XM Vs XTB

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

Are you looking for a good online broker to trade with? If so, you might have heard of XM and XTB. They are both popular and have millions of clients around the world. But how do you know which one is right for you? Well, that’s what we’re here to help you with. If you’re an aspiring trader or an experienced investor looking for a reliable platform to execute your trades, it’s essential to compare the features, services, and overall user experience of these two giants. In this article, we delve into the intricate details of XM and XTB, and what sets them apart. By the end of this article, you will have a clear idea of which broker suits your needs and preferences. Let’s get started!

Overview of XM

XM

XM

XM is a prestigious global online broker founded in 2009, that has rapidly grown to become a trusted platform with an impressive client base of over 10 million across 190 countries. It extends its protective measures by offering negative balance protection and compensation in the event of broker bankruptcy, providing peace of mind even in challenging circumstances.

With a vast array of trading instruments, XM opens doors to boundless opportunities. Clients can access over 1,000 CFDs on stocks, indices, commodities, metals, and cryptocurrencies, while certain regions even offer real stocks and ETFs. With multiple account types, including Micro, Standard, and XM Ultra Low, XM caters to traders of all levels. Additionally, XM provides educational resources, webinars, and seminars to help traders enhance their skills and knowledge.

Pros of XM

  • XM provides multilingual 24-hour customer support, 5 days a week, in more than 20 languages.
  • XM supports reliable trading platforms such as MetaTrader 4, MetaTrader 5 and WebTrader.
  • XM allows instant deposit and withdrawal with various payment methods and no fees.
  • XM offers trading courses and market research for educational purposes.

Cons of XM

  • XM has a limited product portfolio as it mainly offers forex and CFD trading.
  • XM charges an inactivity fee of $5 per month after 90 days of no trading activity.
  • XM is considered a beginners broker and not marketed toward high volume professional traders.
  • XM provides no investor protection for non-EU clients.
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.

Overview of XTB

XTB

XTB

XTB is a renowned online trading platform that provides a diverse range of financial instruments, including forex, CFDs, real stocks, ETFs, and cryptocurrencies. Established in 2002 and diligently overseen by esteemed regulators, including FCA, CySEC, KNF, IFSC, and DFSA, XTB embodies a firm commitment to transparency and reliability.

With a sweeping array of over 4500 CFDs spanning stocks, indices, commodities, metals, and beyond, alongside a rich assortment of more than 7800 real stocks and 150 ETFs, XTB empowers traders with limitless possibilities in diverse global markets. XTB also offers educational resources, webinars, and market analysis to empower traders. With multiple account types and flexible leverage options, XTB caters to traders of all levels. The platform’s strong customer support and commitment to transparency further enhance the trading experience for its users.

Pros of XTB

  • XTB supports reliable trading platforms such as xStation 5 and MetaTrader 4.
  • XTB offers a wide range of trading assets including forex, CFDs, real stocks, ETFs, commodities, indices, cryptocurrencies and more.
  • XTB provides various types of accounts with no minimum deposit and negative balance protection.
  • XTB offers trading courses and market research for educational purposes.

Cons of XTB

  • XTB has a limited product portfolio for some regions, as it mainly offers CFD trading and not real stocks or ETFs.
  • Higher minimum deposit requirements for certain account types.
  • XTB charges an inactivity fee of €10 per month after 12 months of no trading activity.
  • XTB has average forex and stock index CFD fees compared to other brokers.
XTB Logo

XTB offer superior execution on a reliable, award-winning platform, being one of the largest stock exchange-listed Forex and CFD brokers in the world - dedicated to helping you at every stage of your trading journey.

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

Comparison Between XM and XTB

When it comes to comparing XM and XTB, there are several important factors to consider. Let’s dive into each point in detail:

Regulation

Both XM and XTB are regulated by multiple authorities in different jurisdictions. XM is regulated by the Australian Securities and Investments Commission (ASIC), the Cyprus Securities and Exchange Commission (CySEC), the International Financial Services Commission of Belize (IFSC), and the Dubai Financial Services Authority (DFSA). XTB is regulated by the Financial Conduct Authority (FCA) in the UK, the Polish Financial Supervision Authority (KNF), the Cyprus Securities and Exchange Commission (CySEC), the Comisión Nacional del Mercado de Valores (CNMV) in Spain, the International Financial Services Commission of Belize (IFSC), and the Dubai Financial Services Authority (DFSA).

Both brokers have a high level of trustworthiness and security, as they adhere to strict rules and regulations in their respective jurisdictions. However, XTB has a slight edge over XM in terms of regulation, as it is authorized by more top-tier regulators, such as the FCA and the KNF, which offer higher investor protection and compensation schemes than the ASIC or the IFSC.

