XM vs FBS Comparison – 2024

Top Reasons to Choose XM vs FBS

After a thorough evaluation, I concluded that XM is the better option for traders seeking access to a wide range of tradable instruments across various markets. The broker offers over 1,300 instruments, including currency pairs, commodities, shares, indices, cryptocurrencies, and futures.

In contrast, I found FBS to be the better choice for beginner traders. The broker provides extensive educational content covering a wide array of trading topics. Novices can learn essential trading concepts, intermediate traders can delve into Japanese candlesticks and how to read them, while advanced traders can explore trade automation.

XM: Snapshot

XM is a forex and CFD broker headquartered in Cyprus. Established in 2009, it offers its clients more than 1,300 tradable instruments. XM incorporates MetaTrader 4 and 5, accommodating copy and automated trading. The broker also offers free VPS hosting for low-latency trading. Additionally, XM is authorized by two Tier-1 regulators, and its spreads and commissions are in line with industry averages.

XM: Who is it For?

XM is best suited for scalpers and algorithmic traders. It provides free Virtual Private Server (VPS) hosting, helping traders achieve average execution speeds below 5 milliseconds. Additionally, both MetaTrader 4 and 5 support automated trading via Expert Advisors (EAs). The two platforms also feature intuitive strategy testers, allowing algo traders to fine-tune their strategies.

What Makes XM Stand Out?

XM stands out with its thematic indices offering, which is quite unique to the broker. Clients can diversify their market exposure and target different markets by trading unique indices such as the Artificial Intelligence Giants US Index, Crypto 10 Index, and Electric Vehicles UST Index.

FBS: Snapshot

FBS was established in 2009 in Cyprus. It operates as an STP derivatives broker, offering more than 150 tradable instruments. FBS provides dedicated educational content designed to help first-time traders and somewhat experienced novices advance to the next level. The broker’s fees are fair, and its execution speeds are fast. Clients of FBS can choose between the standard suites of MetaTrader 4 and 5.

FBS: Who is it For?

FBS is a great choice for beginners. I appreciated its educational content for its wide range and diversity. The broker offers multiple written articles, courses, and e-books, as well as educational videos and webinars. These cover a spectrum of essential trading topics, including technical analysis, fundamental analysis, trading psychology, and risk management. FBS also has reliable customer support and trading fees that generally fall below the industry average.

What Makes FBS Stand Out?

FBS stands out with its comprehensive educational materials explaining the basics of automated trading. While most forex and CFD brokers allow automated trading via Expert Advisors (EAs), FBS is among a select few that teach their clients how to make that leap from retail trading to automated trading.

Trust

XM vs FBS Trust and Regulation Comparison

XM operates through four entities. Two are authorized by Tier-1 regulators: CySEC in Cyprus and ASIC in Australia. These entities comply with the strictest safety requirements, such as ensuring the segregation of client funds and providing negative balance protection. They also operate on a ‘best execution’ basis, requiring them to provide optimal price quotes. Additionally, XM holds one Tier-2 license (DFSA in the UAE) and one Tier-3 license (FSC in Belize).

FBS is authorized by two Tier-1 financial regulators (CySEC in Cyprus and ASIC in Australia), one Tier-2 regulator (FSCA in South Africa), and one Tier-3 regulator (FSC in Belize). The broker’s website is fairly transparent, with information presented clearly and in an easy-to-understand manner. Furthermore, the broker has issued a ‘best execution policy,’ meaning it is required to take all necessary steps to provide optimal price feeds under prevailing market conditions.

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

Fees

XM vs FBS Spreads, Fees and Commissions Comparison

XM’s Standard account features commission-free trading and floating spreads from 0.6 pips, though I discovered that its median spreads tend to be 0.5-0.6 pips higher. Broken down by asset class and compared to the industry average, I assessed that XM offers low spreads on share CFDs, average spreads on commodities and indices, and average-to-high spreads on currency pairs.

