In today’s broker comparison, FTXM squares off against XM. The former is owned by Mauritius-based Exinity Group and the latter by Cypriot-based Trading Point Holdings LTD. Both brokers have regulatory oversight in multiple jurisdictions. This comparison will focus on the most competitive jurisdiction for each broker, specifically and respectively, Mauritius, and Belize. Since 2011, FXTM has served over 3,000,000 clients from 180 countries, with a distinct leadership position in emerging markets. Since 2009, XM has been home to more than 3,500,000 traders from 196 countries, and its management team has visited over 120 cities in an attempt to better connect with clients. Both are dependent and trustworthy brokers with excellent management teams and market share.
- Features and Platforms
- Available Markets
- Typical Spreads and Fees
- Security and Trust
- FXTM vs. XM - Verdict
Mauritius Cyprus CMA, FCA, FSC Mauritius, FSCA ASIC, CySEC, DFSA, FSC Belize N/A 2011 2009 ECN/STP, Market Maker Market Maker $200 $5 MetaTrader 4, MetaTrader 5, Proprietary platform MetaTrader 4, MetaTrader 5, Proprietary platform 0.1 pips 0.1 pips 0.2 pips 0.2 pips $0.09 $0.05 $0.18 $0.19 77.00% N/A 0.0 Pips N/A 1.5 pips N/A $0.80 - $4.00 per round lot N/A Visit Website Visit Website
Features and Platforms
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FXTM
The full suite of the MT4 and MT5 trading platforms is available, consisting of a desktop client, webtrader, or mobile version. FXTM also developed a mobile-only proprietary trading platform labeled FXTM Trader. Six MT4 plugins enhance the trading platform, but this broker does not grant more prominent third-party add-ons. Automated traders have access to free VPS hosting to traders that fulfill meet specific criteria. Manual traders may use FXTM Pivot Points Strategy, which assists in market analysis.
A well-thought-through educational section which consists of videos, articles, eBooks, webinars, and seminars offers new traders an excellent starting point into their Forex trading career. It is a genuine approach to assist clients in becoming better traders and helps to set FXTM apart from many of its competitors. In-house research consists of brief written content and market commentary videos, which adds value to this broker. High-frequency traders will benefit from the FXTM Loyalty program, which is a withdrawable cashback program.
XM
Traders may choose between the MT4 and MT5 trading platforms. The advertised XM Web Trader appears to be the MT4/MT5 web versions, as this broker does not introduce another platform. Subscribers to the VIP Education Package will receive eight custom indicators to upgrade MT4/MT5. A free VPS service supports automated traders, while XM deploys numerous bonus programs to encourage more deposits and trading volume via a points-based system, redeemable for credit bonus awards.
New traders have access to a live education room, which adds tremendous value. An extensive video library presents high-quality content, enhancing educational capabilities at XM. This broker additionally hosts Forex webinars and seminars, and is a very active member of the global community. An in-house web TV service exists, and traders receive free access to market research and trading ideas, sourced in-house and via third-parties. The overall product and services portfolio at XM remains competitive.
Available Markets
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FXTM offers 63 currency pairs together with eight commodities and four cryptocurrencies. The 175 US and European equity CFDs, eleven index CFDs, and 347 US stocks for direct share dealing complete this broker's asset list. XM has a slightly smaller Forex selection with 57 currency pairs, but a broader choice in commodities with fifteen. Unfortunately, no cryptocurrencies are available. XM does provide equity traders with 1,140 CFDs and 100 stocks plus eighteen index CFDs and eight futures contracts. While both brokers offer an outstanding choice for most retail trades, the overall asset selection at XM is significantly superior to FXTM.
