IC Markets And ESMA Rule Changes
ESMA is the European financial regulator and traders may wonder whether IC Markets is covered by rules which ESMA promulgated in 2018. These regulations included restrictions on leverage to a maximum of . IC Markets has in fact three branches, one in Australia and regulated by ASIC, one based in Cyprus and regulated by the CySEC and one based in the Seychelles and regulated by the FSA.
Previously IC Markets was based only in Australia and regulated by the ASIC. However regulatory changes by ASIC resulted in the establishment of a branch in the Seychelles regulated by the Seychelles FSA. The idea was that Australian clients would trade at ASIC regulated IC Markets while non-Australian clients would trade at the FSA regulated branch. However IC Markets also established a branch in the EEA, in Cyprus. If the trader trades with this branch then they will be subject to the rules including restrictions on leverage. These rules were designed to protect traders, and include standardised risk warnings as well as a stop-out level of 50%. Increasing leverage increases risk, thus the trader may wish to consider trading with lower leverage. At FSA regulated IC Markets, maximum leverage is as it was, which is 500:1. The trader will also not have other protections that they may have at CySEC regulated IC Markets.
IC Markets offers what it calls True ECN trading, with spreads from 0 plus a commission charge. IC Markets has a relatively large number of markets to trade for an ECN broker, with 2500+, including Shares CFDs and Soft Commodities, as well as Forex, Indices, Metals and Cryptocurrencies. IC Markets offers trading on MT4, its successor MT5 and cTrader. cTrader is a relatively user friendly platform which traders who plan and execute their own trades may appreciate, though like MT4 and MT5 it also has automated trading features. IC Markets supports social and copy trading and allows a wide range of trading styles. The trader may sign up for FSA regulated IC Markets through the following sign-up link.
