IC Markets Launches New Platform ICFunded, Dipping Toes into Prop Trading Industry

Market-leading online trading provider IC Markets has officially entered the world of proprietary trading with the launch of its new platform, ICFunded.com. The platform, which is currently in Beta testing, will offer traders the opportunity to trade with the firm’s capital.

Although ICFunded.com is still in its pilot phase, clients are now invited to register and navigate through its features. The platform has been up and running for a little over a week and has already attracted a great deal of interest from clients, especially those who are already connected to IC Markets.

The move makes IC Markets one of a growing number of brokers that have established proprietary trading or funded trader initiatives, with industry leaders such as Axi, Oanda, and Hantec Markets, as well as emerging players like Raise FX and YaMarkets, also venturing into the space.

These proprietary trading services operate in a regulatory gray area. Most offerings, including ICFunded.com, provide demo accounts for training and strategy development. These accounts do not fall under the jurisdiction of any regulatory body in any known jurisdiction.

By launching a proprietary trading division, forex brokers such as IC Markets are expanding their revenue streams. In the past, these firms have relied on profitability through spreads and commissions, but now they can also profit from the profitable trades of their proprietary clients. Besides, proprietary trading divisions enable brokers to better manage risk. They are a tool for hedging against client trades or adjusting the firm’s market exposure with greater precision.

(Source: The Financial Commission)