IC Markets Expands into Proprietary Trading with Launch of ICFunded Platform

IC Markets has officially ventured into the proprietary trading domain through the introduction of its new platform, ICFunded.com, as reported by TradeInformer. The platform, currently in Beta testing, signifies IC Markets’ ambitious move into the proprietary trading arena, offering traders the opportunity to trade with the firm’s capital.

Clients are now invited to register and navigate through ICFunded.com’s features, though it remains in its trial period. According to insights from TradeInformer, the platform has been operational for a little over a week and has already attracted significant interest, particularly from those already associated with IC Markets.

The move places IC Markets among a growing cohort of brokerages that have established proprietary trading or funded trader initiatives. Industry leaders such as Axi, Oanda, and Hantec Markets, as well as emerging players like Raise FX and YaMarkets, have also ventured into this territory.

These proprietary trading services operate within a regulatory grey area. Most offerings, ICFunded.com included, mainly provide demo accounts intended for training and strategy development. These accounts do not fall under the purview of regulatory bodies in any known jurisdiction.

By launching a proprietary trading division, FX brokers like IC Markets are broadening their income streams. Historically dependent on earning through spreads and commissions, these firms can now also gain from the profitable trades of their proprietary traders. This shift not only enhances the broker’s profits but also diminishes its reliance on conventional revenue streams, which are susceptible to market changes and competitive dynamics.

Proprietary trading arms enable brokers to better manage their risk. They serve as a tool for hedging against client trades or adjusting the firm’s market exposure with greater precision. Such strategies can contribute to more consistent financial outcomes, even amidst market volatility, by diversifying risk through in-house trading operations.