This XM vs IG Markets review looks at which broker is best. XM has 6 asset classes, over 1000 instruments and MT4 and MT5 Forex trading platforms, IG has 17,000 products across 10 asset classes and 5 trading platforms.
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In order to accommodate the trading needs and financial objectives of traders with different levels of trading experience and clients employing different trading styles, both IG and XM offer a variety of account types.
| IG | XM | |
|---|---|---|
| Minimum Deposit | $300 | -$5 Micro and Standard Account -$100 Zero Accounts |
| Number of Accounts | - 1 CFD Account - 1 Limited Risk CFD Account |
- 1 Micro Account - 1 Standard Account - 1 Zero Account |
| Forex Spreads | From 0.6 pips | From 0.0 pips |
| Commission | 2 cents per share | $3.5 per side per 100k units ($7 round-turn) |
| Range of Platforms | IG Platform, MT4, ProRealTime and L2 Dealer | MT4 and MT5 |
| Maximum Leverage (forex) | 30:1 | 30:1 |
| Instruments | +17,000 | +1,000 |
| Islamic Account | ✓ | ✓ |
IG is a leading, multi-regulated CFD and Forex broker with decades of business history. Operating in 17 countries and having over 239,000 active clients worldwide, London-based IG gives you access to financial markets with a choice of trading platforms and provides a variety of educational materials and tools to enhance your trading experience.
Founded in 2009, XM represents a group of brokerages operating under one parent company – Trading Point of Financial Instruments Ltd and currently has over 3.5 million clients worldwide. The broker has received over 30 industry awards for its services and trading platforms. XM Group does not accept clients from all countries, among them are Canada, China, and Japan.
Our review has found that IG does not provide a specific breakdown of features and trading conditions on its account types. Consequently, for the purpose of the current broker review, we shall present the account types available for clients of different regulatory jurisdictions and the types of financial instruments that can be accessed.
IG Trading Account (Standard CFD Account) – All countries
All traders, regardless of location, will have access to the IG Trading account. This account is IG’s standard account, which means you get access to most of IG’s trading products without commissions. This means trading costs are included as part of the spread. There are some exceptions to this rule. For example, shares will have commission costs.
Limited Risk Account (Australia, Switzerland, South Africa, New Zealand, Japan, and Dubai)
Limited risk account is for beginner traders. With this type of account, traders must purchase a guaranteed stop-loss order to open a position. This ensures one cannot lose more than the initial deposit. Guaranteed stops protect you against slippage, which means the broker guarantees to close your order at a set limit.
While there are benefits with a limited risk account, there is a small fee to use a guaranteed stop loss and you cannot use other types of stops.
Other than the need to purchase a guaranteed stop, the account is the same as the IG Trading Account. This Account is available in the following countries – Australia, Switzerland, South Africa, New Zealand, Japan, and Dubai.
In comparison, XM offers three main types of live trading accounts:
If you are outside the UK and Europe and am wondering, why you should consider the Standard account or Micro Account over the XM ultra-low account given that are pretty much identical except that ultra-low account has better spreads, we are not sure. The only difference of note is that the XM Ultra-Low account does not offer JPY and RUB as a based currency. In the past, the XM Ultra-low account had a higher minimum deposit to begin trading, so it seems XM has not reviewed its trading account policy following the change.
The following table presents a comparison between trading conditions offered on XM Group’s main account types.
Yes, both brokers offer a free Demo account. IG’s practice account comes equipped with $20,000 in virtual funds and can test features of the broker’s web-based platform and mobile trading apps and various trading strategies in a risk-free environment. Clients can also access exclusive educational content on IG Academy.
Meanwhile, XM’s Demo account comes equipped with $100,000 in virtual funds and has an unlimited duration.
There is a good range of account types with both brokers, but if you want to trade with 0.0 pips and ECN trading conditions, XM Zero Account is the best choice. If you want to get access to more CFD instruments, IG Markets is the best broker.
View IG Markets ReviewVisit IG Markets
To get a clear picture of how much it cost to trade with these two online brokers, we compared their minimum spreads across different financial instruments. Both online brokers offer variable spreads across their CFD product lists.
