading weighs better than crypto CFDs for the longer term. So, TU’s experts have shortlisted two primary alternatives for IC Markets that offer direct trading facilities.
Coinbase | Best crypto exchange
Third largest crypto exchange in the world based on volume;
Supports 210+ cryptocurrencies including almost all of the top 30 coins by market capitalization;
Offers crypto wallet and direct crypto trading facilities;
Does not offer crypto CFDs.
eToro | Best crypto broker
Supports 75+ cryptos including quite a few of the top 30 coins by market capitalization;
Offers crypto wallet and direct crypto trading facilities, as well as crypto CFDs;
Offers copy trading.
FAQ
What is the swap rate?
In the case of CFDs, the swap rate is the rate an investor has to pay for each day the transaction maintains a long position in a contract.
What are hedged positions?
Positions that are backed by collateral in the form of additional funds or the underlying asset itself are called hedged positions.
How to interpret leverage?
If the leverage is quoted as 1:2, it means that for every $1 kept as margin, the trader would be able to enter into a position with a value of $2.
What is copy trading?
Copy trading is a method of trading that involves copying a successful trader’s positions to benefit from his skills and expertise.
Team that worked on the article
Chinmay Soni is a financial analyst with more than 5 years of experience in working with stocks, Forex, derivatives, and other assets. As a founder of a boutique research firm and an active researcher, he covers various industries and fields, providing insights backed by statistical data. He is also an educator in the field of finance and technology.
As an author for Traders Union, he contributes his deep analytical insights on various topics, taking into account various aspects.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
The topics he covers include trading signals, cryptocurrencies, Forex brokers, stock brokers, expert advisors, binary options. He has also worked on the ratings of brokers and many other materials.
Dr. BJ Johnson’s motto: It always seems impossible until it’s done. You can do it.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO). Mirjan is a cryptocurrency and stock trader. This deep understanding of the finance sector allows her to create informative and engaging content that helps readers easily navigate the complexities of the crypto world.