Exploring IC Markets Forex Broker Review And Demystifying Pips in Trading


In the world of Forex trading, the choice of a reliable broker is paramount to your success. One such broker that has been gaining attention is IC Markets. In this article, we will delve into an IC Markets Forex broker review to understand what sets this broker apart. Additionally, we will explore the concept of pips in trading, a fundamental unit of measurement that plays a crucial role in Forex trading.

IC Markets Forex Broker Review

IC Markets, an Australian online Forex broker, has a good reputation. Several factors must be considered to assess the broker’s performance and credibility.

  • Regulation and Safety: IC Markets is regulated by ASIC and the FSA in Australia and Seychelles. This dual regulation safeguards traders’ funds and the broker’s activities. Client monies are segregated for added security.
  • IC Markets provides trading systems such as MetaTrader 4 (MT4), MetaTrader 5 (MT5), and cTrader. Stability, advanced charting, and algorithmic trading are hallmarks of these platforms. Traders can use their preferred platform to trade efficiently.
  • Trading Conditions: IC Markets offers competitive trading conditions. The broker offers currency pairs, commodities, indices, and cryptocurrencies. Low spreads and fast order execution help traders seize market opportunities.
  • Leverage: IC Markets provides traders with customizable leverage levels. However, leverage can compound Forex trading wins and losses, so use it cautiously.
  • Customer Support: IC Markets provides prompt and helpful support. A 24-hour support team helps traders with questions and difficulties. Live chat, email, and phone support improve the experience.
  • Education and Resources: IC Markets offers webinars, trading manuals, and market analysis. These materials help new and seasoned traders improve their trading skills.

Understanding Pips in Trading

Now that we’ve explored IC Markets, let’s demystify the concept of pips in trading.

What Is a Pip?

What is a pip in trading? In the Forex market, “pip” means “percentage in point” or “price interest point,” and it measures price changes. A pip is the smallest exchange rate movement in most currency pairs. For main currency pairs, a pip is the fourth decimal place, but for the JPY, it’s the second.

Pips are illustrated here:

In this example, the EUR/USD exchange rate is 1.1500. At 1.1501, the exchange rate rises one pip. A one-pip drop occurs at 1.1499.

Forex traders use pips to measure price fluctuations, compute the spread, and calculate profit and loss. Trading position or lot size affects pip value.

Calculating Profit and Loss in Pips

To calculate the profit or loss in pips, you need to consider the following factors:

  1. The number of pips the price moved.
  2. The lot size of your trade.

Here’s a simplified formula:

Profit/Loss (in pips) = (Exit Price – Entry Price) × Lot Size

For instance, if you enter a trade in the EUR/USD currency pair at 1.1500 and exit the trade at 1.1550 with a lot size of 10,000 units, the calculation would be:

(1.1550 – 1.1500) × 10,000 = 50 pips profit

Risk and Reward in Pips

Understanding pips is crucial for managing risk and reward in Forex trading. Traders use pips to set stop-loss orders (a predetermined level where a losing trade is automatically closed) and take-profit orders (a predetermined level where a winning trade is automatically closed). These orders are typically set a certain number of pips away from the entry price, allowing traders to control their risk and lock in profits.


Selecting a reputable Forex broker like IC Markets is a vital step in your trading journey. The broker’s regulatory status, trading platforms, trading conditions, leverage options, customer support, and educational resources are essential factors to consider.

Additionally, understanding the concept of pips in trading is fundamental for measuring price movements, calculating profit and loss, and effectively managing risk and reward in the Forex market. Whether you’re a novice trader or an experienced one, grasping the significance of pips is key to success in the world of Forex trading.

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