XM vs FXTM (2021)

XM vs FXTM: Battle of the Commission Free Account Types

Both brokers offer a choice of commission or commission-free account types, although availability is dependent on your location and the broker’s local regulator.

No Commission Trading Account Types

Commission-free account types are ideal for beginner traders wanting a simple pricing structure along with those who trade infrequently. Although spreads are wider than ECN Accounts, traders only pay the spread with no additional commission costs incurred. Both XM and FXTM offer multiple no commission account types with different lot sizes and minimum deposits.

XM Commission Free Accounts

XM Micro Account

XM’s Micro Account requires a low minimum deposit and allows traders to make more precise trades with smaller contract sizes. Traders pay no commission fees, with minimum spreads of 1.0 pip on major forex pairs.

• Contract Size: 1 lot = 1,000
• Min Trade Volume: 0.01 lots (MT4), 0.1 lots (MT5)
• Max Trade Volume: 100 lots
• Minimum Deposit: $5
• Trading Platform: MT4 or MT5

XM Standard Account

XM’s standard account provides minimum spreads of 1.0 pip. Although spreads are wider, traders do not pay any commission fees, with the simple fee structure suiting beginner traders or those who do not trade forex regularly.

• Contract Size: 1 lot = 100,000
• Min Trade Volume: 0.01 lots
• Max Trade Volume: 50 lots
• Minimum Deposit: $5
• Trading Platform: MT4 or MT5

XM Ultra-Low Account (Not available to EU/UK traders)

For those residing outside of Europe and the United Kingdom, XM’s Ultra-Low Account is a commission-free option with tighter spreads than the broker’s Standard or Micro Accounts. Contract sizes are flexible with both standard and micro lot sizes available.

• Contract Size: Standard Ultra 1 lot = 100,000, Micro Ultra 1 lot = 1,000
• Min Trade Volume: Standard Ultra 0.01 lots, Micro Ultra 0.1 lots
• Max Trade Volume: Standard Ultra 50 lots, Micro Ultra 100 lots
• Minimum Deposit: $50
• Trading Platform: MT4 or MT5

Minimum spreads are as low as 0.6 pips and with no additional commission costs on top of the spread, overall trading costs are similar to an ECN trading account.

• XM Ultra-Low Account: EUR/USD = 0.8 pips = $8 in total
• XM Zero Account: EUR/USD = 0.1 pips + $7 commission = $8 in total

FXTM No Commission Accounts

FXTM Cent Account

The broker’s Cent Account is a great option for those wanting to trade smaller volumes due to lower account balances or inexperience. With minimum spreads of 1.5 pips, pricing is less competitive than ECN-style accounts, yet traders pay no additional commission fees on top of the spread.

When placing orders, Cent Account holders have increased control over their trade sizes and can choose between micro-lots (0.01), mini lots (0.1) or standard lots (1).

• Contract Size: 1 lot = 1,000
• Min Trade Volume: 0.01 lots
• Max Trade Volume: 100 cent lots
• Minimum Deposit: £/€/$10
• Trading Platform: MT4 only

FXTM Standard Account

FXTM’s Standard Account offers commission-free spreads as low as 1.3 pips. When signed up to the broker’s standard account, customers are required to use the MT4 trading platform.

• Contract Size: 1 lot = 100,000
• Min Trade Volume: 0.01 lots
• Max Trade Volume: 30 lots
• Minimum Deposit: £/€/$100
• Trading Platform: MT4 only

FXTM ECN Zero Account (EU and UK Only)

The broker’s ECN Zero Account is similar to its pure ECN Account, except traders pay no commission fees on top of the spread. Due to this, minimum spreads are higher, starting from 1.5 pips. As with FXTM’s Cent Account, the ECN Zero Account smaller offers contract sizes for more precise trading.

• Contract Size: 1 lot = 1,000
• Min Trade Volume: 0.01 lots
• Max Trade Volume: 100 cent lots
• Minimum Deposit: $200
• Trading platforms: MT4 or MT5

ECN-Style Trading Account Types

Those wanting an ECN-style trading environment may prefer XM’s Zero Account or FXTM’s ECN Account. The commission accounts offer access to ultra-tight spreads, with traders paying a flat-rate commission fee as compensation to the broker. With low spreads and commission fees, the ECN-like accounts are excellent choices for those using Expert Advisors or executing day trading and scalping strategies.

XM’s Zero Account (UK and Europe Only)

XM’s Zero Account is similar to an ECN account with minimum spreads of 0.0 pips, and as with all account types, XM guarantees no requotes on all orders. As traders gain access to ECN-style spreads, commission fees are $3.5 per side per $100,000 traded.

