XM Vs FXTM

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

Choosing the right broker is of utmost importance when it comes to trading in financial markets. The broker you select can significantly impact your trading experience, execution speed, trading conditions, and overall success. In this article, we will provide an overview and comparison of two well-known forex brokers, XM and FXTM. Our aim is to help traders understand the key features, offerings, and differences between these brokers so they can make informed decision based on their specific trading needs and preferences. By examining important factors such as regulation, trading platforms, account types, fees, and more, we hope to assist traders in selecting the broker that best aligns with their goals and trading style.

XM Overview

XM

XM

XM is a well-established forex and CFD broker that offers a wide range of trading instruments and services to clients worldwide. Founded in 2009, XM is operated by Trading Point Holdings Ltd. and is regulated by reputable authorities such as CySEC, ASIC, and IFSC. Traders can access a diverse selection of instruments, including forex currency pairs, commodities, indices, precious metals, and energies. XM offers multiple account types to cater to different trading preferences and experience levels, with competitive trading conditions, tight spreads starting from 0.0 pips, high leverage up to 1:1000, and reliable order execution.

The broker also provides extensive research and educational resources, including market analysis, webinars, video tutorials, and trading tools. Customer support is available 24/5, with multilingual assistance through live chat, email, and phone. With its strong regulatory framework, wide instrument selection, competitive trading conditions, comprehensive research and education offerings, and dedicated customer support, XM is a reputable choice for traders looking for a reliable and comprehensive trading experience.

Pros and Cons of XM

Pros of XM:

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

Cons of XM:

  • Limited asset selection
  • Inactivity fee
  • Variable spreads
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.

FXTM Overview

FXTM

FXTM

FXTM (ForexTime) is a reputable forex broker that has been serving retail and institutional clients since 2011. With its headquarters in Cyprus and additional offices worldwide, FXTM operates under the regulation of esteemed financial authorities such as the FCA, CySEC, FSC, and FSCA. The broker offers a diverse range of trading features and instruments, including negative balance protection, swap-free accounts, and access to popular platforms like MT4 and MT5.

Traders can explore various markets such as forex, commodities, indices, shares, and cryptocurrencies. FXTM provides multiple account types with flexible deposit requirements, competitive spreads, fast execution speeds, and a rich selection of research and education resources. Customer support is available through various channels and languages, ensuring a seamless trading experience for clients.

Pros and Cons of FXTM

Pros of FXTM:

  • Regulation and Trustworthiness
  • Diverse Account Types
  • Competitive Trading Conditions
  • Educational Resources
  • Multilingual Customer Support

Cons of FXTM:

  • Limited Cryptocurrency Offerings
  • Inactivity Fee
FXTM Logo

FXTM is an award-winning broker with strict regulation in multiple jurisdictions. They have user-friendly trading platforms, various account types and funding methods, along with a vast range of educational materials and trading tools to help you make informed trade decisions.

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

Comparison Between XM and FXTM

There are key differences to consider when comparing XM and FXTM, in order to make an informed decision and choose the broker that aligns best with your trading goals. They include:

Regulation and Trustworthiness:

FXTM, as it has a higher level of investor protection for UK clients and a more reputable regulator in the FCA. XM is regulated by the top-tier ASIC in Australia, CySEC of Cyprus, and the Belize authority IFSC. FXTM is regulated by the top-tier FCA in the UK, CySEC of Cyprus, and the Mauritian FSC. Both brokers also have licenses from other countries, such as South Africa and the UAE.

In terms of investor protection, XM offers €20k to EU clients and $0 to others, while FXTM offers £85k to UK clients and $0 to others. Both brokers provide negative balance protection to their clients, which means they cannot lose more than their deposits.

Trading Platforms:

XM and FXTM offer a range of robust trading platforms to cater to different trading preferences. XM provides traders with access to the popular MetaTrader 4 and MetaTrader 5 platforms, renowned for their user-friendly interfaces, advanced charting tools, and automated trading capabilities. Additionally, XM offers its proprietary platform called XM WebTrader, which is web-based and provides traders with convenient access to their accounts from any device. On the other hand, FXTM offers the MetaTrader 4 and MetaTrader 5 platforms, both of which are well-established and widely used in the industry. FXTM also offers its proprietary platform called FXTM Trader, which offers advanced features and customization options.

