XM Vs AvaTrade

Category: Broker Guides | Author: Trading Brokers | Date: July 25, 2023

Selecting the right broker is a critical decision for traders, as it significantly impacts their trading journey and ultimate success. In this article, we will conduct a comprehensive comparison between XM and Pepperstone, two prominent brokers in the industry. Our aim is to provide an in-depth overview of essential factors, including regulation, trading platforms, pricing, account types, trading conditions, research resources, customer support, and withdrawal/deposit methods. By thoroughly examining these aspects, traders can make informed decisions based on their specific trading preferences and requirements.

XM Overview

XM

XM

XM is a reputable forex broker known for its comprehensive trading services and strong industry presence. The company was established in 2009 and has since gained recognition as a trusted provider of online trading solutions.

As a regulated broker, XM operates under the oversight of multiple financial authorities, including the Financial Conduct Authority (FCA) in the UK and the Cyprus Securities and Exchange Commission (CySEC). Traders using XM’s platform have access to a wide range of trading instruments, including forex currency pairs, commodities, indices, stocks, metals, and energies.

The broker offers various account types to cater to different trading preferences and provides competitive trading conditions, including tight spreads, flexible leverage options, and fast trade execution. Overall, XM strives to deliver a user-friendly trading experience with a focus on transparency, security, and client satisfaction.

Pros and cons of XM

Pros:

  • Strong regulation by reputable authorities
  • Wide range of trading instruments, including forex, stocks, commodities, and indices
  • Competitive pricing with tight spreads and low fees
  • Multiple account types to suit different trading preferences
  • Excellent customer support available 24/5
  • Extensive research and educational resources for traders

Cons:

  • Limited cryptocurrency offerings compared to some other brokers
  • Inactivity fee for dormant accounts
XM Logo

XM Group is a multi-award winning globally established and regulated broker that offers tight spreads, fast execution speeds and low commission fees, for trading over 1,000 instruments on user-friendly platforms. They also provide education, market analysis tools and convenient funding options.

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.

AvaTrade Overview

AvaTrade

AvaTrade

AvaTrade is a well-established online broker that offers a wide range of trading services for various financial instruments. Founded in 2006 and headquartered in Dublin, Ireland, AvaTrade has gained recognition in the industry for its extensive product offering and regulatory oversight.

The broker is regulated by top-tier authorities, including the Central Bank of Ireland and the Australian Securities and Investments Commission, ensuring a high level of trustworthiness. Traders using AvaTrade can access a diverse range of markets, including forex, commodities, cryptocurrencies, stocks, indices, and ETFs.

The platform provides multiple account types to cater to different trading preferences and offers competitive trading conditions with fast execution speeds. AvaTrade also offers a range of research and educational resources to support traders’ knowledge and decision-making. With its global presence and multilingual customer support services, AvaTrade aims to provide accessible and reliable trading services to traders worldwide.

Pros and cons of AvaTrade

Pros

  • Strong regulatory oversight from reputable authorities.
  • Wide range of trading instruments, including forex, stocks, commodities, and cryptocurrencies.
  • Multiple trading platforms to choose from, including AvaTradeGO and MetaTrader options.
  • Dedicated customer support with various contact options.
  • Educational resources and market analysis tools for traders.

Cons:

  • Limited account types available, with higher minimum deposit requirements for some.
  • Withdrawal fees may apply for certain payment methods.
AvaTrade Logo

Our #1 Broker 2023

AvaTrade is an award-winning and multi-regulated broker offering a great selection of trading instruments including Forex, Cryptos, Stocks and Commodities. You can trade on all of your devices via user-friendly platforms with excellent trading conditions and no commission fees.

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.

Comparison of XM and AvaTrade

XM and AvaTrade are both prominent forex brokers that offer a wide range of trading services. In this comprehensive comparison, we will explore key aspects of these brokers to help you make an informed decision.

Regulation and trustworthiness:

Both XM and AvaTrade are regulated by multiple top-tier authorities in different countries. XM is regulated by the Australian Securities and Investments Commission (ASIC), the Cyprus Securities and Exchange Commission (CySEC), and the International Financial Services Commission of Belize (IFSC).

AvaTrade is regulated by the Central Bank of Ireland (CBI), the ASIC, the Financial Services Agency of Japan (FSA), the Financial Sector Conduct Authority of South Africa (FSCA), the Financial Services Regulatory Authority of Abu Dhabi (FSRA), the British Virgin Islands Financial Services Commission (BVI FSC), and the Israel Securities Authority (ISA).

Both brokers offer investor protection to their clients depending on their country of residence. XM offers €20,000 to EU clients and $0 to others, while AvaTrade offers €20,000 to EU clients and $0 to others as well.