• Contract Size: 1 lot = 100,000
• Min Trade Volume: 0.01 lots
• Minimum Deposit: $100
• Trading Platform: MT4 or MT5

FXTM ECN Account

FXTM’s ECN Account allows customers to trade tight spreads similar to institutional-grade pricing. Although the account type is available when using MT4 or MT5, different commission fees apply for each platform. While MT5 users pay a flat rate commission fee of $4 round-turn, those using MT4 pay commission fees based on their equity levels and trading volume as shown below.

• Contract Size: 100,000
• Min Trade Volume: 0.01 lots
• Max Trade Volume: 100
• Minimum Deposit: $500
• Trading Platform: MT4 or MT5

Swap-Free/Islamic Accounts

Both XM and FXTM offer Swap-Free Accounts for traders following Islamic finance practices. As Islamic traders can not pay or receive interest, swap-free accounts do not charge interest based overnight financing fees (aka swap fees).

XM provides Islamic Account options for Micro, Standard and Ultra-Low account types. While some of the best brokers widen Islamic Account spreads to compensate for the loss in swap fees, XM promotes no widened spreads or hidden fees.

FXTM offers swap-free options for Standard, Cent, ECN and ECN Zero Accounts. When trading with FXTM, swap-free account holders are required to use MT4, with no access granted to MT5. Additionally, you are only able to trade major and minor currency pairs, with no exotic fx pairs available to swap-free accounts.

XM Leverage

Leverage for traders in Australia and Europe is in line with the requirements of the regulator ASIC, FCA and CySEC.

This means leverage will range from 2:1 to 30:1 depending on the derivative you are trading.

Traders outside these regions can use a leverage ratio of up to 1:888 as the IFSC have more relaxed leverage requirements.

Fixed Tiered Leverage: FXTM

FXTM offers a tiered system that is also dependent on an order’s value, yet the leverage offered is fixed.

As with XM, FXTM traders based in the UK and Europe are only offered leverage of 30:1 as required by the FCA and CySEC.

FXTM clients residing elsewhere are offered much higher leverage than most brokers offer, with a maximum of 2000:1 on major currency pairs. As shown below, the value of your order determines your leverage. For instance, if the value of your trade equates to more than $2M, you are confined to a leverage limit of 200:1.

As leverage enhances gains and magnifies losses, clients should be aware of the high risk of trading with such significant leverage.

XM vs FXTM: Best Account Type Overall?

With low minimum deposits, tight spreads plus flexible commission and contract sizes, XM offer the best range of account types with both commission-free and ECN-style pricing available. Although XM’s Zero account is only available to traders based in Europe or the UK, traders outside of this area can still access ECN-like spreads via the broker’s Ultra-Low account.

View XM Review >>Visit XM >>

XM vs FXTM: MetaTrader Trading Platforms Specialists

XM and FXTM both offer the choice of either MetaTrader 4 (MT4) or MetaTrader 5 (MT5). The trading platforms are two of the most popular worldwide due to their algorithmic trading capabilities using Expert Advisors.

MT4 and MT5 are compatible with a range of devices, with desktop and webtrader platforms available, as well as mobile trading apps for Android and iOS devices.

MetaTrader 4

Designed to facilitate forex trading for retail investor accounts, MT4 offers a range of trading tools to help users conduct analysis and develop strategies. Although the gold standard of forex trading platforms, market access is limited when compared to MT5 as share trading is not permitted.

Key features include:

• Charting tools for technical analysis: 30 technical indicators, 31 objects, and 9 timeframes.
• Automated trading with Expert Advisors (EAs). Traders can write their own EAs using MetaQuotes Language 4 (MQL4) or download EAs from the MetaTrader Marketplace.
• Expert Advisors can be tested and optimised against historical data using the platform’s backtesting tools. You can only backtest one currency pair at a time on MT4.
• While traders can execute hedging strategies, netting is not permitted on MT4.

MetaTrader 5

While MT5 provides a similar trading environment to MT4, there are certain benefits over its predecessor, such as wider market access, improvements to EAs and more trading tools:

• A larger collection of technical analysis tools: 38 technical indicators, 44 objects, and 21 timeframes.
• Expert advisors are developed using the more efficient MetaQuotes Language 5. MQL5 is similar to the object-oriented C++ programming language and considered easier to use.
• Enhanced backtesting allows for multi-currency backtesting of Expert Advisors.
• Depth of market pricing, ideal for day traders and scalpers.
• The addition of an inbuilt economic calendar.
• Share CFD trading as well as hedging and netting are permitted.

Best Trading Platform for XM and FXTM Customers

As both XM and ForexTime offer MetaTrader 4 (MT4) and MetaTrader 5 (MT5), the brokers tie this round. Regardless of whether you choose XM or FXTM, you are able to automate trading using Expert Advisors and conduct advanced research on the platforms. Most traders prefer MT5 as it offers greater market access along with several improvements over MT4 such as improved backtesting and more charting tools.