Spreads on major currency pairs start from 0.6 pips at IG Markets compared to XM spreads are as low as 1 pip (Standard account and Micro account):
| Min. Spread (Pips) | IG Markets |
XM Group |
|---|---|---|
| EUR/USD | 0.6 | 1.6 |
| GBP/USD | 0.9 | 2.0 |
| USD/JPY | 0.7 | 1.5 |
| USD/CAD | 1.3 | 2.0 |
| AUD/USD | 0.6 | 1.6 |
| EUR/GBP | 0.9 | 1.8 |
| GBP/JPY | 2.5 | 3.2 |
| AUD/CAD | 1.5 | 2.8 |
| NZD/JPY | 2.0 | 2.5 |
| NZD/CHF | 4.0 | 3.7 |
Many brokers provide their average spreads on their website, so we have compiled these spreads and update them each month. The module below compiles the spreads on brokers’ standard accounts.
The first XM is the spreads for the micro and standard account, all XM clients can access this account. However, since it is higher than the IG standard account, there is little reason to consider this account. The second XM account is the ultra-low account, available for traders outside UK and Europe. This account is more competitive and might be worth considering if you want to trade with micro lots. You will notice that other brokers present better value.
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Standard Account Spreads
|
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|---|---|---|---|---|---|
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1.13 | 1.01 | 1.71 | 1.66 | 1.12 |
|
1.10 | 1.20 | 1.40 | 1.40 | 1.40 |
|
0.62 | 0.77 | 1.27 | 0.83 | 0.74 |
|
0.90 | 1.30 | 1.40 | 1.40 | 1.40 |
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0.70 | 2.20 | 1.10 | 1.10 | 0.60 |
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1.20 | 0.90 | 1.50 | 1.80 | 1.80 |
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1.20 | 1.40 | 1.50 | 1.60 | 1.50 |
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1.10 | 1.20 | 1.40 | 1.50 | 1.20 |
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1.10 | 1.30 | 1.30 | 1.30 | 1.30 |
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1.20 | 1.30 | 1.20 | 1.30 | 1.10 |
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1.70 | 1.60 | 1.70 | 2.00 | 1.60 |
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1.20 | 1.80 | 1.90 | 1.90 | 1.60 |
|
1.30 | 1.70 | 2.10 | 1.40 | 1.50 |
|
1.12 | 1.64 | 0.86 | 1.30 | 1.38 |
|
1.32 | 1.95 | 1.37 | 1.70 | 1.40 |
|
1.20 | 1.30 | 1.50 | 1.30 | 1.20 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 01/09/2023
Both brokers offer no dealing desk options, which means tight spreads but come with commission costs. However, both brokers’ ECN-pricing style accounts do come with some limitations.
XM’s Zero account is only available to traders in the UK and Europe. This means XM clients in Australia, South Africa, and UAE will not have access to these accounts. Commission costs for the XM Zero Account are $3.5 per $100,000 traded. It is interesting to note that if you are using the MT4 trading platform are applied with you open and close your position while with the MT5 they are applied twice when you open your position. Then end result is the same as far as costs are concerned.
In a similar vein, IG offers the DMA forex direct account which uses Direct Market Access (DMA) execution rather than Straight Through Processing (STP). While DMA is available for all traders, it is recommended for professional traders because of its complexity. Commission costs with the Forex Direct account are commission-based and vary by volume. The more you trade, the lower your commission costs will be.
<img class=”aligncenter wp-image-50000 size-full” src=”https://www.compareforexbrokers.com/wp-content/uploads/2021/07/IG-Forex-Direct-DMA.png” alt=”Forex DMA costs” width=”669″ height=”207″ />
A side-by-side comparison of the ECN spreads offered by the two online brokers shows that, on average, XM spreads are a little bit more competitive. The table below shows how IG and XM stack up against the competition. If you want the best spreads, consider other brokers such as Pepperstone, IC Markets, and FP Markets.
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IG ECN Spreads
|
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|---|---|---|---|---|---|
|
|
0.17 | 0.30 | 0.54 | 0.59 | N/A |
|
|
0.12 | 0.22 | 0.40 | 0.69 | 1.38 |
|
|
0.02 | 0.17 | 0.27 | 0.23 | 0.85 |
|
|
0.10 | 0.20 | 0.30 | 0.30 | 1.40 |
|
0.20 | 0.20 | 0.40 | 0.50 | 1.50 |
|
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0.44 | 0.42 | 0.40 | 0.85 | 1.30 |
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0.20 | 0.40 | 0.50 | 0.60 | 10.00 |
|
0.10 | 0.50 | 0.60 | 0.60 | 1.30 |
|
n/a | 0.50 | 0.60 | 0.20 | 3.10 |
|
0.44 | 1.23 | 1.13 | 1.08 | 1.85 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 01/09/2023
The right account for you will depend on your trading preference and location. If you want the lowest spreads and you are in Europe, then consider the XM account. This account is a more realistic prospect for most retail traders compared to the IG DMA Forex Direct option. If you prefer standard spreads, then you should consider the IG account. IG is a market maker that offers excellent spreads with no commissions.
