XM Vs IG

Category: Broker Guides | Author: Trading Brokers | Date: July 26, 2023

Choosing the right broker is paramount when it comes to trading in financial markets, as it can greatly impact one’s trading experience and overall success. In this article, we will conduct a comprehensive comparison between XM and IG, two prominent forex brokers. By examining key aspects such as their background information, regulatory oversight, trading platforms, pricing and fees, account types, trading conditions, research and education resources, and customer support, readers will gain a deeper understanding of the similarities and differences between these brokers. This analysis aims to empower traders to make an informed decision based on their specific trading preferences and requirements, ensuring that they choose the broker that best aligns with their goals and enhances their trading journey.

XM Overview

XM

XM

XM is a reputable and well-established forex and CFD broker that offers a wide range of trading opportunities to its clients. With a strong regulatory framework and licenses from reputable authorities, such as the FCA, CySEC, ASIC, and IFSC, XM ensures the safety and security of client funds. Traders have access to multiple trading platforms, including the popular MT4 and MT5, as well as XM WebTrader for convenient web-based trading.

XM’s competitive pricing and generally low trading fees make it an attractive choice for traders. The broker offers various account types to cater to different trading preferences, and its favorable trading conditions, including tight spreads, fast execution, and a diverse selection of tradable instruments, provide ample opportunities for traders. Additionally, XM’s extensive research and education resources, combined with its dedicated customer support, contribute to a comprehensive trading experience. Overall, XM stands out as a reliable and reputable broker that caters to the diverse needs of traders.

Pros and Cons of XM

Pros

  • Regulated by multiple authorities, ensuring a secure trading environment.
  • Offers a user-friendly trading platform with advanced charting tools.
  • Competitive pricing with low spreads and no commission fees.
  • Wide range of trading instruments, including forex, CFDs, commodities, and more.
  • Generous leverage options, allowing traders to control larger positions.
  • Convenient withdrawal and deposit methods.

Cons

  • Limited social trading features.
  • Market maker broker type may lead to potential conflicts of interest.
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.

IG Overview

IG

IG

IG is a well-established trading platform that has been operating since 1974 and is based in London. With its strong regulatory oversight from the FCA and licenses in various countries, IG ensures a secure trading environment for its clients. Traders have access to a user-friendly web-based platform and a mobile app, providing flexibility and convenience for trading on multiple devices. IG offers two account types to accommodate different trading needs, with competitive pricing featuring low spreads and no commission fees on most trades.

The platform also provides a wide range of research and education resources, including news articles, market analysis, trading signals, webinars, and more. Customer support is available through various channels, including phone, email, live chat, and social media platforms. With its long-standing reputation, comprehensive trading features, and strong regulatory compliance, IG is a reliable choice for traders looking for a robust and user-friendly trading experience.

Pros and Cons of IG

Pros

  • Robust trading platforms with advanced features.
  • Competitive pricing with low spreads and no commission fees on most trades.
  • Wide range of financial instruments, including CFDs, forex, shares, and more.
  • Social trading features through the IG Community platform.
  • No minimum deposit requirement for the standard account.
  • Convenient withdrawal and deposit methods.

Cons

  • Market maker broker type may lead to potential conflicts of interest.
  • Leverage limited to 1:30 for retail clients.
IG Logo

IG have an impressive selection of 18,000+ instruments including Forex, Stocks, Cryptos and Commodities. You can trade via easy to use platforms for desktop and mobile apps, with low trading costs and the peace of mind that you are using one of the most well-known brokers in the industry.

71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Comparison Between XM and IG

To assist you in making an informed decision, let’s delve into a comprehensive comparison of these brokers.

Regulation:

IG has an edge over XM in terms of regulation, as it is regulated by more reputable authorities and offers investor protection for clients in more regions. IG Markets Ltd is licensed and regulated by the reputable Financial Conduct Authority (FCA), ensuring compliance with industry standards and the protection of client funds. IG is also regulated by other authorities in different regions such as ASIC, BaFin, CFTC, DFSA, FINMA, FMA, FSA, FSCA, JFSA, MAFF, MAS, METI, and NFA.

On the other hand, XM is regulated by multiple authorities, including CySEC, ASIC, IFSC, and DFSA, showcasing its commitment to high regulatory standards and client protection. Traders can have confidence in both brokers’ adherence to stringent guidelines and their dedication to transparent and secure operations.

Trading platforms:

IG offers two robust trading platforms – a web-based platform and a mobile app. The web-based platform is highly intuitive and packed with advanced features, allowing traders to access real-time market data, execute trades, and manage their portfolios seamlessly. The mobile app provides traders with the flexibility to trade on the go, ensuring they never miss out on market opportunities. XM’s MetaTrader platforms, including MT4 and MT5, are widely recognized for their powerful charting tools, extensive technical indicators, and expert advisors, enabling traders to implement complex trading strategies and access a vibrant trading community.