FBS’s Standard trading account features commission-free trading and floating spreads from 1.0 pips. This combination meets the industry average. Regarding its spreads, FBS charges low spreads on FX pairs and share CFDs, low-to-average spreads on commodities, and high spreads on indices. The broker also accommodates swap-free trading via its Islamic accounts.

Platforms and Tools

XM vs FBS Trading Platforms Comparison

XM incorporates the standard suits of MetaTrader 4 and MetaTrader 5. Both platforms accommodate basic technical analysis, easy order execution, as well as copy and automated trading. The broker also offers MetaTrader’s Multiterminal feature, allowing account managers to trade on behalf of their clients. Additionally, XM offers free VPS hosting for low-latency trading.

FBS also incorporates the standard suits of MetaTrader 4 and MetaTrader 5. Both platforms feature all basic order types (market, stop, and limit) in addition to a variety of technical indicators and drawing tools. They also include strategy testers for algorithmic traders to backtest their strategies. Additionally, I clocked FBS’s average execution speed below 40 milliseconds, which reduces the risk of negative slippage.

Tradable Instruments

XM vs FBS Instruments Selection Comparison

XM shines in the instruments category with its wide and diverse assortment of tradable assets across different markets. The offering includes currency pairs, commodities, share CFDs, and indices. The more than 1,300 share CFDs make up the bulk of the instruments selection. My one gripe is that there are no lower-risk securities, such as bonds and ETFs.

FBS offers over 150 tradable instruments across currency pairs, shares, commodities, and indices. These can be traded solely as CFDs. There are no cryptocurrencies or lower-risk securities, such as bonds and ETFs.

Customer Support

XM vs FBS Customer Support Comparison

XM can be reached 24/5 via live chat, email, and phone. The broker offers reliable support in more than 25 languages, including English, German, Spanish, Russian, Arabic, and more. When I reached out to XM, an agent responded almost instantaneously to my query. His answers were well-structured and easy to grasp.

FBS offers multilingual support via live chat, email, and phone. The support team is available during office hours from Monday to Friday. Additionally, traders can request a callback from FBS. After reaching out to them several times, I found that FBS agents respond quickly to new queries and provide well-informed answers.

Research

XM vs FBS Research Tools Comparison

XM offers comprehensive research content that covers a wide spectrum 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 are also granted access to daily market breakdowns and actionable trading ideas. Additionally, XM provides a podcast and regular webinars, giving traders a broader overview of prevailing market trends.

FBS delivers actionable trading signals on a daily basis. These are developed in-house and inform traders of currently developing trading setups. The broker also provides daily market insights to keep its clients informed of the underlying factors affecting market behavior. While FBS has an intuitive economic calendar, it lacks third-party research content.

Deposits & Withdrawals

XM vs FBS Deposit and Withdrawal Methods Comparison

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 may take from 24 hours to 5 business days to process, depending on the selected method.

Clients of FBS can deposit via bank wire, credit and debit card, and several e-wallets. The broker does not have any internal fees for deposits and withdrawals, though third-party banking fees may apply. Most transactions are processed within 1 business day, though transaction times may take up to one week to complete.

Account Types and Terms

XM vs FBS Account Types Comparison

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

FBS offers one retail trading account with floating spreads from 1.0 pips and zero commissions. The minimum deposit requirement is €100. Clients of FBS can choose between EUR and USD as a base currency. The maximum retail leverage is 1:30, though professional traders can enjoy leverage of up to 1:500.

Education

XM vs FBS Educational Content Comparison

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

FBS shines in the educational category. Its content is geared towards traders of varying experience levels. Beginners can learn about the basics of trading, intermediate traders can delve into reading Japanese candlesticks, and advanced traders can explore trade automation and algorithmic trading. FBS offers a variety of educational courses, e-books, articles, videos, and webinars, providing a wide and diverse range of educational content.

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.

Related Comparison Articles

• FxPro vs XM
• IC Markets vs XM
• FP Markets vs IC Markets
• eToro vs Plus500
• CMC Markets vs eToro
• Saxo vs Swissquote
• Eightcap vs Pepperstone
• eToro vs Interactive Brokers
• Interactive Brokers vs Trading 212