If you are reading this article, you are likely having trouble deciding whether Plus500 or XM is the better trading platform for you. While both platforms generally provide positive user experiences, there are some essential differences to note.
In this Plus500 or XM broker comparison, 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
- Plus500 vs XM - Verdict
Israel Cyprus ASIC, CySEC, FCA, FMA, FSCA, MAS ASIC, CySEC, DFSA, FSC Belize 2008 2009 Market Maker Market Maker $100 $5 N/A Proprietary platform, Web-based MetaTrader 4, MetaTrader 5, Proprietary platform 1.3 pips 0.1 pips 1.7 pips 0.2 pips - $0.05 - $0.19 82.00% N/A Not applicable N/A Not applicable N/A Commission-free N/A Visit Website 82% of retail CFD accounts lose money Visit Website
Features and Platforms
N/A N/A Visit Website 82% of retail CFD accounts lose money Visit Website
Since its inception in 2009, XM quickly grew into one of the most trusted multi-asset brokers globally. Today, it caters to more than 3,500,000 traders, offering them the full suite of MT4/MT trading platforms, enhanced by six add-ons. An excellent research division, which includes a web TV channel, and live educational sessions, complement the core trading environment. The bonus offers at XM allow traders to accelerate portfolio growth, and this broker remains accessible to all traders due to its low minimum deposit requirement. Plus500 has marginally more experience but fails to deliver value to its 200,000+ traders, who must trade via the uncompetitive proprietary trading platform at Plus500, which does not support alternatives. No other services are available at Plus500, placing it at a distinct disadvantage.
Available Markets
N/A N/A Visit Website 82% of retail CFD accounts lose money Visit Website
traders at Plus500 have more currency pairs and commodities compared to XM, with 71 and 22 versus 57 and 15, respectively. Plus500 extends its lead in asset selection with 1,737 equity CFDs, while XM maintains 1,243 but grants more index CFDs with 28, ahead of the 26 at Plus500. Completing the asset selection at Plus500 are 95 ETFs and 585 options contracts, which are not available at XM. Plus500 also provides four cryptocurrencies, missing from the choices at XM. As such, Plus500 enjoys a visible edge in tradable markets, allowing for greater cross-asset diversification. XM maintains an above-average selection, ahead of many competitors, and both have enough choices for most retail traders.
Typical Spreads and Fees
1.3 pips 0.1 pips 1.7 pips 0.2 pips - $0.05 - $0.19 - N/A Not applicable N/A Not applicable N/A Commission-free N/A N/A N/A $10 monthly after 3 months N/A Visit Website 82% of retail CFD accounts lose money Visit Website
Forex traders get commission-free Forex costs at both brokers, but Plus500 maintains dynamic market spreads plus internal markups versus 0.6 pips at XM. Traders face higher fees on equity CFDs at Plus500 to offset the absence of commissions. XM carries a minimum cost between $1.00 and $9.00 but notably tighter spreads. Traders pay swap rates on leveraged overnight positions at Plus500 and XM, but the inactivity fee is twice as high at Plus500 at $10 compared to $5 at XM. Third-party payment processor costs may apply equally, but the overall pricing environment remains superior at XM.
Security and Trust
United Arab Emirates, Australia, Cyprus, Estonia, Israel, New Zealand, Seychelles, Singapore, United Kingdom, South Africa United Arab Emirates, Australia, The Bahamas, Belize, Cyprus, United Kingdom, United States ASIC, CySEC, FCA, FMA, FSCA, MAS ASIC, CySEC, DFSA, FSC Belize 509909, 250/14, 417727, 486026, 47546, SD039, 100648-1, NOT AVAILABLE, 4.1-1/18, F005651 705428, 120/10, 443670, 000261/397, F003484, SIA-F201, 0516820 N/A 1,1,1,4,2,4,1 Visit Website 82% of retail CFD accounts lose money Visit Website
XM is one of the most trustworthy brokers today, with a clean track record maintained at five regulators. Plus500 has seven regulators and is a publicly-listed company in the UK, but has had several missteps as part of its recent history. These missteps include a 2012 FCA fine in the UK for inaccurate transaction reporting. Plus500 and XM are transparent and honest about involved trading costs and maintain adequate capital reserves. Select jurisdictions remain protected by an investor compensation fund, such as CySEC and FCA mandated ones, in the case of an unlikely default.All client funds deposited with Plus500’s Cyprus subsidiary are held in segregated client bank accounts in accordance with the Cyprus Security and Exchange Commission’s (CySEC) client funds rules. Plus500AU Pty Ltd holds client money in a segregated trust account, in accordance with the Australian legal requirements.
Plus500 vs XM – Verdict
XM presents most retail traders with an excellent choice due to its competitive core trading environment, which is supported by a quality selection of auxiliary services. The out-of-the-box MT4 and MT5 trading platforms receive an upgrade via six add-ons, and retail account management support exists through the MT4 MAM terminal. A trader-friendly cost structure, in conjunction with an above-average asset selection, make this broker a market-leader. XM is home to one of the most engaging management teams; to date, they have visited over 120 cities to promote a closer relationship with traders and partners. XM provides quality research and trading signals, and offers new traders valuable educational content which includes live training sessions. The low minimum deposit and high leverage, together with a generous bonus structure, expand its lead over Plus500. Clients at Plus500 have more assets to trade, while the trading costs are higher. The proprietary trading platform lacks core trading features, such as support for automated and social traders, and this broker does not provide value-added services. Those seeking an execution-only broker may opt for Plus500. All other traders will determine XM distinctively superior. 82% of retail CFD accounts lose money and 77.2% at XM operate at a loss.
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