How IC Markets Spreads Work: A Detailed Guide for Traders
What Exactly Are Spreads on IC Markets?
When you open a position with IC Markets, the price you see isn’t a single figure. Instead, there’s a bid price for selling and an ask price for buying. The difference between these two numbers is the spread, and it’s the primary cost you’ll pay on each trade.
IC Markets offers two main account types—Standard and Raw – and each comes with its own spread structure. Understanding the nuances can help you pick the model that aligns with your strategy, whether you’re a scalper hunting tiny moves or a swing trader looking for wider but cheaper execution.
Understanding IC Markets Spreads
IC Markets prides itself on low latency and tight pricing. For the Standard account, spreads are typically variable and start from around 0.6 pips on major pairs like EUR/USD. The Raw account, on the other hand, offers raw spreads that can be as low as 0.0 pips, but you’ll pay a commission per lot.
- Variable spreads adjust with market liquidity, widening during news events or low-volume periods.
- Fixed spreads are not offered by IC Markets; the broker relies on real‑time market depth to set prices.
- Commission model on the Raw account typically ranges from $3.50 to $5 per side per standard lot, depending on the instrument.
In practice, a trader using the Raw account might see a 0.0‑pip spread on EUR/USD but will still incur the commission. Meanwhile, a Standard‑account holder could see a 0.6‑pip spread with no commission, which may be more appealing for larger position sizes.
How Spreads Vary Across Asset Classes
Not all markets behave the same way. Forex pairs, commodities, indices, and cryptocurrencies each have distinct liquidity profiles, and IC Markets reflects that in its spreads.
Forex majors like GBP/USD and AUD/USD often stay under 1.0 pip on the Standard account, while exotic pairs such as USD/TRY can widen to 10 pips or more during volatile periods.
Commodities such as Gold (XAU/USD) and crude oil (WTI) usually carry spreads of 0.1–0.3 points on the Raw account, plus the usual commission. Indices like the US30 tend to have spreads around 0.3‑0.5 points.
For cryptocurrencies, spreads are naturally broader—Bitcoin (BTC/USD) can sit at 1‑2 pips on Raw, reflecting the market’s 24/7 nature and lower depth compared to traditional assets.
Why Spreads Matter for Different Trading Styles
A scalper’s profit margin may be as thin as a few pips per trade. For that style, a Raw account’s sub‑pip spreads can be a game‑changer, provided the commission doesn’t erode the tiny gains. Conversely, a position trader who holds trades for days may prioritize stability over the absolute tightest spread, making the Standard account’s commission‑free model more convenient.
Consider also the impact of spread widening during high‑impact news releases. A trader who trades around economic events should be prepared for temporary spikes, especially on the Standard account where spreads can balloon dramatically.
How to Choose the Right Account for Your Needs
Start by estimating your average trade size and frequency. If you execute dozens of micro‑lots daily, the commission on a Raw account adds up quickly, and the Standard account might be cheaper overall. If you trade a few larger lots and demand the absolute narrowest spread, Raw is often the better fit.
Another factor is platform preference. Both MetaTrader 4/5 and cTrader display spreads in real time, but cTrader’s depth‑of‑market view can give you a clearer picture of pending orders that could affect spread behavior.
Practical Tips to Manage Spread Costs
- Trade during high‑liquidity sessions. Overlapping London and New York hours usually yield the tightest spreads.
- Avoid news spikes. Check the economic calendar and consider widening stop‑losses if you must trade during volatile announcements.
- Use limit orders. By setting your entry price, you can sometimes bypass the widest spread moments.
- Monitor commission fees. On the Raw account, calculate total cost per round‑trip (entry + exit) to compare against the Standard account’s spread‑only model.
Common Misconceptions About IC Markets Spreads
Many newcomers assume “0.0‑pip spread” means no cost at all. In reality, the commission is the hidden price tag, and it varies by instrument. Likewise, a low spread doesn’t guarantee faster execution; latency depends on your internet connection and the server you select (IC Markets offers multiple data centers).
Another myth is that spreads stay constant throughout the day. While Raw spreads are often sub‑pip, they still react to market depth, so during thin liquidity you’ll still see some widening.
FAQ
Do I pay any additional fees besides the spread on a Standard account?
No. The Standard account bundles all trading costs into the spread itself, so you won’t see a separate commission or hidden fee.
Can I switch between Standard and Raw accounts later?
Yes. IC Markets allows you to open multiple sub‑accounts under the same master login, letting you test both models without closing your existing account.
How often do spreads change on IC Markets?
Spreads are refreshed every few milliseconds, reflecting real‑time market conditions. Expect minor fluctuations even within a single minute, especially on volatile pairs.
Is there a minimum spread guarantee?
IC Markets does not offer a guaranteed minimum; spreads are always market‑driven. However, they consistently rank among the tightest in the industry for both account types.
