ICE FX is a brand name of ICE-FX Markets Limited, which is regulated by the Labuan Financial Services Authority (LFSA) under license number MB/15/0007. This authorization is not as strict as the regulation of European brokerage companies, for example. Under this authorization, the broker is not obliged to keep clients’ funds separate or to provide protection against a negative balance. ICE FX has been offering trading and investment services for over 5 years and is proud of its transparency and unique loss protection tools, the company said. ICE FX has partnered with one of the largest banks, Standard Bank, which provides the company with segregated accounts where the client’s money is kept, according to ICE FX.
The company product portfolio consists of 45 instruments distributed in 4 asset classes. 36 of them are currency pairs and the rest are commodities, metals, and cryptocurrencies. The average spread for the EUR/USD pair is 1.0 pips. Leverage can reach 1:300 for major currency pairs. You will be charged a commission of 0.0025% when you trade major currency pairs and 0.1% when you trade cryptocurrencies. There is only one type of real account, so trading conditions are equal for all categories of traders. The minimum required deposit amount is USD 30.
The company provides its services through the well-known MetaTrader 4 (MT4) platform. MetaTrader 4 is the most widely used trading platform that has become an industry standard thanks to its advanced technology. The platform offers a large set of tools and opportunities for traders at all levels, along with advanced technical analysis, flexible trading systems and expert advisors, as well as mobile trading applications. The terminal can be downloaded for PC, MAC or as a mobile app.
The “STP Regalement” file, the company describes the fundamental principles of trading transactions. It is written that all trading accounts are qualified as STP (Straight Through Processing) accounts and operate on NDD (Non-Dealing Desk) principle. It is specified that all trading positions are listed on the interbank market and the company grants customers direct access to interbank liquidity, redirecting their orders to major liquidity providers. It is also noted that when applying the STP model, the company does not earn from customers’ loss. All the company’s income comes from commissions collected when trading positions are executed at some liquidity provider. This means that there should be no conflict of interest.
The document also shows that during significant volatility in the market, release of important news or gaps at the opening of a new trading session, stop loss orders may not be executed at the requested price, but will be executed at the first possible price. This means that all orders are subject to slippage and stop loss orders are not guaranteed.
The “Client Agreement” file warns that if a client is unable to provide sufficient margin within the relevant time frame, his position may be closed at a loss, and the client will be liable for any shortage in the account caused by the prevailing situation. This means that you are not covered by the negative balance protection policy and in the end, you may owe money to this company.
Overall, ICE FX uses the STP model to redirect customers’ orders to some of its liquidity providers. This model excludes the main conflict of interest between the client and the brokerage company. ICE FX is regulated by the Labuan Financial Services Authority (Labuan FSA) in Malaysia. You should be aware that the FSA is not considered a top-level regulator and may not offer the same levels of protection as other established financial authorities. It offers the most popular platform in the industry – MT4 and you can start trading by investing just USD 30.