View FXTM Review >>Visit FXTM>>

XM vs FXTM: Trust With Multi-Regional Tier 1 Regulators

XM and FXTM are both overseen by multiple top-tier financial authorities. As regulation varies between jurisdictions, the investor protection you receive depends on the subsidiary you are signed up to.

XM Regulation

When trading forex with XM, customers can sign up to one of five different subsidiaries that are regulated by different financial authorities:

1. FCA: Financial Conduct Authority (United Kingdom)
2. ASIC: Australian Securities and Investments Commission (Australia)
3. CySEC: Cyprus Securities and Exchange Commission (Europe)
4. DFSA: Dubai Financial Services Authority (Dubai and Golf States)
5. IFSC: International Financial Services Commission (Belize, Global)

FXTM Regulation

ForexTime operates four different subsidiaries around the world:

1. FCA (UK)
2. CySEC (Europe)
3. FSCA: Financial Sector Conduct Authority (South Africa)
4. FSC: Financial Services Commission of the Republic of Mauritius (International)

Investor Protection Schemes

Following FCA and CySEC regulation, traders receive investor protection up to £85,000 and €20,000, respectively. The investor protection insurance schemes ensure that in the case that XM or FXTM become insolvent, traders can receive a certain amount of compensation to cover losses. If you are trading with FXTM or XM outside of Europe and the UK, you will not receive protection via investor compensation schemes.

The Safest Broker: XM vs FXTM

As both XM and FXTM are overseen by multiple top-tier financial authorities, they are viewed by the forex trading community as well-respected and trusted online brokers. The level of investor protection you receive when trading with XM or FXTM depends on your country of residence and the subsidiary you are signed up to, with European and UK traders receiving the strongest protection worldwide.

View FXTM Review >>Visit FXTM>>

XM vs FXTM: Security With Risk Tools

Both brokers offer various tools to reduce the high risk of CFD and forex trading. In addition to policies such as negative balance protection, order types can be used to minimise losses and maximise profits on individual trades.

Money management is the most important aspect of trading. Having a sound money management system will make a huge difference in your profits. It will help improve your performance and minimize your losses. – XM

As XM and FXTM customers have a choice of either MT4 or MT5, the same trading platform risk management tools are available with both brokers. While neither broker offers premium orders such as guaranteed stop-loss orders (GSLOs), traders are able to place the following pending order types when using MetaTrader platforms:

• Stop Loss/Take Profit
• Buy Stop/Sell Stop
• Buy Limit/Sell Limit
• Buy Stop Limit/Sell Stop Limit (MT5 only)

XM: Worldwide Negative Balance Protection

While brokers regulated by the FCA and CySEC are legally required to provide traders with negative balance protection, all XM customers receive NBP regardless of their location or the subsidiary they are trading with.

Negative balance protection (NBP) is a policy that protects traders from becoming indebted to a broker if their account balance falls below zero. When markets are volatile and an account balance enters a negative balance, XM will close all open positions, eliminating the risk of traders losing more money than they initially deposited.

FXTM: Risk Management

If you are an EU or UK trader, FXTM will provide negative balance protection. Yet, unlike XM, this is not applicable to traders residing outside of Europe. Although not all FXTM traders receive negative balance protection, the order types explained above can be used to minimise the high risk associated with forex and CFD trading.

Demo Accounts

In addition to trading with a regulated broker and using order types to manage risk, traders can utilise the demo accounts offered by XM and FXTM as risk management technique.

Demo accounts provide a risk-free environment to practice and optimise trading strategies against real market conditions, allowing traders to build confidence and experience before trading with real money. As CFDs and forex are complex instruments, even the most experienced traders can benefit from testing strategies with demo accounts.

Best Risk Management Tools, XM or FXTM?

As XM offers negative balance protection to all their customers, not just those required by FCA and CySEC regulation, they provide the best risk management tools when compared to FXTM. With MT4 and MT5 order types and NBP, XM traders are offered an excellent selection of tools to manage the high risk that comes with trading forex and CFDs.

View XM Review >>Visit XM >>

XM vs FXTM: More Than Forex – CFDs, Cryptocurrency, Shares

XM and FXTM are CFD brokers that provide market access to a range of asset classes in addition to forex. Both brokers offer a diverse range of trading instruments, with Share CFD trading available on MetaTrader 5 only.

XM CFD Product Range

As well as trading forex with XM, customers can develop trading strategies that include equity indices, commodities and share CFDs.

• Forex: Over 55 forex pairs including major, minor, exotic and cross fx pairs
• Indices: Major Cash and Future indices such as US500,
• Soft commodities: Future CFDs derived from commodities such as cotton, coffee and cocoa.
• Metals: Gold and silver, precious metals, as well as palladium and platinum
• Energies: Natural gases and oil CFDs
• Shares: Over 1,144 stock CFDs from 18 countries including the US, UK and Australia

ForexTime CFDs

As an FXTM customer, you can trade CFDs on commodities, equity indices, precious metals, stocks and cryptocurrencies.