Trading platforms

XM provides traders with the renowned MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms, known for their popularity and advanced features in the forex industry. Additionally, XM offers the convenient XM WebTrader, a browser-based version of MT4 accessible without any downloads. On the other hand, XTB presents its in-house xStation 5 platform, available as a web-based, desktop, or mobile app. XTB also offers MetaTrader 4 (MT4) as an alternative platform for traders who prefer the classic MT4 features.

Pricing and fees

XM provides a diverse range of four account types: Micro and Standard accounts boasting no commission but higher spreads, the Zero account offering low spreads with a $3.5 commission per lot, and the Ultra Low account with even lower spreads, potentially incurring commission based on the region. An inactivity fee of $5 per month is levied after 90 days of no trading activity. On the other hand, XTB offers three account options: Standard with no commission but higher spreads, Pro with low spreads and a $4 commission per lot, and the Islamic account catering to Muslim traders seeking a swap-free option. XTB enforces a $10 per month inactivity fee after 12 months of no trading.

Broker Type

XM operates as a market maker broker, meaning it acts as the counterparty to clients’ trades. This enables XM to provide immediate trade execution and competitive spreads. XTB, on the other hand, functions as an Electronic Communication Network (ECN) broker. As an ECN broker, XTB connects traders directly to liquidity providers, which can result in potentially tighter spreads and more transparent pricing.

Leverage

XM extends leverage options ranging from 1:1 to an impressive 1:1000 for select accounts and regions. However, for EU and UK clients, regulatory requirements mandate a maximum of 1:30 for major forex pairs and 1:20 for minor forex pairs. Furthermore, XM tailors leverage levels to specific instruments, offering 1:10 for cryptocurrencies and 1:20 for commodities. Similarly, XTB provides leverage choices spanning from 1:1 to 1:500 for certain account types and regions. Yet, in compliance with regulations, EU and UK clients enjoy a capped leverage of 1:30 for major forex pairs and 1:20 for minor forex pairs. Moreover, XTB customizes leverage for diverse instruments, presenting 1:2 for cryptocurrencies and 1:10 for commodities.

Asset selection

XM boasts a diverse range of 1000+ instruments, encompassing 55 forex pairs, 1200+ stock CFDs, 18 index CFDs, 15 commodity CFDs, 5 metal CFDs, and 2 cryptocurrency CFDs. Additionally, XM extends its offerings to include real stocks and ETFs in select regions. On the other hand, XTB impresses with an extensive selection of over 5800 instruments, featuring 57 forex pairs, 4500+ stock CFDs, 42 index CFDs, 22 commodity CFDs, and 16 cryptocurrency CFDs, alongside real stocks and ETFs for certain regions.

Social Trading

Both XM and XTB offer social trading features to their clients, which allow them to copy the trades of other successful traders or share their own trading strategies with others. XM offers social trading through its partnership with ZuluTrade, a third-party platform that connects traders with signal providers. XM clients can access ZuluTrade through their XM account and choose from thousands of signal providers based on their performance, risk level, and trading style.

XTB offers social trading through its own platform, xSocial, which allows clients to follow and copy the trades of other XTB clients or professional traders. XTB clients can access xSocial through their XTB account and choose from hundreds of traders based on their performance, risk level, and trading style. XTB also offers social trading through its partnership with Pelican, a third-party platform that connects traders with mentors and peers.

Minimum Deposit

XM has a minimum deposit requirement of $5 for all account types, making it accessible to traders with different capital levels. In contrast, XTB does not have any minimum deposit requirement for most countries, allowing traders to open a trading account without an initial deposit. However, some non-EU countries have three standard accounts with varying minimum deposits ranging from $1 to $50,000.

Withdrawal and Deposit methods

XM provides a diverse range of 13 payment methods, including credit/debit cards, bank transfers, e-wallets, and local payment solutions. No deposit or withdrawal fees are imposed by XM, but currency conversion fees may apply for different payment and account currencies. Similarly, XTB offers over 5 payment methods, with no deposit or withdrawal fees. However, currency conversion fees may be applicable when the payment currency differs from the account currency.

Which is More Suitable for You?

If you’re a trader trying to decide between XM and XTB, consider your specific trading preferences and needs. XM offers a diverse range of trading instruments across multiple asset classes, competitive spreads, and advanced MetaTrader platforms. Their market maker model ensures immediate trade execution. XTB, on the other hand, operates as an ECN broker, providing potentially tighter spreads and transparent pricing. They offer an intuitive proprietary platform, a wide selection of tradable assets, and additional regulatory oversight. Evaluate factors like regulation, trading platforms, pricing, leverage options, minimum deposit requirements, and social trading features to determine which broker aligns better with your trading style and goals.

Conclusion

To wrap it up, when it comes to the XM vs XTB showdown, both platforms have their strengths and weaknesses. XM offers a wide range of financial instruments, advanced trading tools, and excellent customer support. On the other hand, XTB provides a diverse array of markets, competitive spreads, and a commitment to transparency. Ultimately, the choice between these two platforms boils down to individual preferences and trading needs.


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