XM Vs Plus500
In the world of online trading, investors often find themselves faced with numerous choices when it comes to selecting a trading platform. Two popular platforms, XM and Plus500, have garnered significant attention due to their features and reliability. Both platforms offer a range of trading instruments, intuitive interfaces, and competitive pricing structures. However, understanding the key differences between XM and Plus500 is essential for making an informed decision. In this article, we will delve into the features, pros, and cons of both platforms, providing you with valuable insights to help you choose the one that aligns with your trading goals and preferences.
Overview of XM
XM is a global online broker that offers trading services on various financial instruments, such as forex, CFDs, stocks, indices, commodities, metals, and energies. It was founded in 2009 and has grown to become one of the largest and most reputable brokers in the industry, with over 10 million clients from over 190 countries. XM is regulated by multiple authorities, including ASIC, CySEC, FSC, and DFSA, and adheres to high standards of security and reliability.
They also offer a range of educational and analytical resources, such as live videos, market updates, webinars, and seminars, to help clients improve their trading skills and knowledge. XM provides its clients with access to multiple trading platforms, including MT4, MT5, and XM WebTrader, as well as over 1000 trading instruments with ultra-low spreads and zero re-quotes or rejections. They are also committed to social responsibility and charity initiatives, such as sponsoring educational programs, donating shoes to refugees, and hosting open mic nights for fundraising.
Pros of XM
- Low stock CFD and withdrawal fees
- Negative balance protection and compensation in case of broker bankruptcy (terms apply)
- Spreads from 0 pips on some account types
- Nano lot trading available on Micro and Ultra Low accounts
- Copy trading available through the XM MQL5 community
Cons of XM
- Limited product portfolio (mainly forex and CFDs)
- Average Forex and stock index CFD fees
- Inactivity fee charged after 90 days of no trading activity
- No cryptocurrencies are available to trade under the EU and AU-regulated entities of the Group
- No social trading platform integrated with XM
Overview of Plus500
Plus500 is a global fintech firm that provides online trading services in contracts for difference (CFDs), share dealing, futures trading, and options on futures. Plus500 was founded in 2008 and is listed on the London Stock Exchange as part of the FTSE 250 Index. Plus500 has over 24 million clients from over 50 countries and is regulated by multiple authorities, including the FCA, CySEC, ASIC, FSCA, and MAS.
Plus500 offers its clients access to over 2800 trading instruments across various markets, such as forex, stocks, indices, commodities, ETFs, and options. Plus500 also offers a range of educational and analytical resources, such as +Insights, Trading Academy, Economic Calendar, and Risk Management Tools. Plus500 is also involved in sports sponsorships, such as Chicago Bulls, Legia Warsaw, Atalanta B.C., and BSC Young Boys.
Pros of Plus500
- No commissions and low spreads
- Fast and reliable order execution
- User-friendly and intuitive trading platforms
- Advanced risk management tools
- Negative balance protection (terms apply)
Cons of Plus500
- Limited educational resources
- No phone support or live chat
- No copy or social trading features
- No MT4 or MT5 platforms available
- Inactivity fee charged after 3 months of no trading activity
Comparison between XM and Plus500
Let’s explore the key aspects that differentiate these two popular trading platforms.
XM operates through four main entities, each regulated by a different authority: XM Global by the International Financial Services Commission (IFSC) of Belize, XM UK by the FCA of the UK, XM Australia by ASIC of Australia, and XM MENA by the Dubai Financial Services Authority (DFSA) of the UAE. Plus500 operates through five main entities, each regulated by one or more authorities: Plus500UK by the FCA of the UK, Plus500CY by CySEC of Cyprus, Plus500AU by ASIC of Australia and the Financial Sector Conduct Authority (FSCA) of South Africa, Plus500SG by MAS of Singapore and Plus500IL by the Israel Securities Authority (ISA) of Israel.
XM supports the widely popular MetaTrader 4 and MetaTrader 5 platforms, known for their advanced charting tools, technical indicators, and automated trading capabilities. Additionally, XM provides its proprietary trading platform, which boasts a user-friendly interface, intuitive navigation, and powerful features. Plus500 also offers its proprietary trading platform, which is designed with simplicity and ease of use in mind.
