When choosing a reliable forex broker, two popular names often come up: FXTM (ForexTime) and XM. Both are well-established in the industry, offering various services to traders around the world. But when it comes to picking the best option for your trading needs, a detailed comparison of FXTM vs XM can help. This article will break down the key differences between these brokers, helping you make an informed decision.
This table provides a quick snapshot to compare the key features of FXTM and XM.
| Feature | FXTM | XM |
|---|---|---|
| Founded | 2011 | 2009 |
| Regulation | FCA, CySEC, FSCA, others | CySEC, ASIC, IFSC, others |
| Account Types | Standard, Cent, ECN, Islamic | Micro, Standard, Zero, Islamic |
| Minimum Deposit | $10 | $5 |
| Trading Instruments | 250+ (Forex, indices, stocks, etc.) | 1,000+ (Forex, stocks, commodities, etc.) |
| Spreads | From 0.1 pips (ECN account) | From 0.0 pips (Zero account) |
| Commission | Yes (ECN accounts) | Yes (Zero account) |
| Deposit/Withdrawal Fees | Yes (on some methods) | No fees |
| Leverage | Up to 1:2000 | Up to 1:888 |
| Trading Platforms | MetaTrader 4, MetaTrader 5 | MetaTrader 4, MetaTrader 5 |
| Education | Webinars, tutorials, demo accounts | Webinars, learning center, demo accounts |
| Customer Support | 24/5, multilingual | 24/5, multilingual |
| Best For | High leverage traders | Low-cost traders, stock CFD traders |
Overview of FXTM
FXTM, also known as ForexTime, was founded in 2011 and quickly became a reputable broker in the forex industry. It is well-regulated by several authorities, including the Financial Conduct Authority (FCA) in the UK and the Cyprus Securities and Exchange Commission (CySEC). FXTM offers various account types to suit both beginners and experienced traders, with competitive spreads and fast execution times.
Overview of XM
XM was established in 2009 and is also a highly respected broker, with over 5 million clients globally. Regulated by top-tier financial authorities, including CySEC and the Australian Securities and Investments Commission (ASIC), XM provides a range of services, from forex trading to commodities and indices. XM is particularly well-known for its low spreads, no hidden fees, and robust educational resources, making it a good choice for traders of all levels.
Regulation and Security: FXTM vs XM
One of the most important factors when comparing brokers is regulation. Both FXTM and XM are well-regulated and offer high levels of security for traders.
- FXTM Regulation: FXTM is regulated by multiple authorities, including FCA (UK), CySEC (Cyprus), and the Financial Sector Conduct Authority (FSCA) in South Africa. This multi-jurisdictional regulation ensures that FXTM adheres to strict rules and standards, offering a secure trading environment.
- XM Regulation: XM is also highly regulated by top-tier financial authorities. These include CySEC, ASIC, and the International Financial Services Commission (IFSC). XM is known for being transparent and follows strict regulatory standards to protect traders.
Winner: Both brokers offer solid regulatory coverage, but FXTM has a slightly broader range of licenses, making it a slightly more secure option for some traders.
Account Types and Trading Platforms
Both FXTM and XM offer a wide range of account types to suit different trading styles and experience levels.
- FXTM Account Types: FXTM offers several account options, including Standard, Cent, and ECN accounts. Standard accounts are suitable for most retail traders, while the ECN account is tailored for experienced traders who require faster execution and tighter spreads. FXTM also offers swap-free accounts for Islamic traders.
- XM Account Types: XM offers three main account types: Micro, Standard, and Zero accounts. The Micro account is ideal for beginners, while the Zero account offers low spreads and is suitable for experienced traders. Like FXTM, XM also offers Islamic accounts.
Trading Platforms: Both brokers offer access to the popular MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms. These platforms are known for their user-friendly interface, advanced charting tools, and automated trading features.
Winner: In terms of account variety and trading platforms, both brokers are evenly matched. However, if you are a beginner, XM’s Micro account could be more appealing.
Trading Instruments
When it comes to the variety of trading instruments, both brokers offer an extensive range.
- FXTM: FXTM offers over 250 financial instruments, including forex, indices, commodities, stocks, and cryptocurrencies. With such a wide range of assets, traders can easily diversify their portfolios.
- XM: XM provides access to over 1,000 instruments, including forex, commodities, stocks, indices, and precious metals. One of XM’s standout features is its wide range of stock CFDs, making it ideal for traders looking to trade individual stocks.
Winner: XM offers a larger selection of trading instruments, which is beneficial for traders looking to diversify beyond forex.
Spreads and Fees
Fees and spreads are critical factors that can directly impact your profitability.
- FXTM: FXTM offers competitive spreads, especially on its ECN account, where spreads can be as low as 0.1 pips. However, the ECN account does come with commission fees. The Standard account has slightly wider spreads, starting from 1.3 pips, but it is commission-free. FXTM also charges a small withdrawal fee depending on the method you use.
- XM: XM is known for its low spreads, particularly on its Zero account, where spreads can start as low as 0.0 pips, though this account does have commissions. The Standard and Micro accounts are commission-free, with spreads starting from 1.0 pips. Unlike FXTM, XM offers free deposits and withdrawals, making it a more cost-effective option for many traders.
Winner: XM takes the lead in this category with its lower spreads and zero withdrawal fees.
Leverage Options
Leverage allows traders to control larger positions with a smaller amount of capital, but it also increases risk.
- FXTM: FXTM offers flexible leverage, with maximum leverage reaching up to 1:2000, depending on your location and the instrument you trade. This high leverage can appeal to risk-tolerant traders.
- XM: XM offers leverage up to 1:888, depending on your account type and jurisdiction. While this is lower than FXTM’s maximum, it still offers ample leverage for most retail traders.
Winner: FXTM offers higher leverage, which may be attractive to traders looking for higher risk/reward opportunities.
Education and Research Tools
For traders, especially beginners, educational resources and research tools are essential for making informed decisions.
- FXTM: FXTM provides a wide range of educational materials, including webinars, tutorials, and market analysis. It also offers demo accounts, which are great for practicing without risking real money.
- XM: XM excels in its educational offerings, providing daily webinars in multiple languages, an extensive learning center, and market insights. XM’s educational resources are highly praised for their depth and accessibility, making it an excellent choice for beginner traders.
Winner: XM wins in this category due to its comprehensive educational resources, catering to a global audience.
Customer Support: FXTM vs XM
Good customer support can make all the difference when trading online.
- FXTM: FXTM offers 24/5 customer support in multiple languages through live chat, phone, and email. Their response times are fast, and their customer service is generally rated highly by users.
- XM: XM also provides 24/5 customer support through live chat, phone, and email, with multilingual support. XM’s customer service is widely regarded as prompt and efficient.
Winner: Both brokers offer excellent customer support, so this category is a tie.
Conclusion: FXTM vs XM – Which is Better?
In the comparison of FXTM vs XM, both brokers have their strengths and are reliable choices for forex traders.
- Choose FXTM if you are looking for higher leverage, a wide range of account types, and strong regulatory coverage.
- Choose XM if you prefer lower spreads, no deposit or withdrawal fees, and a wider range of trading instruments, especially for stock CFDs.
Ultimately, the best broker for you will depend on your trading style, goals, and experience level. Both FXTM and XM provide excellent services, so no matter which one you choose, you’ll be in good hands. Happy trading!
Editorial Staff at Chweya is a team of financial experts led by Vincent Nyagaka, with over 9 years of experience in finance, commerce, forex, crypto, and marketing. Started in 2014, Chweya is now among the largest free financial resource sites in the industry and is often referred to as Wikipedia for business.