Typical Spreads and Fees
0.1 pips 0.1 pips 0.2 pips 0.2 pips $0.09 $0.05 $0.18 $0.19 0.0 Pips N/A 1.5 pips N/A $0.80 - $4.00 per round lot N/A N/A N/A $5 monthly after 6 months N/A Visit Website Visit Website
FXTM carries commission-free minimum spreads of 1.5 pips in the ECN Zero Account, lowered to 1.3 pips in the Standard account. Portfolios above $25,000 (or a currency equivalent) qualify for 0.0 pips in a Pro account. The commission-based ECN MT4 account offers a competitive starting spread of 0.1 pips for a commission between $4 and $20. Commission-free CFD trading is available in an unleveraged account. XM deploys a more competitive cost structure, where the Micro and Standard account options commence with 1.0 pips, and the XM Ultra-Low account from 0.6 pips. All three are commission-free, but unleveraged share trading is commission-based.
Both brokers charge swap rates on overnight leveraged positions and forward to its traders corporate actions which impact equity and index positions, such as dividends, splits, and mergers. Deposit and withdrawal fees do not apply, but third-party charges exist, depending on the payment processor. FXTM levies a monthly inactivity fee of $5 (or currency equivalent), which is the same at XM, except for a one-time $15 charge. XM maintains a more competitive trading environment for all traders, while FXTM rewards high-volume clients. Both brokers have a loyalty program, which reduces the total trading costs.
Security and Trust
Cyprus, Kenya, Mauritius, United Kingdom, South Africa United Arab Emirates, Australia, The Bahamas, Belize, Cyprus, United Kingdom, United States CMA, FCA, FSC Mauritius, FSCA ASIC, CySEC, DFSA, FSC Belize 185/12, 777911, C113012295, 135, 46614 705428, 120/10, 443670, 000261/397, F003484, SIA-F201, 0516820 N/A 1,1,1,4,2,4,1 Visit Website Visit Website
The Financial Services Commission (FSC) of the Republic of Mauritius is the regulator of Exinity Limited, owner of FXTM, and Alpari, from where all international accounts are maintained. Complementing the business-friendly framework of the FSC is Exinity membership in the Hong Kong-based Financial Commission, which grants client deposits protection of up to €20,000. UK and EEA clients will trade with ForexTime UK Limited and ForexTime Limited, regulated by the Financial Conduct Authority (FCA) and the Cyprus Securities and Exchange Commission (CySEC). The Financial Services Compensation Scheme (FSCS) protects deposits up to £85,000, and the Cypriot Investor Compensation Fund (CIF) protects deposits up to €20,000. FXTM is a well-regulated and fully compliant broker.
While CySEC regulates Trading Point Holdings LTD, the owner of XM and Trading.com, international traders are best-served from the Belize entity, XM Global Limited, which is authorized by the International Financial Services Commission (IFSC). Three additional subsidiaries exist with regulatory oversight by the FCA in the UK, the Australian Securities and Investment Commission (ASIC), and the Dubai Financial Services Authority (DFSA). XM enjoys a clean regulatory track-record, with a high degree of transparency and security.
FXTM Vs. XM – Verdict
FXTM and XM both offer traders a well-regulated, secure, and trustworthy trading environment. Both have a seasoned management team in the driver’s seat. Moreover, each caters to more than 3,000,000 traders from over 180 countries, and each grants new traders an excellent educational section. XM has the edge in asset selection and overall cost structure, while FXTM allows higher leverage and a superior choice for high-frequency traders and/or those with more significant deposits. FXTM and XM both provide research and offer upgrades to the MT4 trading platform. XM grants a generous bonus structure. Both allow traders to manage their portfolios from an excellent trading platform. FXTM is superior for high-frequency high-volume traders. Low-frequency traders and traditional asset managers may want to consider XM.
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Broker Comparison FAQ
Both brokers are compliant, transparent, and trustworthy. FXTM regulation consists of FSCM, FCA, and CySEC, while XM is regulated by the IFSC, ASIC, CySEC, and DFSA. Both brokers maintain a safe trading environment and segregate client capital. FXTM is a superior choice for international traders due to its membership with the Financial Commission.
