Broker Overviews
IC Markets
IC Markets is an Australian-based broker known for its ECN (Electronic Communication Network) trading environment, offering raw spreads and competitive commissions. It is popular among algorithmic traders, scalpers, and those seeking low latency execution. Regulated by multiple authorities globally, including ASIC in Australia and CySEC in Cyprus, IC Markets provides a robust infrastructure for active trading.
Plus500
Plus500 is a UK-based, FTSE 250 listed CFD provider. It’s renowned for its proprietary trading platform, which is celebrated for its user-friendly interface and simplicity, making it particularly appealing to newer traders. Plus500 offers a wide range of CFDs across various asset classes. It is authorised and regulated by the FCA in the UK, among other global regulators, ensuring a high level of consumer protection.
Inactivity Fees Compared
When it comes to inactivity fees, both brokers approach this policy differently, which can significantly impact traders who do not maintain a consistent trading volume.
IC Markets Inactivity Fee
At the time of writing, IC Markets *does not charge an inactivity fee* on its trading accounts. This can be a considerable advantage for traders who might leave their accounts dormant for extended periods without incurring additional charges. This policy aligns with their focus on active traders who are already generating revenue through spreads and commissions.
Plus500 Inactivity Fee
Plus500 *does charge an inactivity fee*. Their policy typically involves a monthly fee (e.g., $10 or equivalent) if a trading account is inactive for a period of three months. Inactivity is usually defined as not logging into the trading platform. This fee is generally deducted from the client's available balance. If the balance is zero, no fee is charged. Traders should consult Plus500's terms and conditions or their website for the most up-to-date and specific details regarding this charge, as policies can change.
For infrequent traders, Plus500's inactivity fee is a definite point of consideration. However, for active traders, this fee may never apply.
Broader Comparison of Key Trading Conditions
Beyond inactivity fees, here’s a comparison of other crucial factors for UK CFD traders:
| Feature | IC Markets | Plus500 |
| :------------------- | :--------------------------------------- | :--------------------------------------- |
| Spreads (EUR/USD)| From 0.0 pips (Raw Spreads) | From 0.8 pips (Typical, Market dependant) |
| Spreads (GBP/USD)| From 0.5 pips (Raw Spreads) | From 1.5 pips (Typical, Market dependant) |
| Spreads (XAU/USD)| From 10 cents (Raw Spreads) | From 0.35 points (Typical, Market dependant) |
| Commission | £2.50-£3.00 per standard lot per side | Commission-free (Spreads are wider) |
| Minimum Deposit | £150-£200 (approx. $200) | £100 |
| Regulators (UK) | Not directly FCA regulated for UK retail | FCA, CySEC, ASIC, MAS, etc. (Plus500UK Ltd is FCA regulated)|
| Platforms | MetaTrader 4, MetaTrader 5, cTrader | Proprietary Plus500 WebTrader & Mobile App|
*Figures are typical, at time of writing — check broker site for current conditions. CFD trading involves significant risk of loss.*
Spreads & Commission
IC Markets, with its ECN model, offers very tight raw spreads on major pairs like EUR/USD, often starting from 0.0 pips, but charges a commission per standard lot. This structure is often preferred by high-volume traders as it can lead to lower overall trading costs. Plus500, on the other hand, operates on a commission-free model, where their revenue is derived solely from the spread. This typically means wider spreads compared to IC Markets' raw spreads, but with no separate commission calculation.
Minimum Deposit
Both brokers have accessible minimum deposit requirements, with Plus500 generally having a slightly lower entry point for its accounts, which can be attractive for new traders or those with smaller initial capital.
Regulatory Oversight
For UK retail traders, regulatory status is paramount. Plus500UK Ltd is directly authorised and regulated by the Financial Conduct Authority (FCA), offering strong protection under the Financial Services Compensation Scheme (FSCS) up to £85,000. While IC Markets is not directly FCA regulated for UK retail clients, it operates under robust regulatory bodies like ASIC (Australia) and CySEC (Cyprus), which adhere to stringent standards. However, UK retail clients opening an account with IC Markets would typically be onboarded under their offshore entities, meaning FCA protection and ESMA product intervention rules may not apply.
Trading Platforms
IC Markets offers the industry-standard MetaTrader 4 (MT4), MetaTrader 5 (MT5), and cTrader platforms. These are powerful, versatile platforms popular among experienced traders for their advanced charting tools, customisation options, and support for algorithmic trading. Plus500 stands apart with its proprietary WebTrader platform and mobile app. It is highly intuitive, easy to navigate, and designed for simplicity, making it a good choice for beginners or those who prefer a streamlined trading experience without the complexities of third-party platforms.
Verdict by Trader Type
For the Active, Experienced Trader (e.g., Scalper, Algorithmic Trader)
IC Markets is likely the superior choice. Its ECN environment, raw spreads, competitive commissions, and choice of MT4/MT5/cTrader platforms cater directly to those who require tight pricing, fast execution, and advanced analytical and automated trading capabilities. The absence of an inactivity fee is an added bonus for those who might temporarily pause trading without penalty.
For the Casual or New Trader (e.g., Part-time Trader, Beginner)
Plus500 presents a strong case, particularly due to its user-friendly proprietary platform and commission-free trading structure. The FCA regulation for UK clients offers peace of mind. While the inactivity fee is a consideration, active engagement (even just logging in occasionally) can easily circumvent it. Its simpler interface makes it less daunting for those new to CFD trading.
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Important Considerations
* CFD Risk: Remember that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. A high percentage of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
* Regulatory Protection: Always understand which entity of a broker you are trading with and what regulatory protections apply to you based on your country of residence.
* Terms and Conditions: Broker terms, conditions, and fees can change. Always review the latest information directly on the broker's official website before opening an account.
Frequently Asked Questions (FAQs)
Q: Do IC Markets charge an inactivity fee?
A: No, at the time of writing, IC Markets does not charge an inactivity fee on its trading accounts.
Q: How can I avoid Plus500's inactivity fee?
A: To avoid Plus500's inactivity fee, ensure you log into your trading account at least once every three months. Making trades or maintaining an open position typically also counts as activity.
Q: Which broker is better for low-cost trading, IC Markets or Plus500?
A: For high-volume traders, IC Markets' raw spreads plus commission often result in lower overall costs. For casual traders, Plus500's commission-free model with slightly wider spreads might be simpler and more appealing, though the inactivity fee should be noted.
Q: Is Plus500 regulated in the UK?
A: Yes, Plus500UK Ltd is authorised and regulated by the Financial Conduct Authority (FCA) in the United Kingdom, offering strong regulatory protection to UK retail clients.