Pricing and fees
XM offers different account types with varying fees. The Standard, Micro, and Ultra Low accounts have no commissions but higher spreads. The XM Zero account has lower spreads but a $3.5 commission per lot per side. They charge an overnight funding fee based on the interest rate differential for positions held past 22:00 GMT. An inactivity fee of $15 applies after one year of no trading, followed by a $5 monthly fee. Plus500 doesn’t charge commissions, only spreads, which are among the industry’s lowest. Their overnight funding fee depends on the interest rate differential for positions held past 17:00 EST. They charge an inactivity fee of up to $10 per month after three months of no trading.
XM is a market maker broker, which means it acts as the counterparty to its clients’ trades and sets the prices for the instruments it offers. XM also provides a no re-quotes and no rejections policy, which means it guarantees the execution of clients’ orders at the requested price or better. Plus500 is a no dealing desk (NDD) broker, which means it does not take the opposite side of its clients’ trades and instead routes them to liquidity providers or the interbank market. Plus500 also provides a dynamic spread model, which means it adjusts the spreads according to the market conditions and liquidity.
XM offers flexible leverage from 1:1 up to 1000:1, depending on the account type, the instrument and the regulation. For example, XM offers leverage of up to 1:1000 for forex trading, up to 1:20 for stock CFDs, up to 1:10 for commodities and up to 1:2 for cryptocurrencies. Plus500 offers fixed leverage for each instrument, which cannot be changed by the trader. The leverage levels vary depending on the instrument and the regulation.
XM offers over 1000 trading instruments, including more than 50 currency pairs, over 600 stock CFDs, 8 commodity CFDs, 18 equity indices, 5 metal CFDs and 2 energy CFDs. Plus500 offers over 2800 trading instruments, including more than 70 currency pairs, over 2000 stock CFDs, 22 commodity CFDs, 33 equity indices, 14 metal CFDs, 6 energy CFDs.
XM does not have a built-in social trading platform, but it supports third-party services such as ZuluTrade and Tradency, which allow XM clients to access and copy thousands of signal providers from around the world. Plus500 has its own social trading platform called +Insights, which allows Plus500 clients to see the most popular instruments, trends, and sentiments among other traders.
XM has a $5 minimum deposit for its Standard, Micro, and Ultra Low accounts, and a $100 minimum deposit for its Zero account. It accepts various payment methods, such as credit/debit cards, e-wallets, bank transfers, and local payment solutions. Plus500 has a $100 minimum deposit for its standard account and a $500 minimum deposit for bank transfers. They accept credit/debit cards, e-wallets, and bank transfers as payment methods.
Withdrawal and Deposit methods
XM supports credit/debit cards, e-wallets, bank transfers, and local payment solutions, such as Neteller, Skrill, FasaPay, and M-Pesa. XM does not charge any fees for deposits or withdrawals, but the payment providers may charge some fees. Plus500 supports credit/debit cards, e-wallets, and bank transfers, such as Visa, Mastercard, PayPal, and Trustly. Plus500 does not charge any fees for deposits, but it charges a $10 fee for withdrawals below $100 or more than five withdrawals per month.
Which is More Suitable for You?
If you are a trader trying to decide between XM and Plus500, there are a few key factors to consider. If you prioritize a wide range of trading instruments, competitive pricing, and extensive educational resources, XM may be the better choice for you. With its strong regulatory framework and multiple trading platforms, including MetaTrader 4 and 5, XM provides a comprehensive trading experience.
On the other hand, if you value simplicity, lower fees, and a user-friendly proprietary platform, Plus500 might be more suitable. Plus500’s regulated status, lower minimum deposit requirement, and diverse asset selection make it an attractive option. Consider your trading goals, preferred platform features, and risk tolerance to determine which platform aligns best with your needs.
To sum it up, when comparing XM and Plus500, both platforms offer a range of trading instruments, competitive pricing, and user-friendly interfaces. XM stands out with its extensive educational resources and strong regulatory framework, while Plus500 excels with its intuitive interface and comprehensive risk management tools. Ultimately, the choice between XM and Plus500 depends on your individual trading goals and preferences. So, whether you prioritize educational support or advanced trading features, take the time to evaluate which platform aligns best with your needs.
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