Trading fees are the most defining aspect of a broker, as they directly impact profitability. They also reveal which strategies a broker actively supports and passively discourages. My in-depth IFC Markets fees review helps traders understand and compare them to other brokers. Does IFC Markets fees offer competitive trading fees? Read on and find out.
Overview of IFC Markets Fees
During my IFC Markets broker review, IFC Markets offered two cost structures: commission-free fixed spreads from 1.8 pips or $18.00 per 1.0 standard round lot and commission-free floating spreads from 0.4 pips or $4.00 per 1.0 standard round lot for the AUD/USD, the EUR/USD, the USD/CAD, the USD/CHF, and the USD/JPY, but notably higher ones for other currency pairs. MT4 traders only get expensive commission-free fixed spreads.
Equity CFD commissions range from 0.10% to 0.25%, depending on the market, $0.02 per share for US-listed equities per side and C$0.03 per share per side for Canadian CFDs. Cryptocurrency traders get BTC/USD minimum floating spreads of $100.
Here is a snapshot of IFC Markets fees:
Fee | Type of Fee | Applicable at IFC Markets |
Spreads | Trading fee | Yes |
Commission | Trading fee | No |
Swap rates on leveraged overnight positions | Trading fee | Yes |
Live Price Feed / Stamp Duty/ Settlement Fee | Trading fee | No |
Internal Deposit Fee | Non-trading fee | Yes |
Internal Withdrawal Fee | Non-trading fee | Yes |
Inactivity Fee | Non-trading fee | No |
Account Fee | Non-trading fee | No |
Currency Conversion Fee | Trading fee and non-trading fee | Yes |
IFC Markets Fees, Spreads, and Commission Explained
IFC Markets, like all brokers, has frequent trading fees and less frequent non-trading fees. Traders must understand the IFC Markets fees to know what they pay per trade and compare costs to other brokers to determine if IFC Markets offers a competitive cost structure.
IFC Markets Trading Fees
- Spreads (the difference between the bid and the ask price, where IFC Markets has floating spreads from 0.4 pips and fixed spreads from 1.8 pips)
- Commissions (IFC Markets does not charge commissions)
- Swap rates (charged on leveraged overnight positions)
- Currency conversion fees (undisclosed)
IFC Markets Non-trading Fees
- Deposit fees (internal fees that apply to some IFC Markets deposit methods)
- Withdrawal fees (internal fees that apply to certain IFC Market withdrawal methods)
- Inactivity fees (IFC Markets does not charge inactivity fees)
- Currency conversion fees (undisclosed)
IFC Markets Trading Fees
IFC Markets trading fees are the most frequent IFC Markets fees traders will pay. They depend on the asset and apply to each transaction. The various IFC Markets account types offer fixed and floating spreads, but the trading platform choice determines the IFC Markets fees. Currency conversion fees apply if the asset quote currency differs from the account base currency.
Be aware that the impact on the trader’s balance from transaction fees is not felt when using the IFC Markets demo account.
Here is an overview of minimum IFC Markets trading fees in the MT5 platform:
Asset | Average Markup over Raw Spreads | Minimum Commission | Total IFC Markets Fees |
Forex (EUR/USD) | 0.4 pips | $0.00 | $4.00 per 1.0 standard lot |
Indices (S&P500) | 0.26 points | $0.00 | $0.26 per contract |
Commodities (Gold) | 0.36 points | $0.00 | $0.36 per contract |
Overnight Fees (Swap rates)
Swap rates are the most ignored trading costs, which may become the most significant fee per trade, depending on the strategy. Swap rates apply on leveraged overnight positions, which triple on Wednesday to account for trades kept open over the weekend.
MT4/MT5 traders can easily access swap rates from their platform by following these steps:
1. Right-click the desired symbol in the Market Watch window and select Specification.
2. Scroll down until you see Swap Long and Swap Short.
IFC Markets Non-Trading Fees
Traders must know about non-trading fees, which are notably less frequent and apply to deposits, withdrawals, and inactivity, to avoid confusion and avoidable costs.
Currency Conversion Fees
Currency conversion fees are hidden fees that most traders are unaware of. Currency conversion fees apply each time IFC Markets exchanges one currency for another, including trading. For example, traders buy a Euro-denominated asset in a US Dollar base account. IFC Markets does not disclose how it handles currency conversions.
IFC Markets Deposit Fee
IFC Markets offers a choice of payment processors where no fees apply. Traders using Perfect Money pay a deposit fee of between 0.5% and 1.99%, and WebMoney has a 20% deposit fee. Traders may also face third-party payment processing fees or currency conversion fees.
IFC Markets Withdrawal Fee
All IFC Markets withdrawals incur withdrawal fees, which IFC Markets lists transparently on its website. The fee is either a flat fee or a percentage-based fee. Traders should consider potential third-party processing costs, currency conversion fees, and follow-on transaction costs.
IFC Markets Inactivity Fee
IFC Markets does not charge an inactivity fee.
IFC Markets Safety and Security
IFC Markets remains regulated by the Labuan Financial Services Authority and the British Virgin Islands Financial Services Commission. It offers third-party insurance by Hamilton Group’s Syndicate 4000, segregated client deposits from corporate funds, provides negative balance protection, and has 18+ years of experience.
Bottom Line
IFC Markets fees feature ultra-competitive floating spreads for the AUD/USD, the EUR/USD, the USD/CAD, the USD/CHF, and the USD/JPY, but notably higher costs for other currency pairs. It also discriminates against MT4 traders with significantly higher fixed spreads. IFC Markets does not levy an inactivity fee, but select deposit payment processors and all withdrawals do incur fees. The IFC Markets minimum deposit requirement is $1 for micro accounts and $1,000 for standard accounts. IFC Markets commissions apply to equity trades and range from 0.10% to 0.25%, depending on the market, $0.02 per share for US-listed equities per side and C$0.03 per share per side for Canadian CFDs. IFC Markets fees consist of spreads, commissions for equity traders, swap rates, and currency conversion fees, if applicable. IFC Markets withdrawal fees depend on the payment processors and are either a fixed cost or a percentage-based cost. Spreads apply immediately once a trader opens a position, and commissions apply whenever traders buy and sell trading instruments, but swap rates on leveraged overnight positions only apply after the cut-off time. IFC Markets charges currency conversion fees if the quote currency of the asset differs from the account base currency. IFC Markets does not charge an inactivity fee for dormant accounts. IFC Markets is a good broker for Forex traders who trade primarily the AUD/USD, the EUR/USD, the USD/CAD, the USD/CHF, and the USD/JPY, as these IFC Markets fees are ultra-competitive. Equity, commodity, and index traders get reasonable fees.FAQs
What is the minimum deposit for IFC Markets Forex?
Does IFC Markets have commissions?
What trading fees does IFC Markets charge?
How much does IFC Markets charge for withdrawals?
When does IFC Markets charge fees?
Does IFC Markets charge inactivity fees?
Is IFC Markets a good broker?
