FP Markets vs XM Comparison – 2024

Top Reasons to Choose FP Markets or XM

After completing my research, I found that FP Markets offers more favorable trading costs. Founded in 2005 and regulated by several top-tier authorities, this derivatives broker provides raw spreads starting from 0.0 pips and charges a $6 round-turn commission on its Raw account, which beats the industry average. Moreover, the Raw account is accessible with a minimum deposit of only $100, making it quite affordable. FP Markets also offers a choice of platforms and access to over 10,000 tradable instruments.

In contrast, I determined that XM is better suited for automated trading. The broker supports both MT4 and MT5, which allow for algorithmic trading via Expert Advisors (EAs). These platforms also feature built-in strategy testers, enabling traders to fine-tune their strategies. Additionally, XM offers Virtual Private Server (VPS) hosting for low-latency trading, allowing algo traders to achieve execution speeds below 5 milliseconds.

FP Markets: Snapshot

Founded in 2005 and based in Australia, FP Markets offers more than 10,000 tradable instruments across currency pairs, commodities, share CFDs, indices, bonds, and cryptocurrencies. The broker integrates several highly versatile platforms that are well-suited for comprehensive technical analysis, copy trading, and automated trading. FP Markets also provides top-of-the-line research content from Trading Central and Autochartist, giving clients deep and nuanced insights into market developments.

FP Markets: Who is it For?

I determined that FP Markets is best suited for experienced traders interested in getting favorable trading conditions. The broker offers a wide array of supporting tools and content at no extra cost, and it also incorporates the professional-grade Mottai platform. Furthermore, the Iress platform provides access to more than 10,000 global stocks, catering to traders looking for a broad selection of assets.

What Makes FP Markets Stand Out?

In addition to its competitive prices, FP Markets impresses with the scope of its supporting tools and services. The broker delivers actionable trading ideas and comprehensive market breakdowns from Autochartist and Trading Central. It also offers VPS hosting for low-latency trading, which helps traders achieve average execution speeds of around 5 milliseconds.

XM: Snapshot

XM is a Cyprus-based derivatives broker that was established in 2009. It offers clients access to over 1,300 tradable instruments, including thematic indices. Its diverse range of instruments allows traders to manage their market exposure more effectively. XM also provides a variety of supporting tools and services, such as VPS hosting and actionable trading signals. Additionally, I found that XM offers a range of account types catering to different trader profiles, with the Raw account featuring lower trading fees.

XM: Who is it For?

XM is a strong option for traders interested in automated trading. Clients can build comprehensive algorithms on MetaTrader and backtest them against past price action to refine their strategies for different market environments. Additionally, XM’s VPS service allows algo traders to achieve ultra-fast execution speeds, minimizing the risk of negative slippage.

What Makes XM Stand Out?

XM distinguishes itself with its thematic indices offering, including instruments such as the Artificial Intelligence Giants US Index and the Electric Vehicles UST Index. These products allow traders to diversify their market exposure and reduce the risk they face from sudden shocks experienced by individual stocks.

Trust

FP Markets vs XM Trust and Regulation Comparison

FP Markets is authorized by a couple of Tier-1 regulators (CySEC in Cyprus and ASIC in Australia). It also holds licenses from the FSCA in South Africa, the FCA in the Seychelles, and the FSC in Mauritius. The broker provides most essential safety requirements, such as the segregation of client funds and negative balance protection, and it also operates on a ‘best execution’ basis,’ meaning it is required to provide its clients with optimal price quotes.

XM is also authorized by CySEC in Cyprus and ASIC in Australia. Furthermore, the broker is licensed by the DFSA in the UAE (Tier-2 regulator) and the FSC in Belize (Tier-3 regulator). The broker has issued a ‘best execution policy,’ meaning it takes all necessary steps to provide its clients with optimal price quotes under the prevailing market sentiment. XM also has fairly transparent legal documents and follows a rigid client categorization process.

If you want to learn more about brokers’ regulations, be sure to check out our article on the top regulated forex brokers.

Fees

FP Markets vs XM Spreads, Fees, and Commissions Comparison

FP Markets shines in the Fees category. I discovered that the broker’s Raw account offers the best balance between competitive fees and low entry requirements. It features raw spreads starting from 0.0 pips and a $6 round-turn commission per traded lot (100,000 units), with a minimum deposit requirement of only $100. Additionally, FP Markets does not charge any handling fees for deposits or withdrawals.

On its Standard account, XM charges zero commissions and floating spreads from 0.6 pips. My tests revealed that, when broken down by asset class and compared to industry averages, XM offers low spreads on share CFDs, average spreads on commodities and indices, and average-to-high spreads on currency pairs. While XM does not charge handling fees for deposits or withdrawals, dormant accounts are subject to a $10 inactivity fee.

Platforms and Tools

FP Markets vs XM Trading Platforms Comparison

FP Markets integrates the standard suites of MetaTrader 4 and MetaTrader 5, which can be enhanced with several add-ons for a more tailored trading experience. Additionally, the broker offers the seamless Mottai platform for advanced technical analysis, along with the Iress platform, which provides access to more than 10,000 global stocks. FP Markets also offers Virtual Private Server (VPS) hosting for low-latency trading.

