Ikon Finance Review

WHO IS IKON FINANCE?

According to research in South Africa, Ikon Finance is a UK based online broker which provides traders with access to the Forex and Futures markets.

Established in 2010, Ikon Finance first operated as a Futures Commission Merchant out of New York, before moving its headquarters to the UK and expanding its portfolio to cater further to institutional clients.

While Ikon Finance is not one of the largest brokers in the industry, the company differentiates itself by delivering market-leading technologies and high-end vendors to institutional and retail clients.

SAFE OR SCAM?

The forex market is extremely volatile, linked as it is to fluctuations in global currencies which in turn are determined by various market movements and global events.

While this very volatility contributes to more enhanced and lucrative trades, particularly for regular traders, it also means that a certain level of security is required within the forex trading environment in order to ensure full profitability.

Most forex brokers aim to provide a certain level of security through some form of authorization under relevant regulatory bodies. The most recognized of these bodies include such organisations as the FCA, CySEC and ASIC.

However, such regulation can also present certain restrictions, such as on the level of leverage which regulated brokers may offer.

While these restrictive measures are put in place in order to protect traders, some investors may seek out brokers with less regulatory restriction to benefit from concurrently enhanced trades – a risk which is ultimately taken at the trader’s own discretion.

Ikon Finance is a UK based Forex and CFD broker, and as such is regulated by the Financial Conduct Authority (FCA), one of the most reputable regulatory bodies in the industry.

The FCA provides for stringent client protection measures, which includes broker participation in the Financial Services Compensation Scheme (FSCS) that provides cover of up to £50,000 in case of broker insolvency.

PROS AND CONS

LEVERAGE

Most brokers on the forex market today offer some form of leverage, which is essentially a small loan granted on behalf of the broker to their clients in order for them to make larger trades and increase their potential profits.

The entire forex and CFD industry to some extent relies upon the use of margin and leverage.

Leverage is the opportunity provided by a forex broker to open a speculative position worth a much larger amount of money than you have at their disposal. Leverage is expressed in ratios like: 200:1, 100:1, 50:1, etc.

For example, if your online trading company blocks €1,000 from your trading account to open a 100,000 EUR/USD position, it means you are using a 100:1 leverage. Put in different words, you control €100,000 with only €1,000.

As such, leverage is a great way for smaller traders to potentially make larger returns than they would have been able to with the investments already at their disposal.

However, making larger speculations with borrowed money also carries a higher risk of significant losses, particularly for those intending on investing large sums of money.

It is for this reason that many regulators made the decision to cap the maximum leverage which brokers operating under their authority could offer, so that most regulated brokers can now offer a maximum leverage of 1:30.

Ikon Finance, being regulated by the FCA in the UK, falls under the abovementioned restrictions regarding the maximum leverage rates which it can offer.

As such, the broker offers a maximum leverage of 1:30 applied to major currency pairs, and 1:20 for minor pairs.

ACCOUNTS

The forex industry is arguably the largest financial market in the world today, and as such abounds with a wealth of different traders of all experience levels and trading styles.

In order to facilitate this varied base of client traders, most forex brokers provide a selection of different accounts which each cater to the specific needs of traders, and are  often designed according to experience level and investment styles.

Many of these accounts come with their own spreads and commissions also tailored to the requirements and the investment potential of specific traders.

Ikon Finance offers four types of live trading accounts with different deposit requirements, spreads and leverage, in some cases. Clients of the broker can also open managed accounts or a free demo account.

Clients with MT4 accounts can trade in 28 forex pairs, while those using the Prodigy accounts have access to 55 currency pairs.

Ikon Finance also has an option for a swap-free Islamic account with a spread of 1.5 pips for EURUSD and higher lot requirements.

Islamic accounts typically have different conditions than traditional live trading accounts, as they are intended for Muslims observing the Sharia law regarding usury.

Ikon Classic MT4 Account

Minimum deposit: $1000

Maximum leverage: 1: 30

Average spread: From 1 pip

Ikon Plus MT4 Account

Minimum deposit: $500

Maximum leverage: 1: 30

Average spread: From 0.8 pips

Prodigy Classic

Minimum deposit: $1000

Maximum leverage: 1: 30

Average spread: From 0.8 pips

Ikon Pro Account

Minimum deposit: $1500

Maximum leverage: 1: 30

Average spread: From 0.3 pips + commission

MARKET INSTRUMENTS

While Ikon Finance states that it is a Forex and CFD broker, the total number of currency pairs and instruments is not clearly stipulated, and should be requested from the broker’s customer support team.

FEES

Different forex brokers will offer different fee structures based on how they make a profit and on the type of traders which they target, or cater for.

Most forex brokers make a profit on the commission, or the spread, or both, and some offer more competitive structures, while others charge higher commissions in return for more lucrative trading options.

Traders will ultimately have to choose a broker whose fee structure best suits their trading style, the investment they have at their disposal, and their trading strategy.

Ikon Finance offers variable spreads depending on the account type, which are both fixed and floating.

In general, the broker offers relatively tight spreads, starting from 0.8 pips, while the Pro Account charges commission, though specific details on this commission structure was not made available.

