The most-cited figures in retail forex broker comparisons during April 2026 — Pepperstone Razor at 0.80 pips all-in cost on EUR/USD and IC Markets Raw Spread at 0.32 pips average all-in — disguise more than they reveal. The headline numbers come from ForexBrokers.com 2026 rankings and assume calm-market peak-liquidity conditions, $7.00 round-trip commissions on both brokers, and identical liquidity provider quality. The reality is that Pepperstone's 0.80 pips combines an average 0.10 pips raw spread with a $7.00 commission overlay normalized to the lot, while IC Markets' 0.32 pips average combines its cTrader (0.02 pips) and MT4/MT5 (0.72 pips) tiers into a blended figure that materially understates what an MT4 user actually pays. Translated into rupees on a 100,000-unit lot at USDINR 83.20, Pepperstone Razor costs approximately ₹665 round-trip; IC Markets cTrader Raw costs approximately ₹516; IC Markets MT4 Raw costs approximately ₹1,180. The headline-versus-reality gap is large enough to change the broker selection for a cost-sensitive trader.
This piece walks through the cost math, the tier-by-tier comparison, the volume-tier sensitivity, and three reads on what the Pepperstone-IC Markets head-to-head signals for raw-spread broker selection in 2026.
The Cost Math Specifically
| Cost Element | Pepperstone Razor | IC Markets cTrader Raw | IC Markets MT4/MT5 Raw |
|---|---|---|---|
| Avg EUR/USD spread (April 2026 calm) | 0.10 pips | 0.02 pips | 0.72 pips |
| Round-trip commission per 100k lot | $7.00 | $6.00 | $7.00 |
| Spread cost (100k EUR/USD at 1.10) | $1.00 (0.10 × $10) | $0.20 | $7.20 |
| Spread + commission all-in cost | $8.00 | $6.20 | $14.20 |
| INR equivalent (USDINR 83.20) | ₹665.60 | ₹515.84 | ₹1,181.44 |
| All-in pips equivalent | 0.80 pips | 0.62 pips | 1.42 pips |
The 0.32 pips "average" cited for IC Markets in headline rankings is a blended figure that combines the very low cTrader spread with the substantially higher MT4/MT5 spread. For a trader on cTrader specifically, IC Markets is significantly cheaper than Pepperstone. For a trader on MT4 specifically, Pepperstone is significantly cheaper than IC Markets. The platform choice within IC Markets dominates the broker comparison.
The Tier-by-Tier Comparison
Tier 1 — cTrader users: IC Markets cTrader Raw is the structural winner at $6.20 all-in vs Pepperstone Razor $8.00. The 22% cost advantage compounds across active trading volumes. Pepperstone's cTrader Razor pricing matches its MT4/MT5 Razor pricing (0.10 pips average + $7 commission), so the platform-within-broker difference does not exist on Pepperstone.
Tier 2 — MT4/MT5 users: Pepperstone Razor at $8.00 is materially cheaper than IC Markets MT4/MT5 Raw at $14.20. The 44% cost advantage for Pepperstone on MT4 is one of the most consequential differentiation factors in the high-end retail broker market.
Tier 3 — Platform-agnostic high-volume traders: those willing to use whatever platform is cheapest find IC Markets cTrader the cheapest option, then Pepperstone Razor (any platform), then IC Markets MT4/MT5 Raw at the higher end of the raw-spread tier.
Tier 4 — Standard-account traders: traders who cannot or do not want to pay commissions face a separate calculation. Pepperstone Standard EUR/USD averages 1.0-1.2 pips (no commission), all-in cost $10-12. IC Markets Standard EUR/USD averages 1.1-1.3 pips, all-in $11-13. Both are higher cost than the Razor/Raw alternatives at any meaningful volume.