XM also supports MetaTrader 4 and 5, which are suitable for basic technical analysis and simple order execution. The broker offers the MT4 multiterminal, specifically designed for account managers who trade on behalf of clients. XM also provides VPS hosting for low-latency trading, allowing traders to achieve execution speeds as low as 3-5 milliseconds. By comparison, the average execution speed with XM may exceed 100 milliseconds.

Tradable Instruments

FP Markets vs XM Instruments Selection Comparison

Clients of FP Markets who trade on the Iress platform are granted access to more than 10,000 tradable share CFDs. In addition, the broker offers more than 100 currency pairs, commodities, indices, and cryptocurrencies. However, it is worth noting that FP Markets does not provide lower-risk securities such as ETFs and bonds.

XM offers a choice of more than 1,300 tradable instruments across currency pairs, commodities, share CFDs, and indices. These can be traded as spot instruments, CFDs, or futures contracts. Notably, XM does not offer lower-risk securities like ETFs and bonds, nor higher-yield/risk assets like cryptocurrencies. However, the broker’s selection of commodities, share CFDs, and indices exceeds the industry average.

Customer Support

FP Markets vs XM Customer Support Comparison

FP Markets provides 24/7 customer support via live chat, email, and phone. Assistance is available in multiple languages, including English, Chinese, Japanese, Korean, Spanish, German, Arabic, and Russian, among others. Agents respond fairly quickly to new queries, though there may be occasional delays over the weekend. The support team is polite and generally knowledgeable.

XM offers 24/5 customer support in 25 different languages. The support team can be reached via live chat, email, or phone. I found that XM’s agents respond fairly quickly to inquiries and are also generally knowledgeable.

Research

FP Markets vs XM Research Tools Comparison

FP Markets excels in the research category. In addition to offering top-level market breakdowns and actionable trading ideas from Trading Central and Autochartist, the broker provides excellent in-house content available in the ‘Traders Hub’ section of the website. While most materials are text-based, there are also video market breakdowns. FP Markets places a strong emphasis on both technical and fundamental analysis in its market reviews.

XM offers comprehensive research content that covers a broad range of market developments and trading opportunities. The broker features an intuitive economic calendar and news screener, helping traders stay on top of the latest market events. Traders also have access to daily market breakdowns and actionable trading ideas. Additionally, XM provides a podcast and regular webinars, offering a more in-depth view of prevailing market trends.

Deposits & Withdrawals

FP Markets vs XM Deposit and Withdrawal Methods Comparison

Clients of FP Markets can make payments via credit and debit cards, bank wire, and e-wallets. Most payment requests are processed within the same business day, though transaction times may vary depending on the method used. The broker does not charge a handling fee for deposits and withdrawals, but traders may have to pay third-party processing fees.

XM accepts payments via bank wire, credit and debit cards, and e-wallets. While the broker does not charge a handling fee for deposits and withdrawals, third-party banking fees may apply. Payments typically take between 24 hours and 5 business days to process, depending on the chosen method.

Account Types and Terms

FP Markets vs XM Account Types Comparison

FP Markets offers two retail account types – Standard and Raw – with a minimum deposit requirement of $100. Swap-free trading is available through FP Markets’ Islamic accounts. The broker also provides a professional account with a maximum leverage of 1:200. In comparison, the maximum retail leverage with the CySEC and ASIC entities is capped at 1:30.

XM offers three retail account types – Standard, Micro, and Zero. All three have a low minimum deposit requirement of only $5, making them highly accessible. In terms of fee competitiveness, I found that the Zero account offers the most favorable pricing. It features raw spreads starting from 0.0 pips and a $7 round-turn commission per traded lot, which is marginally below the industry average.

Education

FP Markets vs XM Educational Content Comparison

FP Markets provides layered educational content, including courses, webinars, and e-books. Traders can learn about technical analysis (reading price action, chart patterns, applying indicators), fundamental analysis (understanding factors that influence market sentiment), and trading psychology (adopting the right mindset and practicing effective risk management).

XM’s educational content is primarily available in video format. Most notably, XM stands out with the sheer volume of its webinars, typically publishing one or two each week. These webinars cover a wide array of topics related to technical analysis, fundamental analysis, and trading psychology. The educational videos are well-structured, making it easy for beginners to track their progress.

Our Methodology

Since 2011, FX Empire has developed a detailed methodology for evaluating CFD brokers, involving over 250 variables across nine crucial categories. Our team of experts, with deep industry knowledge, conducts live testing and research by interacting with the brokers directly. We check regulations, open accounts, test spreads, account costs, platform functionality, instrument variety, customer support reliability, and the quality of research and educational content. This granular analysis helps us identify each broker’s strengths and weaknesses, keeping our comparisons current with market trends and ensuring our guides meet traders’ needs.

We strive to evaluate each broker objectively, considering how their offerings align with the diverse trading goals and preferences of our readers. Our focus is on providing a balanced overview of each broker’s strengths and weaknesses. This method ensures that our readers receive clear, insightful comparisons to aid in making well-informed trading decisions.

We employ a comprehensive rating system across nine key categories:

• Trust
• Fees
• Platforms and Tools
• Tradable Instruments
• Customer Support
• Research
• Deposits and Withdrawals
• Account Types and Terms
• Education

In each category, we conduct an in-depth analysis for both brokers, outlining features, advantages, and disadvantages and determining their suitability for different trader profiles. By blending insights from our extensive reviews with first-hand experiences and observations, we ensure each comparison is balanced, informative, and tailored to the trader’s unique needs. You can read more about our review process here.

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