XTB Vs FXCM

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

Investing in the financial markets requires careful consideration of various factors, including selecting the right trading platform. Among the many options available, XTB and FXCM have emerged as two prominent players in the industry. Both platforms offer a range of features and services to help traders navigate the complexities of the market. In this article, we will explore the similarities and differences between XTB and FXCM, allowing you to make an informed decision when choosing a trading platform. By examining their offerings, trading tools, customer support, and overall user experience, we aim to provide you with valuable insights to help you find the platform that best suits your needs.

Overview of XTB

XTB

XTB

XTB is a leading online brokerage that has gained a strong reputation in the financial industry. With its extensive range of financial instruments, including stocks, forex, indices, commodities, and cryptocurrencies, XTB offers diverse trading opportunities to investors. The platform provides intuitive and user-friendly trading tools, such as their xStation and MetaTrader platforms, catering to both beginner and experienced traders. XTB’s competitive spreads, fast execution speeds, and robust customer support contribute to its appeal. Furthermore, the company is regulated by multiple reputable authorities, ensuring a secure and transparent trading environment for its clients. XTB stands out as a reliable choice for traders seeking a comprehensive and trustworthy trading experience.

Pros of XTB

  • Wide range of tradable instruments including Forex, stocks, indices, commodities, and cryptocurrencies.
  • Competitive spreads and transparent pricing, ensuring cost-effective trading.
  • User-friendly trading platforms with advanced charting tools and customizable interface.
  • Access to educational resources and market analysis to enhance trading knowledge.

Cons of XTB

  • Withdrawal fees may apply for certain payment methods.
  • The selection of cryptocurrencies available for trading is relatively limited compared to some other brokers.
  • Limited options for social trading or copy trading functionalities.
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.

Overview of FXCM

FXCM

FXCM

FXCM is a renowned online brokerage that has established itself as a trusted name in the financial market. Offering a wide range of trading instruments, including Forex, commodities, cryptocurrencies, and indices, FXCM provides ample opportunities for traders. The broker boasts competitive spreads, flexible leverage options, and various account types catering to different trading styles. FXCM’s proprietary trading platform, Trading Station, offers a comprehensive suite of tools and features, empowering traders with advanced charting capabilities and customizable trading strategies. With its strong regulatory oversight and robust customer support, FXCM ensures a secure and reliable trading experience for its clients, making it a popular choice among traders worldwide.

Pros of FXCM

  • Competitive spreads and flexible leverage options.
  • Multiple account types to accommodate different trading preferences.
  • Trading Station platform with advanced charting tools and customizable trading strategies.
  • Strong regulatory oversight for increased security and reliability.

Cons of FXCM

  • Limited availability of localized customer support in certain regions.
  • Inactivity fees charged for dormant accounts.
  • Limited integration with popular third-party trading platforms.
  • Some traders may find the platform interface less intuitive.
FXCM Logo

FXCM is an established and well-regulated online broker with an excellent range of powerful trading platforms that are loaded with tools and market insights to help you discover trades and make informed decisions.

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

Comparison between XTB and FXCM

When it comes to choosing a trading platform, it’s crucial to compare the options available.

Regulation

XTB is regulated by reputable authorities in the European Union, including the UK’s Financial Conduct Authority (FCA) and Cyprus’ Securities and Exchange Commission (CySEC). They also hold licenses from the International Financial Services Commission (IFSC) of Belize, the Financial Sector Conduct Authority (FSCA) of South Africa, and the Dubai Financial Services Authority (DFSA) of the United Arab Emirates. FXCM is regulated by renowned authorities such as the UK’s FCA, the Australian Securities and Investments Commission (ASIC), CySEC, and the FSCA of South Africa. Both brokers offer negative balance protection, segregated client funds, and undergo auditing by reputable firms.

Trading platforms

XTB provides xStation 5 and MetaTrader 4 (MT4) platforms. xStation 5, accessible via web and mobile, offers advanced charting, indicators, news, market sentiment analysis, and trading tools. MT4 supports automated trading and provides extensive technical analysis tools. FXCM offers Trading Station, MT4, NinjaTrader, and ZuluTrade. Trading Station is user-friendly with advanced charting, indicators, signals, and backtesting. MT4 is renowned for automation and technical analysis. NinjaTrader caters to advanced traders, offering sophisticated strategy development and execution. ZuluTrade enables social and copy trading.

Pricing and fees

XTB presents two account options: Standard (no commissions, wider spreads) and Pro (lower spreads, commissions: $3.5 per lot per side for forex, $0.08 per lot per side for other instruments). EUR/USD average spreads are 0.9 pips (Standard) and 0.3 pips (Pro). FXCM offers three account types: Standard (no commissions, wider spreads from 1.3 pips for EUR/USD), Active Trader (lower spreads from 0.2 pips for EUR/USD, commissions: $25 per million traded), and Professional Trader (lower spreads from 0 pips for EUR/USD, commissions: $30 per million traded). Both brokers charge swap and potential inactivity fees.