The Volume-Tier Sensitivity Analysis
For a trader executing 100 round-trip lots per month on EUR/USD, the monthly cost differences scale to:
| Broker / Platform | Cost per 100k lot | Monthly cost (100 lots) | Annual cost (1,200 lots) |
|---|---|---|---|
| IC Markets cTrader Raw | $6.20 | $620 | $7,440 |
| Pepperstone Razor | $8.00 | $800 | $9,600 |
| IC Markets MT4/MT5 Raw | $14.20 | $1,420 | $17,040 |
| Pepperstone Standard | $11.00 | $1,100 | $13,200 |
The annual cost gap between IC Markets cTrader and IC Markets MT4 reaches $9,600 for a 1,200-lot-per-year trader. That gap exceeds many traders' total monthly P&L. The platform-and-broker selection is among the highest-leverage decisions in active retail forex trading.
How These Compare Against Other Tier-1 Brokers
| Broker / Tier | EUR/USD All-In Cost (April 2026) | Notable Feature |
|---|---|---|
| IC Markets cTrader Raw | $6.20 | Lowest average via cTrader native ECN |
| Fusion Markets Raw | $4.00-5.00 | $4.50 commission, 0.0 pips raw |
| OANDA Standard | $8.00 (avg) | $0 commission, all in spread |
| Pepperstone Razor | $8.00 | Best mid-cap raw spread |
| FxPro cTrader Raw | $8.50-10.00 | Strong cTrader execution |
| FXTM ECN | $4.00-9.00 | Variable based on volume |
| IC Markets MT4/MT5 Raw | $14.20 | Higher-cost MT4 alternative |
| Tradu (challenger) | Variable / lowest avg | Spread-only model |
Fusion Markets' $4.00-5.00 all-in cost on Raw accounts is the lowest in the tier-1 raw-spread broker market, undercutting both IC Markets cTrader and Pepperstone Razor. The trade-off for traders is operational maturity and infrastructure scale (IC Markets and Pepperstone have substantially larger client bases and longer track records).
What the Cost Math Tells Us About Broker Selection
First, the headline "0.80 pips all-in" or "0.32 pips raw" figures hide platform-specific variations that materially change the trader-side cost calculus. Detailed broker comparison must distinguish cTrader from MT4/MT5 as separate cost categories, not aggregate them.
Second, the cost differential between the cheapest tier (IC Markets cTrader Raw at $6.20) and the more expensive tier-1 alternatives ($14.20 IC Markets MT4) is substantial enough to dominate the broker selection for cost-sensitive active traders. Other factors (regulation, deposit/withdrawal speed, customer service, platform features) may override cost only for specific use cases.
Third, the emerging challengers (Fusion Markets, Tradu) are pricing aggressively to capture share from the established IC Markets-Pepperstone-OANDA top-tier. Whether these challengers maintain operational quality at lower cost points is the open question for 2026-2027.
What This Desk Tracks Through 2026
For the broker cost trajectory, three datapoints define the path.
First, raw-spread tier price evolution. If IC Markets cTrader Raw spreads continue tightening below 0.02 pips toward the theoretical 0.0 pips floor, the broker pricing model becomes commission-only with spread approaching zero.
Second, Pepperstone's response to cTrader-specific pressure. Pepperstone has not introduced cTrader-specific Razor pricing differentiation; if cTrader users continue migrating to IC Markets, Pepperstone may need to offer similar tier-specific pricing.
Third, OANDA's standard-account positioning. OANDA at $8.00 all-in standard cost (no commission) competes with Pepperstone Razor at $8.00 (with commission) on different pricing models. The two brokers face different competitive pressures in 2026.
Honest Limits
Spread averages are typical calm-market figures; specific spreads vary continuously based on liquidity conditions and time of day. Commission figures are specific to the EUR/USD pair and may differ for other currencies. Broker rankings reflect ForexBrokers.com 2026 published comparisons; specific broker fortunes depend on factors beyond cost (regulation, customer service, platform reliability). This piece is not investment advice; traders should evaluate brokers based on their full requirement set.
Sources
- Pepperstone vs IC Markets 2026 — ForexBrokers.com
- Pepperstone vs IC Markets — DailyForex
- IC Markets vs Pepperstone Comparison 2026 — FXEmpire
- Lowest Spread Forex Brokers 2026 — NewYorkCityServers
- Pepperstone vs IC Markets Comparison Fees Spreads — CompareForexBrokers
- IC Markets vs Pepperstone — Traders Union
- Top 6 Low Spread Brokers in 2026 — FX Street