Pricing and Fees:

When it comes to pricing and fees, both XM and FXTM offer competitive and transparent structures. XM operates as a spread-only broker, offering variable spreads that start from 0 pips on major currency pairs. This means that traders can benefit from tight spreads and transparent pricing. FXTM also offers competitive spreads that start from 0.1 pips, allowing traders to access favorable trading conditions. Both brokers do not charge commissions on trades, which further enhances cost-effectiveness for traders.

Broker Type:

XM and FXTM operate as market maker brokers. As market makers, they act as counterparties to their clients’ trades, providing liquidity and ensuring the smooth execution of orders. This allows traders to access a deep pool of liquidity and experience fast order execution. Market maker brokers are able to offer competitive pricing and a seamless trading experience by acting as the other side of each trade.

Leverage:

XM and FXTM provide traders with access to high-leverage options, allowing them to potentially amplify their trading positions. XM offers leverage up to 1:1000, while FXTM offers leverage up to 1:2000. High leverage can be advantageous as it allows traders to control larger positions with a smaller amount of capital. However, it is important to note that while leverage can magnify profits, it also increases the level of risk involved in trading.

Asset Selection:

XM and FXTM both offer a diverse selection of trading instruments, but XM has a larger product portfolio. XM provides over 55 currency pairs, over 1,200 stock CFDs from 17 countries, more than 30 index CFDs, over 15 commodity CFDs, and 6 cryptocurrency CFDs. On the other hand, FXTM offers over 50 currency pairs, around 300 stock CFDs, over 15 index CFDs, more than 10 commodity CFDs, and 4 cryptocurrency CFDs. Traders looking for a wider range of options may find XM more appealing, while FXTM still offers a respectable selection of assets to trade.

Social Trading:

XM and FXTM both offer social trading features, allowing clients to follow or copy the trades of other traders. XM provides social trading through the XM MQL5 community, integrated with MT4 and MT5 platforms, where clients can access thousands of signal providers and even become signal providers themselves. On the other hand, FXTM offers social trading through FXTM Invest, its own platform, where clients can choose from over 1,000 strategy managers to follow, or become strategy managers and earn from their followers’ profits.

Minimum Deposit:

XM and FXTM have flexible minimum deposit requirements, making trading accessible to traders with varying capital levels. XM requires a minimum deposit of $5, allowing traders to start with a small investment. FXTM requires a slightly higher minimum deposit of $10, which still caters to beginners and those with limited funds. The low entry requirements of both brokers enable traders to enter the market with a manageable initial investment.

Withdrawal and Deposit Methods:

Both XM and FXTM offer a variety of deposit and withdrawal methods to provide convenience and flexibility for their clients. Traders can choose from options such as bank transfers, credit/debit cards, and e-wallets like Neteller and Skrill. These multiple options allow for efficient funding of trading accounts and easy withdrawal of funds. By offering diverse payment methods, both brokers aim to accommodate the preferences of traders from various regions and ensure smooth transactions.

Which Should You Choose?

When deciding between XM and FXTM, it is crucial to assess your individual trading preferences and needs. Consider factors such as the range of trading instruments, pricing and fees, leverage options, platform features, research and educational resources, and regulatory oversight. Based on the comparison provided, a recommendation can be made based on different trader types or requirements. If you prioritize a wide range of instruments, competitive pricing, multiple platforms, high leverage, and comprehensive research, XM may be the preferred choice. On the other hand, if regulatory compliance, popular platforms, competitive pricing, high leverage, and a variety of educational resources are important to you, FXTM may be the recommended option. Ultimately, make sure to conduct thorough research and consider your specific trading goals to make an informed decision.

Conclusion

In conclusion, both XM and FXTM are reputable and well-regulated brokers that offer a diverse range of trading instruments to cater to the needs of different traders. XM stands out with its larger product portfolio, providing more currency pairs, stock CFDs, indices, commodities, and cryptocurrency CFDs. Additionally, XM’s social trading feature through the XM MQL5 community offers a platform for signal providers and followers. On the other hand, FXTM offers a robust social trading experience through FXTM Invest, where clients can choose from a wide selection of strategy managers to follow or become strategy managers themselves. Ultimately, traders should carefully consider their preferences and trading needs before choosing the broker that best aligns with their goals and trading style.


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