Frequently Asked Questions.
Q: What is an ECN ?
A: ECN stands for electronic communications network. It is the technology allowing price makers to send executable streaming prices (ESPs, aka bids and offers) to the market, constructing a virtual order book in much the same fashion as a stock exchange would. A price maker is any participant of that ECN that has liquidity to offer in the form of a bid (buy limit) or offer (sell limit). By constructing a virtual order book with price makers consisting primarily of Tier-1 banks, IC Markets is able to offer extremely deep liquidity with some of the best top of book pricing (spreads) globally. All trading orders are matched automatically between liquidity providers in real time and in milliseconds per order.
Q: What does Straight Through Processing (STP) mean?
A: An ECN broker like IC Markets acts as an intermediary between clients and the market, all trades are straight through processed to the ECN where they are filled by one of their liquidity providers (LPs). Assuming the role of a clearer to clients trades and using several LPs ensures there is no conflict of interest between IC Markets, its clients and its LPs. There is no dealing desk involved in quoting prices and executing orders. IC Markets does NOT trade against the clients.
Q: What are the benefits of ECN Forex brokers?
A: ECN Forex brokers always have raw spreads. ECN brokers have no conflict of interest with their clients or liquidity providers. They merely act as an intermediary between clients and the market. Commission is the only revenue/profit an ECN broker receives. ECN brokers are interested in their clients to be winning, otherwise there will be no commission to earn.
Q: What is ultra-low latency?
A: Latency is the delay in the amount of time it takes a data packet (or trade) to travel from source to destination (client to broker). Ultra-low latency trading is ideal for automated and manual trading. The faster the prices are received, the quicker you can enter orders. This will increase your chances of getting the price you are attempting to trade on. This is most valuable during periods of volatile market activity when prices are updating and moving quickly.
Q: What is a Lot?
A: 1 Lot is the standard size in FX trading and refers to 100,000 units of the currency.
Q: What is a Round Turn?
A: It is a completed transaction involving both trade entry and trade exit.
Forex Rebates. Commission/Spread Discount.
Q: What is the benefit of using AbderaFinance.com?
A: If you open your trading account directly with IC Markets you have to pay a higher commission rate. Their regular commission rate is $7.00 per lot round turn.
When you open a trading account through our referral link you receive a rebate of $1.50 per lot round turn. This rebate is directly deducted from your commission allowing you trade with a discounted commission rate of $5.50 per lot round turn.
However your spreads will NOT increase and all other trading conditions do NOT change! Everything remains the same as if you had opened your account directly with the broker.
Q: Do my spreads increase?
A: No. Never!
Q: Does it matter if my trades win or lose?
A: No. You receive a discount for every micro, mini and standard lot you trade, regardless if trades win or lose.
Q: Are there any (hidden) costs by using AbderaFinance ?
A: No. It costs you nothing. No catch, no (hidden) costs. It is a true benefit for any client. Guaranteed.
Q: Do I need to submit my bank account number, PayPal ID, ...?
A: No. You trade directly with a discounted commission or spread.
Q: When will I receive my Forex rebates?
A: Immediate. You trade directly with a discounted commission or spread. Your Forex Rebates are directly deducted from your commission or spreads.
Questions about IC Markets.
Q: Does IC Markets accept US Clients?
A: IC Markets does not accept US clients. US CTFC regulation prevents US clients from trading with brokers outside the US. IC Markets complies with International and Australian regulations.
Read more in the IC Markets FAQ