Broker Type

XTB operates as a hybrid broker, employing both market maker and STP (straight-through processing) models. This allows them to execute trades by either internalizing them or passing them on to liquidity providers. This approach enables XTB to offer a wide range of instruments and competitive pricing. FXCM, on the other hand, functions as an agency broker, acting as an intermediary between clients and liquidity providers. As an agency broker, FXCM ensures that all trades are executed directly in the market without any intervention or manipulation, providing transparent pricing and execution.

Leverage

XTB offers leverage up to 1:30 for retail clients and up to 1:200 for professional clients, depending on the instrument and client’s location. The leverage is fixed and cannot be adjusted by the client. FXCM provides leverage up to 1:30 for retail clients in Europe, up to 1:400 for retail clients in Australia and South Africa, and up to 1:400 for professional clients in some regions, depending on the instrument and account type. FXCM allows clients to adjust leverage within the platform, providing flexibility.

Asset selection

XTB offers a broad range of over 2200 instruments across various asset classes, including forex, stocks, indices, commodities, cryptocurrencies (except in the UK), ETFs , volatility index, synthetic stocks, CFDs on options, CFDs on futures, CFDs on sectors, CFDs on ETFs, CFDs on bonds, and CFDs on blends. FXCM offers over 400 instruments across various asset classes, including forex, stocks, indices, commodities, cryptocurrencies, metals, and energies.

Social Trading

XTB offers ZuluTrade, which is a third-party platform that connects traders with a network of signal providers who have a verified track record of performance. Traders can choose from thousands of signal providers based on various criteria, such as risk level, profitability, trading style, etc. ZuluTrade also provides advanced features, such as custom settings, risk management tools, performance analysis, etc.

FXCM Markets offers Trading Station Signals, which is a native platform that provides access to live trading signals from various sources, such as FXCM’s proprietary Speculative Sentiment Index (SSI), Trading Central’s technical analysis, and FXCM’s algorithmic trading strategies. Traders can view the signals on the Trading Station platform or subscribe to them via email or SMS. Trading Station Signals also provides detailed information about each signal, such as entry price, stop loss, take profit, etc.

Minimum Deposit

XTB does not impose a minimum deposit requirement for any of its accounts or payment methods. However, the broker recommends a minimum deposit of $500 to start trading. FXCM has different minimum deposit requirements based on account types and regions. The Standard account requires $50 for clients in Europe and Australia, $360 for clients in South Africa, and $300 for clients in other regions. The Active Trader account necessitates a minimum deposit of $25,000 for all clients. The Professional Trader account requires a minimum deposit of $150,000 for all clients.

Withdrawal and Deposit method

XTB supports various withdrawal and deposit methods, including credit/debit cards, bank transfers, e-wallets (such as Skrill, Neteller, PayPal, Paysafecard), and local payment methods (such as QIWI). The broker does not charge any fees for deposits or withdrawals above $100 or equivalent but applies a $20 fee for withdrawals below $100 or equivalent. Payment providers may also have their own fees. FXCM facilitates withdrawal and deposit methods such as credit/debit cards, bank transfers, e-wallets (like Skrill and Neteller), and local payment methods (including Rapid Transfer and Klarna). FXCM does not charge any fees for deposits or withdrawals; however, payment providers may apply their own fees.

Which is More Suitable for You

If you’re a trader trying to decide between XTB and FXCM, there are several factors to consider. Both brokers are reputable and regulated, ensuring a secure trading environment. XTB offers the user-friendly xStation 5 and popular MetaTrader 4 platforms, while FXCM provides a range of options including Trading Station, MT4, NinjaTrader, and ZuluTrade. When it comes to pricing, XTB offers a choice between wider spreads with no commissions or lower spreads with commissions, while FXCM has different account types with varying spreads and commission structures. Consider their broker type (hybrid vs. agency), leverage options, asset selection, social trading features, minimum deposit requirements, and withdrawal/deposit methods to make an informed decision based on your individual trading preferences and goals.

Conclusion

In conclusion, when it comes to choosing between XTB and FXCM, both brokers have their own unique features and strengths. XTB offers a user-friendly platform, competitive spreads, and a wide range of trading instruments. On the other hand, FXCM provides a diverse selection of trading options, robust regulatory oversight, and advanced charting tools. Ultimately, the choice between the two will depend on individual preferences, trading goals, and specific requirements. It is important to carefully consider factors such as trading conditions, customer support, and platform usability to make an informed decision. So, weigh your options, consider your needs, and choose the broker that aligns best with your trading style and objectives.


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