Trading platforms:

XM and AvaTrade provide advanced and feature-rich trading platforms that cater to the diverse needs of traders. XM offers the user-friendly XM WebTrader, along with the popular MetaTrader 4 and MetaTrader 5 platforms renowned for their extensive charting tools, technical indicators, and automated trading capabilities. AvaTrade introduces the innovative AvaTradeGO platform, enabling seamless trading across multiple devices, alongside the reliable MetaTrader 4 platform. These platforms offer a wide range of order types, advanced analysis tools, customizable trading interfaces, and real-time market data, empowering traders with efficient and effective trading solutions to capitalize on market opportunities.

Pricing and fees:

XM has low trading fees for CFDs and charges no withdrawal fee. However, its forex and stock index fees are only average, and there is a fee for inactivity. XM charges $5 per month after 90 days of inactivity, and an annual administration fee of $10 after 12 months of non-use.

AvaTrade has low CFD fees and average forex fees. Deposits and withdrawals are free, but inactivity fees are quite high. AvaTrade charges $50 per quarter after 3 months of inactivity, and an annual administration fee of $100 after 12 months of non-use.

XM has a slight edge over AvaTrade as it has lower inactivity fees and stock CFD fees.

Leverage

Both XM and AvaTrade offer leverage trading to their clients, but the maximum leverage ratio depends on the type of account, the instrument traded, and the regulatory jurisdiction. XM offers up to 1:888 leverage for forex trading for clients under CySEC or IFSC regulation, while AvaTrade offers up to 1:400 leverage for forex trading for clients under CBI or ASIC regulation. For other instruments, such as stocks, commodities, or cryptos, the leverage ratio varies from 1:2 to 1:20 for both brokers. XM offers higher leverage than AvaTrade for forex trading, but both brokers have similar leverage ratios for other instruments.

Broker Type:

XM is a no dealing desk (NDD) broker that offers market execution for all its accounts. This means that XM does not act as a market maker or take the opposite side of its clients’ trades. Instead, it routes the orders to its liquidity providers and executes them at the best available price. XM claims to have no requotes or rejections on its orders.

AvaTrade is a dealing desk (DD) broker that offers instant execution for its standard account and market execution for its professional account. This means that AvaTrade acts as a market maker or takes the opposite side of its clients’ trades for its standard account. For its professional account, it routes the orders to its liquidity providers and executes them at the best available price. AvaTrade claims to have no requotes on its orders, but it may have rejections or slippage in volatile market conditions.

Social trading

Both XM and AvaTrade offer social copy trading platforms to their clients who want to follow or copy other traders’ strategies. XM offers the MetaTrader Signals service, which is integrated with the MetaTrader 4 and MetaTrader 5 platforms. This service allows clients to access thousands of signal providers from around the world and copy their trades automatically.

AvaTrade offers two social copy trading platforms: ZuluTrade and DupliTrade. ZuluTrade is a third-party platform that connects clients with over 10,000 signal providers from around the world and allows them to copy their trades automatically. DupliTrade is another third-party platform that allows clients to choose from a selection of strategy providers and mirror their trades in real time.

Based on this criterion, both brokers offer similar social copy trading options to their clients, but AvaTrade has more variety in terms of platforms.

Minimum deposit:

XM and AvaTrade offer accessible minimum deposit requirements, allowing traders with different capital sizes to participate in the markets. XM sets a low minimum deposit starting from $5 for Micro and Standard accounts, making it an attractive choice for traders with limited initial investment. AvaTrade requires a minimum deposit of $100, offering reasonable entry requirements for traders looking to start their trading journey with a slightly higher investment. The accessible minimum deposit requirements make trading accessible and inclusive for traders at various levels of experience and capital availability.

Withdrawal and deposit methods:

Both XM and AvaTrade offer a wide range of secure and convenient withdrawal and deposit methods. Traders can choose from options such as bank transfers, credit/debit cards, and popular e-wallets like Neteller and Skrill. The availability of diverse payment methods allows traders to select the most suitable and convenient option for funding their accounts and withdrawing profits. This ensures ease of fund management and enhances overall convenience and accessibility for traders.

Which Should You Choose: XM and AvaTrade?

When considering the choice between XM and AvaTrade, it is important to assess individual trading preferences and needs. For novice traders or those seeking a user-friendly experience and comprehensive educational resources, XM is a suitable option. With beginner-friendly platforms and low minimum deposit requirements, XM caters to traders who are new to the market. On the other hand, experienced traders or those in search of a wider range of financial instruments and account types may find AvaTrade more suitable. With a variety of account options and a diverse selection of financial instruments, AvaTrade meets the specific requirements of traders with more experience. Ultimately, the decision should be based on individual trader preferences, level of experience, and specific trading needs.

 Conclusion

In summary, XM and AvaTrade are both reputable brokers that offer trading services to a global client base. XM provides a beginner-friendly experience with user-friendly platforms and extensive educational resources, making it suitable for novice traders. On the other hand, AvaTrade offers a wider range of financial instruments and account types, catering to more experienced traders with specific requirements. Both brokers are regulated by top-tier authorities, ensuring a level of trustworthiness and security. When making a decision between XM and AvaTrade, it is crucial to consider individual trading preferences, experience level, and specific trading needs.


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