View IG Markets ReviewVisit IG Markets
With regards to maximum leverage available, we should note that IG offers relatively low leverage ratios to its clients:
Generally, the maximum leverage that the brokerage trading firms can offer to their clients depends on two factors. First is the jurisdiction retail traders are based and second is the financial instruments you’re trading.
| Jurisdiction | Australia&UK&EU | USA | Switzerland | Dubai | Japan | Belize |
|---|---|---|---|---|---|---|
| IG Maximum FX Leverage | 30:1 | 50:1 | 100:1 | 30:1 | 25:1 | ✗ |
| XM Maximum FX Leverage | 30:1 | ✗ | ✗ | 30:1 | ✗ | 888:1 |
Meanwhile, XM Group clients can enjoy considerably higher maximum leverage ratios – up to 1:888, but only on the broker’s Micro and Standard account types. For XM’s Zero accounts, the max leverage available is 1:500. Note that those ratios are available only for clients of XM Global, which is an IFSC-regulated entity.
For XM Group retail clients based in Australia and the EU, the leverage caps we already discussed will apply.
Both IG and XM do not allow their clients to adjust the leverage ratios on trading instruments, which we consider as a drawback, because traders will not have a flexible tool to control high risk associated with CFDs.
If you want to choose the forex broker with the highest leverage, XM outperforms IG when we compare their leverage offerings. However, in order to access the higher leverage ratios, you’ll need to open a trading account with an offshore branch, which comes with its drawbacks.
While IG has provided its clientele with a choice of a variety of in-house and specialist trading platforms, XM offers only two specialist platforms – MetaTrader 4 and MetaTrader 5, and their proprietary platform XM WebTrader accessible from any browser.
MetaTrader 4, already an industry standard for Forex trading and very popular among retail traders, offers good customisation options, charting and analytical capabilities and significant support for expert advisors.
XM offers the desktop version of the trading platform for both PC and Mac, while IG – for PC. The trading software at both brokers features the One-Click Trading option and the standard set of technical indicators, drawing objects and timeframes.
However, IG goes further and offers 6 additional technical indicators (Order history indicator, Pivot points indicator, High-low indicator, Renko indicator, Chart group indicator, Freehand drawing indicator) and 12 additional trading tools (including Stealth orders, Correlation matrix, Sentiment trader, Candle countdown).
With IG, clients will also have access to the powerful Autochartist pattern-recognition tool.
MetaTrader 5 is an upgrade on MT4 and offers a wider selection of tradable asset classes (including Stock CFDs), more order types, technical indicators, drawing objects, time frames and also expand development, optimisation and testing options for EAs.
MT5 also allows for position hedging and access to market depth. XM offers the desktop version of the trading software for both PC and Mac.
IG offers its own innovative web-based platform that delivers an array of customisation options, advanced charting and technical analysis tools and grants access to news and analysis from several leading sources, live and on-demand shows from the broker’s in-house TV channel, as well as to price level, price change, technical indicator and economic calendar alerts.
Last but not least, the web-based trading platform delivers exceptional order execution speed (0.014 seconds on average), while IG uses 256-bit SSL (Secure Sockets Layer) encryption for top-level security of online financial transactions.
In the case of XM, its MT4, MT5 WebTrader and XM WebTrader can be accessed on PC and Mac without the need for a download. They feature almost the same functionalities as the desktop platform versions, with the exception of support for expert advisors.
Both brokers offer mobile trading apps. IG has its own proprietary mobile apps for Android and Apple iOS devices, which have received several industry awards.
IG’s Android trading app grants access to the full range of financial instruments grouped in five asset classes, including Forex, Cryptocurrencies and Indices. With this app, clients will be able to open and close positions with the broker’s intuitive mobile deal ticket, control risk with both standard Stop-Loss orders and Trailing Stops and take advantage of tight protection against slippage with Guaranteed Stops (this tool will incur a small charge if triggered).