Pricing and fees:

Both XM and IG have competitive pricing and fees for their trading services. XM has low stock CFD and withdrawal fees and charges no deposit, inactivity, or account fees. IG has low forex and stock index CFD fees and charges no deposit or withdrawal fees. However, IG charges an inactivity fee of $12 per month after two years of no trading activity, and an account fee of $10 per month for accounts with less than three trades per quarter.

Both brokers offer different types of accounts with varying spreads and commissions. XM offers three main types of accounts: Standard, Micro, and Ultra Low. The Standard and Micro accounts have no commissions but higher spreads, while the Ultra Low account has lower spreads but charges commissions. IG offers two main types of accounts: CFD and Share Trading. The CFD account has variable spreads and commissions depending on the asset class, while the Share Trading account has fixed commissions per trade.

Broker Type:

IG operates as a market maker broker, meaning it acts as the counterparty to client trades. This allows for quick execution and ensures liquidity in various market conditions. XM also operates as a market maker broker, providing traders with instant execution and access to deep liquidity. Both brokers strive to offer efficient trade execution, enabling traders to enter and exit positions smoothly.

Leverage:

IG offers leverage of up to 1:30 for retail clients, providing traders with the ability to trade large positions relative to their account size. XM, on the other hand, offers significantly higher leverage of up to 1:1000, which provides traders with greater trading power. While higher leverage can enhance potential profits, it is crucial for traders to use leverage responsibly and implement risk management strategies effectively to mitigate potential losses.

Asset selection:

The availability of a diverse range of tradable instruments is essential for traders seeking opportunities in different markets. IG offers a wide range of financial instruments, including CFDs, forex, shares, indices, commodities, cryptocurrencies, and more. This broad selection enables traders to diversify their portfolios and capitalize on various market trends. XM also offers an extensive range of trading instruments, including forex, CFDs on stock indices, commodities, stocks, metals, energies, cryptocurrencies, and more. Traders have ample choices to explore and align their trading strategies with their preferred markets.

Social Trading:

XM also offers social trading through its partnership with ZuluTrade, which is another platform that allows traders to copy the trades of other traders. XM clients can access ZuluTrade through their XM account and choose from a variety of signal providers and strategies to follow. IG offers social trading through its own platform called IG Community, which is a forum where traders can interact with each other, share ideas, ask questions, and learn from each other.

Minimum Deposit:

IG has no minimum deposit requirement for its standard account, but they recommend a minimum deposit of £250 for optimal trading conditions. For the professional account, a minimum deposit of £1,000 is required. On the other hand, XM has a low minimum deposit requirement of $5 for its Micro and Standard account types, and a minimum deposit of $100 is required for the Zero account type.

Withdrawal and Deposit methods:

IG offers a wide range of options, including bank transfers, credit/debit cards, e-wallets, and other popular payment methods. XM also provides various deposit options, including bank transfers, credit/debit cards, e-wallets, and local payment solutions. Both brokers prioritize the ease and security of financial transactions, allowing traders to choose the most suitable method for their needs.

Which Should You Choose?

When choosing between XM and IG, it is essential to consider both the assessment of your individual trading preferences and needs, as well as the recommendation based on your trader type or specific requirements. Assessing your trading preferences involves considering factors such as the desired trading instruments, platform features, leverage options, and regulatory oversight. It is important to align these preferences with the offerings and strengths of each broker. Additionally, considering your trader type or specific requirements can help guide your decision. For example, if you prioritize a wide range of trading instruments and a strong social trading community, IG may be a suitable choice. On the other hand, if you value competitive pricing, comprehensive research resources, and a low minimum deposit requirement, XM may be a recommended option. Ultimately, making an informed decision requires a comprehensive evaluation of your trading preferences and needs, as well as considering specific recommendations based on trader types or requirements.

Conclusion

In conclusion, choosing between XM and IG requires a careful assessment of your individual trading preferences and needs. Both brokers offer a range of features and benefits that can appeal to different traders. XM excels in its competitive pricing, regulatory oversight, and extensive educational resources, making it a suitable choice for beginners and those seeking comprehensive support. On the other hand, IG stands out with its diverse asset selection, social trading features, and robust trading platform, catering to experienced traders looking for a wide range of trading opportunities. Ultimately, it is important to conduct thorough research, evaluate the key factors that matter to you, and consider your trading goals to make an informed decision. It is recommended to test out demo accounts, explore the platforms, and seek further information from customer support to ensure the best fit for your trading journey.


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