AvaTrade vs XM
If you are reading this article, you’re likely having trouble deciding whether AvaTrade or XM 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 AvaTrade vs XM review, we outline the highlights of each trading platform to help you make a more informed decision. We evaluate:
|Feature||AvaTrade (visit site)||XM (visit site)|
|MiFID, Central Bank of Ireland, FSA, ASIC, BVI, FFAJ, FSCA, ADMG - FRSA||CySEC, ASIC, IFSC, DFSA|
Type of Broker:
U.S. Clients Allowed:
Commissions / Spreads:
|Spread Betting||XM Ultra Low|
*XM Zero and XM Ultra Low accounts are not available to all the entities of XM Group
Features and Platforms
While AvaTrade established itself as a reliable broker since its inception in 2006, XM has increased its market share since 2009 with an excellent product and services portfolio, challenging most of its competitors in the retail sector. AvaTrade maintains more trading platforms, including three proprietary versions versus the MT4 and MT5 at XM, which are also available at AvaTrade. Additional services like research, education, and trading tool remain significantly superior at XM over AvaTrade. Higher leverage and a lower minimum deposit requirement add to the appeal of XM, where traders will manage portfolios from a more-complete broker as compared to AvaTrade.
|Type of Platform:||MetaTrader 4, MetaTrader 5, Proprietary platform, Web-based||MetaTrader 4, MetaTrader 5, Web-based|
Guaranteed Stop Loss:
Guaranteed Limit Orders:
Interest on Margin:
When it comes to asset selection, AvaTrade and XM provide their clients with an above-average choice across multiple asset classes. The bulk of products remain in equity CFDs, where the former maintains 982 versus 1,236 at the latter. Forex traders have an almost equal amount of currency pairs with 55 versus 57, but AvaTrade has 24 commodities, while XM grants 15. With 26 index CFDs at both brokers, AvaTrade offers a broader sector choice by adding ETFs and options. XM gives investors 100 shares to create investment portfolios. Overall, most traders will find more opportunities at XM, but AvaTrade is not far behind.
Typical Spreads and Fees
Besides a more comprehensive asset selection, XM also bests AvaTrade in the pricing environment. The EUR/USD spread of 0.6 pips provides a notable difference at XM compared to the 0.9 pips at AvaTrade, both commission-free. Equity traders have to crunch the numbers on an asset-by-asset basis, as AvaTrade provides equity CFDs with a higher mark-up but no commission charge. XM maintains tighter spreads with a low commission. Traders pay swap rates on leveraged overnight positions at both brokers. Considering the $50 monthly inactivity fee at AvaTrade, where XM charges $15, followed by $5 per month, the cost structure is friendlier at XM.
Security and Trust
A secure, reliable, and trustworthy trading environment is essential for the long-term success of traders and investors alike. With AvaTrade and XM, clients have a leading multi-asset broker that excels in this category. Aside from segregation of client deposits and negative balance protection, both brokers maintain a global regulatory framework AvaTrade and XM operate under the oversight of seven regulatory jurisdictions, placing them on par with each other. Transparency also fulfills a core element of the respective business models, and neither broker has any violations of misconduct. Depending on the subsidiary, an investor compensation fund protects clients against the unlikely event of default. Both brokers remain examples of how to create a brand with integrity.
AvaTrade vs XM – Verdict
While AvaTrade provides traders with an excellent trading environment, broad asset selection, and overall acceptable cost structure, XM created a more comprehensive suite of trading tools and value-added services. The MT4/MT5 trading platforms, available at AvaTrade as the basic version only, receive an extensive upgrade package at XM. It creates a superior platform from where more assets are available. The lower minimum deposit at XM allows more traders to implement portfolio-building strategies, enhanced by higher leverage. AvaTrade falls significantly behind XM in those categories. The Loyalty Program at XM reduces trading costs further, while generous bonuses provide a boost to portfolios. AvaTrade grants neither of those and only provides a quality educational section, which is also better at XM. Completing the more attractive product and services portfolio is a high-quality market research and trading signals, which AvaTrade does not generate for clients. Between both brokers, XM maintains a notably more sophisticated trading environment, as evident by its growing market share globally.
Traders at both brokers may choose between the MT4 and MT5 trading platforms. AvaTrade does not provide any of the necessary upgrades to improve the core and below-average out-of-the-box solutions. XM offers clients six add-ons, which generate trading recommendations based on six strategies. AvaTrade also supports DupliTrade and ZuluTrade, granting superior choices.
What about MetaTrader and copy trading?
Traders at both brokers may choose between the MT4 and MT5 trading platforms. AvaTrade does not provide any of the necessary upgrades to improve the core and below-average out-of-the-box solutions. XM offers clients six add-ons, which generate trading recommendations based on six strategies. Copy-trading via MQL5 Signal Service is available at both brokers, but AvaTrade also supports DupliTrade and ZuluTrade, granting superior choices.
Which is the more reliable broker?
AvaTrade has more experience but fewer clients than XM. Since 2006, the former caters to more than 300,000 traders. The latter became operational in 2009 but is home to more than 3,500,000 clients. Both maintain a reliable trading environment, an excellent regulatory track record in multiple jurisdictions, transparent trading conditions, and are well-capitalized per regulatory requirements.