The Android trading app also features real-time charts, 28 technical indicators and advanced dealing options such as partial fills and points through current. Clients can also set price alerts and receive trading signals via email, SMS, or push notification.
IG clients can also use the third-party MT4 mobile trading app.
In the case of XM, similar to the desktop platform versions, it does not offer an in-house mobile trading app. Clients can access MetaTrader 4 and MetaTrader 5 via third-party mobile apps for Android and iOS devices.
The scope of features is more limited compared to the desktop and web-based versions of the platforms, with traders able to use real-time interactive charts with zoom and scroll, 3 chart types, 30 technical indicators and push notifications for trading alerts.
ProRealtime trading platform offers a range of time frames, over 100 technical indicators, 8 order types and access to advanced technical analysis tools such as:
This is a free downloadable trading platform allowing for direct market access to Foreign Exchange and Shares CFDs. It features monitoring tools such as watchlists and price alerts and research tools such as streaming news, economic calendar and trading signals.
IG and XM don’t offer specialised social trading app like eToro. However, XM clients can enjoy the integrated MT4 and MT5 copy trading solution powered by MQL5 signals.
IG’s WebTrader also grants access to buy and sell signals on Forex pairs, Indices and Commodities from two expert third parties (Autochartist and PIA-First).
Overall, IG comes at the top, as they offer a wider selection of proprietary and third-party trading platforms and useful trading tools. By comparison, XM only offers the industry standards MT4 and MT5. Click the button below if you want to test drive IG’s software solution.
View IG Markets ReviewVisit IG Markets
Our broker review has found that clients can access a considerably larger number and a greater variety of financial instruments with IG – over 17,000 tradable instruments. At the same time, XM has roughly 1,000 financial instruments on its product list.
| IG | XM | |
|---|---|---|
| Financial Instruments | +17,000 | +1,000 |
| FX Pairs | 68 | 55 |
| Indices CFDs | +100 | 14 |
| Commodity CFDs | 35 | 8 |
| Metals | 5 | 4 |
| SharesCFDs | 10,500 | +600 |
| Cryptocurrencies | 8 | ✗ |
Disclaimer: Trading complex instruments such as CFDs on retail investor accounts carries a high risk of losing capital rapidly, as leverage is used. It is advisable that clients make sure they fully understand how these derivative instruments work before they operate with them on a live trading account.
Let us now have a closer look at both brokers’ CFD offerings:
Overall, IG offers more tradable instruments and a larger variety of asset classes for those wishing to diversify their portfolios. With over 1,400 financial instruments offered by XM, the available markets are sufficient for any beginner retail trader, but professional traders will likely find more opportunities at IG.
Our broker review has found that both IG and XM offer reliable customer support services. In case clients cannot resolve their queries with the help of both brokers’ extensive FAQ section, they can contact the respective Customer Support departments during business days over the phone. Phone support is 24/5 at both IG and XM.
| XM | IG Markets | |
|---|---|---|
| Live Chat | ✔ | ✔ |
| ✔ | ✔ | |
| Phone | ✔ | ✔ |
| Call Back | ✗ | ✔ |
| FAQs | ✔ | ✔ |
To contact IG, clients can dial +61 3 9860 1799 (new customers) or +61 3 9860 1734 (existing customers) from 8am Saturday to 10pm Friday (UK time). To contact XM, clients can choose from various phone numbers, depending on the office location and department.
We were able to contact both brokerages over the phone in about 2-3 minutes.
Another good option to contact the respective customer support teams includes the live chat. It is available 24/5 at both brokers. In both cases, we got a quick response (under a minute) from a company representative and received precise answers to all matters we were interested in.
IG’s support team can also be contacted via IG Client Help on Twitter.
And finally, clients can opt to contact both IG and XM via email respectively. In both cases, we received an emailed answer to our inquiries in about 3-4 hours.
Let us also not forget to mention that XM will assign a Personal Account Manager to all new clients, which adds reassurance of the broker’s professional support.
When it comes to client education materials, both brokers have apparently put a lot of effort into this front. What clients will find are diversified education sections, including both a cannonade of written content and education in the form of live events (seminars and webinars).
