XM Vs Forex.Com

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

Choosing the right broker is vital for traders seeking success in financial markets. The broker you select plays a pivotal role in shaping your trading experience, from the available trading platforms to the quality of customer support and regulatory oversight. With a plethora of brokers to choose from, it is crucial to conduct a thorough comparison to identify the one that aligns with your specific trading needs and objectives. This article aims to provide an in-depth analysis and comparison of XM and Forex.com, two prominent brokers in the industry. By examining various aspects such as background information, regulatory oversight, trading platforms, pricing, and fees, account types, trading conditions, research and education resources, and customer support, traders can make an informed decision and select the broker that best suits their requirements.

XM Overview

XM

XM

XM is a well-established forex and CFD broker that has gained recognition for its reliable and transparent trading services. With a history dating back to 2009, XM has built a strong reputation in the industry. The broker operates under the ownership of Trading Point Holdings Ltd. and is regulated by reputable authorities such as ASIC, CySEC, and IFSC. Traders have access to a variety of trading platforms, including the popular MetaTrader 4 and XM WebTrader. XM offers competitive pricing with low spreads and a range of account types to suit different trading preferences.

The broker’s favorable trading conditions, high-leverage options, and fast order execution further enhance the trading experience. Additionally, XM provides extensive research and education resources, including daily market analysis, educational videos, webinars, and interactive courses. With multilingual customer support available 24/5, XM prioritizes customer satisfaction and accessibility. Overall, XM’s commitment to regulation, comprehensive offerings, and dedication to client support make it a reliable choice for traders looking for a reputable broker.

Pros and Cons of XM

Pros:

  • Strong regulatory oversight
  • Wide range of trading instruments
  • Competitive trading conditions
  • Comprehensive research and education resources
  • Multilingual customer support

Cons:

  • Limited product portfolio as it offers mainly forex and CFDs
  • Average forex and stock index CFD fees for non-zero accounts
  • Inactivity fee charged after 90 days of no trading activity
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.

Forex.com Overview

Forex.com

Forex.com

Forex.com, operated by GAIN Global Markets Inc., is a reputable trading platform that provides customers with a range of trading services and resources. Forex.com operates with a strong regulatory framework. The platform offers a web-based trading platform that enables users to access their accounts conveniently. Forex.com boasts generally low forex trading fees, allowing traders to execute their trades at a cost-effective rate. With three account types to choose from, standard, commission, and Direct Market Access (DMA), traders can select an account that aligns with their trading preferences.

Forex.com primarily focuses on forex trading, providing a diverse range of currency pairs to trade. The platform also offers an array of research and educational resources to support traders in making informed decisions. Customer support is readily available via email, phone, and live chat, ensuring assistance and accessibility for users. Overall, Forex.com provides traders with a reliable trading platform, competitive pricing, research tools, and responsive customer support, making it a suitable option for traders seeking a comprehensive trading experience.

Pros and Cons of Forex.com

Pros:

  • Forex.com has generally low forex-trading fees.
  • Forex.com offers a variety of research and education resources for its customers.
  • Forex.com offers customer support via email, phone, and live chat.

Cons:

  • Forex.com is a market maker broker.
  • Forex.com requires a minimum deposit of $50.
Forex.com Logo

Since 2001, Forex.com has been providing traders around the globe with industry leading trading conditions including user-friendly platforms, tight spreads, low commission fees, rapid trade execution speeds. The broker is regulated in multiple jurisdictions and has a huge selection of trading instruments, powerful tools and educational materials.

69% of retail investor accounts lose money when trading CFDs with this provider.

Comparison of XM and Forex.com

When comparing XM and Forex.com as potential brokers, it’s essential to consider various features and offerings that can impact your trading experience.

Regulation:

XM and Forex.com are both regulated by multiple top-tier authorities, which increases their trustworthiness and safety. XM is regulated by ASIC in Australia, CySEC in Cyprus, IFSC in Belize, and DFSA in Dubai. Forex.com is regulated by CFTC in the US, FCA in the UK, IIROC in Canada, FSA in Japan, CIMA in the Cayman Islands, CySEC in Cyprus, SFC in Hong Kong, MAS in Singapore, and ASIC in Australia. Both brokers also offer client account protection, such as negative balance protection and guaranteed stop-loss orders for some regions. However, Forex.com has a slight edge over XM in terms of regulation, as it has more licenses from different jurisdictions and its parent company, StoneX Group Inc., is listed on the NASDAQ Stock Exchange.