DEPOSIT AND WITHDRAWAL

Traders often examine a broker’s deposit and withdrawal options in order to determine how the associated rates charged by the broker might affect their profitability over the long term.

Traders also often seek out brokers who provide a wide range of deposit and withdrawal options in order to make for a more streamlined and cost effective process.

Ikon Finance charges a relatively high minimum deposit, starting at $500 for the Ikon Plus Account, and going as high as $1500 for the Ikon Pro Account.

Clients can made both deposits and withdrawals through bank wire, credit or debit card, and e-wallets such as Neteller or Skrill. The broker does not charge additional deposit or withdrawal fees.

TRADING PLATFORMS

Ikon Finance offers two types of trading platforms, namely the ever popular MetaTrader 4 platform, and its own proprietary platform called Prodigy.

MetaTrader 4

MT4 is arguably the most popular trading platform in the forex industry today, as it comes with multiple charting and analysis tools, fast execution, and access to numerous instruments.

Prodigy

The broker’s proprietary Prodigy platform has a number of features and tools, including hedging and netting, live price streaming and charting tools, though is certainly not as advanced as MT4.

HOW TO OPEN AN ACCOUNT

Opening an account with Ikon Finance is a relatively straightforward online process which consists of the following steps:

1. Complete an application form.
2. Upon completing the application, you will be registered with a username and password that will give you access to your account.
3. Log in to the brokerage’s client portal.
4. Arrange for the transfer of funds from your bank to deposit funds into your account. This may be through check, credit or debit card, or electronic transfer from your bank account. Note: Using a credit card for this purpose can be subject to interest charges.
5. Once your account has been funded, you are now ready to start trading. At this point, you will want to review any recommendations or special details that your broker provides regarding use of their trading platform before actually making your first trade. Some brokerages may offer trading simulator programs to allow traders to practice before actually putting money into trading.

CUSTOMER SUPPORT

Unfortunately, Ikon Finance provides extremely limited customer support, consisting of a query submission only, with no direct telephone number or live chat option.

EDUCATION

Ikon Finance does not offer much in the way of educational resources, apart from a free demo account, with no independent video tutorials, training videos or manuals made available from the broker’s website.

RESEARCH

Ikon Finance likewise does not offer any independent research tools, although the MT4 platform does come with a range of charting and analytical tools inbuilt into its software.

AWARDS

Often, the level and number of awards which a broker has received is a strong indication of their standing within the industry, though some brokers do not participate in awards schemes.

While Ikon Finance has received several positive customer reviews, the broker has not listed any awards on its website to date.

CONCLUSION

Ikon Finance is a mid-range broker which offers a decent set of features and tools through the MT4 platform and the provision of several different accounts.

While the broker offers competitive spreads, the initial minimum deposit is relatively high, and might make this broker inaccessible to some smaller retail traders.

DISCLAIMER

Risk Warning: The Company also offers CFD products which are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when trading CFDs with GCI Trading.

You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Cryptocurrencies are complex, high-risk, and volatile and may result in the loss of all invested capital over a short period of time; they are not appropriate for all investors.

Investors must understand and acknowledge these specific characteristics and risks and be warned that there is no EU regulatory framework governing trading in cryptocurrency products.

CFDs and Forex are not only complex instruments, but they also have a high level of risk which may result in loss of funds that exceed the trader’s initial deposit.

Traders need to evaluate their objective, level of risk exposure and willingness to be exposed to risks, according to research done in South Africa.

FAQs

TRADING ENVIRONMENT

How many instruments can I trade with Ikon Finance?

Ikon Finance offers trading in Forex and CFDs.

Which platforms are supported by Ikon Finance?

• MetaTrader 4
• Prodigy

Does Ikon Finance offer leverage?

Yes, Ikon Finance offers a maximum leverage of 1: 30

What spreads can I expect with Ikon Finance?

Ikon Finance’s spreads vary depending on the account, but start as low as 0.8 pips

Does Ikon Finance charge commission?

Yes, on the Pro Account only

Is Ikon Finance regulated?

Yes, Ikon Finance is regulated by the FCA

Is Ikon Finance a recommended forex trading broker for experts and beginners?

No, Ikon Finance is better suited for institutional traders

What is the overall rating out of 10 for Ikon Finance?

7/10

ACCOUNTS

What is the difference between a demo and live trading account?

A demo account is offered by broker companies and funded with virtual money that enables a prospective customer to experiment with the company’s trading platforms and its features, before setting up a real account funded with the customers actual money.

Does Ikon Finance offer a demo account?

Yes

How long is the demo account valid?

The demo account is valid for 30 days

Which live trading accounts does Ikon Finance offer?

• Ikon Classic MT4 Account
• Ikon Plus MT4 Account
• Prodigy Classic
• Ikon Pro Account

What are the available deposit currencies for a live trading account?

USD, GBP, EUR

DEPOSITS AND WITHDRAWALS

What is the minimum deposit for Ikon Finance?

$ 500

How do you make a deposit and withdrawal with Ikon Finance?

• Bank wire
• Credit/Debit Card
• E-Wallets

Does Ikon Finance charge withdrawal fees?

No

How long does it take to make a withdrawal?

Withdrawals can take up to 5 business days depending on your banking institution, although e-wallets can be processed within a few minutes.