At XM, both beginners and more advanced traders will find:
Meanwhile, the IG Academy includes:
Both brokers have good customer support and they both offer educational content, daily market commentaries, webinars and trade ideas to assist beginner traders. Based on direct user review, IG has 3.6 stars on Trustpilot compared to only a 2.4-star rating obtained by XM. On that alone, IG tops XM and claims the first spot in this category.
The minimum deposit amount via Debit or Credit Card is currently $300 at IG, while the broker does not have a minimum deposit requirement for bank transfers. In comparison, the minimum deposit required by XM varies depending on the account type:
| XM | IG Markets | |
|---|---|---|
| Minimum Deposit | -$5 for Micro and Standard -$100 for XM Zero -$10,000 for Shares Account |
$300 |
| Supported Base Currencies | 11 | 6 |
| Deposit Fees | ✘ | ✔ (only credit cards will incur a fee) |
| Withdrawal Fees | ✘ | ✘ |
| Deposit and Withdrawal Methods | ✔ | 9 |
| Credit&Debit Card | ✔ | ✔ |
| Bank Transfer | ✔ | ✔ |
| Inactivity Fee | $15 | $18 |
With IG, clients can choose from six base account currencies – USD, EUR, GBP, AUD, SGD and HKD. In comparison, XM supports 11 base account currencies – USD, EUR, GBP, JPY, CHF, AUD, PLN, RUB, HUF, ZAR and SGD.
We should note that there will be no deposit fee with both IG and XM for all payment methods. IG accepts deposits via the following options:
At the same time, XM accepts deposits via the following methods:
While IG currently does not have any promotions, clients signed up with XM Global will receive a $30 bonus just for opening their first live trading account with the brokerage.
As for fund withdrawals, again both IG and XM will not charge a withdrawal fee for all payment options. IG has a minimum withdrawal amount requirement for Debit/Credit Cards – the min. amount clients can withdraw to a card is $150, while the maximum amount for cards is up to $25,000 per day. Depending on the base currency, these requirements are presented as follows:
Both online brokers will usually process withdrawals within 24 hours.
Fund withdrawals to a card are usually cleared within 2 to 5 business days, while withdrawals via a bank transfer – within 1 to 3 business days. Withdrawals via e-wallets, once processed, are usually cleared the same day.
Meanwhile, XM will cover any fees for bank transfers in case the withdrawal amount is more than $200. If clients withdraw amounts lower than $200 via bank transfer, there will be a charge of $15.
Unfortunately, both brokers will charge such a fee. XM Group will charge a $15 one-off maintenance fee in case there has been no trading activity for 12 months, which will be followed by a $5 fee per month if the trading account remains inactive.
Meanwhile, IG will charge an $18 fee per month, in case clients’ trading account has remained inactive for 24 consecutive months.
IG and XM both offer low entry barriers and a good range of funding and withdrawal methods. With both brokers, you’ll get your own secure client area to manage all your payment activities. The only advantage XM has over IG is the availability of more E-wallets options.
Our IG vs XM review has found that regulation and security of client funds, respectively, is another aspect where IG clearly stands out. IG Group complies with the strict regulatory standards of 6 top-tier regulators across the globe, which makes it a highly secure and trustworthy provider of online trading services. These high-trust regulators include:
Additionally, IG is regulated by:
Regulation by a top-tier regulatory body translates into better client protection. In the case of the UK’s FCA, every covered IG client will be compensated up to the amount of GBP 85,000 in case the brokerage becomes insolvent.
At the same time, XM Group is subject to a decent, but not very stringent industry regulation, with only one of the regulators being of a tier-one rank. XM is regulated by:
CySEC regulation translates into a EUR 20,000 compensation for every retail investor account at XM Group in an event of broker insolvency, while Belize’s IFSC regulation translates into high leverage ratios available to trade with (up to 1:888).
Another risk management tool available at both IG and XM includes negative balance protection. This means retail investor accounts cannot lose larger amounts than the initial deposit when trading complex instruments, such as CFDs. XM Group offers negative balance protection for clients from all regions of operation, while IG offers such a tool for clients from all regulation jurisdictions except in the United States.
Lastly, our broker review has found that both IG and XM assure client funds are held completely segregated from the companies’ own accounts at trusted financial institutions.
Overall, both brokers are in good standings and safe. However, IG is not just a regulated forex broker but also a regulated bank in Switzerland by the FINMA, which adds extra credibility to its name. IG has been around for 46 years, while XM Group has only been in business since 2009. On that alone, IG tops XM and steals the first spot.
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