Trading platforms:

Both XM and Forex.com offer user-friendly and feature-rich web-based trading platforms. These platforms provide traders with various tools and functionalities to analyze the markets, execute trades, and manage their portfolios effectively. XM’s web-based platform is known for its intuitive interface, advanced charting capabilities, and seamless order execution. Traders can access real-time market data, place trades, and monitor their positions with ease. Forex.com’s web-based platform also offers a comprehensive suite of trading tools and features, including customizable charting, risk management tools, and integrated news and analysis. These platforms are designed to cater to the needs of traders of all experience levels, from beginners to advanced traders.

Pricing and fees:

XM and Forex.com have different pricing and fee structures depending on the account type and the market you trade. XM offers three main account types: Standard, Micro, and Ultra Low. Forex.com offers two main account types: Standard and Commission. Both brokers charge mainly through spreads and commissions, but they also have other fees such as overnight financing costs and inactivity fees. XM has lower spreads than Forex.com for most currency pairs, especially on the Ultra Low account. However, XM also charges higher commissions than Forex.com on some markets, such as stock CFDs. Forex.com has lower stock CFD fees than XM, but higher forex and stock index CFD fees. Therefore, the pricing and fee comparison depends largely on your trading preferences and frequency. Generally speaking, XM is more suitable for forex traders who want low spreads, while Forex.com is more suitable for stock CFD traders who want low commissions.

Broker Type:

XM and Forex.com are both hybrid brokers that use different types of execution models depending on the market you trade and the account type you choose. XM offers both market maker (DD) and no dealing desk (NDD) execution models for forex trading, while Forex.com offers only no dealing desk (NDD) execution models for forex trading. Both brokers use market maker (DD) execution models for CFD trading. A market maker (DD) broker acts as a counterparty to your trades and may have a conflict of interest with you. A no dealing desk (NDD) broker routes your orders to external liquidity providers and does not interfere with your trades. Both execution models have their pros and cons, such as speed, price re-quotes, slippage, etc. Therefore, you should choose a broker type that suits your trading style and expectations.

Leverage:

Both XM and Forex.com offer leverage options that enable traders to amplify their trading positions. XM offers leverage up to 1:1000, which allows traders to control larger positions with a smaller amount of capital. This high leverage can be advantageous for experienced traders seeking greater exposure to the markets. Forex.com offers leverage up to 1:200, providing traders with the ability to magnify their positions, although to a slightly lesser extent than XM. Traders need to understand the risks associated with leverage and use it judiciously, as higher leverage also entails higher potential risks and losses. Traders should consider their risk tolerance, trading strategy, and account size when selecting a leverage level.

Minimum Deposit:

XM has a low minimum deposit requirement of $5, making it accessible to traders with smaller account sizes or those who are new to trading. The low minimum deposit allows traders to test the broker’s services and trading conditions without a significant upfront investment. Forex.com requires a slightly higher minimum deposit of $100, which is still reasonable and caters to traders with varying account sizes.

Withdrawal and Deposit methods:

Both XM and Forex.com offer multiple withdrawal and deposit methods to cater to the diverse needs of traders. Traders can choose from options such as bank transfers, credit/debit cards, and e-wallets for convenient and secure transactions. These brokers strive to provide seamless and efficient payment processes, ensuring that traders can easily fund their accounts or withdraw funds whenever needed. The availability of multiple payment methods allows traders to choose the option that best suits their preferences and geographic location.

Which Should You Choose: XM and Forex.com?

When choosing between XM and Forex.com, it is important to assess your individual trading preferences and requirements. If you prioritize a diverse range of trading instruments and comprehensive research resources, XM may be the better choice. With its wide selection of instruments, including forex, CFDs on commodities, indices, precious metals, energies, and shares, XM allows for portfolio diversification. Additionally, XM offers extensive research and education tools to support informed decision-making.

On the other hand, if you are primarily focused on forex trading and value a user-friendly web-based platform with low trading fees, Forex.com could be the more suitable option. Forex.com specializes in forex trading and provides a web-based platform with generally low fees. Ultimately, the decision between XM and Forex.com depends on your specific trading needs, risk tolerance, and preferences. It is recommended to thoroughly evaluate these factors and possibly utilize demo accounts to gain hands-on experience before making a final decision.

Conclusion

In conclusion, choosing the right broker is crucial for successful trading, and XM and Forex.com offer distinct features and advantages. To summarize, XM provides a diverse range of trading instruments, strong regulatory oversight, competitive pricing, and comprehensive research resources. Forex.com specializes in forex trading, offers low trading fees, and provides a user-friendly web-based platform. Both brokers have their strengths and cater to different trading preferences. Therefore, readers need to conduct further research, assess their individual trading needs, and consider factors such as available instruments, regulatory oversight, platform usability, and pricing. By making an informed decision based on thorough research, traders can choose the broker that aligns best with their goals and maximizes their trading experience.


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