Spread ICMarkets is the highlight that helps the trading platform access the market. The number of customers choosing ICMarkets, because Spread has many incentives, is huge. Join Learn Forex Trading to learn details about the different fees of this exchange. We will know why ICMarkets has millions of users every day.
What is ICMarkets Spread? What are Pips?
What is Spread or ICMarkets What is Spread? A term that many foreign exchange investors are probably always interested in. It can be understood that it is the exchange fee collected from the difference in traders’ transactions. Instead of collecting service fees, they collect Spread – the difference between buying and selling prices.
For example, when you check Spread ICMarkets, you will get column quotes after the Ask column. These numbers are divided by 10 to clearly show the difference. For example, the spread for EUR/USD is 0.8 pips, and the spread for USD/JPY is 0.5 pips. It can be said that looking at ICMarkets, you will see that this is the lowest level for a regular account.
Talking about Pips, this is the quantity used to calculate the spread on the exchange. Pips multiplied by 10 will yield the amount of USD you have to pay to the exchange when trading that currency pair.
How to understand ICMarkets Spread?
According to the definitions above, Spread ICMarkets is the difference fee of the ICMarkets platform. For example, on the trading platform, if we look at the USD/VND exchange rate, we will always see that the selling price is always higher than the bid price and the difference. ICMarkets trading exchange takes it as the main source of income.
When you open a buy order for EUR/USD on ICMarkets, interface 4 displays the Ask and Bid prices. Where Ask = 1.12468 and Bid = 1.12467 means the difference is 0.00001 = 0.1 pip. You will have to pay to open a buy order on the exchange, which means to buy 1 million EUR/USD, you pay the broker: 1,000,000 x 0.1 x 0.0001 = 10 USD.
Information about ICMarkets Spread fees according to some trading accounts
ICMarkets currently offers different types of trading accounts. Each account meets its own needs and the transaction fees are also different. Below are details of spread levels for account types on the exchange.
Raw Spread
The spread on ICMarkets Raw Spread EUR/USD is 0.1 pip. A small commission of 3.50 USD per lot is payable, with supply over 25 banks. If you use this type of account, it is usually day traders or trading robots.
Raw Spread Ctrader
The spread on ICMarkets Raw Spread Ctrader EUR/USD is 0.1 pip. Similar to Raw Spread, this account is mainly used for intraday trading. The only difference is the commission fee and some fees when using it. Raw Spread and Raw Spread Ctrader are two platforms with a large number of users.
Standard account Standard
ICMarkets’ Standard account provides you with good, fast order matching speed. Spreads are as low as 1 pip and a commission is charged. Looking at the accounts of the exchange, we only see a big difference on the commission side.
See more: Instruct with an ICMarkets open account swiftly
Types of Spreads ICMarkets is collecting for traders
ICMarkets currently provides a fully featured trading environment and services. Tools are also floated for users to access. The spread is quite stable and below is how the spread is classified on this exchange.
ICMarkets floating spread (Floating / Dynamic Spread)
This type of spread is often of interest to traders. Compared to stable spreads, the advantages and disadvantages of this type of spread are:
Advantages of ICMarkets floating spread
If the spread is smaller than the average, it is beneficial for the investor. This term is used to describe the continuous increase or decrease of Spread in the market. So if you are a day trader, low floating spreads can create huge profits.
Disadvantages of floating spreads
Using this type of spread, traders will have to accept that there will be times when it will be very high. Because market fluctuations are unpredictable at times.
ICMarkets fixed spread (Stable Spread)
Using stable spreads is more suitable for traders new to the market. You will not need to worry about calculating the difference in transaction fees.
Advantages of ICMarkets fixed spreads
The difference between buying and selling prices remains stable during most trading hours. This allows traders to feel secure during the trading process because of predictable costs. Just use the weighted average of volatility and you can calculate it.
Disadvantages of fixed spreads
Usually, there are only pairs like XAUUSD, USDJPY, EURGBP, USDJPY, and EURJPY… usually spreads ICMarkets are stable. About 90% of the difference is stable and not completely balanced. Therefore, traders still have to pay attention and monitor and calculate the difference when trading.
Spread impact factors in ICMarkets
Spreads in Forex in general and on ICMarkets in particular are very clearly regulated. In some cases, Spread may vary depending on market conditions and many other factors. Below we will evaluate the effects of Spread ICMarkets.
Market status on ICMarkets
ICMarkets provides spreads that can vary according to market conditions due to price fluctuations. If the market is unstable, Spread increases to compensate for risks and protect their profits. This does not happen often, so traders do not need to worry much about this.
How does the transaction time affect the spread?
Trading time will also be a factor affecting Spread ICMarkets. For example, the Yen pair is often more volatile during Asian trading hours. Because the main trading time of the session will be more suitable for the Japanese market.
The EUR/USD, GBP/USD, and USD/CHF currency pairs were highly volatile during the European trading session. Usually, the right trading session time will select the right currency pairs. Efficiency will be higher than other trading times thanks to low spread fluctuations.
Money supply and money demand
Of course, this will be a factor that has a huge impact on spreads ICMarkets. Because the supply of currency is higher than the demand, an increase in Spread may occur. This is created due to a currency shortage leading to poor solvency and high risk. Conversely, when currency demand is higher than supply, Spreads decrease because of increased liquidity and market stability.
Trading volume
If the trading volume at ICMarkets is low, there will be correspondingly low spread fees. Obviously, with a large trading volume, the exchange must charge high fees because of the high risk. Every exchange uses Spread as the main source of revenue, so this is a very easy-to-understand influencing factor. You can also apply the ICMarkets pip calculator to the trading volumes for each currency pair corresponding to your account.
See more: What is ICMarkets? Is it a leading forex platform?
Conclude
Spread ICMarkets is a factor that many traders must pay attention to when trading with this exchange. Learn Forex Trading has shared all information related to spreads on this exchange. Hopefully, this article helps traders grasp all the knowledge and information. From there, choose the trading platform and account suitable for the individual. In addition, if you want to learn more about the topic of what ICMarkets swap rates are, don’t miss it! Very exciting!
Frequently asked questions
With the spread in the market and ICMarkets spread in particular, traders will have many questions. Below will be the answer for traders to synthesize more knowledge.
How much does ICMarkets receive from low spreads?
Extremely low spread fees from only 0 pips are the pride of this trading exchange. It can be assessed that ICMarkets’ spread is the lowest on the market today.
Calculate differential costs and other fees on the exchange.
In addition to Spread, traders will need to pay attention to commission fees when opening trading orders. On ICMarkets, commissions start from 0.1 pips and can be higher for 1 lot depending on trading volume.
Is the spread charged by ICMarkets accurate and fair?
ICMarkets spreads are calculated very fairly and accurately. Traders can trust this because the computer system will set up and calculate. There is no human influence to distort these fees.
