If you are reading this article, you’re likely having trouble deciding whether XM or HotForex is the better Forex trading platform for you. While both platforms generally provide positive user experiences, there are some essential differences to note.
In this XM vs HotForex review, we outline the highlights of each trading platform to help you make a more informed decision. We evaluate:
- Features and Platforms
- Available Markets
- Typical Spreads and Fees
- Security and Trust
- XM vs HotForex - Verdict
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Headquarters | Saint Vincent and the Grenadines | Cyprus |
Regulators | CMA, CySEC, DFSA, FCA, FSA, FSC Mauritius, FSCA | ASIC, CySEC, DFSA, FSC Belize |
Tier 1 Regulator(s)? | ||
Owned by Public Company? | ||
Year Established | 2010 | 2009 |
Execution Type(s) | ECN/STP, Market Maker | Market Maker |
Minimum Deposit | $0 | $5 |
Trading Platform(s) | MetaTrader 4, MetaTrader 5, Proprietary platform | MetaTrader 4, MetaTrader 5, Proprietary platform |
Average Trading Cost EUR/USD | 1.3 pips | 0.1 pips |
Average Trading Cost GBP/USD | 1.9 pips | 0.2 pips |
Average Trading Cost WTI Crude Oil | $0.06 | $0.05 |
Average Trading Cost Gold | $0.27 | $0.19 |
Islamic Account | ||
Signals | ||
US Persons Accepted? | ||
Managed Accounts | ||
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Features and Platforms
XM and HotForex are two of the most recognized brands in the Forex market. Both offer clients upgraded MT4/MT5 trading platforms, competitive research, and trading tools. XM caters to more than 3.5 million traders versus 2.5 million at HotForex, ranking both in the top quartile. XM and HotForex feature competitive research and trading tools, while beginner traders have access to quality education. Both brokers maintain a generous bonus and rewards system, but XM is also home to one of the most engaging management teams. The core trading environment remains equal at both.
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MT4 | ||
MT5 | ||
cTrader | ||
Proprietary Platform | ||
Automated Trading | ||
DOM? | ||
Guaranteed Stop Loss | ||
Scalping | ||
Hedging | ||
One-Click Trading | ||
OCO Orders | ||
Interest on Margin | ||
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Available Markets
The asset selection at both brokers extends the similarities. While cryptocurrencies remain notably missing from XM and HotForex, the former offers Forex traders 57 currency pairs versus 53 at the latter. Despite the below-average 15 commodity CFDs at XM, it trumps the 13 available at HotForex. XM completes its asset selection with 1,243 equity CFDs, 28 index CFDs, and 100 shares for direct dealing. HotForex counters with 1,005, 11, and 0, respectively, but adds 34 ETFs and three bonds. Both brokers offer traders a well-balanced choice of available markets, except for cryptocurrencies, but XM provides a visible edge.
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Currency Pairs | N/A | |
Cryptocurrencies | N/A | |
Commodities | ||
Crude Oil | ||
Gold | ||
Metals | ||
Equity Indices | ||
Stocks (non-CFDs) | ||
ETFs | ||
Futures | ||
Synthetics | ||
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Typical Spreads and Fees
One of the most notable differences between XM and HotForex is the pricing environment. Traders at XM get a commission-free mark-up of 0.6 pips or $6 per 1.0 standard lots. At HotForex, the minimum spread is an expensive 1.3 pips or $13. HotForex lists a commission-based alternative from 0.1 pips for a commission of $6 for a total cost of $7. The volume-based loyalty program lowers final trading costs. Equity CFD trading at XM remains commission-free but costs a minimum of 0.10% at HotForex. Direct share dealing at XM incurs a minimum commission of $10.00 or 0.10%.
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Average Trading Cost EUR/USD | 1.3 pips | 0.1 pips |
Average Trading Cost GBP/USD | 1.9 pips | 0.2 pips |
Average Trading Cost WTI Crude Oil | $0.06 | $0.05 |
Average Trading Cost Gold | $0.27 | $0.19 |
Average Trading Cost Bitcoin | $76 | N/A |
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Security and Trust
Both brokers maintain a spotless regulatory track record with operating licenses in numerous jurisdictions. XM and HotForex have subsidiaries with oversight from the UK FCA, the CySEC, and the DFSA. The former also maintains units with regulation from the ASIC and the IFSC. The latter holds licenses from the FSCA and the FSA, but most international traders will deal with the unregulated unit operating St. Vincent & the Grenadines. XM and HotForex segregate client deposits from corporate funds and provide negative balance protection in most jurisdictions. From a security and trust perspective, both deliver, with XM ahead.
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Country of the Regulator | United Arab Emirates, Cyprus, Kenya, Mauritius, Seychelles, United Kingdom, South Africa | United Arab Emirates, Australia, The Bahamas, Belize, Cyprus, United Kingdom, United States |
Name of the Regulator | CMA, CySEC, DFSA, FCA, FSA, FSC Mauritius, FSCA | ASIC, CySEC, DFSA, FSC Belize |
Regulatory License Number | 801701, 183/12, F004885, 46632, SD015, C110008214, 155 | 705428, 120/10, 443670, 000261/397, F003484, SIA-F201, 0516820 |
Regulatory Tier | 1, 1, 2, 2, 4, 4, 2 | 1,1,1,4,2,4,1 |
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HotForex vs. XM : Verdict
XM earned its spot among market-leading multi-asset brokers, with HotForex following closely behind. While most of the core trading environment remains similar, XM takes the lead across the board. Both brokers offer upgraded MT4/MT5 trading platforms, but the upgrades at XM are superior. The asset selection also ranks almost on par, where XM once again provides trades with more quantity in the same markets. The most notable difference between XM and HotForex is the pricing environment, where XM maintains notably lower trading costs. It makes a difference for high-volume and high-frequency traders. Beginner traders have access to a quality educational section at both brokers together with quality research material. XM and HotForex present a generous bonus and rewards program, where XM once again takes the lead. Traders get a secure and reliable trading environment at both, but committed traders will achieve more long-term benefits at XM.
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