When choosing a reliable forex broker, two popular names that often come up are IC Markets and AvaTrade. Both brokers have established themselves as trusted platforms for traders worldwide, but how do they compare? In this detailed comparison of IC Markets vs AvaTrade, we will explore their key features, trading conditions, and overall performance to help you make an informed decision.
Here’s a simple comparison table for IC Markets and AvaTrade:
| Feature | IC Markets | AvaTrade |
|---|---|---|
| Founded | 2007 | 2006 |
| Regulation | ASIC, FSA | ASIC, Central Bank of Ireland, FSC |
| Trading Platforms | MT4, MT5, cTrader | MT4, AvaTradeGO, AvaOptions, WebTrader |
| Spreads | From 0.0 pips (Raw Spread Account) | From 0.9 pips |
| Commission | $3.5 per lot (Raw Spread) | None |
| Leverage | Up to 1:500 | Up to 1:400 |
| Customer Support | 24/7 via chat, phone, email | 24/5 via chat, phone, email |
| Instruments Offered | 230+ (Forex, commodities, etc.) | 1,250+ (Forex, stocks, crypto, etc.) |
Overview of IC Markets and AvaTrade
IC Markets
IC Markets is a well-known forex broker that offers excellent trading conditions for retail and professional traders. Founded in 2007 and headquartered in Sydney, Australia, IC Markets is known for its low spreads, fast execution speeds, and a wide range of trading instruments. It is regulated by the Australian Securities and Investments Commission (ASIC) and offers trading platforms like MetaTrader 4, MetaTrader 5, and cTrader.
AvaTrade
AvaTrade, established in 2006, is another global forex broker with offices worldwide. The broker offers various financial instruments, including forex, CFDs, cryptocurrencies, and commodities. AvaTrade is regulated by several authorities, including the Central Bank of Ireland, the Australian Securities and Investments Commission (ASIC), and the Financial Services Commission (FSC). It provides user-friendly platforms, making it popular with beginner and experienced traders.
Trading Platforms
IC Markets
IC Markets provides three advanced trading platforms:
- MetaTrader 4 (MT4): A popular platform with customizable charts, technical indicators, and automated trading capabilities.
- MetaTrader 5 (MT5): An updated version of MT4, offering additional tools, timeframes, and improved order management.
- cTrader: Known for its user-friendly interface and fast execution speeds, cTrader is ideal for ECN traders looking for precision in trade execution.
AvaTrade
AvaTrade offers multiple trading platforms:
- MetaTrader 4 (MT4): As with IC Markets, MT4 is available on AvaTrade, providing access to a wealth of trading tools.
- AvaTradeGO: A mobile app designed for a smooth trading experience on the go, offering clear visualizations of the markets and one-click trading.
- AvaOptions: AvaTrade’s proprietary platform for options trading, which includes advanced risk management tools.
- WebTrader: A web-based platform with a simple and intuitive design for traders who prefer not to download software.
Comparison:
While both brokers offer MT4, IC Markets stands out with its cTrader platform, which is favored by professional traders for its fast execution. AvaTrade’s AvaTradeGO app is an advantage for mobile users, while its WebTrader platform caters to those seeking a seamless browser-based experience.
Spreads and Fees
IC Markets
IC Markets is known for offering some of the lowest spreads in the market. On the Raw Spread Account, spreads can go as low as 0.0 pips, with a small commission of $3.5 per lot per side. The Standard Account has spreads starting from 1.0 pips, with no commission. IC Markets has low fees, making it ideal for high-frequency traders or scalpers.
AvaTrade
AvaTrade offers competitive spreads but does not have raw spreads. The average spread on major pairs like EUR/USD is around 0.9 pips. Unlike IC Markets, AvaTrade does not charge a commission, which can appeal to traders who prefer a simpler fee structure. However, the slightly higher spreads may not be as appealing for scalpers.
Comparison:
IC Markets has the edge in terms of raw spreads and lower trading costs, which is beneficial for high-volume traders. AvaTrade, however, offers a commission-free structure that might attract beginner traders looking for a straightforward pricing model.
Regulation and Safety
IC Markets
IC Markets is regulated by top-tier financial authorities like ASIC (Australian Securities and Investments Commission) and the Seychelles Financial Services Authority (FSA). It is considered a safe broker with a strong regulatory framework.
AvaTrade
AvaTrade is heavily regulated across multiple jurisdictions, including ASIC, the Central Bank of Ireland, and the Financial Sector Conduct Authority (FSCA) in South Africa. This diverse regulatory coverage ensures that AvaTrade adheres to high standards of safety and security for traders globally.
Comparison:
Both brokers are well-regulated, ensuring a high level of protection for traders. AvaTrade’s broader global regulation gives it an edge in terms of accessibility across more regions.
Leverage
IC Markets
IC Markets offers high leverage of up to 1:500, allowing traders to control larger positions with a smaller amount of capital. However, the available leverage may vary depending on the trader’s location due to local regulatory restrictions.
AvaTrade
AvaTrade provides leverage of up to 1:400 for forex pairs, slightly lower than IC Markets but still offering enough for most retail traders. AvaTrade also follows regional regulations, meaning leverage can vary by region.
Comparison:
IC Markets has a slight advantage in leverage, offering up to 1:500. However, both brokers provide ample leverage options for most traders.
Customer Support
IC Markets
IC Markets provides 24/7 customer support via live chat, phone, and email. Their support team is known for being responsive and knowledgeable.
AvaTrade
AvaTrade offers 24/5 customer support through live chat, phone, and email. They also provide educational resources and tools to help traders improve their skills.
Comparison:
While both brokers offer strong customer support, IC Markets has an advantage with 24/7 availability, which can be crucial for traders who operate across different time zones.
Trading Instruments
IC Markets
IC Markets offers over 230 financial instruments, including forex, commodities, indices, cryptocurrencies, and bonds. The broker focuses heavily on forex, providing access to over 60 currency pairs.
AvaTrade
AvaTrade provides a broader range of over 1,250 instruments, including forex, stocks, commodities, cryptocurrencies, and ETFs. Their diverse offerings make them a versatile broker for traders who want to diversify their portfolios.
Comparison:
AvaTrade offers more trading instruments, making it an attractive choice for traders looking to trade beyond forex. However, IC Markets’ specialized focus on forex and tight spreads makes it ideal for dedicated forex traders.
Conclusion
In the battle of IC Markets vs AvaTrade, both brokers have their strengths. IC Markets stands out for its low spreads, fast execution, and professional trading platforms like cTrader, making it a perfect choice for experienced traders or scalpers. On the other hand, AvaTrade excels in offering a wide variety of trading instruments and user-friendly platforms like AvaTradeGO, which is ideal for beginners or traders looking for a diverse portfolio.
Ultimately, the right broker depends on your trading style. If you prioritize tight spreads and advanced trading platforms, IC Markets may be your best choice. However, if you prefer a commission-free structure, a wide range of instruments, and ease of use, AvaTrade is worth considering.
Both brokers are reliable, and safe, and offer excellent services—ensuring that whichever you choose, you’ll have a solid platform for your trading journey.
Editorial Staff at Chweya is a team of financial experts led by Vincent Nyagaka, with over 9 years of experience in finance, commerce, forex, crypto, and marketing. Started in 2014, Chweya is now among the largest free financial resource sites in the industry and is often referred to as Wikipedia for business.