IC Markets’ AFS Licence allows us to make markets, as is the case for all CFD and Forex providers globally. We are not a broker to you but a product issuer. Simply put, we act as a principal to your trades and are the sole counterparty that allows you to access prices streamed from our liquidity providers that supply IC Markets with the bank and non-bank pricing.
Technically, when you buy a product at IC Markets, we are selling that product to you. It may not be possible for you to buy that product on an exchange or from a bank directly.
Typically, market makers are considered to be Forex and CFD providers who operate a dealing desk in order to create their own prices. These prices can be based on their own proprietary trading positions or overall risk exposure and may not reflect the prices in the underlying market. In Australia all Forex and CFD providers have market making authorization on their AFS licence; however, in practice many do not operate in the manner described above and do not consider themselves market makers as they do not create their own prices.
Technically, when you buy a product at IC Markets, we are selling that product to you. It may not be possible for you to buy that product on an exchange or from a bank directly.
Typically, market makers are considered to be Forex and CFD providers who operate a dealing desk in order to create their own prices. These prices can be based on their own proprietary trading positions or overall risk exposure and may not reflect the prices in the underlying market. In Australia all Forex and CFD providers have market making authorization on their AFS licence; however, in practice many do not operate in the manner described above and do not consider themselves market makers as they do not create their own prices.