• Forex: 48 currency pairs
• Indices: Global indices including the AUS200 and UK100
• Shares: Over 150 stock CFDs
• Commodities: Natural gas as well as Brent and crude oil
• Metals: Gold and silver spot metal CFDs
• Cryptocurrencies: Bitcoin, Litecoin, Ripple and Ethereum (not available in the United Kingdom)

While FXTM offers cryptocurrencies, traders based in the UK and trading with the broker’s FCA regulated subsidiary will not be able to access cryptos. The FCA recently banned UK retail traders from accessing cryptocurrency markets.

XM vs FXTM: Best CFD Market Access

Overall, XM and FXTM tie this round. Both brokers offer a great range of CFDs, each having a key strength and weakness in regards to market access. XM customers are provided with access to over 1,000+ Share CFDs, yet fail to offer any Crypto products. On the other hand, FXTM provides access to five major Cryptocurrency markets but fewer Shares and Forex pairs than XM.

View FXTM Review >>Visit FXTM>>

XM vs FXTM: Customer Service

XM Customer Support

XM customers can get in touch with the online broker via live chat phone or email. Customer support representatives are available 24 hours a day, 5 days.

FXTM Customer Support

FXTM provides prompt service, yet customer support teams are only available 12 hours a day, 5 days a week. The broker can be contacted via live chat, phone, email and social media platforms such as Facebook and Twitter.

XM Education and Research

With a free forex education course, live webinars and a range of videos available online, XM offer excellent educational resources for beginners to advanced traders.

• A six-part course explaining the basics of forex trading.
• Video series that cover topics such as technical and fundamental analysis, trading psychology and money management.
• Webinars, Q&As and live debates hosted in 16+ languages.

XM offers a vast collection of fundamental research tools providing a research centre with market analysis that includes:

• News
• Trade ideas
• Technical summaries
• Research
• Economic calendar
• XM TV and podcasts

FXTM Education and Research

FXTM offers educational materials suitable for all levels of experience, including e-books, webinars, tutorials and a glossary. As well as the wide range of resources available at www.forextime.com, the broker hosts live seminars in countries where FXTM has offices.

When researching financial markets, traders can use FXTM’s market outlooks, forex news, and an economic calendar to find trading opportunities.

Which Broker Provides the Better Customer Support?

XM offers the best customer support with 24/5 customer service, excellent educational resources, and research tools. Beginner to advanced XM customers can increase their knowledge of financial markets via webinars, Q&As and courses, as well as using a range of tools to conduct market analysis.

View XM Review >>Visit XM >>

XM vs FXTM: Funding Methods – Deposit And Withdrawals

XM Payment Methods

When trading forex with XM, customers can withdraw and deposit funds using:

• Debit and credit cards: UnionPay, Mastercard and Visa
• e-Wallet: Bitcoin, Neteller, Sofort, CashU and Przelewy 24
• Bank transfer and wire transfer

Although a wide range of funding methods are offered by XM, availability varies depending on your location. The majority of payment options are fee-free, yet if you transfer less than $200 by bank transfer you will incur a $20 fee.

When making withdrawals, XM will transfer the funds via the same methods they were deposited. For instance, if you use Bitcoin to make deposits, you are only able to withdraw funds via Bitcoin.

Depending on your XM account type, you will be able to choose one of the following base currencies when setting up your trading account:

FXTM Deposit and Withdrawal Methods

To deposit and withdraw funds from your FXTM trading account can use credit card, e-wallet or bank transfer payment methods.

• Credit card: Visa, Maestro, and Mastercard
• e-wallet: Skrill/Moneybookers, Paypal, Neteller, Alfa-Click, Western Union Quick Pay, QIWI, Yandex.Money and Dotpay
• Bankwire: Deutsche Handelsbank

FXTM’s funding methods are fee-free, although third party fees may apply. For Skrill and Neteller e-wallet options, VIP programs are available where the e-wallet providers charge reduced transaction costs.

To start trading, FXTM requires traders to choose a trading account base currency. When based in the UK or Europe, customers can select either the EUR, USD or GBP, with Cent accounts using the US Cent, EU Cent or GBP Pence. For those residing outside of Europe and the UK, the additional option of NGN (or NGN Kobo) is offered as a base currency.

Best Funding Methods: XM or FXTM?

Both brokers offer a range of traditional and e-wallet payment options that are mostly fee-free. With a substantially larger selection of base currencies to choose from, XM offers the most convenient funding methods overall.

View XM Review >>Visit XM >>