IC Markets: A Deep Dive for UK CFD Traders
IC Markets is renowned for its low spreads and robust trading environment, particularly appealing to algorithmic traders and those using expert advisors. As an ECN/STP broker, it offers direct access to liquidity providers, which can result in tighter pricing. For UK traders, IC Markets (EU) is regulated by the Cyprus Securities and Exchange Commission (CySEC), providing a level of regulatory oversight, though not directly by the FCA. They are also regulated by the ASIC in Australia and the SCB in the Bahamas for other international clients.
Minimum Deposit at IC Markets
Typically, IC Markets requires a minimum deposit of $200 (or equivalent in GBP) to open a standard or raw spread account. This allows traders to access their full suite of instruments and competitive pricing. Various funding methods are usually available, including bank transfers, credit/debit cards, and e-wallets, often with no deposit fees.
Trading Environment and Features
Beyond deposits, IC Markets provides the popular MetaTrader 4 (MT4), MetaTrader 5 (MT5), and cTrader platforms, known for their advanced charting tools, customisation options, and algorithmic trading capabilities. They offer a vast array of instruments, including Forex, indices, commodities, futures, bonds, and cryptocurrencies as CFDs. Their raw spread accounts boast exceptionally tight spreads, often starting from 0.0 pips on major currency pairs, albeit with a commission per lot.
Plus500: A User-Friendly CFD Platform
Plus500 stands out as a user-friendly CFD provider, known for its proprietary trading platform which is designed for simplicity and ease of use. It is particularly popular among traders who prefer a straightforward interface without the complexities of third-party platforms.
Minimum Deposit at Plus500
Plus500 typically has a lower minimum deposit requirement, often starting from £100 for credit/debit cards or electronic wallets, and potentially higher for bank transfers. This lower entry barrier makes it accessible to traders with smaller initial capital. As with IC Markets, Plus500 supports various funding methods, and they are generally transparent about any associated fees.
Trading Environment and Features
Plus500 offers a streamlined trading experience through its web-based and mobile applications. While it lacks support for MT4/MT5, its proprietary platform is intuitive, offering a good selection of charting tools and indicators. Plus500 focuses exclusively on CFDs, providing access to an extensive range including Forex, indices, commodities, shares, options, and ETFs. Their pricing model is primarily spread-based, meaning there are no separate commissions on trades.
IC Markets vs Plus500: Head-to-Head Comparison
| Feature | IC Markets | Plus500 |
|---------------------|------------------------------------------|------------------------------------------|
| Spreads (EUR/USD) | From 0.0 pips (Raw Spread), typical 0.6 (Standard) *at time of writing — check broker site* | From 0.8 pips (typical) *at time of writing — check broker site* |
| Spreads (GBP/USD) | From 0.3 pips (Raw Spread), typical 0.9 (Standard) *at time of writing — check broker site* | From 1.5 pips (typical) *at time of writing — check broker site* |
| Spreads (XAU/USD) | From 10-15 cents (Raw Spread), typical 20 cents (Standard) *at time of writing — check broker site* | From 40-50 cents (typical) *at time of writing — check broker site* |
| Commission | Yes (Raw Spread accounts: $3.5/lot per side) | No (spread-only model) |
| Min Deposit | $200 / £160 (approx) *at time of writing — check broker site* | £100 *at time of writing — check broker site* |
| Regulators | CySEC (EU), ASIC (AU), SCB (Bahamas) | FCA (UK), CySEC (EU), ASIC (AU), MAS (SG), FSCA (ZA) |
| Platforms | MetaTrader 4, MetaTrader 5, cTrader | Proprietary WebTrader & Mobile App |
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Verdict by Trader Type
For the Cost-Conscious Trader Seeking Raw Spreads
IC Markets generally offers more competitive spreads, especially on their Raw Spread accounts. If you are an active trader, particularly in forex, and value the tightest possible spreads, even with a commission, IC Markets could be more suitable. Its $200 minimum deposit is reasonable for the benefits offered.
For the Beginner or Mobile-First Trader
Plus500, with its lower £100 minimum deposit and extremely user-friendly proprietary platform, is often a better fit for beginners or those who prefer a simple, intuitive trading interface without the bells and whistles of MT4/MT5. Its spread-only model can also be simpler to understand for new traders.
For Algorithmic and Advanced Traders
IC Markets is the clear choice here, supporting MT4, MT5, and cTrader, which are industry standards for automated trading, expert advisors, and complex technical analysis.
For UK FCA-Regulated Security
For UK traders specifically prioritising direct FCA regulation, Plus500 offers this, providing an additional layer of local regulatory protection that some may prefer.
Our Featured Partner: Vantage
While IC Markets and Plus500 both offer distinct advantages, we also recommend considering Vantage. As an ECN broker, Vantage provides competitive spreads, robust trading platforms like MT4 and MT5, and a wide range of instruments, similar to IC Markets. They focus on delivering a high-performance trading environment with strong regulatory backing. For UK traders looking for a broker that balances low costs with advanced features, Vantage is a strong contender. You can find out more and Open a Vantage account.
Conclusion
The choice between IC Markets and Plus500 ultimately depends on your trading priorities. If low spreads, advanced platforms, and algorithmic trading are key, IC Markets might be your preference, despite its slightly higher minimum deposit. If ease of use, a lower entry point, and a proprietary platform appeal to you, Plus500 could be a better match. Always remember to check the latest details directly on the brokers' websites, as terms and conditions can change, and consider your risk tolerance for CFD trading.