IC Markets Stock Trading
IC Markets is an Australian broker that provides services related to capital markets. With its established global presence, traders often consider it as an option while deciding on which broker to use. They must also decide on the platform by asking questions such as: Does IC Markets offer stock trading, or Is IC Markets a good broker for stock trading? So, to ease the confusion around the platform, the Traders Union has prepared this IC Markets stock trading review that will help traders decide on their choice of broker.
Can you trade stocks at IC Markets?
IC Markets offers stock trading in the form of CFDs, which stands for Contract for Difference. It is a kind of innovative over-the-counter (OTC) financial product that enables users to exchange the difference in the value of an asset or security between the initiation and closing of a CFD.
Through IC Markets, users can access over 2,100 stock CFDs across three exchanges in the United States and Australia, namely Nasdaq, ASX, and NYSE. The primary benefit of using CFDs for stock trading is the access to leverage they provide. IC Markets provide 1:5 leverage for all stock CFDs regardless of the exchange on which they’re listed. Here’s a brief overview of stock instruments you can trade on IC Markets:
International stock CFDs - Stock CFDs based on Nasdaq and NYSE listed stocks;
ASX stock CFDs – Stock CFDs based on ASX listed stocks;
CFD indices – CFDs on 25+ indices from across the globe.
IC Markets stock trading fees and spreads
The following are the key points related to stock trading fees and spreads on IC Markets;
There is a fixed commission charged (in dollars or percentage terms based on the exchange amount) on each side of the trade;
Leverage of 1:5 is provided for stock CFDs;
The margin is fixed at 20% for unhedged positions while for a hedged position it is zero;
For leveraged positions, the platform charges an overnight financing cost of Libor +/- 3%;
For leveraged positions carried over the weekend, the financing cost is 3x times;
Spreads vary and are based on the asset traded;
There are provisions for hedging as well as scalping;
Both long and short positions are permitted;
For long positions, dividends are credited to the account while dividends are deducted from the account for short positions.
The table below summarizes the spreads and fees for international as well as ASX CFDs on IC Markets:
| Symbol | Commission | Lot Size | Min. Volume | Max. Volume | Tick Size | Leverage | Margin Req | Spreads |
|---|---|---|---|---|---|---|---|---|
NAS |
0.02 USD min per side/lot |
1 share |
0.1 |
1000 |
0.01 USD |
1:5 |
20% |
Variable |
NYSE |
0.02 USD min per side/lot |
1 share |
0.1 |
1000 |
0.01 USD |
1:5 |
20% |
Variable |
ASX |
0.10 % per side/lot |
1 share |
1 |
1000 |
0.01 AUD |
1:5 |
20% |
Variable |
IC Markets trading instruments
Here are all the instruments available for trading on IC Markets.
Forex CFDs:
61 currency pairs;
Extremely narrow spreads (starting from 0.0 pips);
Up to 1:30 leverage;
High liquidity.
Indices CFDs:
25+ indices from across the globe;
Up to 1:20 leverage;
Zero commissions.
Commodities CFDs:
Support for 20+ commodities from sectors including energy, metals, and agriculture;
CFDs based on spot and futures prices;
Up to 1:20 leverage.
Stock CFDs:
Over 2,100 stocks (Nvidia stock, Apple stock, Google stock, Tesla stock etc.) from NYSE, Nasdaq, and ASX;
Up to 1:5 leverage;
Provision for dividends.
Bonds CFDs:
Support for 9+ global bonds;
Up to 1:5 leverage;
Zero commissions;
High liquidity.
Crypto CFDs:
Support for 21 highly popular cryptocurrencies;
24/7 trading support;
Up to 1:2 leverage;
Long/short option.
Futures CFDs:
Support for 4 global futures;
Zero commissions;
Up to 1:10 leverage;
High liquidity.
IC Markets alternatives for stock trading
While IC Markets is a decent choice for stock trading, it lacks support for direct stock trading. You can only trade in CFDs through it. On the other hand, there are alternatives to it that are more holistic in their offerings. TU has recognized two main alternatives for IC Markets:
Interactive Brokers
Offers a wider range of services compared to IC Markets;
Support for direct stock trading as well as CFD trading;
Has a broader presence across the globe with access to 90+ markets;
Overnight financing charges start at +/- 1.5%.
eToro
Support for direct stock trading as well as CFD trading;
Offers copy trading facility for most asset classes;
Competitive fees and spreads.
FAQ
What are CFDs?
CFD stands for Contract for Difference. This instrument is a contract based on an underlying asset, which can be anything from stocks to cryptocurrencies. The pay-off for a CFD is based on the performance of the underlying asset between the initiation and expiration of the contract.
Are CFDs legal?
The legality of CFDs is highly dependent on the jurisdiction in which it is traded. Some countries allow their use while others restrict it. To name a few, CFD trading is allowed in USA, UK, Spain, Germany, and Italy, among others.
What is leverage?
Leverage means borrowed funds. In the case of CFDs, when a trader uses margin to trade, they are said to be trading on leverage.
Is IC Markets safe?
IC Markets is a well-established firm globally and has positive reviews and ratings from a large number of users. Based on that, it is a safe platform and can be trusted.
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.